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Essay / The Effects of Oil Trade on Nigeria - 1574
The largest oil producing country in Africa is Nigeria. The oil company is the largest contributor to the GDP of the West African country, which is also home to the continent's most visible and populated reserves. Since Nigeria was under British control, it suffered from socio-economic and political adversities for decades. Corrupt national militias and the complicity of multinational corporations have stripped the nation of its natural resources. The same corporations clearing land and exploring resources have hypocritically identified Nigeria as a major human rights and environmental degradation concern. The petroleum sector in Nigeria has such a dynamic impact on its economy that “oil and gas exports account for over 98% of export earnings and about 83% of federal government revenue, while generating over 40% of its GDP”. Just to reiterate this fact, the oil sector accounts for almost all of a country's exports, which raises the question of where do the revenues go and how are they redistributed? The measure of oil abundance and production in Nigeria is measured by the United States. According to statistical data and US measurements, Nigeria's reserves make the country the tenth richest country in oil and, by far, one of the richest countries in Africa. As of mid-2001, its crude oil production averaged about 2.2 million barrels per day. Although there is a very large market for offshore platforms, almost all of Nigeria's primary reserves are in and around the Niger River Delta. Since Nigeria became independent, it is one of the few oil-producing countries that has been able to significantly increase its oil production. The g...... middle of paper...... but in Nigeria's sense, corruption is among the elites and is found at the highest level of federal power. In conclusion, Nigeria has never been able to maintain a legitimate democracy. The legacy of British colonialism created unstable political institutions that proved extremely vulnerable to military coups. While ethnic tensions have led to political party collusion and corruption, rent-seeking and continued economic decline have reduced support for the government. Although Nigeria has recently seen a move away from military control as the population has recognized its failure, questions remain about the new democracy. Consider the last time this type of democracy was established, it only lasted four years. Considering all these factors and OlusgunObasanjo's military history, it is no wonder that the new democracy is considered fragile..