By Jonathan Power
Oil provides 70 % of booming Nigeria’s government revenues and without that, since tax collection is so poor, Nigeria would be a country without much in the way of education, health facilities, infrastructure building and urban renewal.
People talk suggestively about a corrupt elite creaming off oil money. Although true it is only the cream. The milk itself goes to the state, hence the government’s preoccupation with oil theft which is now on an enormous scale, organised by corrupt businessmen, officials and politicians. (Before that it was the insurgency in the Niger delta where youthful, well-armed, guerrillas sabotaged the pipelines for well over a decade until a peace agreement (a buy out) was negotiated by the underestimated president, Umar Yar A’dua, President Goodluck Jonathan’s predecessor who died on the job.)
The proportion of the economy that oil makes up is now found to be much less than thought. Nigeria has just revised its national income figures. (The International Monetary Fund supports this.) It has handsomely overtaken South Africa to become the continent’s largest economy. The economy of Lagos is one and a half times the whole of Kenya’s. Nigeria has become the 16th largest economy in the world. Some say within ten years it could be in the top five. However, the statistical revision shows that the share of the oil and gas industry in the economy is not 32% but 14%. Nigeria has diversified much more than was ever guessed at.Read More »




