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Natural Resources and the Nigerian Economy

Economics · 50 practice questions

Development of major natural resources (petroleum, gold, diamond, timber, etc.); contributions of the oil and non-oil sectors to the Nigerian economy; linkage effects; upstream/downstream of the oil sector; the role of NNPC and OPEC; challenges facing natural-resource exploitation.

  • Trace the development of Nigeria's major natural resources.
  • Understand the contribution of the oil and non-oil sectors to the economy.
  • Distinguish between upstream and downstream oil-sector activities.
  • Examine the roles of NNPC and OPEC.
  • Suggest ways of controlling the effects of exploitation.

Try a few questions

  1. Practice question 1

    Nigeria's domestic gas utilization policy mainly aims to

    • A.increase the use of natural gas for local power generation and industry, rather than flaring or exporting only
    • B.ban all export of natural gas permanently
    • C.eliminate gas production entirely
    • D.restrict gas use to only one state
    Show the answer

    A. increase the use of natural gas for local power generation and industry, rather than flaring or exporting only

    The policy channels more gas into domestic power and industrial use.

  2. Practice question 2

    The "resource curse" concept suggests that resource-rich countries may paradoxically experience

    • A.automatically faster growth than any other country
    • B.slower growth and development than resource-poor countries, due to corruption and neglect of other sectors
    • C.zero risk of economic instability
    • D.total immunity from corruption
    Show the answer

    B. slower growth and development than resource-poor countries, due to corruption and neglect of other sectors

    Abundant resources can, counter-intuitively, be linked to weaker overall development outcomes.

  3. Practice question 3

    If iron ore reserves are estimated at 50 million tonnes and extraction proceeds at 5 million tonnes per year, the reserves would be exhausted, at that rate, in

    • A.5 years
    • B.25 years
    • C.10 years
    • D.50 years
    Show the answer

    C. 10 years

    Years to exhaust = 50 ÷ 5 = 10 years.

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