Oil Industry In Nigeria

2.1.1 Crude oil Sector Crude Oil has been the major revenue yielding export commodity since 1965. The first major oil exploratory work in Nigeria was conducted by the Nigerian Bitumen Corporation, Nigerian Subsidiary of a German Company between 1907-1914, by 1914 the Nigeria Bitumen Corporation was forced to withdraw from Nigeria due to the beginning of the First World War. In 1938, a joint venture between the two major British Oil Companies Shell and British Petroleum (BP) was granted the license to explore Oil Covering the entire territory of Nigeria. In 1956, the Shell-BP found oil in commercial quantities for the first time at Olobiri Bayelsa State, it

Many manufacturing industries sprang up and the economy experienced a rapid growth of about 8 percent per year that made Nigeria, by 1980, the largest economy in Africa. The military regimes of Murtala Muhammad and Olusegun Obasanjo benefited from a tremendous influx of oil revenue that increased 350 percent between 1973 and 1974. Foreign companies such as Shell-BP, Exxon-Mobil, Chevron, Agip and Texaco, operated in partnership with the government in the oil sector. The capital-intensive oil sector provides 95% of Nigeria’s foreign exchange and 65% of its budgetary revenues. A major feature of Nigeria’s economy in the 1980’s was its dependence on petroleum which accounted for 87% of export receipts and 77% of the Federal government revenue in 1988 Nigeria’s membership in Organization of the Petroleum Exporting Countries (OPEC), has enabled Nigeria participate in crucial decisions on crude oil production setting for all OPEC members and also given Nigeria the consciousness of the need of a skillful bargaining at the international market. In 1982 when major Oil companies in their determination to pressure Nigeria to align her price with that of British National Oil Corporation (BNOC) refused to lift Nigerian Oil to paralyze her economy, OPEC announced its

The Agricultural sector contributes to economy development through; product, market and foreign exchange development. The agricultural sector in Nigeria has been growing at a very low rate, despite its rich agricultural endowment; the Agricultural sector has suffered from years of mismanagement, inconsistent and poorly conceived government policies and neglect for lack of infrastructure. Nigeria’s challenge is for the eradication of poverty, attainment of food security, agricultural competitiveness, this approach to rely on oriented invested and commercialization of agricultural sector. The neglect of the agricultural sector and dependence on crude oil based economy has not yielded the good outcome for the Nigerian economy. The Nigerian government from 1975 became involved in the commercial production of food crops, there have been large-scale agricultural projects specializing in the production of grains, livestock, dairies and animal feeds. The Nigerian Agricultural and Co-operative Bank (NACB) established in 1973 as part of government’s effort to injects oil wealth into the agricultural sector through the provision of credit facilities to support agriculture and agro-allied businesses.