Crude Oil and Nigerian Economy: A Historical Appraisal

Nigerian economy has undergone series of changes and structural changes since the post-colonialb period. The economy of Nigeria was basically based on agriculture before and during colonial era. Before the colonial rule, Nigeria had fairly complex organization. These social organizations were predominantly peasant communities, producing variety of commodities, mostly to satisfy their needs with little surpluses for exchange with other neighboring communities. Trading among the various communities was broadly based on barter system and agriculture involved the production of food crops for subsistence. It involves the cultivation of land raising and rearing of domestic animals for the purpose of production for men, feed for animals and raw materials for local industries. It has always been the major employer of labours most especially in the pre- industrial societies and before the commercialization of crude oil in the country. The introduction of crude oil into Nigeria economy in the late 1950s brought a significant change and development in the countryƒ??s economic sector. Crude oil is a very versatile and flexible non- productive, exploiting, natural (hydrocarbon) resources is a fundamental input into modern economic activity, producing about 50 percent of the total energy demand in the world. Oil was found in commercial quantities at Olobiri in Niger Delta, Nigeria. The exploration and exploitation of crude oil in commercial quantity changed Nigerian economy from agrarian to crude oil economy. It is interesting to note that crude oil has contributed immensely and still contributing to the economic development of the country in the area of economic growth and development. The full exploration of crude oil gave a bright hope to an average Nigerians. Many had hoped that oil would turn Nigeria into industrial power and a prosperous country based on a large middle class. Despite this, Nigeria still remains backward in the area of development most especially the industrial sector and standard of living of her citizens. Therefore, the intention of this paper is to examine the contribution of crude oil to the economic development of Nigeria and how the sector has help Nigerian government to solve her economic problems and equally to elucidate on how and why Nigeria, a giant of Africa has not developed as expected.

The authors declare no conflict of interest.

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The datasets used in this study are openly available at [repository link] and the source code is available on GitHub at [GitHub link].

This work did not receive any external funding.