Petroleum production began in the late 1950’s, and by the early 1970’s it was by far the leading export. The massive revenues from oil have led to widespread corruption that continues today. Up to a fifth of the country’s oil output, an estimated 400,000 barrels a day, is embezzled from illegally tapped pipelines. Money has also disappeared; Nigeria’s central bank claimed that some $20-billion in oil revenues had simply vanished.
IBRAHIM FATIMA TUKUR ECONOMIC IMPACT OF OIL ON THE NIGERIAN ECONOMY PAPER OUTLINE ABSTRACT CHAPTER 1: INTRODUCTION Objective of the study. Methodology. Structure of the paper. CHAPTER 2: THE NIGERIAN ECONOMY: A BRIEF OVERVIEW 2.1 The Nigerian Economy. 2.2 History of Crude Oil in Nigeria. 2.3 Performance of the Oil Sector. 2.4 Contributions and Challenges of the Oil Sector. CHAPTER 3: LITERATURE REVIEW 3.0 Overview. 3.1 Literature Review- Resource Curse 3.1.1 Are natural resources bad for development? 3.1.2 What causes the Resource Curse? 3.1.3 How can the Resource Curse be overcomed? 3.2 The Dutch Disease. 3.3 Globalization. CHAPTER 4: EMPIRICAL ANALYSIS 4.1 Regression 1. 4.2 Regression 2. CHAPTER 5: DISCUSSION AND CONCLUSION 5.1 Main findings. 5.2 Policy Implication. 5.3 Conclusion. APPENDIX: Background Tables (Regression Tables, Table of values). The Dutch Diagram. BIBLIOGRAPHY CHAPTER 1: INTRODUCTION 1.1: Objective of the study: There has been a lot of growing interest and concern on the development of petroleum and its contribution to economic development. The objective of this study is to look into the economic impacts of petroleum on the Nigerian economy by using theoretical, empirical and non-economic components to find out the positive and the negative impacts of petroleum on the growth of the Nigerian economy. Giving possible solutions to policies and the non-economic factors. Empirical evidence samples will cover all the
Increasing demand by the Nigerian people for visible contribution from the oil and gas sector to national economic growth
For example, Shell Oil, an MNC (Multi National Corporation), extracted 50% of Nigeria’s yearly crude output, and 14% of its own output from the Niger delta region (The Changing Nature of Third World Exploitation, 1995). Though a large number of the local populace was recruited by Shell to serve as the basic labor force, there has been no change in the deplorable conditions the locals were living in. Over a period of 15 years, due to massive and widespread oil spills, heavy land degradation of the alluvial soil has taken place. The locals, who come from an agriculture based society, have in effect, been deprived of their ancestral way of life, their heritage, all due to the greed driven actions of the partly
Industrialization also introduces a form of The economic factors that have affected economic development and growth in Nigeria can be segregated into internal and external factors. The internal factors reviewed dates back to the oil boom of the 1970’s when crude petroleum export began to gain ascendancy in foreign exchange revenue. The oil sector which accounted for 22% of the GDP (gross domestic product) provided about 80% of the government revenue and over 96% of export earnings in 1980 and as a result of the increase in government revenue from oil, agriculture were neglected. The share of the agricultural sector in GDP (gross domestic product) fell from 40% in the early 1970’s to 20% in 1980. Nigeria became dependent on imported food and agro-allied industrial inputs, the need for foreign capital then arose in the country for economic development and growth. Foreign capital can enter a country in form of private capital and public capital and private capital my take the form of direct or indirect investment.
