We are members of the emerging democratic Nigerian government. Although previously under a military dictatorship, we are trying to present a new face to the international powers present at the forum. Even with the change in government, we have maintained ownership of 55-60% of the oil extracted from Nigerian lands by the international companies Shell, ChevronTexaco, ExxonMobil, Agip, Elf, and Pan Ocean (Bureau). This provides our country with $60 billion in revenue, half of which is divided up evenly and distributed to each of the thirty-six state governments for use (O’Neill). As part of our government, the Ministry of Petroleum Resources currently controls and supervises “4,500 miles of pipelines, 159 oil fields and 275 flow stations” within our nation’s borders. We have joined the forum here today in hopes of addressing several pressing matters of the social and environmental climates in Nigeria, and to look for the best way to continue our lucrative business arrangement with those present.
There are three main problems existing in Nigeria. The first is the environmental damage being done by the oil rigs (O’Neill). As the oil spills and gas flares leak into the air and water ways, they not only kill off the animals and plants, but they then affect the Nigerian people. The lack of food sources and clean water supply leads to starving citizens with dangerous health problems from inhaling the toxic fumes. The second and third major problems are being caused so-called rebels who are not only bombing oil pipelines throughout the country, but are also kidnapping hundreds of the pipeline workers for ransom money—asking for as high as $10 million each. Among the parties at the forum today, the international corporations are obviously...
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...or Energy Economics. Print.
"Economic Sabotage: Rescuing Oil Majors, Nigerian National Petroleum Corporation with HDD Technology." Trenchless Technology. Benjamin Media, 16 Feb. 2009. Web. 11 Mar. 2012
"Nigeria: Exploration History." All Business: Small Business Advantage. APS Review Gas Market Trends, 2 Aug. 1999. Web. 11 Mar. 2012.
Poison Fire. Dir. Lars Johansson. Perf. Ifieniya Lott, Ishaya Garau, and Lars Johansson. Friends of the Earth International, 2006.
O'Neill, Tom. "Nigerian Oil: Curse of the Black Gold." National Geographic. National Geographic Society, Feb. 2007. Web. 10 Mar. 2012.
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One of these factors was the logistical nightmare of redeveloping the infrastructure needed to transport oil to the refinery. As early as 1881, Standard oil operated approximately 3,000 miles of pipelines, eventually owning ninety percent of the nation’s pipelines. Although transcontinental railroads were an available alternative, pipelines were cheaper, reduced handling and storage fees, and were more efficient. The fact that modern oil companies invest hundreds of millions of dollars into speculating for sustainable natural oil deposits implies that such deposits are rare and hard to identify with a passing glance. If the spurts of oil proved to be isolated incidents, the capital invested in building pipelines and reestablishing a monopoly would have been squandered.
Pratt, Joseph A. “Exxon and the Control of Oil.” Journal of American History. 99.1 (2012): 145-154. Academic search elite. Web. 26. Jan. 2014.
Gambrel, Jon. “Nigerian Rebels Seize Seven Oil Workers”. Sydney Morning Herald. Retrieved on 21 Nov, 2011 from
Oil-Led Development: Social, Political, and Economic Consequences. CDDRL Working Paper 80. Robinson, J. A., Torvik, R. & Verdier, T. (2006). Political Foundations of the Resource Curse. Journal of Development Economics, 79, 447-468.
" Oil is the life blood of our modern industrial society. It fuels the machines and lubricates the wheels of the world’s production. But when that vital resource is out of control, it can destroy marine life and devastate the environment and economy of an entire region…. The plain facts are that the technology of oil-- its extraction, its transport, its refinery and use-- has outpaced laws to control that technology and prevent oil from polluting the environment…" (Max, 1969). Oil in its many forms has become one of the necessities of modern industrial life. Under control, and serving its intended purpose, oil is efficient, versatile, and productive. On the other hand, when oil becomes out of control, it can be one of the most devastating substances in the environment. When spilled in water, it spreads for miles around leaving a black memory behind (Stanley, 1969).
