Corruption in the Nigerian Oil and Gas Industry and Implication for Economic Growth

Abstract

This is an exploratory study that seek to examine the effect of  corruption in the oil and gas industry to the economy growth of Nigeria. This study adopted the  resource-curse theory, which state that plenty of mineral resources is more often a curse than a blessing, particularly in developing countries like Nigeria. To achieved the purpose of these study, a review of empirical works, Corruption Perception Index Report of Transparency International and some corruption cases in Nigeria was explored. This paper discovers that corruption had being part of our socio-political and economic life in Nigeria as shown by the corruption perception index from 1996 to date and  that majority of corruption cases in the oil and gas industry has increased  in amount over the years. Generally, corruption impaired economic growth by diverting investment fund meet for public goods and services into private gains by few individuals. This study recommend that the award of oil block, contract, licensing and production right should follow due process and that the awarding of oil block to individual should be discourage rather they should be awarded to corporate entities with wide spread ownership.

Keywords: oil and  gas, Corruption, Economy growth, Resource-Curse.