Oil has been Nigeria’s main source of revenue. Over 50 years have passed since the oil boom. Now the price of oil has fallen drastically. Many countries that relied on oil as their main source of revenue revenue are facing economic crisis. Unfortunately, Nigeria is one of them.
Over the years, since the discovery of oil in Nigeria, the governments have failed to diversify the economy of the country, from oil to other sources of income. As at 2008, the price of oil was $114 per barrel, now the price is $40 per barrel. For this reason, Nigeria’s economy is in crisis, the country’s currency is losing its value, the citizens are experiencing hardships and standard of living is becoming high.
As a result of serious corruption, the country has failed to develop in great measures. Oil may be flowing into the holds of large tankers, but in most states, petrol shortages are chronic. None of the refineries are efficiently working. The country’s four refineries are obsolete and as Africa’s largest oil producer is forced to import refined petrol.
One of the central problems of Nigeria is corruption. As I mentioned earlier, because of corruption Nigeria is not able to improve its economy. The government must be quick to ensure the diversification of the economy. For the country can no longer depend or rely on oil.
In conclusion, I want to end by quoting the president of the republic “The days of Nigeria as a big oil producer with plenty of money are gone. We need all the support we can get to diversify our economy as quickly as possible.”
Source: OIL DOOM