Essay on Oil Industry Of Nigeria 's Oil

1545 Words Sep 8th, 2014 7 Pages
Introduction
In 1956, Shell Oil Campany discovered oil for the first time in a viable quantity in Nigeria. Within a decade, oil exploration speedily replaced agriculture as the mainstay of the country’s economy. In 2006, roughly 97 percent of exchange revenue and about 80 percent of all government expenditures came from petroleum proceeds . The Niger Delta region comprises of nine states; Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Rivers State, Abia, Imo and Ondo states. The area constitutes 7.5% of Nigeria’s land mass, yet it is “the nerve center of Nigeria’s oil industry.” The Niger Delta produces 100% of Nigeria’s oil and gas and generates more than 80% of all revenues . Aside the Niger Delta’s vast fossil fuel reserves, its numerous rivers, streams and fertile lands make fishing, farming and hunting the major economic activities of the natives . While the Niger Delta area is the nerve center for the oil industry, 69 percent of the residents’ lives in an abject poverty and squalor. How can logic explain a productive area becoming a theater to acute economic deprivation? To answer the question, we need to understand how oil companies conduct business in the Niger Delta region of Nigeria. One must appreciate the intricate relationship between the federal government, the oil corporations and the Niger Delta

The Global Economy Versus the Niger Delta Economy: Opposing Interests
Before the discovery of oil, the Niger Delta region depended on fishing and…

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