Nigeria heavily subsidizes fuel for consumers, as a way of maintaining social stability a common policy in countries afflicted by the resource curse. Africa is a region abundant in natural resources and rich in vast oil reserves. Oil boom in nigeria and its consequences for the country s. At that time, nigeria was selfsufficient in food, but as oil sales increased, nigerians took it easy. The bbc s sue lloydroberts argues that nigerias black gold has brought wealth to a few but fuels greed and corruption on a grand scale. Darke in 1859 to 1956 when crude oil was first discovered in commercial quantity at.
The question of whether crude oil is a curse or blessing for nigeria, has remained and will continue to be an inconclusive one. This paper examines the question as to whether crude oil resource is a blessing or curse to nigeria. The economic minister meets with the prime minister. Pdf the resource curse in nigeria a story of oil and corruption. In many cases the petroleum industry has played a pivotal role in this growth. Jan 03, 2009 the curse of nigerian oil attacks on oil industry facilities and kidnappings for ransom are frequent in the creeks of the niger delta, which is home to africas biggest oil and gas industry. Oil in nigeria has proven to be much more of a curse, rather than a blessing for the country. How nigeria can escape the naturalresource curse bloomberg. Its time for africas leaders to address the problems that hinder the development of the continents natural resources. Many oil, gas and mineralrich countries have failed to reach their full potential as a result of their natural resource wealth. This will be followed by an examination of the positive impact of oil revenue in nigeria. Apr 23, 2012 while being a large country with great oil reserves but such great poverty, nigeria has the potential for success.
Apr 02, 2015 accordingly, corruption may be considered an integral part of the curse of oil and a fundamental consequence of the resource course that nigerias oil represents thompson, 2007. Why does prosperity from oil all too often fail to provide a sustainable base for economic development and poverty reduction. As paradoxical 1 athari hesham 201117538 as that may sound, oil has brought little more than conflict. Nigeria, oil and the yamani syndrome, made available to the guardian on, believed that crude oil power status had seen the country. The world bank, multinational oil corporations, and the resource curse in africa emeka duruigbo remember, i lived in nigeria exactly at the time the oil boom started.
Abundant natural resources have a long history of fueling tensions and are believed to be the single largest predictor of civil conflict collier and hoeffler 2004. The effects of resource curse and misuse of natural resource wealth, especially in the extractive industries, are well documented. United states of america where the first all well was drilled by edwin l. The discovery of oil was therefore considered not a blessing, but a curse. A nigerian newspaper and online version of the vanguard, a daily publication in nigeria covering nigeria news, niger delta, general national news, politics, business, energy, sports. Nigerias oil discovery in the lake chad basin should not be taken as a blessing. The legislative framework regulating the nigerian oil industry, including the constitution of nigeria 1999, land. The classic case of a resource curse nigeria is the largest oil producer in africa and the sixth largest exporter in the world. It is against the forgoing that this study examines oil, a blessing or a curse in nigeria.
Sir, he says, i have got some good news and bad news. States whose economies are largely reliant on the resource industry with little diversity tend to be prone to corruption. Pdf the resource curse in nigeria a story of oil and. Nigeria joined the organisation of petroleum exporting countries opec in 1971 and established the nigerian national petroleum company nnpc in 1977, a state. State instability and violence in developing countries. Rethinking the oil curse much has been written about the oil curse, a complex of political and economic dysfunctions afflicting nearly all oilproducing countries to some degree. A paradox of plenty and resource curse have become two most commonly used phrases to describe the impact of oil wealth on the economies of producing countries. Africa publish your bachelors or masters thesis, dissertation, term paper or essay. Natural resource curse, niger delta crisis and oil exploration in. Oil boom in nigeria and its consequences for the country s economic development irina romanova term paper english language and literature studies culture and applied geography publish your bachelors or masters thesis, dissertation, term paper or essay.
In the mid2000s, oil theft, and the vast revenue it produces, allowed for a conflict to. On the dynamics of the oil resource curse in nigeria. Oil was discovered in nigeria in the 1950s when it was still a british colony. Is oil in nigeria a growth cure or a resource curse.
May 12, 2017 since the discovery of oil, nigeria has been faced with greater inequalities in wealth, an ecological system devastated by major oil spills and immense corruption. Oil has been a mixed blessing to many african countries, providing great wealth but also bringing with it the curse of corruption. There are a different ways by which the link between nigerias oil wealth and delivery of public services may be contextualized and evaluated. In past decades, nigerian rulers may have plundered oil wealth to the tune of tens of billions of dollars. Nigeria appears to be looking gleefully past those lessons and its own experience with oil extraction in the niger delta. I follow the argument that oil wealth in nigeria is rather a curse than a blessing on both livelihoods and the economy. Pdf while being a large country with great oil reserves but such great poverty, nigeria has the potential for success. The impact of the discovery and exploration of crude oil on the environment in nigeria has been described by some environmentalist as a curse rather than a blessing because of the destruction it. The paper traces the origin of oil exploration and exploitation from titusville in pennsylvania. Bachelor of arts nico grunewalder research paper postgraduate politics international politics region. Apart from these two authors, no standard monograph on the nigerian oil industry has attempted a detailed examination of the exploration for oil there before the 1950s. How to reverse nigerias oil curse carnegie endowment for. Nigerias economic recession and oil resource curse the.
The subsequent part of this paper is divided into the following sections. The oil curse is the best and most thorough examination that we have of the causes and consequences of oil wealth for poorly governed states. Yet, nigeria is unanimously presented in the literature as the classical. In 1970, the end of the biafran war coincided with the rise in the world oil price, and nigeria was able to reap instant riches from its oil production. This study aims to extend the frontier of knowledge by estimating the impact of the oil price shocks on the nigerian economic growth using aggregate demand framework that theoretically connect analytical variables, rather than. In the developing world, the oil states were just as likely as the non oil states to have authoritarian governments and suffer from civil wars. Panelists discussed the history of oil management on the continent and how countries such as ghana and liberia, which are at the early stages of oil development and production, can avoid these obstacles. The inauguration of nigerias new president, muhammadu buhari, sets the stage for an unprecedented alliance of public and privatesector actors to perform something close to a miracle.
In recent years a number of african economies have seen an accelerated gdp growth rate. Nigeria is one of the largest crude oil producing nations and 90 percent of its foreign exchange earnings are generated from crude oil sales. Public regulation of the oil and gas industry in nigeria. Revisiting the oilviolence link in the niger delta. Resource curse, natural resources, oil exploration. The idea that resources might be more of an economic curse than a blessing began to emerge in debates in the 1950s and 1960s about the economic problems of low and middleincome countries. Nigerias economic recession and oil resource curse. As seen in nigerias oilrich niger delta, discontent among local communities in the lake chad basin could lend support to boko haram or subsequent militant groups. This paper studies the oilviolence link in the niger delta, systematically taking into con sideration.
Nigeria is about the size of texas, with over 200 million people. The world bank, multinational oil corporations, and the. The resource curse in nigeria a story of oil and corruption. Jun 10, 2010 while this site does not have a particular section on nigeria, it is very broad and deep at the same time and can help put something like the struggle for oil, freedom and basic rights in nigeria into perspective with similar struggles throughout history. The second part of the article will focus on the public regulation of the oil and gas industry in nigeria. Oil curse, state instability and violence in developing. Corruption, violence, waste, and government ineptitude have all led to its lack. Nigeria, natural resources, oil, political economy, violence, context sensitivity. The term resource curse encompasses the significant social, economic and political challenges that are unique to countries rich in oil, gas and minerals. Africas oil curse, the example of nigeria cleantechnica.
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