Preview

Nigeria and the Oil Crisis

Powerful Essays
Open Document
Open Document
2860 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Nigeria and the Oil Crisis
CHAPTER ONE

INTRODUCTION

1.1 Background of Study

The petroleum industry in Nigeria is the largest industry and main generator of GDP in Africa’s most populous nation. Since the British discovered oil in the Niger Delta in the late 1950s, the oil industry has been married by political and economic strife due to a long history of corrupt military regimes and the complicity of multinational corporations, notably Royal Dutch Shell. However it was not until the early 1990s, after the Nigerian state execution of playwright and activist Ken Saro-Wiwa, that the situation was given international attention, leading to the immediate suspension of Nigeria from the Commonwealth of Nations. Nigeria is identified as a major concern regarding human rights and environmental degradation by the international community and the firms that operate there. The Nigerian government, oil corporations, and oil-dependent Western countries have been criticised as too slow to implement reforms aimed at aiding a desperately underdeveloped area and remediating the unsustainable environmental degradation that petroleum extraction has caused.

The Niger Delta, as now defined officially by the Nigerian government, extends over about 70,000 km² and makes up 7.5% of Nigeria’s land mass. Historically and cartographically, it consists of present day Bayelsa, Delta, and Rivers States. In 2000, however, Obansanjo's regime included Abia, Akwa-Ibom, Cross River State, Edo, Imo and Ondo States in the region. Some 31 million people of more than 40 ethnic groups including the Bini, Efik, Ibibio, Annang, Oron, Ijaw, Itsekiri, Isoko, Urhobo, Ukwuani, and Kalabari, are among the inhabitants in the Niger Delta, speaking about 250 different dialects. The Niger Delta, and the "South South Zone", which includes Akwa Ibom State, Bayelsa State, Cross River State, Delta State, Edo State and Rivers State are two different entities. While the Niger Delta is the oil producing region the South South

You May Also Find These Documents Helpful

  • Satisfactory Essays

    nigerias problems

    • 378 Words
    • 2 Pages

    3. Then I’m gonna put in each cup 1 gummy bear and start the time.…

    • 378 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Another important positive economic effect of the European Imperialism can be found in Document #8. The document was created by Tafawa Balewa who was a Nigerian Prime Minister for Nigeria in Lagos on October 1, 1960. The British officers made many changes for the people. This document explain that the people are blessed to have the British officers for their support. The soldiers worry about the people and they only want what’s best for them. The British officers have worked so hard and the people admired them for their help and making the people’s life easier.…

    • 96 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Why are police blaming the parents of Dylan and Eric for the shooting? Why should they have to take the responsibility for the shooting when it was their children’s actions? One of the victims of the shootings was a girl named Rachel Scott. Rachel Scott was born on August 5, 1981 and was murdered on April 20, 1999. The people that killed Rachel Scott is Dylan Kleold and Eric Harris their other victims were, twelve students and one teacher. Read more about why parents shouldn’t go to jail in this article…

    • 640 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Petroleum and Oil

    • 1271 Words
    • 6 Pages

    The case titled “ExxonMobil and the Chad/Cameroon Pipeline”, examines two large oil businesses merging together to finish an immense development project which spanned for approximately 25 to 30 years. In 1998, both Exxon and Mobil both respectively saw great success as major companies at the time with each company performing multi-billion dollar operations. In 1997 Exxon was achieving a large net income of $8.5 billion with revenues soaring as high as $137.2 billion, achieved a “AAA” debt rating, and also shelling out 5.4 million barrels of gasoline on a daily basis for huge profits. In contrast, Mobil thrived by building a strong reputation as well. The company saw revenues of $65 billion and achieved a net income of $3.3 billion; shelling out 3.3 million barrels of gasoline daily. In 1996, Shell, Elf and ExxonMobil signed a memorandum with the Chadian and Cameroonian governments which provided the sanctioning of a project which involved oil drilling for roughly 25-30 years. Their vision was to expand oil fields in the southern region of Chad by hauling out 300 wells of oil in the Doba Basin and as well building a 650-mile underground pipeline channel from Chad to Cameroon due to Chad being landlocked. The pipeline would move the oil to the coastline of Cameroon and be transported off to various parts of the world. The price of the development was $3.5 billion generating one billion barrels of oil. According to the World Bank, they approximated that the development would produce $2 billion for Chad, $500 million for Cameroon, and $5.7 billion for ExxonMobil and its associates. Ironically, the union of ExxonMobil was reminiscent of John Rockefeller’s Standard Oil Company which split apart in 1911 when the antitrust powers that be forced them to divide into two separate…

