Nigeria

Nigeria is the largest oil producer in Africa and the eleventh largest producer of crude oil in the world. Nigeria's leaders have accomplished several important economic reforms since 2000, when new anti-corruption measures were put in place. Nigeria's National Assembly is currently reviewing a sweeping Petroleum Industry Bill, which would dramatically restructure the management of the country's oil industry in an effort to improve management, reduce corruption, and promote long-term development. Read a full profile of Nigeria.
December 4, 2017

The federal government has been implored to put all necessary mechanisms in place to hasten the cleanup of Ogoniland and other communities affected by oil and gas exploitation in line with the United Nations Environmental Protection (UNEP) report. This was the resolution at the Policy Roundtable organized by the Nigeria Natural Resource Charter (NNRC) in Port Harcourt, Rivers State.

March 26, 2013

In Precept 7 a major trade-off that arises when government seeks to foster domestic investment is whether to use revenues for current expenditure or invest them in the future. As a general principle, the Precept recommends for a substantial proportion of revenues to be saved, combined with moderate immediate consumption. The paper provides insights into the latter approach.The paper provides a case study of Nigeria’s oil sector, finding that it has a systematic and robust negative impact on growth via the effect upon institutional quality. Thus, the huge sums of revenue Nigeria gained have been either wasted or fallen pray to corruption. As a means of mitigating this problem the authors suggest that the government no longer manage oil revenues, rather these should be directly transferred to citizens, rendering Nigeria a ‘non-oil’ economy. Revenues for social expenditure would then have to be raised through taxation of citizens and companies. Such taxes would be less subject to corruption and create the right incentives for governance (also through creating a state-society revenue bargain). The paper also deals with practical considerations in applying such direct cash transfers:

  • - Firstly, it is argued that due to the possibility of a fiscally induced fertility boom, revenues ought to be transferred to adults. Thereby the incentive to have children in order to receive those revenues is reduced.
  • - Secondly, as shocks of commodity market price volatility would be born by the citizens, rather than the government, the authors recommend for a fund to be established to manage revenue flows. However, the conditions that thwart sound fiscal policy are also likely to undermine the effectiveness of a fund (see Precept 8 for more detail).

Access the article here.

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