The Dominance of Oil Investment and Food Security in Nigeria under the President Obasanjo Civilian Administration

Abstract

Prior to Nigeria’s independence in 1960, agriculture was the main stay and dominant sector of the economy. It contributed about 70 percent of Gross Domestic Product (GDP), employed about the same percentage of the working population, and accounted for about 90 percent of foreign earnings and Federal Government revenue. However, with the discovery of oil in commercial quantity at Oloibiri in the Niger Delta in 1956, the country’s fortunes have depended on the Oil Industry, which has effectively replaced agriculture in revenue yield. In fiscal terms, oil revenue currently account for about 80 percent of government revenues, 95 percent of export receipts and 90 percent of foreign exchange earnings. This work investigated the link between the dominance of oil investment and food security in Nigeria under the Obasanjo civilian administration. While observing that agriculture had in the past contributed to national prosperity and food security, it was noted that discovery and commercial exploitation of oil resources in Nigeria fundamentally changed the structure of investment in Nigeria resulting in the dominance of foreign capital not only in the Oil Industry, but also in the Nigerian economy. The work clearly demonstrated that the dominance of oil investment in Nigeria not only undermined linkage with other sectors between 1999 and 2007, it is implicated in her food security crisis.

DOI: 10.5901/mjss.2014.v5n9p515