Nigeria Country Analysis Brief – August 24, 2011: “Nigeria’s hydrocarbon resources are the mainstay of the country’s economy but development of the oil and natural gas sectors is often constrained by instability in the Niger Delta.”
“The Nigerian economy is heavily dependent on the oil sector which, according to the International Monetary Fund (IMF), accounts for over 95 percent of export earnings and about 40 percent of government revenues. The oil industry is primarily located in the Niger Delta where it has been a source of conflict. Local groups seeking a share of the oil wealth often attack the oil infrastructure and staff, forcing companies to declare force majeure on oil shipments. At the same time, oil theft, commonly referred to as “bunkering”, leads to pipeline damage that is often severe, causing loss of production, pollution, and forcing companies to shut-in production. The industry has been blamed for polluting air, soil and water leading to observed losses in arable land and decreasing fish stocks.”
