The Disappearing Nigerian Oil And Why You Should Be Worried -
Connect with us

Article

The Disappearing Nigerian Oil And Why You Should Be Worried

Nigerian is Africa’s largest producer of oil and oil is the country’s largest source of revenue, but in this perceived success, the economy has been struggling and poverty is on the increase in the West African country.

Published

on

By

Nigerian is Africa’s largest producer of oil and oil is the country’s largest source of revenue, but in this perceived success, the economy has been struggling and poverty is on the increase in the West African country. The irony of it all is that poverty is prevalent amongst the regions reputed to be oil producing states with majority of the population living in abject poverty though surrounded by great wealth. Hence the question; Why can’t the Nigerian oil wealth do the needful in making the country better? Where does all the money go?

Generally, Nigeria is not doing so bad on the entertainment industry with the high regarded position as the largest producer of indigenous movies in Africa- Nollywood. The Nigerian elite are also on the class of their own with Africa’s richest man Aliko Dangote from Nigeria.

Nigeria is blessed with a lot of natural resources that include minerals, gold, iron and crude oil. It has the second largest oil reserves in Africa. Nigeria’s major agricultural export is cocoa and palm oil. In this, many Nigerians are struggling with about 90 million of Nigerians living below 2 dollars a day. That’s a whooping 48% of the population. In comparison, Kenya’s stands at 16% and in Ethiopia, its 24% and lets not forget that these countries do not have oil.

ALSO READ  Top Ten Everyday Foods That Can Kill You (Photos)

You might be thinking, Why can’t Nigeria rely on this oil wealth and make the lives of her citizens better? The truth of the matter is that the Nigerian government does rely so heavily on oil that basic amenities such as schools, hospitals, general infrastructure, transportation are in a poor, pitiable and disastrous state. The money generated from oil account for about 75% of its revenue and a good chunk of it end up in paying the salaries of lawmakers who are known to live a highly flamboyant lifestyle, salaries of government workers who make up the civil service populace, some are used to pay off debts and some find their way into personal pockets.

In 2014, following the global oil price slash, Nigeria fell into deep recession without hesitation and is still struggling to come out of it.

Where do all these money go?

Nigerian crude oil is found in an abundant state in the Niger Delta region of the country which has the presence of indigenous oil companies and foreign oil companies. However, the exploration and extraction of oil is often carried out by these international companies and lets not forget that Nigeria does not have the tools and sophisticated equipments used to refine these oil, hence these oil is transported abroad and refined only to be brought back to Nigeria again.

ALSO READ  How Pastor Adeboye is Related To Evangelist Mike Bamiloye (Photos)

The country’s regulatory body on oil the NNPC, generates revenue from these international companies in forms including royalties, oil licences, profits etc. These monies generated are injected into the Nigerian treasury. However, these processes lack transparency and corruption becomes highly prevalent. Billion of oil money have gone missing over the years. The most famous of them all was in 2016 when it was reported that 60 billion US dollars in oil revenue have gone missing. This money was meant to be deposited from the NNPC to the national treasury, but nothing was reportedly sent. Another form of missing money come in the form of oil taxes. International companies pay taxes from profits made by them.

Indeed there are quite a number of illegal refineries located in deep forests of the Niger Delta region of the country. There are hundreds of illegal refineries in Nigeria where gangs such as the famous Niger Delta Avengers explode pipelines and retrieve oil. Aliko Dangote is building a refinery in Lagos to that effect.

In early 2019, 22 million barrels of oil were reportedly stolen and sold on the black market; transported to ships in the Atlantic ocean where it ends up in other countries in West Africa, Europe and Asia.

ALSO READ  Vision 2020: The Colossus of a Monumental Failure

However, the Nigerian government under President Muhammadu Buhari is ready to implement the Petroleum Industry’s bill which will help to see a massive cleanup effort in the oil sector. This administration has been passionate about diversifying the economy to accommodate other sources of revenue. This is commendable as the world moves towards sustainability and the creation of sustainable environment. Oil is fast fading globally as concerns for climate change heighten. Countries such as China, UK, Norway and the Netherlands working towards ending the use of petrol vehicles but adopting electric cars.

Nigeria does not yet have concrete plans for sustainability and that could be a problem in the future when oil prices are likely to drop as crude oil will be of little or no relevance. In sustainable environments, the aim and goal is to create green environment with little or no carbon emission into the atmosphere.

Countries that have oil such as Saudi Arabia, Qatar, and the United Arab Emirates are already on the move in diversifying their economies to tourism and entertainment. Nigeria should diversify soon and quick to avoid slipping into a deep mess in the near future.

Advertisement
1 Comment

1 Comment

  1. Pingback: Evolution of Dressing Amongst Nigerian Women 1910s to 1970s (Photos) - Factboyz.com

Leave a Reply

Your email address will not be published.

