TOPIC NIGERIA OIL, BLESSING OR A CURSE? THE PROBLEM STATEMENT Before discovering commercial quantities of crude oil in 1956 in the town of Oloibiri in present-day Bayelsa State, Nigeria was renowned for its agricultural economy. Rubber from Delta State in the south-south area; groundnut and skin in the northern region; cacao beans in the western region; coffee and cocoa in the western region; and palm kernels (and oil) in the eastern region were key sources of foreign currency. The discovery of oil and other sources of revenue generation are supposed to sp...
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BE THE JUDGE A few comparisons between Norway, United Arab Emirates, and Nigeria will be put in context to enable you to pass an unbiased judgment. THE GOOSE THAT LAID THE GOLDEN EGG According to Wikipedia, the region known as Niger Delta is over (27,000 square miles) less than 8% of the total geographic area of Nigeria. It is Africa's third-biggest drainage basin and the continent's largest wetland. The Delta's four ecological zones are the barrier islands along the coast, the mangrove swamp forests, the freshwater swamps, and the lowland rainforests. It's made up of Bayelsa, Delta, Akwa Ibom, River, Imo, Ondo, Abia, Edo, and Cross River, which are home to more than 30 million people (NIGER DELTA UNDP 2006). Experts say the following key states, Rivers, Bayelsa, Akwa Ibom, and Delta, hav...
NORWAY Norway produces 2.4 million barrels daily,(Hundley, 2007). Is the 5 th world largest exporter of oil in the world. Oil reserves in Western Europe are the greatest of any nation in the region, with 5.497 billion barrels of proven reserves as of 2015 (OPEC 2015). When it comes to avoiding the resource curse, Norway is frequently considered as a role model for other oil-rich nations. There has been a significant reduction in rent-seeking and corruption since oil was first found in 1969. It has become one of the world's leading producers of oil and gas. There were no major changes in the country's economic structure as a result of unexpected oil cash infusions, and existing industries were not affected. Norway also put its oil money to good use, investing it in long-term economic development (...
UNITED ARAB EMIRATE UAE It is estimated that the United Arab Emirates (UAE) produces 3.5 percent of the world's oil, making it the second-biggest oil producer in the Middle East. In 1958, oil was found. Consequently, the country's meagre natural resources led to a primitive subsistence economy prior to the discovery of oil. 1962 marked the commencement of oil exports, while the 1970s marked the beginning of economic progress. Following a sharp surge in oil prices in 1973, the country's official economic, social, and political institutions were established at the same time as a significant increase in oil production and exports. In the early 1990s, the nation saw a tremendous transformation. UAE's rapid expansion has been mostly fueled by the discovery and extraction of oil since the 1970s. To boost production efficiency. There were 98.8...
THE DUTCH DISEASE EFFECT IN NIGERIA OIL PRODUCTION Before the oil boom phase, the early 1970s government relied heavily on agricultural earnings. Cotton Groundnut, Lumber, cocoa, palm oil, hides, and skins were among the many agricultural goods exported by Nigeria employed in a wide range of industrial processes both locally and abroad. Nigeria's agriculture sector formerly employed more than 70 percent of the population (Ugochukwu & Ertel, 2008) and was the Nation's leading exporter of Palm oil (PIND, 2011). The agricultural sector was largely replaced with the oil boom as capital inflow sky-rocketed. Oil accounts for around 80% of the government's income and 95% of export revenues in recent years (Junior, 2015). Oil money has had a detrimental impact upon Nigeria's economy because of a lack of investment in a better standard of living, education, and other sectors of the economy. Corruption and oil policy execut...
