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AN INVESTIGATION INTO THE IMPACT OF THE MULTINATIONAL OIL COMPANIES..

Format: MS WORD  |  Chapter: 1-5  |  Pages: 72  |  945 Users found this project useful  |  Price NGN5,000

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AN INVESTIGATION INTO THE IMPACT OF THE MULTINATIONAL OIL COMPANIES 

 

CHAPTER ONE

INTRODUCTION

1.1       Background of the Study

Economy is the backbone of any nation. Nigeria like other developing countries of the world is paying more attention on how to accelerate the rate of her development through the various sectors of the economy.

According to Jaiyeoba (2009), Crude oil is the life-blood of the Nigeria’s revenue, Economy and National Survival. Crude oil, a very versatile and flexible, non-reproductive, depleting, National (Hydrocarbon) resource is a fundamental input to modern Economic activities, providing about 50% of the total energy demand in the world. Nigeria is situated in West African sub-region with a land mass of 923,768sqkm and a population that is presently more that 170 million people in 2012.

According to Central Bank of Nigeria (CBN 2012) Nigeria is the largest oil producer in Africa and the fifth largest in the organization of petroleum exporting countries (OPEC).

According to Budina and Van Wijnbergen (2008), the first discovery of oil in commercial quantities in Nigeria was in 1956, with reserves estimated from 16 to 22 billion barrels mostly found in various fields in the coastal regions of the Niger Delta.

Oil for the past three decades has provided 905 of the foreign Exchange Earning of Nigeria; the dominant source of government revenue, financing 805 of total government revenue.

After Nigeria’s independence in 1960, oil production for export had risen dramatically as British and American Oil Corporation recognized increased investment opportunities. According to the Nigerian constitution, petroleum act of 1969, all minerals, oil and gas are formerly considered the property of the Federal Government which negotiates the terms of oil production with the private firms.

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