THE ROLE OF OIL COMPANIES IN THE NIGERIAN DEVELOPMENTAL PROCESS

Oil is a commodity like no other. It is a prime source of energy that cannot be quickly replaced. Its production is held in few hands, it’s producers can choose at the turn of value either to increase it’s flow or conserve it in the ground or which is better. Oil is the pivot on which the oil-producing nations appear to hold little prospect for development. When Nigeria is looked at relatively with other producing nations like Saudi Arabia, one wonders where the effect of oil is felt on our level of development which relatively low. The amount of a producer’s wealth is a guess depending on the level of production. Perhaps, the problem lie with the oil companies in the Nigerian oil industry, this philosophy has promoted the researcher to study the role of oil companies in the Nigerian economic development process. This report analyses the government involvement in the oil industry and the birth of Nigerian National petroleum cooperation (NNPC), the role price fluctuation in the economy. In addition, the distribution of petroleum product, and the contribution of the oil sector to the economy. Specifically, the issues addressed to in this study are the following:- a) What specific factors are responsible for the declining role of oil in our economic development? b) What is/are the implication(s) of this declining role of oil in the Nigeria economy? c) What is/are the influence of organization of petroleum exporting countries (OPEC) on the price and quantity demanded and supplied of Nigerian crude oil? d) What are the implications of the erratic price charges of oil on the Nigerian trend of development? e) What are the factors responsible for the persistent and intermittent shortages of petroleum products? f) What are the options to arrest the declining role of oil to the Nigerian economy? g) Has the government in any form associated itself with the declining role of oil in our economy?