The Petroleum Revenue And Economic Growth

1610 Words Nov 4th, 2016 7 Pages
PHD ECONOMICS ADMISSION RESEARCH PROPOSAL
DEGREE: DOCTOR OF PHILOSOPHY
DEPARTMENT: ECONOMICS DEPARTMENT.
PROPOSED TITLE: The Petroleum Revenue and Economic Growth in Nigeria.
INTRODUCTION AND BACKGROUND
The Petroleum industry in Nigeria is the largest source of government revenue and it occupies a pivotal position in term of foreign exchange earnings with about 90 percent and over 80 percent contribution to the Gross domestic product. Petroleum sector is the mainstay of Nigerian economy since its discovery in commercial quantity in Oloibiri, Bayelsa State Nigeria in 1956. From 1970 to 2009, the income from petroleum stood at 82 percent with 18 percent from non-oil revenue. According to the world bank, “Nigeria is the biggest exporter of oil in Africa with the largest natural gas reserve in the continent”. One of the main sources of petroleum income to the Nigerian government is the petroleum Profit Tax. This petroleum profit tax emanates from the major oil companies operating in Nigeria like Shell, Elf, Agip, Mobil, Chevron and Texaco. These major oil corporations hold around 98 percent of the oil reserves and operating assets. Some other minor corporations within the range of 45 to 50 has minor interest with recent acquisition of some of them. Nigerian Petroleum industry has three major players in the oil industry: The ministry of Petroleum resources, The Nigerian National Petroleum Corporation (NNPC) and its subsidiaries, the oil prospecting companies; both…
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