An assessment of Nigeria’s engagement with the organization of petroleum exporting countries (OPEC) in the fourth republic, 1999-2019

Abstract

Even when the Organization of the Petroleum Exporting Countries (OPEC) as a cartel was formed in 1960, Nigeria subsequently joined it in 1971. This is in spite of the fact that oil was discovered in Nigeria in 1958 two years before the formation of OPEC. It is not in doubt that Nigeria’s status in international affairs has been seriously enhanced as the result of oil-boom and partially by its membership of this global transnational oil organization (OPEC). In spite of all these achievements, the benefits derivable from Nigeria’s membership of OPEC is not commensurate with her oil quality, oil quantity and population in terms of quota and pricing. Another problem which forms the motivation for this study is the fact that the enormous wealth generated by oil has not been channeled into the manufacturing and industrial sector that would have served as alternative foreign revenue source for the country. This is based on the fact that OPEC lacks internal mechanism that would have stimulated each of its members in directing their oil wealth towards manufacturing and industrialization. The study is a qualitative one where data was generated from secondary sources such as academic journals, textbooks, monographs, dailies and internet materials. The data was analyzed through discourse and descriptive methods. Concepts and theories such as foreign policy, economic relations, global political economy theory (international political economy theory) and interdependence theory have been clarified as frameworks for the study. At the end of the study, alternatives and strategies have been proffered as recommendation towards making Nigeria reap the greatest benefits from its membership of OPEC. Principal among which is the need for Nigeria to propose to OPEC for the setting up of a strong mechanism through peer-review that will progressively stimulate members towards directing their enormous oil wealth to manufacturing and industrialization.