Oil: The Hindrance to the Economic Diversification in Nigeria

Abstract

Since 1956 when oil was discovered in Nigeria, thousands of barrels has been produced, refineries has been established in the country which has made oil the major such of sustenance of the country’s economy. This paper term to show the relationship between oil and the Nigeria economy, the positive contribution of oil to Nigeria economy which are increase in national income, major source of foreign exchange, provision of employment opportunity, increase in the standard of living, provision of infrastructural facilities, economic growth; show the negative effect of oil on Nigeria economy which has made the country a monomania economy, change the people sense of value, and reasoning, cause political instability, laziness and how oil has hindered the economic diversification of the country in terms of negligence of agricultural sector, uneven development among other sector of the economy, rural urban draft, increase in corruption and illegal activities. The paper thus concludes that government of Nigeria need to bottleneck all the negative effect oil has impacted to the economy of Nigeria in order to make her a great nation and also provides possible recommendation in order to diversify the economy of Nigeria.