Oil a Blessing or a Curse: The Nigerian Experience

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Oil a Blessing or a Curse: The Nigerian Experience

Abstract

It has been argued that the impact of oil on the Nigerian economy is inconclusive. It can either be a blessing or a curse to any economy. In the case of Nigeria it has been a blessing since it has assisted in increased export and revenue generation which has been used for developmental purposes while on the other hand it has been a curse since the discovery of oil which has led to the neglect of other sectors of the Nigerian economy that would have positively impacted on the economy like agriculture and manufacturing sectors. This is in line with the Dutch disease argument which postulates that the discovery of natural resources may have a negative impact on the economy if efforts are not geared to diversify such economy. This has been Nigeria’s major problem. Therefore this study concludes that government should institutionally support diversification of the other sectors of the economy so as to allow the other sectors to contribute meaningfully to the overall growth of the Nigerian economy.

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