OIL WEALTH DEPENDENCE AND POVERTY IN NIGERIA

Abstract

Nigeria is one of the most blessed countries in the world in terms of its abundant mineral resources especially oil, in which its wealth the country has depended over the years. The country is the fifth largest exporter of oil, a position that is expected to see the country belonging to one of the first twenty richest countries in the world. Despite this expectation, Nigeria today is the twentieth poorest country in the world. This study examines oil wealth dependence and poverty in Nigeria, focusing on socio-economic and infrastructural induced poverty. The study argues that oil wealth if channeled into right directions as it concerns government spending on current expenditure and capital projects would have greater impact by guaranteeing the right of the citizens to improved incomes and assets of the poor to improve their living standard. The theory that anchored the study is the oil curse theory. The data for the study were collected from documentary sources, media commentaries, scholarly inputs and direct observation, while content analytical approach was adopted. The study identifies lack of access to socio-economic and infrastructural facilities, weak institutional arrangements, poor governance, and neglect of other sectors and sub-sectors of the economy including manufacturing sectors and lack of transparency among others, as reasons why the people have continued to remain in abject poverty in the midst of abundant oil wealth. The study recommends among other things that greater percentage of the oil wealth should be channeled to provision of infrastructural facilities, encourage other sectors of the economy to guarantee sustainable growth, while various government institutions should be strengthened to ensure transparency and accountability in governance.