Nigeria is the sixth largest exporter of crude oil in the world market. Its oil reserves are about 22 billion barrels. Nigerian oil is of high quality. However, many of our people live in poverty.
The leading branch of Nigeria economy is crude oil production. Because of the usefulness of crude oil, the country is on the top ten list of the largest oil producers in the globe. More than 90% of the state total income is earned from this area. The benefits of crude oil in Nigeria economy have been analysed below.
The attitude of the government to crude oil has been unstable for a long time. Niger Delta is known as an oil-rich location. However, this place has become a source of conflict between the government and local citizens. The issue is that locals are living in poverty while the foreign oil corporations continue to enjoy the main benefits of crude oil production.
The reason for unemployment and low living standards of Nigerians is the state policy on using the advantages of crude oil. Previous governments spent very little money on development, renovation and maintenance of the oil industry. This has led to civil conflicts, unemployment, oil stealing by local citizens and environmental disasters as a result. Now that the problems have been understood, the current government is changing the state policy towards the crude oil industry. Appropriate economic reforms in the country are being planned and implemented daily.
The importance of crude oil in Nigeria can not be overestimated. Because it is responsible for 90% of the country’s export earnings, it is a powerful foundation for the Nigerian economy. The country takes the first place in Africa and the eighth place in the world among crude oil exporters. There is a direct dependence between oil prices in the world market and the success of the economy of this country.
The benefits of crude oil in Nigeria economy can only be realised under the condition of appropriate country policy when it comes to oil production and export. The government plans to restore the oil industry by executing the repairs and technical maintenance of the entire crude oil infrastructure. In the last few years, the government has started spending money on market reforms and the privatization of the largest oil refining companies. Price regulation for petroleum products was canceled. The private sector is encouraged to develop crude oil infrastructure.
The advantages of crude oil to Nigeria economy are related to wider employment of the local population in this branch. This enables us to raise the living standards for Nigerians. It is also important to invest in the elimination of ecological consequences caused by oil spills.