Nigerias Production And Exportation Of Oil - 2308 Words

While it is only the 11th largest global oil producer, Nigeria is one the most important countries in the oil production community. Due to high quality crude oil, potential for future oil production endeavors, accessible location to the vast Western oil market, and continuing trend of non-nationalization, Nigeria has become the largest oil producer in sub-Saharan Africa. These advantages have developed Nigeria into a country entirely dependent on the production and exportation of oil. In 2007, oil encompassed 99 percent of Nigerian oil exportation earnings, making up 85 percent of the governments total revenue1. Despite 400 billion dollars in total oil revenue collected by the Nigerian government since 1970, the country faces a standard of†¦show more content†¦In order to fully understand the mechanics of the clientalistic Nigerian oil governeance, one must first explore the structuring of the institutions tasked with overseeing the industry. First and foremost is the Nigeri an National Petroleum Corporation, or the NNPC. The NNPC is the parent company comprised of itself and 12 wholly owned subsidiaries that range from oil trade companies to petrochemical plants. With a workforce of over 9000, the NNPC oversees operation both down and upstream on the Niger river. The NNPC controls such a large percent through its subsidiary the National Petroleum Investment Management Services (NAPIMS), an investment firm that acts as the concessionaire for the NNPC, brokering all the oil contracts on the behalf of the Nigerian government. Utilizing its incredibly high amount of government mandate in conjunction with its industry savvy personnel, the NNPC has postured itself as the leading influence over the Nigerian oil sector. Second in the pecking order is the minister of Petroleum, the official tasked with overseeing the NNPC. A position now (and much of history prior to 1999) held by the Nigerian president, the minister forms a tightly knit cabinet of advisors who se will governs the majority of oil-sector policy making. However, the position has lent itself to corruption, instilling concentrated amounts of power in an institution with