Plugging Nigeria’s Black Hole

4 Sep 2015: New Nigerian Government overhauls oil industry. When Nigeria gained independence from Great Britain in 1960, the country was expected to develop into an African powerhouse. It had a large population and abundant natural resources, including significant oil reserves. However, despite (or because of) its oil wealth, Nigeria has struggled to reach its full potential. JODI data shows that Nigeria produced 2.2 million bbls/day (b/d) of crude oil in 2014. The Economist estimates that about 85% of government revenues come from the oil industry, therefore, the oil price decline of the last 12 months has significantly affected the government finances. One way of plugging the gap is to reduce leakages in the system resulting from corruption and siphoning off of crude oil. Mr. Mohammadu Buhari, the new president who was elected in March ran on a platform that included fighting corruption in general and especially around the oil industry. Download here