The largest petroleum-producing nation in Africa is Nigeria. The petroleum company is the main contributing factor of the GDP in the West African nation, which is also the continents, most noticeable and populous reserves. Since Nigeria was under British control it has suffered socio-economic and political adversities for decades. Corrupt domestic militias and complicity of multinational corporations have rid the nation of its natural resources. The same corporations that are ridding the land and exploring the resources have hypocritically identified Nigeria as a major concern with regard to human rights and environmental degradation. The petroleum business in Nigeria dynamically impacts its economy so much that “oil and gas exports accounted for more than 98% of export earnings and about 83% of federal government revenue, as well as generating more than 40% of its GDP.” Just to be reminiscent on this fact, the petroleum business accounts for almost the entire exporting business of a country so it raises the question of, where is the income going and how is it bring redistributed?
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...
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...rd but in the sense of Nigeria the corruption is amongst the elites and found at the highest level of federal power.
In conclusion Nigeria has never been able to sustain a legitimate democracy. The legacies of British colonialism have created unstable political institutions that have been extremely susceptible to military coups. While ethnic tensions have lead to political party association and corruption, rent-seekers and continual economic decline have decreased support for the government. Although recently Nigeria has seen a shift away from military control as people have recognized its unsuccessfulness, questions still remain about the new democracy. Consider the last time this type of democracy was established, it only lasted four years. Given all these factors and the military history of OlusgunObasanjo, it is no wonder the new democracy is considered fragile.
Gambrel, Jon. “Nigerian Rebels Seize Seven Oil Workers”. Sydney Morning Herald. Retrieved on 21 Nov, 2011 from
Niger, home of the free flowing Niger River, is a Sub-Saharan, western African nation. Sadly, it is an extremely poor country because part of the country is desert and less than 3% open for crop use. The present economic situation is bleak at best. Yet, the vibrant tradition and history of this country lives today in its tribes and its people even through all of its adversities. From severe droughts to military coups to a dysfunctional government to the culture has stayed strong.
Military involvement in the country’s politics has become a common feature of modern states. This history of military-government relationship traces its roots back to hundreds of years during the wars of freedom and independence. In some countries, the military is heavily involved in political affairs while others keep politics out of the military. The differences in this relationship among states arise from underlying historical factors of the modern states. This paper considers two states, Germany and Nigeria where military is heavily involved in politics owing to a long history of political warfare fuelled by ethnic pressures and economic challenges. These states are used as a reference point for military involvement in politics and the conditions under which this happens. These examples show that historical and recent conditions make the relationship between government and military very different in African and European context. In the former, weak governments are unable to control military power, while on the later, even in countries with strong military, the political leadership put limits on military power.
Economist has analyzed the causes of decline in world oil prices. Typically, the price of oil is determined by demand and supply of the world market and forecast advance to invest in which level of demand depends on the level of economic activity and behavioral use of energy from humans. The oil price decline has a benefit for oil importers like China, India, Japan, Europe but unfortunately for oil exporters such as: Kuwait, Venezuela, Nigeria, and Iraq. Crude oil prices fell steadily in the past seems to be a result of two main factors being the levels of demand declining and a level of increased supplies (Economic, 2015)
Omeje, K. (2005). Oil conflict in Nigeria: Contending issues and perspectives of the local Niger Delta people. New Political Economy, 10(3), 321-334. doi:10.1080/13563460500204183
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.
It is clear that the Organization of Petroleum Exporting Countries in the Middle East has a monopoly over the drilling and distribution of oil in today’s world. To break this monopoly, the United States must look elsewhere to find the oh so valuable resource. One such source is in the heart of the African continent, the DRC or Democratic Republic of the Congo. The nation still produces more oil than it consumes and the DRC is also the second largest producer of natural gas in sub-Saharan Africa. Both nations have signed a bilateral investment treaty and this export is not a one sided exploitation. The U.S. provides the DRC with pharmaceutical products, wheat and many more resources. Furthermore...
