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JAMB Economics 2013 Question 39

Question 39

Natural Resources and Petroleum

Government participation in the oil industry was necessitated by the

  1. A.annual increase in production.
  2. B.formation of OPEC.
  3. C.high demand for crude oil.
  4. D.huge investment outlay.
Show the answer and explanation

Answer: B (formation of OPEC.)

Explanation

OPEC urged its members to take ownership shares in the foreign oil companies operating in their countries. After joining OPEC in 1971, Nigeria set up the NNOC (later NNPC) and acquired equity in the oil companies.