Oil in Nigeria:Benefits, drawbacks, problems of oil extraction

An oil spill in Nigeria. Image credit huffingtonpost.com

The following are problem associated with oil extractions:

• Hot humid equatorial climate is associated with high incidence of environmental diseases.
• High temperatures reduce the capability of to work.
• Slippery and unstable ground/high level of ground water makes construction of roads, railway lines and pipelines difficult.
• Numerous distributaries increase the cost of construction of bridges.
• Limited refining capacity. Refining capacity at Warri and Port Harcout cannot meet the local demand.
• Heavy dependency on foreign investment.
• Environmental pollution such as oil spills damage coastal ecosystems.

Benefits of oil extraction

• Foreign currency earnings through exporting of oil.
• Employment creation.
• Growth of industry including oil refining and petro chemicals.
• Government revenue through company taxation.
• Oil is more efficient than coal and wood when it comes to burning.

Disadvantages

• The price of oil fluctuates greatly on the world market according to the amount being produced.
• Environmental pollution.
• General decline in agriculture due to shortage of labour which will be diverted to mining.
• Foreign companies mainly TNCs export crude oil to their countries of origin and this reduces the rate of industrialization.
• Explosion of pipelines has resulted in loss of life on several occasions.
• Political activism resulting from environmental pollution and foreign ownership for example the Ken Sarowira saga.

To access more topics go to the O Level Geography Notes page