Theory question 109
Natural Resources and PetroleumSection B: answer three questions only from this section.
State any three positive and any two negative effects of petroleum industry on the economy of Nigeria.
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Positive (any three): main source of foreign exchange earnings
Main source of government revenue (royalties, profit tax, rents)
Provides employment
Supplies raw materials for petrochemical, fertiliser and other industries
Development of infrastructure in oil areas and the country
Supplies energy (petrol, kerosene, gas) for transport, industry and homes
Negative (any two): environmental pollution (oil spills, gas flaring) destroys farmland and fishing
Neglect of agriculture and other sectors (mono-product economy)
Rural–urban drift
Unrest/conflict in the oil-producing areas
Economy vulnerable to fluctuations in world oil prices; corruption
Three positive and two negative effects, each briefly explained.