Disadvantages of Crude Oil in Nigeria
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Crude oil is a naturally occurring liquid found beneath the earth’s
surface which can be refined to make other products for use as fuels
in cars and equipment. Once this fluid is extracted, refiners can use
it to produce other essential fuels such as diesel oil, kerosene, and
gasoline. Crude oil (popularly referred to as oil) is one of the
primary catalysts for economic growth in the world at large. Crude oil
has been a great source of energy over the ages and especially in
Nigeria, so much so that many have thought it indispensable. However,
just like other energy sources, crude oil has its disadvantages.
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Disadvantages of Crude Oil in Nigeria
Crude oil has been widely used in Nigeria and has offered the nation
much advantages. First of which is that it has led to significant
economic growth in Nigeria. The discovery of crude oil has created
thousands of new jobs and employment opportunities and has also served
as a viable source of income for the country.
(adsbygoogle = window.adsbygoogle || []).push({});
Oil was first discovered in commercial quantity in Nigeria in 1956. It
has been more than sixty years now and the petroleum sector still
remains one of the primary sources of the country`s wealth. Nigeria
derives about 90% of its foreign exchange earnings from the oil and
gas sector. The oil sector is one of the most crucial in Nigeria. You
might begin to wonder how such a blessing as crude oil can have its
downside but whatever has its benefits would have its disadvantages
too. This article writes on the disadvantages of crude oil in Nigeria.
Read on below:
Unequal distribution of revenue
Oil is a source of great wealth to any nation. In most oil-rich
countries, of which Nigeria is not exempted, the concentrated revenue
gotten from crude oil goes to a selected few, such as the government
of the country. When those in government have unchecked control over
this wealth, it allows for corruption. This is what is evident in
Nigeria today. Much revenue gotten from crude oil and used for the
benefit of the masses keeps being looted by those in government.
The infrastructure of the oil sector requires continuous maintenance
The equipment used in the oil sector requires continuous maintenance.
In Nigeria, whenever there is an oil spillage, the aftermath is
usually more than we can handle because the government has been
careless about improving the start of facilities in the sector.
(adsbygoogle = window.adsbygoogle || []).push({});
Limited in supply and unsustainability
Crude oil is limited in supply and experts now question its
sustainability. Currently, the global oil reserves are becoming more
depleted because of increasing demand by several countries. What is
worse is that countries like Nigeria are not preparing themselves for
a shift in energy source considering that the world will sooner or
later run out of supply.
Sole attention on Crude oil as the primary source of revenue
It has been very difficult to shift the attention of the Nigerian
governments especially in past years from Petroleum. Nigeria is
blessed with other mineral resources such as coal, iron ore, lead,
limestone, tin and zinc. Nigeria also has arable land fit for
agriculture. But the country has focused on oil and left these other
sectors much to its detriment thus ignoring opportunities for growth.
Environmental pollution
This is perhaps one of the most disadvantages of crude oil, not only
in Nigeria but in the world at large. Extraction and burning of crude
oil generate greenhouse gases that causes pollution to the environment
and results in global warming. Let us come down to Nigeria, the Ogoni
community, for example, is one of those that has suffered from the
disadvantages of crude oil in Nigeria. The oil spills that have taken
place in Ogoni have been such a disaster for the community and Nigeria
at large. It is reported that Nigeria will need billions of dollars to
clean up Ogoni land. There is also the social and economic impact on
this area. For example, violation of human rights, poor nutrition,
problem of clean water sources, and pollution of the environment. It
is sad that those who live in the area where Nigeria gets the bulk of
her wealth from, have to suffer this way. The main problems arise from
oil leakages, gas flaring, and the escape of other chemicals during
the process of oil production. Although, the Nigerian government has
established laws for protection of communities such as Ogoni, much has
not been done in terms of implementation and enforcement of these
laws.
Social unrest
Another disadvantage of crude oil is the social unrest it has brought
about in many parts of the country. An example is the case of Niger
Delta. The Niger Delta crisis has resulted in death, kidnappings,
destruction of pipelines, unemployment, and general state of unrest
for the Niger Delta region. The militants began by fighting for their
rights because of the unfairness meted out to them in their land. It
has however grown worse with time.
(adsbygoogle = window.adsbygoogle || []).push({});
Oil spillage
Oil spills have adverse effects on marine life such as water
pollution. Oil spillage has caused the death of thousands of animals
and fishes annually.
Crude oil sustains growth of terrorism and violence.
Oil money has been used in time past to finance terrorism and
terrorist organization. This is because of the abundance of wealth
gotten from oil. The billions gotten from oil most sometimes goes
directly into wrong hands. This gives rise to violence and growth in
terrorism. Many have argued that crude oil in Nigeria has further
fostered terrorism in the land.
Fluctuation in Oil price.
The economic problems that Nigeria is currently experiencing are due
to a lack of foresight and planning. Nigeria spent a lot and
recklessly too when oil prices were high without having a plan on how
to cope and sustain the economy when oil prices became lower.
As seen above, the common downsides to crude oil in Nigeria are
environmental pollution, corruption, social unrest, terrorism and
violence, lack of maintenance and non-diversification of the economy.
