What Are The Effects of High Oil Prices On The Economy of Oil Essay

What Are The Effects of High Oil Prices On The Economy of Oil Exporter, a Case Study of Nigeria - Essay Example However the risk that Nigeria takes solely depending on oil and not finding another source of revenue is risky in the long run. Nigeria has able leadership in the Presidents but they have to go a long way to make oil their own ‘prize cow’. At present, foreign companies are exploiting the oil reserves. The paper elaborates more about the oil revenues and the ways in which these revenues have influenced the various activities of Nigeria. Viewpoints of researchers, authors and the media have been added. The oil prices and how they affect the economy of Nigeria has been discussed. Nigeria is a powerful nation in national and international affairs (Nigeria, Oxford Business Group). Having gained independence from the British in 1960, Nigeria was an active participant in African politics and had a major role in UN and African Union missions across the nation. A rich diversity of peoples exists with 250 ethnic varieties. The landscape ranges from the semi-arid desert in the northern regions and tropical forests towards the south (Nigeria, Oxford Business Group). History is accompanied by the tales of frequent military coups and secessionist wars. The violence in the past appears to have been influenced by the demographic and geographic profile. Recent years have however led to a political stability unseen in its history. The GDP which is expected to cross 8% this year also conveys a rosy picture. The principal exports are oil coming to $ 20.7bn. It exports mainly to the US and then India (Nigeria in Country profiles, 2007). Oil has made Nigeria a rich nation and t he economy is growing fast. Nigeria has relied on the hydrocarbon sector for its largest revenues and exports since the oil boom in the 1970s. It is the largest oil producer in Africa and provides 11% of the US oil imports.