ABSTRACT
This research examined how the Oil Boom in Nigeria has underdeveloped the nation ratherthan develop and also examining the challenges or problem faced in premium motor spiritimportation into the country as a result of corruption, inability to refine our crude oil,increase in crude prices, subsidy payment, shortage of foreign exchange, alsomismanagement and theft by a sophisticated network of public officials and indigenousbusiness men. The surplus availability of oil in the Nigerian state is more of a curse, disasterthan a blessing as majority of her total population still live below the poverty line and thereis no or less evidences of development. The research method adopted in the course of this work is the Qualitative Research methodand Quantitative method. Most of the information is a gotten from secondary sources whichis based on journals, articles, reports, newspapers, treaties and existing materials on theNigerian Oil industryThis research critically examined the role of corruption resulting from the oil boom inNigeria in relation to the underdevelopment currently being experienced in the country andalso problems faced in the importation of premium motor spirit, the impact of deregulation,leading us to talk about paradox of plenty, fuel subsidy role in aiding corruption, OPEC rolein contributing to Nigeria’s problems. And also the challenges of premium motor spiritimportation, Nigerian economy before and after the discovery of crude oil and the cases ofcorruption within the context of resource allocation in the country.Corruption which is the root cause of underdevelopment and has become persistent in theNigerian state and almost has become and accepted way of living and it has sort of becomeNigeria’s identity in the international world. Corruption has resulted to the poorcontribution of the oil sector to the economic advancement. There is need for the activationof defunct refineries, also for importers to be given concessions so as to reduce cost ofbusiness. The government has to build more refineries, minimization of PMS importation.There is also the need for a safe environment to work.Some of the keywords in this work include: Oil boom, Crude Oil, Premium motor spirit,Corruption, and fuel subsidy.
TABLE OF CONTENT
Title Page i
Table of Content ii
Declarationiii
Certification iv
Dedicationv
Acknowledgementv
iList of acronyms and abbreviationsvii
Abstractviii
CHAPTER ONE
1.0 Background to the study………………………………………………………..1
1.1 Statement of the problem………………………………………………………..4
1.2 Research Objectives………………………………………………………….….4
1.3 Research questions……………………………………………………………….5
1.4 Research methodology…………………………………………………………...5
1.5 Significance of the study………………………………………………………….5
1.6 Scope the study…………………………………………………………………....6
1.7 Definition of terms………………………………………………………………...6
CHAPTER TWO: LITERATURE REVIEW AND THEORETICAL FRAMEWORK
2.0 The Discovery of oil in Nigeria……………………………………………………………8
2.1 Theoreticalframework…………………………………………………………………....11
2.1 Paradox of Plenty theory…………………………………………………………………11
2.1.1 Chapter of economic rights and duties of states (1974)……………………………...13
2.1.2 Permanent sovereignty over natural resources……………………………………....14
2.1.3 Declaration for the establishment of a new international economic order……….…16
2.1.4 Qualified interest theory…………………………………………………………….17
2.2 Corruption and the oil sector……………………………………………………….…..18
2.2.1 Characteristics of corruption in the oil sector……………………………………...19
2.2.2 Types of corruption in the petroleum sector……………………………………...20
2.2.3 Corruption and oil boom as the main cause of development in Nigeria…………..21
CHAPTER THREE
3.0 Investigate the role of subsidy in PMS……………………………………………………22
3.1 Role of corruption in PMS importation…………………………………………………..23
3.2 Effects of corruption in PMSimportation………………………………………………...24
3.3 Petroleum exportation and PMS importation paradox……………………………………25
3.4 Role of Nigeria being an OPEC cartelmember…………………………………………..26
3.4.1 How OPEC is contributing to Nigeria’s economicproblems…………………………..27
3.5 Impact of deregulation in petroleum industry ……………………………………….28
3.5.1 Potential benefits of deregulation of the downstream oilsector………………………..29
3.5.2 Relevance of the deregulation in the downstream oil sector…………………………...30
3.6 Definition of fuel subsidy and its impact in Nigeria’s economy…………………….…...31
3.6.1 Verification and reconciliation of fuel subsidy imports payments……………………..33
3.6.2 Reasons for verificationexercise……………………………………………………….35
3.6.3 Oil and gas cases and materials (2010/2012)…………………………………………..35
CHAPTER FOUR
4.1 Eradication of corruption in the oilsector………………………………………………...36
4.1.1The proposed petroleum bill…………………………………………………………….38iii
4.2 Few cases of corruption scandals in thecountry………………………………………….39
4.3 Eradication of corruption in subsidy arrangement of PMSimportation…………………..42
CHAPTER FIVE
5.1 Summary………………………………………………………………………….45
5.2 Conclusion………………….…………………………………………………….46
5.3 Recommendations………………………………………………………………..47