Mail and Guardian (2013)Nigeria’s dangote uses $3.3bn loan to build Africa’s biggest oil refinery .6:23.Available at: http://mg.co.za/article/2013-09-05-dangote-33bn-refinery-to-turn-nigeria-into-oil-exporter [Accessed: 5 September 2013]
Nigeria contains more historic cultures and empires than any other country in Africa. People were first known to inhabit Nigeria as early as 5 B.C. They first constructed a kingdom in the center of Nigeria, which is named Jos Plateau. This was the first of many widespread kingdoms of that region, but two centuries later it would extend to Bornu, which is located on the western region of Nigeria (Gascoigne 1). Nigeria was made up of mostly kingdoms until British colonized in the 1800’s. The Soko Jotojhad and Yotruba wars encouraged slave trade at the time the British were trying to abolish the slave trade. Slaves were normally traded for European goods such as guns and gun powder. At this time, the British encouraged trading palm oil over trading slaves. Many of the slaves that were exported to Britain were intercepted by naval ships and shipped to Sierra Leone to collect palm oil. Some Nigerians began to migrate back from Sierra Leone in search of their homes and trade. British missionaries were invited to follow the slaves back, and in the 1840’s they wer...
3) Colonialism It talks about how colonialism is a comple topic in Nigeria and how it affects the
oil in Nigeria. Nigeria’s large supply of high quality crude oil helped Shell climb to the top,
The question to be answered in this paper is to what extent has the resource curse affected the Nigerian economy and government? Resource curse is a term that states the observation that countries that have a plethora of natural resources (e.g. oil, coal, diamonds etc.) usually have unstable political and economic structures (Sachs, 827). Nigeria is categorized as a nation that has succumb to the resource curse as it has an abundance of, and an overdependence on, oil, and a decreasing gross domestic product (GDP) (Samuels, 321-322). Nigeria is known for its specialization and overdependence on oil and according to Ross, nations of such nature tend to have high levels of poverty, large class gaps, weak educational systems, more corruption within the government, and are less likely to become democracies (Ross, 356). The political instability and regime change in Nigeria will be observed in this paper. The resource curse has greatly weakened Nigeria as it has led to the numerous regime changes, the hindering of the nation’s democratization, corruption in the government, as well as, civil conflict.
Nigeria was a great area for the British to manufacture goods, so Nigeria became part of the British imperial expansion that focused on exploiting raw materials and minerals that were important to Western industrial development. Britain mainly tried to stimulate tropical export crops in Nigeria and to get demand in the area for British manufactured goods. Developments such as the introduction of the pound sterling as the universal medium of exchange, encouraged “[The] medium of exchange, encouraged export trade in tin, cotton, cocoa, groundnuts, and palm oil” (Metz 1992). Specifically, the important product that the British wanted to export was palm oil. Palm oil was the type of oil used for cooking all over the world that comes from the palm oil tree. Nigeria had resources that weren't available anywhere else, and British wanted to use these resources to make
Adding to issue was the need to improve the lives of the Ogoni people by giving them jobs, an education, and cleaning up the region. Although “oil deposits in Nigeria’s Niger Delta generate 80 percent of current government revenues” (Weeks 599), “oil revenues have improved the lives of few Nigerians: Some 70 percent of the country’s 155 million citizens live in poverty, two-thirds lack access to basic sanitation and life expectancy is less than 48 years” (Weeks 600). The final proposal that promised education and job training for all people in the region from Shell and the government was hopeful in that the Ogoni would now have a form of income, and it would be a start to helping them get out of poverty. “Payments toward the Ogoni people will
Africa’s most populous country is in an energy crisis and without any improvements, there will be various problems relating to policy, infrastructure, and raising capital. Although Nigeria is one of the most advanced in oil and gas reserves, the energy crisis is hindering the growth and development of the country. The lack of infrastructure and a strong power sector has left the population with an unreliable power source. Mutiat Adeyemo, an
The measure of petroleum abundance and production in Nigeria is measured by the United States. According to the statistical data and the U.S. measures, Nigeria reserves make the country the tenth petroleum-richest nation, and by far, one of the most affluent countries in Africa. In the middle of 2001 its crude oil production was averaging around 2.2 million barrels per day. Though, there is a very prominent market for offshore rigs, nearly all of Nigeria’s primary reserves are in and around the delta of the Niger river. Ever since Nigeria became independent, it is one of the few oil producing countries that can increase its oil output drastically. The g...
Corruption can be defined as the use of entrusted power to accumulate public wealthy for personal benefit. Corruption is not peculiar to any country, continent or state; it is sure a global issue which is an endemic to all government all over the world. However, corruption is prevalent in the Niger delta region of Nigeria; public officers in this oil producing state of Nigeria are corrupt. Consequently, it has defied the Niger delta from developing politically and economically which has left the states reputation in a mess. Radicalization of youths, abject poverty and -political instability are the three leading effects of corruption in the Niger delta region of Nigeria.