Petrodollar Corruption in Nigeria and the Implications for Economic Development

Abstract

The petroleum industry plays a significant role in supporting Nigeria’s economy, but the benefits are hardly felt due to widespread corruption in the petroleum industry. The oil boom in the Nigerian political economy has led to its leaders engaging in corrupt practices that promote the parochial interests of the elites instead of implementing programmes that will lift citizens out of poverty. The gaps in the law are often exploited to allow for corruption. Corrupt and inept leadership in the petroleum sector has prevented development in Nigeria. Rather than being a blessing, Petroleum resources are now regarded as a curse. Unless these ominous gaps are addressed, corruption will persist in the petro-economy, which is the mainstay of Nigeria’s economy. This article discusses the link between crude oil production and corruption in Nigeria. The article is based on doctrinal legal research comprising a detailed analysis of primary and secondary sources. It establishes that transparency and accountability in the operations of the upstream petroleum industry are necessary to eliminate corruption. The article discusses the causes and effects of petrodollar corruption in Nigeria and the measures adopted by the Federal Government to curb it. The article recommends the strict enforcement of laws and close monitoring and control to eliminate petrol corruption and offers other useful suggestions to combat corruption in the Nigerian petroleum industry.