Economics » Natural Resources and the Economy » Contribution of Petroleum to the Nigerian Economy

Positive Contributions of Petroleum to the Nigerian Economy

The rise of Nigeria in the world arena happened largely because of petroleum. This income source helped to build the country after the devastating Civil War. At the beginning of the 1950s, petroleum had an insignificant amount in the total exports. According to the statistics, it covered about 2% of export products.

The real rise of petroleum started between 1960 and 1970. Nigeria could provide only about 5 million barrels per year in the 1960s. However, at the beginning of the 1970s, this number rose to a fantastic 600 million barrels. Therefore, governmental revenues from the petroleum industry increased from 66 million Naira in the 1970s to 10 billion Naira in the 1980s.

The energy reserves of Nigeria increased to up to 34 billion barrels. At the beginning of the 2000s, petroleum covered about 80% of total exports. Today, it covers about 90%. Nigeria gets about 90% of its revenue from petroleum products.

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