Petroleum and The Nigerian Economy (1999–2007): Between NEO-Colonialism and Domestic Collaborators

Abstract

This paper analyzes the state of the petroleum sector and its impact on Nigerian economy from 1999–2007. The manner in which the sector was managed attracted a wide range of comments on the rationale for the administration’s handling of the petroleum industry. Between 1999 and 2007, President Obasanjo’s Government failed to reposition the Nigerian oil sector in such a way that it will benefit all Nigerians. Instead, the administration opened the sector to foreign exploitative economic order. The policy during the period is tantamount to development of underdevelopment in the oil sector in terms of management, administration and control.  It is a situation in which while oil is produced in Nigeria, Nigerians do not produce oil. The paper starts with an introduction, followed by a brief history of refineries and the development of petroleum industry in Nigeria, and then the state of refineries during the period between 1999 and 2007. The third aspect is the theoretical framework and conceptual issues, deregulation, withdrawal of subsidy and hike in the price of petroleum products. Finally, there is conclusion and recommendations.

Keywords:Neo-colonialism, petroleum, collaborators, deregulation, hike