Group Assignment - Project Report Case: Shell Oil in Nigeria CLASS: BUS6351 - 2010SU-25535-BUSINESS AND SOCIETY Submitted by: Group 06 Nawazuddin Mohammed Khaja Randy Janssen Olufunto
In the recent past, however, Nigeria has been hit by cases of political instability resulting in insecurity which has affected some of the oil companies like the Chevron and the Royal Dutch Shell. Escalation of major insurgencies has reduced the revenue obtained from oil as a result of the cut national output. America’s energy
To be able to full discus and understand this topic it is important to understand the players involved first. The oil industry relies on the Organization for Economic Co-Operation and Development countries (OECD) and the Organization of Petroleum exporting Countries (OPEC). The G7 or the Group of Seven are considered to be part of the OECD. These are the developed countries of Canada, France, Germany, Italy, Japan, United Kingdom, and the United States. The OPEC countries are, however, the 12 developing countries of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria,
During the 1950’s vast reserves of petroleum were discovered in Nigeria, making oil a crucial aspect of the Nigerian economy. Foreign oil companies have then since dominated the oil exploration, drilling, and shipping and 87% of the government’s revenue comes from oil production. Shell Oil decided to enter Nigeria in 1937 through a joint venture with the government owned Nigerian National Petroleum Corporation (55%), Total E&P Nigeria Ltd (10%), and Agip Oil Company Limited (5%). Shell Oil controls approximately 60% of the domestic oil market and operates majority of its facilities in the Delta region of Nigeria. The Ogoni region is a highly oil rich area in the Delta region that has been greatly affected by the environmental
Introduction Agricultural production, which used to be the mainstay of Nigerian economy, has been declining as results of crude oil discovery and subsequent increase in production and exportation of crude oil (Edo (2013). The discovery of crude oil and appreciation of oil price in the World market some years ago leads Nigerian government to abandon all other means of revenue generations, including agriculture, just to depend solely on crude oil revenue to finance most of her budgets. However, crude oil exports are no longer sustaining the economy due to the current downturn in crude oil price. For instance, the Nigerian government generated lots of revenues from crude oil exports, but majority of her populations are still under the poverty
The production and export data for this work was retrieved from the Nigerian National Petroleum Corporation (NNPC) database, the regulating body for the Oil and Gas industry, beginning from Q1, 2005, to Q4, 2013. I also collected crude oil prices from the British Petroleum website. Although the Amnesty Program led to a significant increase in oil production, it does not necessarily suggest it is the best policy that could have been adopted due to its challenges. Introduction The Niger Delta region, the Nigeria crude oil base, had witnessed numerous protests at various times by its citizens over resource wealth and control.
CHAPTER 1 ORIGIN OF PRODUCTION SHARING CONTRACTS 1.1 Background In the context of Economic Development of the country and Energy Security, the role of petroleum and petroleum products as a vital fuel will continue to be there though with a changing face. To address the global needs and demand over next 20-30 years and beyond, substantial increase in Energy Research especially in Hydrocarbon Sector is critical . The high capital investment is required for highly uncertain gains as well as a need to rely on highly expensive foreign technology for accurate exploration and production activities. Oil and gas legislations varies in every country, they depend on the purpose and the intention of regulating the countries strategic assets . However, the main objectives of each State party are the same, to take control of its assets and to get revenue for the economic development. In order to develop and to make use of its assets, the State will cooperate with International Oil Companies (IOCs) which has the ability, knowledge and experience in this industry. The adoption of an effective regime for petroleum development is strongly influenced by the geological prospects of a country and the technological and financial resources needed for exploration and production of hydrocarbons. By requiring substantial capital investments and sophisticated technical skills, petroleum developments are often beyond the resources possessed by most governments but are likely to be provided by
DROP IN PRICE OF CRUDE OIL: IMPLICATION ON THE NIGERIAN ECONOMY PAPER DELIVERED TO BOARD OF DIRECTORS OF GUINNESS NIGERIA PLC Executive Summary The volatility in the prices of crude oil in the international oil market which was triggered by factors within the global economy has impacted the Nigeria economy to some degree with dire consequences for the implementation of the 2012 budget. Some of the factors which triggered the fall in oil prices include a massive liquidation of net-long speculative positions, a deepening Euro-zone crisis as well as concerns over a weakening economic outlook, steady rise in global crude stocks, weak US jobs data, and a slowdown in Chinese manufacturing activity.
1. O INTRODUCTION The purpose of this chapter is to give an introduction to the motive for selecting the implications and importance of oil and gas investment as the main subject of this project work. The background and history of this project are followed by the subject, providing an introduction to
The Political Economy Of Illegal Bunkering In Nigeria By Kòmbò Mason Braide (PhD) Port Harcourt, Nigeria Demonise & Diabolise: The Niger Delta has been a source of illicit international business deals (like the trans-Atlantic slave trade), as far back as the 15th century. Today a new form of syndicated criminal proclivity is threatening the very foundations of Nigeria’s petroleum industry, and by extension, the Nigerian economy, as well as putting tremendous pressure on Chief (General) Olusegun Obasanjo. That problem is the "illegal bunkering" of crude oil and/or its derivatives.