    • 1271 Words
    • 6 Pages
    Better Essays
  • Good Essays

    The impact to their image resulted in Royal Dutch/Shell taking a weak stance against the corrupt Nigerian government. As the largest oil company in the world, Royal Dutch/Shell controlled 60% of Nigeria’s known oil reserves, providing them the opportunity to positively impact the Ogoni people and the Nigerian Delta as a whole. Poor leadership and lack of a strategic plan resulted in turmoil for Royal Dutch/Shell and the surrounding Ogoni community.…

    • 900 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Imperialism In Nigeria

    • 1538 Words
    • 7 Pages

    Nigeria, a country in West Africa, was one of the leading producers of palm oil, cocoa, and groundnuts, that had the potential of becoming a powerful nation. However, in 1885, European powers, such as Portugal, France, Britain, Germany, Spain, Italy, and Belgium, gathered all together at the Berlin Conference, deciding on which African colony they were each going to take over. This was the beginning of New Imperialism. During the Scramble for Africa, many African regions were colonized by European nations, and without consulting the natives, Nigeria was taken over by the British. Demanding for independence, the Nigerian people created a constitution legislated by the British, electing Abubakar Tafawa Balewa as prime minister and Benjamin Nnamdi…

    • 1538 Words
    • 7 Pages
    Better Essays
  • Better Essays

    Little Bee By Chris Cleave

    • 1600 Words
    • 7 Pages

    Nigeria was very rich in oil and many of them were depending on it to carry out their day to day activities. However, it had to stop as some English company came to take over the oil business and the local officials started to destroy their illegal mines. “White man been giving me this finger all my life. Today you can give it me to keep. Now cut off your middle finger mister and give it me” (113).…

    • 1600 Words
    • 7 Pages
    Better Essays
  • Satisfactory Essays

    Nigeria Oil Crisis

    • 347 Words
    • 2 Pages

    This article displays a vivid picture for us about the conditions in Nigeria due to the oil reserves. Though Nigeria contained the potential to strive and become a wealthy oil nation, leaving the cocoon of poverty encompassing Africa- it became trapped in a lot of corrupt dealings. Today, the Niger Delta in Nigeria has caught the attention of world wide humanitarian and environmental activists. The article states how in the past, the corrupt government ruling Nigeria was funded by Western governments and large oil corporations. Together, the group have benefited from the fossil fuels that are in abundant supply in the delta region. However, the mines are not the only things that are in this area, there are people of the Niger Delta who have been harshly affected for decades due to this illegal mining.…

    • 347 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Nigerian Oil Conflict

    • 461 Words
    • 2 Pages

    a. Consumers of Nigerian oil can force the government to respect human lives through strikes or signing a deal. Not allowing oil derived from a conflict zone or company will send the immediate massage that what they are doing is wrong and should be remedied.However strikes can have a negative impact upon the country. Deals, on the other hand, could specify certain requirement in order to do trade with a powerful industrial country and encourage the nation to help their people less forcefully.…

