The curse of resources?The curse of resources?

Nigeria’s paradox : Nigeria’s paradox :

Vast oil reserves and export revenues but Vast oil reserves and export revenues but widespread poverty, lack of development and widespread poverty, lack of development and environmental degradation.environmental degradation.

Oil fields in the Niger Delta

Oil pipelines have been laid throughout the delta region. There are frequent leaks.

Oil spills cause water pollution and soil degradation. Reducing agricultural production and fishing yields in what was a fertile area.

An estimated 70% of the revenue is stolen by corrupt government officials, while majority of the people of the Delta region live on less than a dollar a day.

With politicians directly benefiting from oil revenues there has been little incentive to invest in infrastructure and welfare. The economy remains dependent on oil with little diversification, declining agricultural and industrial output.

Oil flares are a constant danger and emit toxic fumes into the air.

Nigerian militant groups, including MEND, Movement for the Emancipation of the Niger Delta, disrupt oil supply in the delta

Militant groups such as MEND also able to target offshore drilling

Country (rank in oil production 2007)

Oil production

(2007)

GDP per capita US$

(rank 2007)

Life expectancy (rank 2007)

Infant mortality per 1000 (rank 2007)

Venezuela

102,667,000 bbl/day 

14,000

(85)

73.4

(99)

22

(101)

Kuwait

112,613,000 bbl/day 

60,800

(5)

77.5

(52)

9.2

(158)

Norway

122,565,000 bbl/day

57,500

(6)

79.8

(23)

3.6

(213)

Nigeria

132,352,000 bbl/day

2200

(182)

46.5

(210)

95.7

(13)

Brazil

142,277,000 bbl/day

10,300

(105)

71.7

(122)

23.3

(98)

Algeria

152,173,000 bbl/day

7100

(125)

73.7

(93)

28.7

(81)

References

National Geographic February 2007 - The curse of the black gold

http://ngm.nationalgeographic.com/2007/02/nigerian-oil/oneill-text

Sweet Crude – Documentary film on Niger Delta

http://www.sweetcrudemovie.com/index.php

Population, resources and development – pages 128/9

Nicholas Shaxson - Poisoned Wells - Chapter 10

Use the information and references provided to analyse the impact of oil production on the Niger Delta region of Nigeria and the development of Nigeria. (think in terms of social, economic, political and environmental impacts)

What should/could be done to increase the benefits the majority of the population of Nigeria derive from their oil reserves?

With reference to Nigeria to what extent do you agree that resources can be a curse as well as a blessing? (resource endowment)