Chapter 1 of our text casts the Spotlight onNigeria, with a population of 186 million and counting. Africa’smost populous country faces the curious challenge the comparativeliterature calls the “resource curse--” one that otherresource-rich countries such as Iran, Venezuela, the DemocraticRepublic of the Congo, and South Sudan also grapple. The “curse”points to a situation in which an abundance of oil resources,instead of delivering higher living standards, a better quality oflife, and economic prosperity for the population, insteadperpetuates underdevelopment.

The paradox is particular pronounced for Nigeria, one of theworld’s biggest oil-producers. Despite earning hundreds of billionsfrom its petroleum exports, accounting for a whopping 90 percent ofgross domestic product (GDP), Nigeria scores only 0.532 on theUNDP’s 2017 HDI index, up a mere 0.061 from 2012, or 157 out of 189countries. (UNDP. International Human Development Indicators. Itspoor showing on critical QLI indicators--health, life expectancy,education, poverty, gender equality, sustainability, and so on--isillustrative of the classic challenge to many resource-richcountries in the Global South: abundant natural resources that,instead of bringing economic prosperity has done the opposite.It begs the question, would Nigeria be better off withoutoil?

It may strike us as odd that a country so richly-endowed withnatural resources has not been able to show more for it. Instead,what we have had are several military coups, rampant corruption,political fragmentation, poor living standards, and fitfuldemocratic progress. On the corruption side of the ledger, Nigeriaranks 148/180 on Transparency International’s 2017 CorruptionIndex, scoring a mere 27 out of 100, slightly above Afghanistan,Burundi, Haiti, North Korea, Somalia, and Tajikistan. Corruptionhas enabled the political elite to “buy off” mass publics and,until recently, underwrite repressive rule. “Black gold” has servedto distort normal economic development in Nigeria by robbing othersectors of needed resources. (Similar situations obtain in otheroil-producing economies such as Algeria (now experiencing greatpolitical upheaval) and Iran in the Middle East/North Africa andMexico and Venezuela in our own Hemisphere.)

Nigeria’s (post-independence) economic plan sought to encouragedomestic growth through tariffs and subsidies, a strategy thatshould have produced good results, given its high oil revenues. Itfailed, being driven more by political expediency than by economiclogic. So, for example, a US$ 8 billion investment in steelproduction failed to get off the ground. (Nmehelle, Vincent O.“Sharia Law in the Northern States of Nigeria: To implement, or notto implement, the Constitutionality is the Question,” HumanRights Quarterly 26, no. 3 (2004), pp. 730-59.).

Oil price declines beginning in the 1980s, amidst economicuncertainty and changing energy habits in the industrialized Northand a chronic foreign-debt burden, forced Nigeria’s leaders toreverse course on its economic development strategy. This resultedin huge job losses, run-away inflation, and much public discontent.To win support, the military government of Ibrahim Babangida(1985-93) diverted the country’s oil wealth to coopt opponents andthe civil society, even while it kept up the pressure on itscritics. Political support was purchased through an elaboratesystem of patrimony using petro dollars.

Another military coup in 1993 brought Sani Abacha to power.Corruption (the misuse of political office for personal orpolitical gain) became endemic (Johnston, Michael. Syndromes ofCorruption: Wealth, Power, and Democracy. Cambridge & NewYork: Cambridge University Press (2005)--as was narco- and humantrafficking, money laundering, and so-called 419 scams--an internetswindle involving unknown Nigerian civil servants.

The fourth republic under the popularly-elected government ofOlusegun Obasanjo (1999-2007) faced the daunting task of reining inthe economy while breaking with the past. The approach producedonly limited results. Yar’Adua (2007-2010) and his Democratic Party(PDP) successors (2010-15) launched what became known as theNational Economic Empowerment and Development Strategy (NEEDS).NEEDS was an ambitious plan to stimulate domestic enterprisethrough foreign direct investment (FDI). It was also meant to bringmore transparency in government spending, foster the rule of law,reduce corruption, improve transportation and telecom, and deliverthe people’s health. The International Monetary Fund (IMF) reporton Nigeria sounds a cautious note of optimism, i.e. if the economicreforms and diversification plans, and the efforts to controlinflation (the money supply), stabilise the country’s finances, and“move beyond oil,” remain on track.

In theory, then all is not lost for Nigeria to overcome itsresource curse. For all that, it continues to depend heavily on onesource of income--petroleum; and not much has changed in terms ofimprovements in living standards for the majority of Nigerians.Indeed, inequality has reached alarming levels. To be fair,Nigeria’s civilian leaders have boldly gone where none of itsmilitary rulers have gone, starting the “rainy-day” fund andtackling corruption, especially in the all-important oilsector.

Still, huge challenges remain, reflecting the ambiguous role ofpetroleum in the country’s life. So, although there are hopefulsigns, Nigeria’s prospects, like that of Brazil and others, remainuncertain. The rise of the Boko Haram terrorist group and thefailure of the current President Muhammadu Buhari to bring it tobook has not helped. (For background on the group, founded in 2002,see the BBC here.) Buhari has come in for “widespread criticismover his government’s inability to defeat the renewed …insurgencyin the northeast.” The New York Times, 9 April 2018(here). This explains in part why Nigeria scores only modestly oncivil liberties (freedom of expression, association, the rule oflaw, personal and individual rights) on the Freedom House Index;and also on the EIU Index.

Here are some pathways into this first discussion: What do youmake of Nigeria’s resource-curse challenge? Can the country get outfrom under this curse and how? Why does Nigeria seem to hold somuch promise, yet continually fails to deliver? Comparativelyspeaking, how do we account for the fact that Canada, also anenergy-rich country, has not fallen prey to this curse?