ENDEMIC CORRUPTION AND ITS EFFECT Dishonesty for personal gain, use of authority for personal gain, depravity, and severe immorality are all examples of corruption (Usman, 2011). Public or private parties abusing their official positions and resources or exercising unauthorized political influence and power are examples of this term's use (Ogundiya, 2009). According to Lawal and Victor (2012), corruption is Nigeria's greatest threat to effective government, which has resulted in corrosive and persistent poverty among the population. When new but illegal transactions are injected to affect the usual sequence of events, judgments and positions of trust are distorted as a result (Ojukwu & Shopeju, 2011). It involves the employment of informal, extra-legal, or criminal behaviors by both the doer and the receiver to expedite the process. Public discussions in Nigeria have lately focus...
RENT-SEEKING: AS A SYMPTOM OF A RESOURCE CURSE! Rent-seeking is an attempt to enhance one's portion of the current wealth without producing new wealth. As a consequence of resource misallocation, rent-seeking effects economy negatively . In Nigeria, rent-seeking has become the most "prominent activity" (Ogwumike & Ogunleye 2008, as cited in Elwerfelli, 2018) . With regional and ethnic rivalry for oil income, the political system in Nigeria became one of institutional patronage (Jensen and Wantchekon 2004) . Although the political climate has improved recently, the nation was ruled for many years by military administrations that were repeatedly overthrown in military coups. As a result of counter-coup attempts and subsequent civil conflicts, the military leaders themselves were at ris...
ENVIRONMENTAL CURSE OF OIL PRODUCTION IN NIGERIA OIL SPILLAGE Corrosion and equipment failure are major causes of the environmental and economic harm caused by oil spills in the Niger Delta, despite the region's abundant oil economy. Oil spills in the Niger Delta have occurred a total of 7943 times since 2006 to 2019 with 62 percent attributed to corrosion inland and just 7 percent due to equipment failures (Akinwumiju et al., 2020). Accidents and operational releases of petroleum hydrocarbon into the environment may also lead to oil spills. Another reason for oil spills is improper oil bunkering (Egbe, and Thompson 2010). ...
AVAILABLE DATA FOR COMPARISON https://www.theglobaleconomy.com/rankings/ Maternal mortality per 100,000 live births, 2017 - Country rankings: based on 182 countries Measure: deaths per 100,000 births; Source: UNICEF NIGERIA Ranking from the highest mortality 3/182 NO. OF DEATH 917/100,000 NORWAY Ranking from the highest mortality 181/182 NO. OF DEATH 2/100,000 UNITED EMIRATE Ranking from the highest mortality 178/182 NO. OF DEATH 3/100,000 Poverty, percent of population, 2018 - Country rankings: Measure: percent; Source: The World Bank NIGERIA PERCENTAGE 40.80% NORWAY PERCENTAGE 12.70% UA EMIRATE NO DATA ...
CONCLUSION Nigeria is a classic example of a resource curse with available data at hand. Even with the volume of money Nigeria has generated from oil exports since independence, the country has failed to achieve long-term economic development because of its dependency on oil, and the economy has stagnated. Another essential factor in Nigeria's progress is the quality of its institutional framework, which directly impacts economic growth. There is also a strong link between Nigeria's degree of corruption and its ability to expand its economy in a positive direction. Therefore, I will advocate for Nigeria to resolve its oil dependency by focusing on diversification and industrialization, upgrading its institutions, and ensuring more transparency and accountability in governance.
REFERENCE Ogundiya, I.S. (2009). Political Corruption in Nigeria: Theoretical; perspectives and some explanations, Anthropologistics 11(4) 281-192. Lawal, T., & Victor, O. K. (2012) Combating Corruption in Nigeria. International Journal of Academic Research in Economic and Management Sciences, 1(4), 1-7. Ojukwu, C.O., & Shopeju, J.O. (2010). Elite corruption and the culture of primitive accumulation in 21st century Nigeria international Journal of Peace and Development Studies, 1(2), 15-24. Nwankwo, O. (2014). Impact of corruption on economic growth in Nigeria. Mediterranean Journal of Social Sciences, 5(6), 41-46. Hundley, T., (2007). Oil-rich Norway guards its wealth, The Seattle Times Company, OPEC, (2015). “Organi...