Get Crude Oil And The Nigerian Economic Performance

The Oil sector contributed 5.48% to the total real GDP in Q3 2023, down from the figure recorded in the corresponding period of 2022 and up from the preceding quarter, where it contributed 5.66% and 5.34% respectively. The non-oil sector grew by 2.75% in real terms during the reference quarter (Q3 2023).

The oil boom of the 1970s led to the neglect of non oil tax revenues, expansion of the public sector and deterioration in financial discipline and accountability. In turn, oil dependence exposed Nigeria to oil price volatility which threw the country's public finance into disarray.

Today, its economy is largely dependent on oil pro- duction. The agricultural sector is unable to produce enough food, forcing Nigeria to import food to feed its people. The country's heavy reliance on oil has led Nigeria to civil instability, corruption, environ- mental degradation and economic exploitation.

The discovery of crude oil established Nigeria as one of the world's oil-rich countries that were recorded between 1971 and 2005 (Sani & Nwoye, 2023). Its petroleum sector constitutes around 6.33% of Nigeria's Gross Domestic Product (GDP) and contributes over 90% of the total export value (Statista, 2022).

With 15 operating pipelines and an average daily production of some 1.5 million barrels in 2023, Nigeria is the fifteenth largest oil producer worldwide. Moreover, the petroleum industry accounts for about 5.5 percent of Nigeria's GDP and for around 92 percent of the value of all exports.

The main environmental impacts of oil extraction are oil spills, land use change, and gas flaring. Oil spills are very common in the Niger Delta. Cleanup efforts are often inadequate, resulting in loss of delicate ecosystems as well as fisheries and farmland.

The oil wealth was not invested to support the agriculture nor manufacturing sector, which has led to neglect and has therefore attracted factors of production away from agriculture and manufacturing, leading to a manifestation of what is termed as Dutch disease resulting in a resource curse [7] .

Today, its economy is largely dependent on oil pro- duction. The agricultural sector is unable to produce enough food, forcing Nigeria to import food to feed its people. The country's heavy reliance on oil has led Nigeria to civil instability, corruption, environ- mental degradation and economic exploitation.