Socioeconomic impact of oil in Nigeria

Abstract

Taxes and royalties from the oil industry in Nigeria have made possible massive infrastructural and social development throughout the country; this single industry continues to be the most important contributor to the national treasury. Along with oil, however, have come environmental and social problems, some severe and, in the social sector, possibly of long duration. Questionnaires were employed to solicit environmental and socioeconomic information from residents in the oil-impacted area as well as to ascertain the views of the oil companies with respect to their Nigerian operations, in particular to their socio-economic responsibilities to the local residents. Responses point to serious discontent on the part of the impacted population, especially in the most important southern (Niger Delta) oil producing region. These negative attitudes in part are based upon the impacted population’s inability to secure for itself a sufficiently large number of oil industry jobs and in part to the presence in the local community of ethnic strangers who do have such employment. There is evidence of serious environmental damage, but its biological dimension has been overshadowed by claims for monetary compensation at the local level. Data derived from these investigations might well be applicable in the wider field of trans-national mining and petroleum extraction operations in developing countries, especially to the unwritten social obligations of the expatriate firm to local residents.