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ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 1 (30), 2020 УДК 338.45:665.6/.7(669)
Fatusin Folayele Stephen, student of the international faculty, Kursk State Medical University.
e-mail: fatusinfolayele@gmail .com
PETROLEUM INDUSTRY IN NIGERIA
Abstract: the article describe the development of the petroleum industry in Nigeria as one of the most important industry in the economy of the country. It examines the dynamics in the development of the industry, exchanges revenues and the impact of the industry on the development of the macroeconomic indicators in Nigeria. Due to the development of the industry, the employment rate is increased therefore causing the employment rate to increase also causing an increase in the purchasing power. The purchasing power increasing the cost of living in Nigeria, this give rise to an increase in the GDP.
Keywords: petroleum industry, economy, revenues, GDP.
Фатусин Фолаиле Стефан, студент международного факультета Курского государственного медицинского университета.
e-mail: fatusinfolayele@gmail.com
НЕФТЯНАЯ ПРОМЫШЛЕННОСТЬ В НИГЕРИИ
Аннотация: в статье описывается развитие нефтяной промышленности в Нигерии как одной из важнейших отраслей экономики страны. Она анализирует динамику развития отрасли, влияние отрасли на развитие макроэкономических показателей в Нигерии. В связи с развитием отрасли уровень занятости
ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 1 (30), 2020 увеличивается, что также приводит к увеличению покупательной способности и к увеличению ВВП страны.
Ключевые слова: нефтяная промышленность, экономика, доходы, ВВП.
Nigeria is the largest oil and gas producer in Africa. In the latest reports, Nominal GDP of Nigeria reached 123.4 USD billion in Sep 2019. GDP Per Capita in Nigeria reached 1,951.3 USD in Dec 2017. Its Gross Savings Rate was measured at 17.8 % in Dec 2018. Crude oil from the delta basin in Nigeria comes in two types: light and comparatively heavy. Both types are paraffinic and low in sulfur [1].
Oil was discovered in Nigeria in 1956 at Oloibiri in the Niger Delta after half a century of exploration. Nigeria joined the ranks of oil producers in 1958 when its first oil field came on stream producing 5,100 bpd. In 1970, due to the rise in the world oil price, Nigeria was able to reap instant riches from its oil production. Nigeria joined the Organization of Petroleum Exporting Countries (OPEC) in 1971. By the late sixties and early seventies, Nigeria had attained a production level of over 2 million barrels of crude oil a day. Petroleum production and export play a dominant role in Nigeria's economy and account for about 90% of her gross earnings [2].
Nigeria enjoys a positive annual trade balance of $8.26 billion after deducting imports of $39.5 billion from its export total of $47.8 billion. The value of its exports has fallen sharply over the last five years, falling from $88.9 billion to $47 billion at an annualized rate of -11.9% [3].
The top exports destination of Nigeria are India ($9.1 billion), Spain ($4.63 billion), South Africa ($4.58 billion), Brazil ($4.14 billion) and the Netherlands ($3.37 billion) [3].
Oil production in Nigeria still contributes over 10% in the Nigerian GDP, and the average interest rate of Nigeria is at 11%
However, with the positive impact to the economy the petroleum industry, on the other hand, there are also negative impacts to the country.
ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 1 (30), 2020
First and foremost, oil price increases are generally thought to increase inflation. In terms of inflation, oil prices directly affect the prices of goods made with petroleum products. Increases in oil prices can depress the supply of other goods because they increase the costs of producing them. And generally, this leads to higher cost of living. [6] Additionally, petroleum industry can cause environmental pollution. Transforming crude oil into petrochemicals releases toxins into the atmosphere that are dangerous for human and ecosystem health [7].
On conclusion, as the main industry which impact the economy of Nigeria. Petroleum industry plays an important role in the economy of Nigeria, both positive and negative. The oil price directly affects the goods made with petroleum products which cause high cost of living but the GDP of the country will rise. The stability of the GDP will enable the improvement of the economy.
References
1. Wikipedia article: Petroleum Industry in Nigeria. https: //en.wikipedia. org/wiki/Petroleum_industry_in_Nigeria#Return_to_military_rule_ and_electoral_annulment_(1983%E2%80%931993)
2. Publication by Nigerian National Petroleum Corporation. https://www.nnpcgroup.com/NNPC-Business/Business-Information/Pages/Development-of-the-Industry.aspx
3. Publication article: Main imports and exports of Nigeria. https://commodity.com/nigeria/
4. Research paper: Importance of Oil in the Nigerian economic growth https://www.researchgate.net/figure/Oil-output-exports-and-revenue-in-Nigeria-1960-2009_tbl2_266222981
5. Publication paper: Nigeria foreign exchange reserves https://tradingeconomics.com/nigeria/foreign-exchange-reserves
ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 1 (30), 2020
6. Publication paper: Consequences of higher Oil prices on the overall Economy https://www.frbsf.org/education/publications/doctor-econ/2007/november/oil-prices-impact-economy/
7. Publication paper: Environmental Impact of Petroleum and Natural Gas //https://www.dummies.com/education/science/environmental-science/what-is-the-environmental-impact-of-petroleum-and-natural-gas/
