Report: How Nigeria wasted $1 trillion during five major oil booms
The report stated that Nigeria wasted five oil booms amounting to an estimate of a trillion dollars in oil revenue with no significant savings.
According to the report, Nigeria missed the opportunity to rebuild the nation's economy despite the five seasons of oil prosperity.
The report covered 1970 to 2014.
Titled “Stabilising Nigeria’s Volatile Economy,” the report was co-authored by former Vice President of the World Bank, Africa Region, Dr. Obiageli Ezekwesili; former president of the Nigerian Association of Energy Economics (NAEE), Prof. Adeola Adenikinju; Prof. Andrew Onyeanakwe of the University of Ibadan, and Bode Longe, an economist.
Thisday newspaper, while quoting details of the report, said it drew a nexus between oil price boom and bust to the country’s unemployment rates.
“Nigeria benefited from five oil booms but refused to use the huge revenues earned from these booms to expand the nation’s economic base,” the paper quoted the report.
Here are some highlights of the report
- Nigeria failed to transform decades of oil earnings into sustainable development.
- Between 1970 to 2014, Nigeria wasted five oil booms amounting to an estimate of a trillion dollars in oil revenue with no significant savings.
- The report stated that former president Olusegun Obasanjo’s administration’s economic reforms made attempt at savings mechanism for the rainy day through the establishment of the Excess Crude Account (ECA).
- It also stated that the government that succeeded Obasanjo failed to make use of the ECA despite 6-year period of record-high oil prices.
The report concluded that Nigeria’s failure to manage these oil prosperity cycles has delayed her economic rise.
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