The Effects of Petroleum Business on Nigeria - 1562 Words

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 â€Å"oil and gas exports†¦show more content†¦Furthermore the Nigerian government has very little share in these activities and it is more strenuous for the government to regulate offshore activities of the companies. Companies abroad are highly supportive of these advancements in the exploration and alternative ways of exploring resources because it eases the tension less than operating on Nigerian soil. Moreover,deepwater extraction refineries are less disturbed by the local militia attacks and seizures due to civil conflicts. According to statistics, â€Å"it is estimated that demand and consumption of petroleum in Nigeria grows at a rate of 12.8% annually. With an export industry with a substantially growth rate as Nigerian petroleum a lot of people would expect such a country to be moving forward in the development process, but it is not nearly so for Nigeria. It is unfortunate that the petroleum in the country is unavailable to the Nigerians,worst; it is so costly that domestics wouldn’t even consider it. This is due also to the fact that most of the oil rigged from the deepwater drilling is extracted by multiple oil companies of different nations and then refined overseas. So basically it becomes a situation where the natura l resources are reaped away from the poor country materialized in the dominant countries and then price prohibitively high. Very rarely on special occasions a small account of the petroleum is distributed to the somewhat 200 million people in the country. ThoughShow MoreRelatedShell Oil in Nigeria1174 Words   |  5 Pagesï » ¿Shell Oil in Nigeria 1. What are some of the factors explaining why corruption and bribery are so high in Nigeria? Nigeria is considered to be one of the most corrupt countries in the world. Many different forms of corruption are familiar to Nigeria including political corruption, bureaucratic corruption, electoral corruption, embezzlement, and bribery. 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