The politics of oil and the challenge for the development of Nigeria

The paper shows how the discovery of oil in Oloibiri in 1956 foisted clientelism on Nigeria and in the process, corruption and cronyism became normative. The exploration of oil in the Niger Delta region degraded the environment destroying ecosystem resulting in polluted fish ponds, drinking water sources and other means of livelihood. Additionally, the continuous flaring of gases has resulted in acid rain and other forms of diseases within the region. Using information from journals, library sources and online resources the paper argued using Immanuel Wallerstein’s systems theory that multinational corporations (MNCs) operating in the oil industry exploit the resources in the Niger Delta without investing commensurate resources in the region. This has not improved the poverty level as less than 5% of Niger Deltans work in the oil industry. The gender dynamic is even worse as less than 1% of Niger delta women work in the sector and most are holding pink jobs. The resultant effect is that the Nigerian economy continues to strink while development has become stunted. The paper posits that oil represents the ‘Dutch disease’ for Nigeria and Nigerians and has impelled underdevelopment. It avers that the misplaced priority of the ruling elites who are often drawn into the struggle for oil wealth that leaves them engrossed with what they can grab from the national cake which the oil wealth represents and not how to develop the nation frustrates all development agenda. It concludes that the intractable neglect of infrastructural facilities in Nigeria represents the flip-side of oil politics in Nigeria.Keywords: Politics, Oil, Challenge, Nigeria and Development