Petroleum Income and Nigerian Economy: Empirical Evidence

Proceedings of The 2nd International Conference on Social Sciences, Humanities and Arts

Year: 2021

DOI:

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Petroleum Income and Nigerian Economy: Empirical Evidence

Olaleye Samuel Olasode

ABSTRACT: 

The Nigerian petroleum industry has been described as the largest among all industries in the country. The major investors in the petroleum industry are the International Oil Companies (IOCs), the principal legislation governing petroleum operations in Nigeria is the Petroleum Profit Tax Act (PPTA) of 2007. Irrespective of Nigeria’s huge oil wealth, the country has remained one of the poorest in the world. The major sources of petroleum income are sale of crude oil and gas(oil revenue). Despite the huge financial resources emanating from the major sources of petroleum income which are sale of crude oil and gas(oil revenue), Petroleum Profits Tax and royalties, licensing fees and other incidentals in Nigeria, development of major sectors have not reached full capacity. Examining the relationship between petroleum income and development, the effects of petroleum income on per capita income on the Nigerian economy and the effects of petroleum income on inflation in the Nigerian economy. Growth and development in the oil rich economies could be enhanced through the market contribution from oil. Generally, as a result of oil production, refining and distribution, there is tendency for oil sector-related services to spring up. Over the years, the oil industry has made a variety of contributions to the Nigerian economy. One of the contributions of the oil industry to the Nigerian economy was the creation of employment opportunities. The gross output of the petroleum sector consists of the proceeds from oil exports, local sales of crude oil and local sales of natural gas.

keywords: crude oil; development; gas; growth; international oil.