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Bullion

Keywords

Petroleum industry, Oil and gas, Nigerian economy, Economic development

Abstract

Nigeria, Africa's most populous country and potentially its largest economy, has witnessed decades of dictatorship and misrule. Accompanying this misrule are severe economic problems of an unprecedented magnitude. This paper intends to add further clues to the solution for this national developmental puzzle. The remaining part of the paper is arranged thus: Part 2 presents an overview of the Nigerian Petroleum industry while the part 3 looks at the literature of economic development the country appears to be executing. Parl4 discusses the various linkages the Petroleum industry offers visa-vis Nigeria's exploration of their potentials. The penultimate part will offer some recommendation and the part 6 would contain the concluding remarks. What happens to our economy when the recently re-energized American research on developing a commercially viable alternative to gasoline for their automobiles and other energy needs makes a breakthrough? Truly, wealth based on natural resources can be eroded. Guatemala learnt this bitter lesson years ago when their wealth based on the highly prized crimson dye extracted from the insect cochinilla was almost instantly wiped out when the Europeans invented artificial dye(Ha-Joon Chang:2007). Empirical and theoretical evidence over the years have shown that there is no close relationship between a country's resources and its wealth or GNP. Economies grow when her citizens continuously develop and add new activities to the list of those they engage in.

Author Bio

The Authors are staff of Central Bank of Nigeria.

Publication Title

CBN Bullion

Issue

4

Volume

34

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