The real rise of petroleum started between 1960 and 1970 when Nigeria could provide about 5 million barrels per year in the 1960s, however, at the beginning of the 1970s, this number rose at a geometric progression to 600million barrels per year thereby made the government revenue to increase from 66million naira in the 1970s to 10billion in the 1980s, more than 500 percent increase within a year. The rise of Nigeria globally happened largely because of petroleum. This income source helped to build the country after the consuming civil war.
The energy reserves of Nigeria increased to up to 34billion barrels. This number only keeps increasing rapidly! At the beginning of the 2000s, petroleum covered about 80 percent of total export,today, it's about 90 percent. Presently, NNPC has four refineries, two in Port-Harcourt and one each in Kaduna and Warri. These refineries have a combined installed capacity of 445,000 barrels per day(BPD). Apart from the rapid increase in revenue generation that petroleum has caused in the country, it has also increased the rate of employment to an extent.
Although, over the years that Nigeria has started the production of petroleum, it has contributed a lot of good to the country and brought her to the level where she can't be disregarded in Africa and the world as a whole. This has actually made Nigeria to rely solely on petroleum for the generation of income to the country neglecting all other sectors. With all the good it contributed, still, the luxury does not come without a price ! Petroleum has caused numbers of havoc to the Nigerian economy in the situation with Ogoni people,they've suffered from the oil industry impact the most. The Ogoni community is one of the darkest example of petroleum industry in Nigeria, Ogoni oil spills is a disaster not for Nigeria eco-system alone but also for Nigerian economy. A major 1970 oil spill in Ogoni land in the South-east of Nigeria led to thousands of gallons of petroleum being split on farmlands and rivers, ultimately leading to a 26million euro (€26m) fine for shell in Nigerian courts 30years later. According to Nigerian government, there were more than 7,000 spills between 1970 and 2000. Experts have also furthermore shown. that Nigeria will need billions of dollars to clean up Ogoni land. Also it is necessary to do this quickly! Nigeria has already had a few instances of radicalism because of oil and petrole
Moreso, the issue of Niger-Delta avengers is a big challenge facing the petroleum industry . They managed to destroy pipelines and almost create a financial crisis in Nigeria. Due to their activities, Nigeria lost billions of dollars because of the oil loss. Now, all these pipelines need to be fixed. Another problem connected with the Niger-Delta avengers is related to the security of the state. Armed robbers started destroying oil pipelines and kidnapping oil company workers from 2006, with a ceasefire called in 2009 by one group, the movement for the subjection of Niger-Delta, a year later it was announced an "all-out oil war"after a breakdown by the Nigerian military.
Numbers of minor court cases are brought each year in Nigeria over oil spills and pollution in Niger-Delta. Last year, shell admitted spilling over 14,000 tonnes of crude in the creeks of Niger-Delta in 2009, double the year before and quadruple that of that of 2007.The federal government of Nigeria has to invest the government funds into all these problems.
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