CRUDE OIL EXPLOITATION AND POLITICAL INSTABILITY IN NIGERIA'S NIGER DELTA: THE POLITICAL ECONOMY PERSPECTIVE

Abstract

Oil exploitation in the Niger Delta appeared as a blessing that later turned out to be a curse due to the environmental degradation which results in poverty of the indigenous people of the region and the unfair resources allocation to the region by successive governments. This study noted that, oil which has become the major source of Nigerian income has emerged as a destabilizing mechanism in the Niger Delta Region. The conclusion is drawn from the intensity in the slope of violence that has remained a consistent paradigm in the oil-rich Niger Delta Region; which has kept the country on the fringe of collapse. Highlights on interventions by government have been made and their impacts on conflicts resolution. The latest aspect of ensuring equity, the much awaited Petroleum Industry Bill is also identified as a source of hope. The study recommends that for Nigeria to enjoy the oil wealth under the condition of stability, it is imperative for the multinational Companies (MNCS) and the Federal Government (FG) to discard the use of force and intimidation but resort to negotiating with the host Communities and States to determine their needs and be ready to honestly implement their proposal in the interest of peace and stability.