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]
Corruption consists in the illegitimate agreement between a corruptor and a corrupted, in which they abuse of their public power in order to obtain personal benefit. Bribery and corruption is something that has been going on for years. According to Allen, “officials perceive themselves as immune to any penalties for demanding and receiving bribes” which she states that it is one of the main reasons for bribery and corruption in underdeveloped countries. According to Transparency International, an organization committed exclusively to end corruption, three of the most corrupt countries in the world are Somalia, North Korea and Afghanistan. This does not mean that corruption is only seen in underdeveloped countries. In international business, corporate employees often find themselves dealing with corruptors in foreign countries and, in most cases, they will give in.
oil in Nigeria. Nigeria’s large supply of high quality crude oil helped Shell climb to the top,
The pocketing of profits by corrupt government officials shows characteristics of patrimonialism, which not only hinders the economy because these profits are the sole source of revenue for the nation, but also harms the democratic stability of the nation and can to some extent cause the regime changes of the nation. The civic conflicts of the nation are not handled by the government and not only do these conflicts drain revenue from the government, but shows the lack of mobilization in the government, possibly due to a lack of taxation, due to the resource curse. These claims show that the resource curse has affected the government and economy of Nigeria greatly as it leads to an ineffective and corrupt government with a hindered chance of democratization, with civic conflict that cannot be controlled by the civic government.
The oil industry in Norway has seen enormous success that is virtually unmatched by any other country in the world. Since the discovery of oil on its coast in 1969, the country has experienced steady economic growth. Accordingly, Norway’s massive GDP is a reflection of this growth; as of 2012, it ranked in the top 25 of the world in terms of GDP (World Bank, 2012). The cohesion between oil and economics in Norway has worked for a number of reasons. Firstly, policy making has kept a close eye on how to manage the massive oil reserves. Strict guidelines are implemented so that the reserves will not only last for future generations, but also benefit the economy today. That being said, policies old and new have positive ramifications for both the economy, and for Norwegians. Eliakim Maski, quoted in Africa News (2012), reiterates this: “I never knew that in a country like Norway, they had policies that would first benefit the Norwegians before anyone else.” Secondly, social equality plays a role in the economic growth of the nation. Equality allows for a more available labour force, which in turn boosts the economy. Likewise, strong social unity enables political policy making to include society as a whole. In addition, a larger available labour force will allow the oil industry to expand in the future. The economic success of Norway’s oil industry can be attributed to social and political harmony.
NIGERIA AND THE PATH OF ECONOMIC PROSPERITY. Economic development is a term that economists, politicians, and others have used frequently since the 20th Century. The concept, however, has been in existence in the West for centuries. The term refers to economic growth accompanied by changes in output distribution and economic structure. It is concerned with quality improvements, the introduction of new goods and services, risk mitigation and the dynamics of innovation and entrepreneurship.
Corruption in the Niger delta region of Nigeria has led to abject poverty in the state. State governs in the Niger delta are making living unbearable for the indigenes of state by embezzling public funds for their own purposes. For example in the New York Amsterdam News Guthrie Gray mentioned that “Despite its new wealth, however, the money allocated to Niger delta states does not appear to be getting to most of its citizens” (Guthrie Gray). The means of lively hood in the states has been destroyed by corrupt oil companies and public officers. People in the state can no more farm and fish because their land and water has been destroyed by the oil companies in the area; however, some funds are released by oil companies and the federal government but the government of the Niger delta have refused to put the funds to good use because they are corrupt. They prefer to use the funds for their own benefits, buying houses overseas and having numerous foreign accounts. For about 35 years Oil Company in the Niger delta has refused to give to the community good infra...
Ever since the British takeover left Nigeria to try and create its own stable form of government with many failed constitutions they have failed to reach a maintainable form of democracy. The country has had countless military rules and leaders that have promised a push towards democracy, but instead have used their place in power to set up policies to support themselves. On top of this, a reach in power is also usually followed by subsequent extending of power to other members of the family. In this way they are able to keep themselves in charge by controlling as many different branches and positions as possible. Along with this is the complete takeover of revenues by those higher up to corrupt the country’s largest source of revenue for their own personal gain. All of these problems work against one of the most necessary steps in creating a strong democracy: the trust of the people.