Oil is a commodity like no other. It is a prime source of energy that cannot be quickly replaced. It’s production is held in few hand. It’s producers can chosen at the turn of value either to increase its flower to reserve it in the ground. In the further, in it stores value of 1.291 mbd and atterage demostic consumption of 300,00 mbd. Since the oil boom, one would expect a reasonable level in growth, development and industrial listen but evidence has provide other wise.
Although Nigeria’s oil industry has contributed largely to the growth effort in the country and has provided enhanced revenue to the government especially during the oil boom 1970’s the full benefits of the industry have been realized. Indeed, Nigeria’s oil industry has operated with minimum linkage. Indeed, Nigeria’s oil industry has operated with minimum linkage with the ret of the economy. For instance, for over thirty years of commercial discovery, production and exploitation of crude oil, petroleum technology for your industrialization and development will our oil revenue has been virtually impossible.
The bulk of our oil revenue is therefore spent on the importation of various-consumer goods. Capital goods and other agriculture produce which could be cultivated in Nigeria in reasonable quantity thus our hard-earned oil revenue has only succeeded in keeping foreign farmers employed and in keeping foreign industries working. In this manner, the evidence of substantial growth in the economy has neither resulted into much development nor into significant transformation of the economy.