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'mts_view_count', id: '290816'}); });
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Crude oil is a naturally occurring liquid found beneath the earth’s
surface which can be refined to make other products for use as fuels
in cars and equipment. Once this fluid is extracted, refiners can use
it to produce other essential fuels such as diesel oil, kerosene, and
gasoline. Crude oil (popularly referred to as oil) is one of the
primary catalysts for economic growth in the world at large. Crude oil
has been a great source of energy over the ages and especially in
Nigeria, so much so that many have thought it indispensable. However,
just like other energy sources, crude oil has its disadvantages.
(adsbygoogle = window.adsbygoogle || []).push({});
Disadvantages of Crude Oil in Nigeria
Crude oil has been widely used in Nigeria and has offered the nation
much advantages. First of which is that it has led to significant
economic growth in Nigeria. The discovery of crude oil has created
thousands of new jobs and employment opportunities and has also served
as a viable source of income for the country.
(adsbygoogle = window.adsbygoogle || []).push({});
Oil was first discovered in commercial quantity in Nigeria in 1956. It
has been more than sixty years now and the petroleum sector still
remains one of the primary sources of the country`s wealth. Nigeria
derives about 90% of its foreign exchange earnings from the oil and
gas sector. The oil sector is one of the most crucial in Nigeria. You
might begin to wonder how such a blessing as crude oil can have its
downside but whatever has its benefits would have its disadvantages
too. This article writes on the disadvantages of crude oil in Nigeria.
Read on below:
Unequal distribution of revenue
Oil is a source of great wealth to any nation. In most oil-rich
countries, of which Nigeria is not exempted, the concentrated revenue
gotten from crude oil goes to a selected few, such as the government
of the country. When those in government have unchecked control over
this wealth, it allows for corruption. This is what is evident in
Nigeria today. Much revenue gotten from crude oil and used for the
benefit of the masses keeps being looted by those in government.
The infrastructure of the oil sector requires continuous maintenance
The equipment used in the oil sector requires continuous maintenance.
In Nigeria, whenever there is an oil spillage, the aftermath is
usually more than we can handle because the government has been
careless about improving the start of facilities in the sector.
(adsbygoogle = window.adsbygoogle || []).push({});
Limited in supply and unsustainability
Crude oil is limited in supply and experts now question its
sustainability. Currently, the global oil reserves are becoming more
depleted because of increasing demand by several countries. What is
worse is that countries like Nigeria are not preparing themselves for
a shift in energy source considering that the world will sooner or
later run out of supply.
Sole attention on Crude oil as the primary source of revenue
It has been very difficult to shift the attention of the Nigerian
governments especially in past years from Petroleum. Nigeria is
blessed with other mineral resources such as coal, iron ore, lead,
limestone, tin and zinc. Nigeria also has arable land fit for
agriculture. But the country has focused on oil and left these other
sectors much to its detriment thus ignoring opportunities for growth.
Environmental pollution
This is perhaps one of the most disadvantages of crude oil, not only
in Nigeria but in the world at large. Extraction and burning of crude
oil generate greenhouse gases that causes pollution to the environment
and results in global warming. Let us come down to Nigeria, the Ogoni
community, for example, is one of those that has suffered from the
disadvantages of crude oil in Nigeria. The oil spills that have taken
place in Ogoni have been such a disaster for the community and Nigeria
at large. It is reported that Nigeria will need billions of dollars to
clean up Ogoni land. There is also the social and economic impact on
this area. For example, violation of human rights, poor nutrition,
problem of clean water sources, and pollution of the environment. It
is sad that those who live in the area where Nigeria gets the bulk of
her wealth from, have to suffer this way. The main problems arise from
oil leakages, gas flaring, and the escape of other chemicals during
the process of oil production. Although, the Nigerian government has
established laws for protection of communities such as Ogoni, much has
not been done in terms of implementation and enforcement of these
laws.
Social unrest
Another disadvantage of crude oil is the social unrest it has brought
about in many parts of the country. An example is the case of Niger
Delta. The Niger Delta crisis has resulted in death, kidnappings,
destruction of pipelines, unemployment, and general state of unrest
for the Niger Delta region. The militants began by fighting for their
rights because of the unfairness meted out to them in their land. It
has however grown worse with time.
(adsbygoogle = window.adsbygoogle || []).push({});
Oil spillage
Oil spills have adverse effects on marine life such as water
pollution. Oil spillage has caused the death of thousands of animals
and fishes annually.
Crude oil sustains growth of terrorism and violence.
Oil money has been used in time past to finance terrorism and
terrorist organization. This is because of the abundance of wealth
gotten from oil. The billions gotten from oil most sometimes goes
directly into wrong hands. This gives rise to violence and growth in
terrorism. Many have argued that crude oil in Nigeria has further
fostered terrorism in the land.
Fluctuation in Oil price.
The economic problems that Nigeria is currently experiencing are due
to a lack of foresight and planning. Nigeria spent a lot and
recklessly too when oil prices were high without having a plan on how
to cope and sustain the economy when oil prices became lower.
As seen above, the common downsides to crude oil in Nigeria are
environmental pollution, corruption, social unrest, terrorism and
violence, lack of maintenance and non-diversification of the economy.
(adsbygoogle = window.adsbygoogle || []).push({});
(adsbygoogle = window.adsbygoogle || []).push({});
(adsbygoogle = window.adsbygoogle || []).push({});
jQuery(document).ready(function( $) { $.post(
'https://nigerianfinder.com/wp-admin/admin-ajax.php', {action:
'mts_view_count', id: '290816'}); });
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