Nigeria ranks among top 15 nations endowed with crude oil and natural gas reserves majorly deposited in the NigerDelta region. The region produces about 80% of the petroleum production in the country. The economic impactstudies of petroleum extractive activities in developing nations have been limited as concentration of these studieshave been solely at the national level. However, recent studies on the economic impacts of petroleum production indeveloped nations have shown that mineral resource extractive industry, though an enclave industry generatesmultiplier effects for producing regions or states that stimulate economic growth.Hence, the purpose of this paper isto evaluate the economic impact of petroleum extraction on the producing region in Nigeria. This study is directed atevaluating the general assertion, that there is no linkage between petroleum industry and economic growth inNigeria. The debates on the linkages of the petroleum industry to the national economic growth have been largelyconclusive with the assertion of a non-linkage. However, this assertion has remained generally inconclusive for asub- regional or state economy in Nigeria.
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