Shell Petroleum Discovery Of Nigeria Essay - 1479 Words

Introduction In 1956, Shell Petroleum discovered oil in commercial quantity in Nigeria. Within a decade, oil exploration speedily replaced agriculture as the mainstay of the country’s economy. In 2006, roughly 97 percent of exchange revenue and about 80 percent of all government expenditures came from petroleum proceeds . The Niger Delta region is located at the southernmost part of Nigeria and comprises of nine states; Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Rivers State, Abia, Imo and Ondo states. The region constitutes 7.5% of Nigeria’s land mass, yet it is â€Å"the nerve center of Nigeria’s oil industry† as it produces 100% of its oil and gas and generates more than 80% of all revenues . Aside the Niger Delta’s huge fossil fuel reserves, its numerous rivers, streams and fertile lands make fishing, farming and hunting the major economic activities of the natives . While the region is the nerve center for the oil industry, approximately 69 percent of the residents lives in an abject poverty and squalor. How can logic explain a highly productive region becoming a theater to acute economic deprivation? To answer the question, there is a need to understand how oil corporations conduct business in the area. One must appreciate the intricate relationship among the federal government, the oil corporations and the Niger Deltans. The paper’s intent is to demonstrate that oil producing communities in Nigeria are adversely affected by oil exploration. The first partShow MoreRelatedConceptual Framework And Literature Review Essay1644 Words   |  7 PagesNevertheless, under the Nigeria petroleum laws, the federal government appropriates the right over oil and gets all revenues accruing from its production. From this, it follows that the primary responsibility of developing the oil producing communities is that of the government. It should be noted that under the Nigeria’s petroleum laws, the oil companies do not have legal responsibility to develop the oil producing area, but their statutory obligation is to pay a royalty of 19% and a petroleum profit tax ofRead MoreNigerian Development : The Face Of Oil Extraction And How Mncs Such As Shell Essay1593 Words   |  7 Pagesoil state and primary exporting country, Nigeria is the largest oil exporter in Africa and the world’s tenth largest oi l producer (Pyagbara 2007: 1). As of 2010, crude oil and petroleum gas accounted for approximately 80% of the country’s overall exports, totaling over $50.3 billion in revenues the next year (Pyagbara 2007: 2). 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