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Oil-dependence and Civil conflict in Nigeria

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  • Aderoju Oyefusi

Abstract

This paper examines oil-dependence and civil conflict in Nigeria focusing on the economic dynamics of resource-induced conflicts. It identifies two dimensions to oil-related civil conflict in the country. The first is the violent rent-seeking political violence that oil-availability generates between the various ethno-regional groups; the second is the Niger Delta crisis. The former is linked to excessive government dependence on oil revenues, an institutionally unstable revenue allocation system, weak political institutional arrangements, lack of effective agencies of restraints to demand transparency and accountability on the part of political office holders, failure to translate oil wealth to sustainable growth and increased standard of living for a larger majority of Nigerians, and a defective property right structure in relation to mineral resource endowment. Violence in the Niger Delta area is attributed, in the main, to weak institutional arrangements manifesting in poorly-conceived laws, lack of enforcement, .regulatory capture., and a marriage of interest between the State and oil companies which often encourage the State to use repressive measures against host communities in cases of disputes. There are also the looting and secession incentives as well as the rentseeking contests that oil-availability and the allure of ownership creates among local participants. Three factors (educational attainment, income level and asset possession) consistently explain the propensity to general violence among individuals in the region in the Ordered and Multinomial regressions on civil disobedience. The paper concludes with a discussion of some measures that may be used to break the conflict trap and overcome the corrupting influence of oil-dependence in Nigeria.

Suggested Citation

  • Aderoju Oyefusi, 2007. "Oil-dependence and Civil conflict in Nigeria," CSAE Working Paper Series 2007-09, Centre for the Study of African Economies, University of Oxford.
    • Handle: RePEc:csa:wpaper:2007-09
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    References listed on IDEAS

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    2. Mahdi FAWAZ, 2020. "Ressources naturelles et guerres civiles au Moyen-Orient," Bordeaux Economics Working Papers 2020-09, Bordeaux School of Economics (BSE).
    3. Frank Iyekoretin Ogbeide & Hillary Kanwanye & Sunday Kadiri, 2015. "The Determinants of Unemployment and the Question of Inclusive Growth in Nigeria: Do Resource Dependence, Government Expenditure and Financial Development Matter?," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 11(2), pages 49-64.
    4. Osemeke Louis & Nobert Osemeke, 2017. "The role of ethnic directors in corporate social responsibility: Does culture matter? The cultural trait theory perspectives," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 14(2), pages 152-172, May.
    5. Zubikova, Adela, . "Curse or blessing: economic growth and natural resources (Comparison of the Development of Botswana, Canada, Nigeria and Norway in the Early 21st Century)," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 4(01).
    6. Aderoju Oyefusi, 2010. "Oil, Youths, and Civil Unrest in Nigeria’s Delta," Conflict Management and Peace Science, Peace Science Society (International), vol. 27(4), pages 326-346, September.

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