Categories
Economics

Contributions of Petroleum to the Nigerian Economy

Positive Contributions of Petroleum to the Nigerian Economy:

  1. It increases Nigeria’s National Income greatly.
  2. There is increment in the income per capita of Nigerians.
  3. When the first commercial shipment of oil was made in 1958, petroleum has become a major foreign exchange earner.
  4. As a result of provision of more employment opportunities, increase in per capita income, development of basic infrastructures, etc the standard of living of the people of Nigeria has improved.
  5. Oil has played a significant role in shaping Nigeria’s foreign policy since she gained independence in 1960.

Negative Effects of Petroleum to the Nigerian Economy

Although there were positive contributions of petroleum to the Nigerian economy, there are also negative effects which include the following among others.

  1. One of the political woes of the discovery of oil in Nigeria is political instability.All the frequent coups, change of government that occurred in Nigeria had oil undertone.
  2. As a result of oil exploration, together with the fear in many quarters of possible earthquake occurring in those areas, many oil producing areas in Nigeria have been eroded.
  3. There is shortage of raw materials as another negative effect of the neglect of agriculture as a result of the discovery and exportation of petroleum in Nigeria.
  4. Oil exploration in Nigeria has caused soil, water and air pollution in many parts of the country.
  5. One of the immediate consequences of the neglect of agriculture in Nigeria as a result of the discovery and exportation of oil is the decline in food production.

EVALUATION (POST THE QUESTION TITLE AND YOUR ANSWERS IN THE BOX BELOW FOR DISCUSSION AND EVALUATION)

  1. Enumerate the positive contribution of petroleum to the Nigerian economy.
  2. Explain the negative effects of petroleum to the Nigerian economy.

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