1. The Role of Multinational Oil Corporations (Mnocs) in Nigeria: More Exploitation Equals Less Development of Oil-Rich Niger Delta Region
- Author:
- Oluwatoyin Oluwaniyi
- Publication Date:
- 12-2018
- Content Type:
- Journal Article
- Journal:
- Brazilian Journal of African Studies
- Institution:
- Brazilian Journal of African Studies
- Abstract:
- Nigeria is not exempted from the integration of developing economies into the global capitalist system. The origin of Nigeria’s integration can be traced to the influx of MNCs in the manufacturing and banking sectors during the colonial era. But by 1956, the discovery of crude oil in Oloibiri by Shell D’Archy, expanded the integration into the extractive sector and Multinational Oil Corporations (MNOCs) emerged as the main extractive bodies (Oluwaniyi 2010). From 1956, crude oil in the Niger Delta region has been central to Nigeria’s political economy, accounting for over 90% of its foreign revenue, defining its place in ‘ international relations’ (Raji; Yusuf and Samuel 2013, 24; Soremekun 2011, 99). Though some scholars have associated multinational oil corporations with the development of host states, Niger Delta region continues to languish in deep poverty. The oil-rich communities fail to enjoy benefits commensurate to the profits gained by the levels of exploration of crude oil and exploitation in the region. This paradox further underlines the violent crisis perpetrated by frustrated youth in the region (Obi and Rustad 2011). Likewise, Angola, Equatorial Guinea, and Sudan are also among the top five sub-Saharan African oil exporters but, in terms of development, their performance have been dismal (UNCTAD 2007). The effects of MNOCs’ presence have triggered debates on the extent to which they have contributed to the development or under-development in the region. It is against this background that it has become extremely pertinent to evaluate, in concrete terms, the effects of MNOCs’ activities in the Niger Delta region. The objectives of this paper include, to analyse the extent to which multinational oil corporations have delivered on their larger expectations in the Niger Delta region, the role of the state in mediating or perpetuating crises between the MNOCs and the oil-rich communities, and impacts on relations in the region.
- Topic:
- Development, Economics, Oil, and Multinational Corporations
- Political Geography:
- Africa and Niger