As the importance of oil as a fuel grew in the twentieth century, the British government tried to find oil sources within the British Empire. An important source was found in the Niger Delta region of Nigeria. The discovery of a large, commercial source of oil in Southern Nigeria had a significant impact on the development of Nigeria and its people.
In the early twentieth century, fossil fuels
The search for oil in Nigeria that began in 1908 was in large part due to the efforts of British businessman John Simon Bergheim. Bergheim was able to get sole exploration rights and government financing in Southern Nigeria through the Nigeria Bitumen Corporation (a German company) and British Colonial Petroleum. Drilling was done around Okitipupa in the Araromi area (Ondo State) until Bergheim’s death in 1912 ended the effort. In 1938, Shell D’Arcy (Shell and Royal Dutch), received the concession to seek oil in all of Nigeria. World War II delayed these efforts, but in 1947 Shell joined with British Petroleum
Other oil companies were attracted to the region by Shell-BP’s efforts. Mobil had been granted some limited concessions for exploring for oil in 1955-1956. Shell-BP’s concession over the whole country was reconsidered in 1959 in view of the discovery of commercial oil. The government decided that it would be better to increase the number of firms involved in the country’s oil industry. Shell-BP gave up 50 percent of its concession in the Niger Delta region. Tenneco,
Nigeria had been created in 1914 by the merging of two British protectorates. Nigeria formally received its independence from Great Britain on October 1, 1960. The new country was to have the British monarch as the head of state, but the new government quickly changed to a federal republic instead. The newly independent government quickly threw open the exploration for onshore and offshore oil to other interested international oil companies. Soon oil companies such as the U.S. companies Texaco, Phillips, and Gulf (which later became part of Chevron), the French company Safrap (later Elf), and the Italian company Agip joined in the hunt for oil. It was soon apparent that Nigeria had tremendous potential in oil. Elf
Nigeria’s political situation was unstable because of ethnic tensions between the three largest groups: the Hausa-Fulani
The Igbo community felt threatened by the new government and feared that too much of the oil revenue from their southeastern region, which was significant, would go to other parts of Nigeria. By 1966, Shell-BP and Elf were producing approximately 400,000 barrels per day in the southeast. The leadership of the southeast region demanded that the oil companies (mainly Shell-BP) pay their royalties directly to the regional government. The federal government resisted this demand. When Shell-BP made an offer of payment to the regional government, the federal government responded with a blockage of the oil terminal in the southeast. The southeastern region seceded as the Republic of Biafra
One of the direct consequences of the civil war was the naturalization of the oil industry in May, 1971, by the government of General Gowon. Before 1971, the Nigerian government had simply signed business agreements with the oil companies to grant concessions for oil exploration and production. The Nigerian National Oil Corporation
The discovery of oil in Nigeria in 1956 was an important factor in the development of Nigeria as an independent nation. As the largest producer of oil in Africa, Nigeria has generated high revenues, but at a cost. There have been continuous conflicts over the oil revenue, from the civil war in 1967 to the present day. Kidnappings, shootings, and armed takeovers are common in the regions of oil production. The theft of oil from pipelines by nearby residents is common and often has tragic consequences when large explosions occur. Government corruption is rampant; in fact, the Nigerian government is recognized as one of the most corrupt in Africa.
The emphasis on oil has also hurt efforts to develop agriculture and manufacturing in Nigeria as resources and workers flow into the oil industry at the expense of other industries. Furthermore, Nigeria has paid a heavy price in environmental damage to the delta and its offshore region as oil production has grown with little effort to protect the environment.
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Hunt, J. Timothy. The Politics of Bones: Dr. Owens Wiwa and the Struggle for Nigeria’s Oil. Toronto, Ont.: McClelland & Stewart, 2005. One account of the modern issues of corruption and environmental damage brought about by oil production in Nigeria. -
Sampson, Anthony. The Seven Sisters: The Great Oil Companies and the World They Made. New York: Viking Press, 1975. A best-selling history of the development of the international oil industry. -
Shah, Sonia. Crude: The Story of Oil. New York: Seven Stories Press, 2004. Chapter 7, “The Curse of Crude,” includes a discussion of the Nigeria oil industry’s situation. -
Yergin, Daniel. The Prize: The Epic Quest for Oil, Money, and Power. New York: Simon & Schuster, 1992. A well-researched, best-selling history of the oil industry. Nigeria’s role is mentioned briefly throughout the text.
Things Fall Apart Depicts the Destruction of Ibo Culture
Biafra’s Secession Triggers Nigerian Civil War