Crude Oil Production, Corruption and Upstream Oil Revenue in Nigeria: General Outlook, Conditions and Methodology

Abstract

The study examined general outlook and conditions of crude oil production, corruption risk and upstream oil revenue in Nigeria. The study focused mainly on the revenue generated from crude oil production and oil export with the purpose of assessing oil exploration and corruption with the objective of investigating Nigeria’s oil export and its contribution to the growth of revenue generation and finding out if the level of corruption affects the upstream revenue generation in Nigeria. it is discovered that the following variables are germane in the empirical studies reviewed and econometric models are conceptualized that proven oil reserve, OPEC quotas, global oil demand, global oil supply, geopolitical risk index, disaster risk index, global terrorism index, global oil price, exchange rate variation, upstream oil theft, number of pipeline vandalism, oil bunkering, tax evasion and corruption perceptions index are relevant and possible determinants of downstream oil revenue in Nigeria. An empirical study to investigate the relationship and causal effect of the above-mentioned factors are recommended for further study with a view to making reliable policy statements on revenue sustainability and highlighting and reducing the counterproductive effects of corruption risks in the exploration and production of crude oil in Nigeria.