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Introdcution
This timeline gives a brief overview of the turbulant history of the oil industry in Nigeria. Overall, the industry has been extremely profitable for private companies in the region. However, this wealth has caused controversey and violence within the nation. From terrorism to fraud, the oil industry in the nation has been tumultuous. Image Source -
Discovery of Oil
Beginning in 1938, the colonial government granted Shell monopoly over exploration of all minerals and petroleum throughout the entire colony. Petroleum was soon discovered in 1956 by Shell 90 km of Port Harcourt at Oloibiri. Image Source -
First Oil Export
The first oil is exported from Nigeria by Shell. This would be the beginning of Nigeria’s rise to prominence in the oil industry as one of the world’s largest producers of oil. This also marked the culmination of years of searching that was finally paying off with shipments. The oil industry would soon become Nigeria's primary industry. Image Source -
Nigerian Independence
Nigeria gained full independence from Britain on October 1st 1960. Nigeria declared itself a republic of three federated states (East, West, and North Regions). Tension began to rise due to regional and ethnic differences. Image Source -
Gulf Oil begins production
Gulf oil was an oil production company from the United States. Gulf Oil played an important role in the Nigerian oil development. Gulf was one of the key producers of oil from Nigeria for many years. Image Source -
Nigerian Civil War
On July 6th, the Nigerian Civil War breaks out. There has been evidence that showed that a tax battle waged by western oil companies contributed to the regional and ethnic tension that would lead to the outbreak of the war. The distribution of oil revenues had long been problematic within the nation and continues to be today. Image Source -
Nationalized Oil
The oil industry was nationalized with the government feeling obligated to secure more control over the oil industry after the civil war. This move was caused by the government's desire to join OPEC. It was was accomplished through making concessions to foreign oil corporations in negotiations regarding oil production and rights within the nation. Image Source -
Nigerian National Petroleum Corporation Established
The NNPC manages the joint-ventures between the Nigerian government and numerous foreign corporations, Some of these corporations include Royal Dutch Shell, Agip, ExxonMobil, Chevron, and Texaco. Image Source -
Land Use Act
Land Use Act enacted. This act gave the state governments of the nation full control over the land and, as a result, minerals within the borders to the military governor. This act gave Nigeria further control over the oil industry. -
Revenue Act
Revenue act enacted. This act aimed at quelling tensions over the division of oil revenues. Essentially, it stated that federal government would get the majority of the share while state and local governments would receive a lower, but substantial, portion. Further, oil producing states would receive a bonus portion of the revenue. -
Standard Oil buys Gulf Oil
Standard Oil buys Gulf oil and their extensive plants. The company changed their name to Chevron and remains a great influence within the region. Image Source -
Stolen Oil Money
During the first Gulf War (1990-91), oil prices skyrocketed. As a result, it is estimated that Nigeria made over $12.5 billion in oil revenues. However, it is alleged that an estimated $12.2 billion was taken from these revenues by government officials from 1988 to 1994. Thus, the nation continued to be in severe debt. -
Nigerian Debt
Nigeria accumulated a 40 billion dollar external debt. Corruption was at an all time high as people outraged. To many people, it was unbelievable how much debt the nation found itself in considering the enormous oil wealth the nation had. Image Source -
Niger Delta Conflict
Militants in the Niger Delta begin attacking oil pipelines and related facilities. They also begin kidnapping foreign oil workers. The goal of these militants is to gain more control over the oil wealth of the region. Image Source -
Vulcan Petroleum Agreement
The Nigerian government signs a $4.5 billion agreement with Vulcan Petroleum, a US based company. The agreement calls for Vulcan to build six oil refineries. At the time, Nigeria imported much of its fuel due to the lack of capacity to process the oil that was produced in the country. Image Source
