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Nigeria is a kind of key to the whole continent. This country is Africa in miniature: 260 different tribes, hundreds of languages, religious differences, etc. Under the president’s predecessor, Nigeria has become the poorest of all oil-producing countries.
Meanwhile, almost half of all gas reserves in Africa are concentrated in this country. According to the estimates of British Petroleum, on its territory, there is about 5 trillion m3 of gas. For comparison: in the world’s largest “gas country” – Russia – reserves are about 47 trillion m3.
Stereotypes about Nigeria
The expression “banana republic” was introduced into the everyday life by the great and witty O. Henry. However, in the case of Nigeria, it should not be used. Nigeria is not a banana, but an oil republic, as oil is 95% of the value of exports of the African state. Despite the fact that this country is on the seventh place in the world for oil exports and is a member of OPEC, it is forced to import electricity. The revenues from oil exports in no way contribute to the improvement of the situation of the local population in this large African country. In Nigeria, there are large companies, for example, Jagal, which serve the gas and oil industries. Nigeria is a typical example of the paradox of abundance. The country produces the most oil in Africa and takes 8th place in the world list of oil producers. Revenues from the sale of oil amounted to 340 billion dollars over the past 40 years.
Confirmed oil reserves in Nigeria reach about 35.5 billion barrels. (almost 4.8 billion tons). Every day, there can be extracted about 3 million barrels (150 million tons of oil per year). By 2010, the production potential has increased to 4 million barrels per day (or 200 million tons per year). Interest in Nigerian oil is also fueled by the fact that 65% of it is low sulfur oil (Bonny Light and Forcados). According to experts, Nigerian oil reserves will last for only another 10-15 years. The oil sector gives Nigeria up to 20% of GDP, up to 95% of it are export revenues and provides up to 80% of total budget revenues.