Advertisement

Biographies/Net worth

Biography18 hours ago

Lawrence Okolie Biography, Age, Wife, Net worth, Nigerian

Lawrence Okolie Biography Lawrence Okolie Biography – Lawrence Okolie (born December 16, 1992) is a British professional boxer who has...

Lawrence Okolie Net worth Lawrence Okolie Net worth
Biography18 hours ago

Lawrence Okolie Net worth

Lawrence Okolie Net worth Lawrence Okolie Net worth – British Boxer Lawrence Okolie has an estimated net worth of $3...

Shelley Ross Biography Shelley Ross Biography
Biography1 day ago

Shelley Ross Biography, Age, Husband, Net worth

Shelley Ross Biography Shelley Ross Biography – Shelley Ross is a television executive producer from the United States. She was...

Shelley Ross Net worth Shelley Ross Net worth
Biography1 day ago

Shelley Ross Net worth and Husband

Shelley Ross Net worth Shelley Ross Net worth – Shelly Rose has an estimated net worth of $2 million. She...

Biography2 days ago

Kelly Price Net worth

Kelly Price Net worth Kelly Price Net worth – Kelly Price has an estimated net worth of $2 million. The...

Kelly Price Biography Kelly Price Biography
Biography2 days ago

Kelly Price Biography, Missing, Net worth

Kelly Price Biography Kelly Price Biography – Kelly Price (born April 4, 1973) is an R&B and gospel singer and...

Gabby Petito Gabby Petito
Biography2 days ago

Gabby Petito Net worth

Gabby Petito Net worth Gabby Petito Net worth – Gabby Petito has an estimated net worth of $40,000. She is...

Biography2 days ago

Gabby Petito Biography, Age, Career, Parents

Gabby Petito Biography – Gabby Petito (March 19, 1999 – August 27, 2021))is an American woman who became well known following...

Biography3 days ago

Roger Michell Net worth, Cause of Death, Wife, Biography

Roger Michell Net worth Roger Michell Net worth – Roger Michell has an estimated net worth of $60 million. His...

Biography3 days ago

Basil Hoffman Cause of Death, Wife, Biography

Basil Hoffman Cause of Death Basil Hoffman Cause of Death – Basil Hoffman cause of death has not been revealed...

Biography3 days ago

Basil Hoffman Net worth 2021

Basil Hoffman Net worth 2021 Basil Hoffman Net worth 2021 – Basil Hoffman has an estimated net worth of around...

Biography4 days ago

Melvin Van Peebles Cause of Death, Wife, Net worth

Melvin Van Peebles Cause of Death Melvin Van Peebles Cause of Death – Melvin Van Peebles Cause of Death was...

Willie Garson Cause Of Death Willie Garson Cause Of Death
Biography4 days ago

Willie Garson Cause Of Death, Wife, Net worth, Religion

Willie Garson Cause Of Death Willie Garson Cause Of Death – Willie Garson cause of death is Pancreatic cancer. He...

Brian Laundrie Biography Brian Laundrie Biography
Biography4 days ago

Brian Laundrie Biography, Age, Parents, Siblings, Religion

Brian Laundrie Biography Brian Laundrie Biography – Brian Laundrie is an American artist and content creator who is well known...

Brian Laundrie Brian Laundrie
Biography4 days ago

Brian Laundrie Net worth

Brian Laundrie Net worth Brian Laundrie Net worth – Brian Laundrie has an estimated net worth of $200,000. His family...

Susan Crapo Susan Crapo
Biography4 days ago

Susan Crapo Biography, Mike Crapo (Wife) Age, Net worth

Susan Crapo Biography, Mike Crapo (Wife) Age, Net worth Susan Crapo Biography – Susan Crapo is the wife of Mike...

Biography5 days ago

Richard Buckley Illness, Bio, Wiki, Age, Cause of Death

Richard Buckley Illness Richard Buckley Illness – Richard Buckley was diagnosed with cancer in 1988 and had his HIV test...

Richard Buckley Net worth Richard Buckley Net worth
Biography5 days ago

Richard Buckley Net worth

Richard Buckley Net worth Richard Buckley Net worth – Richard Buckley has an estimated net worth of $20 million. Richard...

Biography5 days ago

Kate Miller-Heidke Net worth

Kate Miller-Heidke Net worth Kate Miller-Heidke Net worth – Kate Miller-Heidke has an estimated net worth of $2 million. The...

Biography5 days ago

Cliff Obrecht Net worth Forbes 2021

Cliff Obrecht Net worth Forbes Cliff Obrecht Net worth – Cliff Obrecht has an estimated net worth of $2.0 billion...

Linda Mtoba Net worth Linda Mtoba Net worth
Biography5 days ago

Linda Mtoba Net worth

Linda Mtoba Net worth Linda Mtoba Net worth – Linda Mtoba has an estimated net worth of $500,000. She is...