    • 461 Words
    • 2 Pages
    Good Essays
  • Better Essays

    In recent decades, the discovery of petroleum change people’s lifestyle in a great extent. And the so-called ‘Black gold’ has become one of the world’s most lucrative industries. (Falola, T, Genova, A, 2005) But, even so, the oil industry almost impossible builds a positive image among the general public. As we know, there is no angel in oil companies, in most cases, oil companies’ behaviors often result in the negative impact to the human, society, and the environment. The purpose of my report is to focus on three oil companies- ExxonMobil Oil Corporation, French Total Oil Company and Royal Dutch Shell Oil Company, and then compare them by using some examples to illustrate the unethical behaviors of the three companies.…

    • 1367 Words
    • 6 Pages
    Better Essays
  • Better Essays

    Offshore Drilling Essay

    • 1396 Words
    • 6 Pages

    This is evinced by what is happening in the Nigerian Niger delta where the majority of its population lives in abject poverty even though this location has one of the world’s largest reserves for oil and gas. The delta has one of the largest wetlands and drainage basins in Africa and this incredibly well endowed eco- system contains one of the highest concentrations of biodiversity on the planet (Greenpeace internationals 11). It supports a wide variety of planting activities and fishing, which is the main occupation in this area. The Department of Petroleum Resources estimated “1.89 million barrels of petroleum were spilled into the Niger Delta between 1976 and 1996 out of a total of 2.4 million barrels spilled in 4,835 incidents” (approximately 220 thousand cubic meters) (Vidal, john 11). However oil pollutions like this and many others over the past years have caused a high rate of loss in the productiveness in this region.…

    • 1396 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    Exploitation in Nigeria

    • 365 Words
    • 2 Pages

    In 1938 the Nigerian government at that time granted Shell, a multinational oil company, a concession to explore and drill for oil in Nigeria. For almost two decades, Shell didn’t take any action in Nigeria but in 1938, Shell surveyed the area near the Niger Delta and eventually…

    • 365 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Upon independence in 1960 Nigeria’s major foreign policy aim has been in the restoration of the African dignity and this became the centerpiece of the countries foreign policy. Africa has remained the centerpiece of the Nigerian foreign policy since independence when it was adopted under President Abubakar Tafawa Balewa. In his acceptance speech at the United Nations on October 8, 1960, Balewa clearly portrayed Africa as the foremost concern of his foreign policy. According to him as the country belongs first to Africa so also Africa must first claim attention in the country’s external relationship. With the credit of being the first Nigerian Prime minister, Sir Abubakar Tafawa Balewa made the foremost foreign policy statements on behalf of the country and gave it a distinct direction which clearly focused on placing Africa overwhelmingly at the epicenter of Nigeria’s foreign policy, and successive Nigerian leadership have well followed suit. However, it was the regime of Gen. Yakubu Gowon that clearly identified Africa as the center-piece of Nigeria’s foreign policy.…

    • 1351 Words
    • 6 Pages
    Better Essays
  • Best Essays

    SHELL

    • 3448 Words
    • 9 Pages

    The entry of Shell D’Arcy Exploration Company into the search for oil across the entire Nigerian colony in 1937 marked a watershed in the history of oil and gas resources in the Niger Delta region. The Anglo-Saxon Petroleum, according to Steyn (2009)1, was renamed by that of the Shell Overseas Exploration Company in the official license in 1937. The exploration eventually resulted in a large commercial oil discovery. Shell Nigeria is the common name for Royal Dutch Shell’s Nigeria operations carried out through four subsidiaries- primarily Shell Petroleum Development Company of Nigeria Limited (SPDC). 2…

    • 3448 Words
    • 9 Pages
    Best Essays
  • Powerful Essays

    This article overviews the growth and development of the Nigerian economy from inde pendence to present times. Specifically, the following periods are discussed: the pro-oil boom decade (1960-70); the period of the oil boom (1971 1977); the period of stabilisation and structural adjustment (1986 - 1993) and the period of guided deregulation (1994 -1998).GENERAL PERFORMANCE OF THE ECONOMY…

    • 4639 Words
    • 19 Pages
    Powerful Essays

Related Topics