Introduction

Before the discovery of crude oil in 1956, Nigeria’s economy was primarily based on agriculture. Nigeria was a major exporter of agricultural products such as cocoa, palm oil, and rubber. But, this ceased to be the case when crude oil was discovered by Shell-BP in Oloibiri, in the Niger Delta region. Almost 7 decades after this massive discovery of Nigeria’s oil, what can we say are the pros and the cons? Find out more in this article. 

Pros of Crude Oil

Nigeria’s oil industry is the greatest contributor to the revenue of the nation, making it the cornerstone of the country’s economy. When agriculture was the backbone of the economy, foreign exchange earnings were high. But, when crude oil was discovered, Nigeria’s GDP and foreign exchange earnings skyrocketed massively. Boosting the economy of the nation and attracting foreign investors. The aftermath of the discovery of crude oil is the wealth the country is experiencing even though the masses are not beneficiaries as they should be. Through crude oil money, many infrastructure projects, social services, and basic amenities have been funded by the government. This is not to say that before oil money there was no infrastructure in the country there were lots of them. But, oil money has helped to fund much bigger infrastructures than before. 

Cons of Crude Oil 

Oil wealth has fueled the flame of corruption amidst the political leaders in the country to the extent that the country is in debt despite the annual revenue generated from oil. We hear of political leaders embezzling billions of naira to enrich themselves rather than spend it on the purpose for which it was intended. This has snowballed into so many evils such as oil theft, greed, conflict, violence, and hardship. The process of extracting and refining crude oil has resulted in oil spills and gas flaring. Causing severe environmental pollution, particularly in the Niger Delta region. The water within this region has been contaminated with oil affecting the growth of plants and water animals. The atmosphere has also been affected by the continual release of poisonous gases and fumes. 

Conclusion 

The discovery of crude oil although beneficial to the economic growth and infrastructure development of the country has done more harm than good. From the increase in the rate of corruption to the collapse of the agricultural sector among others. It is expected that Nigeria would have gone ahead of many countries because of oil wealth. But the reverse is the case as the country is still struggling in the hands of corrupt leaders. If only we had good leaders in charge of the economy, the tales we tell would have been better.