Introduction
Nigeria, one of the most populous countries in Africa achieved independence from Britain in 1960, a time when primary agricultural products like groundnuts, palm oil, cocoa beans. Cotton and rubber dominated the exports. Oil till the 1950s was nowhere in picture of the Nigerian macro-economy. However, the discovery of oil wells in the Niger delta region of Nigeria in great quantities changed the entire macro-economic scenario of Nigeria. Oil wells were discovered in 1956, but production did not start until 1958. Nigeria’s economy soon became heavily dependent on oil with a production level of 1.9 million barrels per day in 1958 to 2.35 million barrels per day in the early 2000s.
With the advent of this discovery, oil became one
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However, it proved to be otherwise for a country like Nigeria. The emergence oil and the economy turning into a mono product economy in no time gave rise to what is commonly referred to as the Dutch-disease. A situation where the there is a sudden decrease in the manufacturing or the agricultural sector despite increase in the exploitation of natural resources. The economy of Nigeria is constantly exposed to oil price shocks and market vulnerability since oil contributes to over 90% of the total revenue. Eventually, fluctuations in the international market would lead to significant problems in planning of fiscal and monetary policies. Ironically Nigeria’s windfall gains from the discovery of oil did not translate into economic growth or development. It was observed by several economists that the emergence of oil as a dominant commodity for exports magnified the country’s problems. The impact of which resulted in almost a national …show more content…
The rural sector was not immune from the government’s blend of mismanagement and corruption, which aggravated the problem of the decline in the agricultural sector. Thus, due to various reasons like stated above Nigeria, an oil dependent country has been highly vulnerable to fluctuations in oil price and as failed to move the economy on a path of sustained development.
Furthermore, oil abundance has generally not improved the circumstances but rather has led to negative externalities due to increased pollution of rivers and agricultural land. These factors have led to a desire by certain groups (such as MEND) to gain a greater share of the oil wealth which has resulted in civil and political conflict as well as vandalism of oil infrastructure, which has further increased environmental problems. Therefore, it is important for Nigeria to focus on its endowment of gas resources,
Since 2009, state crude oil production has increased 86.5%, one of the larger increases in the country. In this case, the increase in oil production in Oklahoma has positively affected its economy (Kent). It has contributed to more than half of the state’s Gross Domestic Product growth rate which is 2.8%. This contribution is so noteworthy, that if Oklahoma didn’t produce oil it would be near the bottom in growth compared to the other states. Since the oil does contribute to the growth, Oklahoma is rated as one of the top in GDP growth rate.
Nigeria’s economic prospects were what fueled the passion of most politicians from both the North and South of Nigeria. This meant that when Nigeria finally gained independence these politicians made sure that there was no room for outside interference with how the country’s economy was run. Therefore, to understand the reason for the economical difference between Northern and Southern Nigeria in the fifteen years following independence one would have to examine the financial decisions and events that set Nigeria’s economy on a path that was nothing short of disappointing by the end of
Despite being a mere 5% of the world’s population, the U.S oil-based economy consumes 25% of the world’s petroleum. In fact, 98% of transportation energy comes from petroleum products. The entire agricultural industry is reliant on oil. This dependence on imported oil has been expected to increase drastically over the next 25 years. Accordingly, the U.S is expected to import 70% of its oil in 2025.
An oil spill is a release of a liquid petroleum hydrocarbon into the environment, it is a form of pollution that tends to be caused by human mistakes or carelessness. When oil is being transported across the ocean though pipelines or by ships there is a lot of room for accidents to happen. Accidents involving tanks, pipelines, drilling rigs and storage facilities are very common, but the attention tends to revolve around the bigger, catastrophic spills rather than the little ones that happen frequently (Kaushik, 2016). There are on average 70 spills happening every day, mostly insignificant, but still worth preventing. (Biello, 2013)
Exxon Mobil and the Chad-Cameroon Pipeline 1. Is this an attractive opportunity for Exxon mobile? Considering the financial perspectives of the project, the project was bound to create huge revenues for all the parties involved in the project. According to World Bank, this project would create a revenue of $2billion for Chad and $500 million for Cameroon.
But now countries, private companies are extracting it so much that it will run out, and people will not have any means of work in order to feed their families. As the movie displayed, it shows that Chain increased their oil import by twenty-five percent, and they are number two in oil import. With the high demand of oil, it is said in the documentary that countries might get into a great recession once again. In other to prevent these kinds of problems, such as, lack of unemployment, and recession from occurring in countries with natural resources, they need to invest in alternate resources for the future generation of their
(Tettey, 2003:4). The discovery of oil in the Niger-Delta region of Nigeria in 1950 ushered in a new era of greater political instability. There are a number of different parties involved in the conflict, including the government, various ethnic groups competing on the oil, the identity and ownership of the land, militant groups and multi-national corporations. Although there has been an increase in economic activity in this area, the people of the Niger-Delta not benefited from revenues and approximately 70% of the population lives on a dollar per day (Rosenau, chalk, McPherson, Parker & Long, 2009). Oil activities of multinationals and the growing number of oil spills, the burning of gas and pipeline explosions have contributed to environmental degradation
It explains how oil has led to corruption and large environmental impacts. Some of the environmental impacts include oil spills in large bodies of water and gas flares in the Niger Delta. The documentary ties in how urban sprawl impacts the use of vehicles and the amount
In the United States, there are several states that, if drilled in for oil, would prove beneficial to the U.S. The one problem being, we don’t drill in these areas, but why is that? There are several pros and cons that come with drilling for oil. Let’s start with the cons. Pollution is a large and obvious problem when drilling for oil.
2. One of the key impact/effects of the European colonial rule in Africa was the integration of African economies into a global capitalist economy. Drawing from your textbook and discussions, explore the transformations of the African economy during the colonial rule. Be sure to discuss such sectors as agriculture, transportation, mining and labor.
Since Europeans went to Africa to sign so-called peace treaties, as a result this caused imperialism. Nigerians have a long history of music, traditional dancing, visual art, and oral literature. Modern drama, opera, cinema, films, and written literature build on Nigeria 's cultural heritage(Gall, Hobby, “nigeria”). “Africa has great mineral wealth, including huge deposits of copper, diamonds, gold, and petroleum. It also has valuable forests.
Less developed countries, such as African countries, largely depend upon single primary commodities for economic growth. There are several drawbacks to such a reliance on a primary product for the growth of the economy (Stein 1970: 607). Such economies are not able benefit from comparative advantage, due to the inability to direct resources towards other sectors, such as industry, with a greater potential for growth (Stein 1970: 611). According to Nafziger (2006: 611), less developed countries are “vulnerable to declining terms of trade due to the inability to shift resources to accommodate shifting patterns of comparative advantage”. Additionally, manufacturing exports are produced at a much faster rate than primary products.
The degradation of the environment in the Niger Delta, is a direct result of oil companies that have failed to take social responsibility into consideration in their various operations. The numerous environmental consequences of oil exploration have become huge obstacles that face development in the Niger Delta. One of these obstacles are oil spills, which mainly occur
Low productivity and 7. Endemic corruption, greed. Given the Nigeria’s socio economic and political disposition Globalization presented more challenges for the country for it lacks what is needed to be relevant and deal with it untill the nation can achieve a certain measure of good governance, modest economic