Can crude oil be used as a fuel towards sustainable development in Nigeria.

摘要

Nigeria is presently the largest economy in Africa. However, the level of development in the country presently is far below potential and gravely inadequate. This paper aims not only to analyze the Nigerian economy since independence and try to resolve why it is still underdeveloped, but also to ensure that in pursuing development, the stakeholders realize the importance of ensuring that development is sustainable. This paper critically analyses whether the developmental issues in Nigeria stem from the Dutch disease and resource curse phenomena. Using secondary research information, it gives a detailed overview of the present state of the Nigerian economy and evaluates the socio-economic and political systems in the country leading up to its present state. It shows that the current social systems, political environment, and economy of Nigeria are underdeveloped and unsustainable. It then explains the need for sustainable development and suggests a radical change in the way funds from crude oil extraction and exports are utilized in the country. More funds need to be channeled towards supporting sustainable agriculture in order to improve the livelihood and standard of living of rural Nigerians and among the general population. Human capital development also needs to be funded and actively sought after in the country. Another major point of this paper is that Nigeria should reduce her overdependence on oil for income and diversify GDP. The thematic structure of this paper stems from the economic theories of the Dutch disease and the resource curse and how these can be observed in the Nigerian economy.