Biography5 days ago

Zola Nombona Net worth

Zola Nombona Net worth Zola Nombona Net worth – Zola Nombona has an estimated net worth of $500,000. The talented...

Biography5 days ago

Risikat Ajoke Adegeye Biography, Age, Net worth, Death

Risikat Ajoke Adegeye Biography Risikat Ajoke Adegeye Biography – Risikat Ajoke Adegeye is a Nigerian politician who is well known...

AJ Net worth AJ Net worth
Biography5 days ago

AJ Johnson Net Worth 2021 and Cause of Death, Wife

AJ Johnson Net Worth 2021 AJ Johnson Net Worth 2021 – AJ Johnson had an estimated net worth of $500,000....

Biography7 days ago

Nafisat Abdullahi Biography, Age, Net worth, Husband

Nafisat Abdullahi Biography Nafisat Abdullahi Biography – Nafisat Abdullahi is a Nigerian actress, producer, director, and businesswoman who was born...

Obadiah Mailafia Biography Obadiah Mailafia Biography
Biography1 week ago

Obadiah Mailafia Biography, Wife, Cause of Death, Age

Obadiah Mailafia Biography Obadiah Mailafia Biography – Obadiah Mailafia was a Nigerian development economist, international polymath, and central banker who...

P Daniel Olawande Biography P Daniel Olawande Biography
Biography1 week ago

P Daniel Olawande Biography, Age, Wife, Net worth

P Daniel Olawande Biography – P Daniel Olawande (born August 8, 1991) is a Nigerian Pastor, Evangelist and preacher who...

Biography1 week ago

Anya Longwell Biography/Wiki, Age, Net worth, Husband

Anya Longwell Biography Anya Longwell Biography/Wiki – Anya Longwell is an American model and actress best known for her roles...

Biography1 week ago

Siphesihle Ndaba Biography, Age, Net worth, Boyfriend

Siphesihle Ndaba Biography Siphesihle Ndaba Biography – Siphesihle Ndaba is a South African actress who is best known for her...

Zola Nombona Biography Zola Nombona Biography
Biography1 week ago

Zola Nombona Biography, Age, Net worth, Husband

Zola Nombona Biography Zola Nombona Biography – Zola Nombona (born March 10, 1992) is a South African actress who rose...

Linda Mtoba Biography Linda Mtoba Biography
Biography1 week ago

Linda Mtoba Biography, Age, Net worth, Husband

Linda Mtoba Biography Linda Mtoba Biography – Linda Mtoba (born November 11, 1991) is a South African Multi award winning...

Biography1 week ago

Kate Miller-Heidke Biography, Age, Net worth, Songs

Kate Miller-Heidke Biography Kate Miller-Heidke Biography – Kate Miller-Heidke is an Australian singer-songwriter and actor who was born on November...

Abu Abel Biography Abu Abel Biography
Biography1 week ago

Abu Abel Egbarin Biography, Age, Net worth, Record Label

Abu Abel Biography Abu Abel Biography – Abu Abel Egbarin, better known by his stage name Abu Abel, is a...

Biography1 week ago

Jeremy Lynch Net Worth (Updated 2021)

Jeremy Lynch Net worth Jeremy Lynch Net Worth – Jeremy Lynch has an estimated net worth of $2 million. He...

Jane Powell Net worth 2021 Jane Powell Net worth 2021
Biography1 week ago

Jane Powell Net worth, Cause of Death, Movies, Husband

Jane Powell Net worth 2021 Jane Powell Net worth 2021 – Jane Powell had an estimated net worth of $12...

Daniella Paul Enenche Biography Daniella Paul Enenche Biography
Biography2 weeks ago

Daniella Paul Enenche Biography, Age, Education

Daniella Paul Enenche Biography Daniella Paul Enenche Biography – Daniella Paul Enenche is the second daughter of Pastor Paul and...

Yonggi Cho Biography Yonggi Cho Biography
Biography2 weeks ago

Yonggi Cho Biography, Age, Death, Wife, Net worth

Yonggi Cho Biography Yonggi Cho Biography – Yonggi Cho, sometimes known as Paul Yungi Cho, was a South Korean Christian...

Biography2 weeks ago

George Wein Cause of Death, Net worth, Wife and Biography

George Wein Cause of Death George Wein Cause of Death – George Wein, 95, died in his New York City...

Biography2 weeks ago

Gable Tostee Tinder, Biography, Age, Wikipedia Now 2021

Gable Tostee (born 1984) is an Australian man who became famous after being blamed for the death of Warriena Wright...

Biography2 weeks ago

Mamady Doumbouya Wife Biography

Mamady Doumbouya Wife Biography Mamady Doumbouya Wife is a French woman who is married to Guinean elite soldier and leader...

Trending

error: Content is protected !!