Since the discovery of Nigerian oil in 1956 and its rise to the tenth largest oil-producing nation in the world, Nigeria has remained a country of political unrest, social disorder and economic instability whose national ills continue to be linked to its greatest but most corruptive factor, „the dark nectar‟ of Africa. Since its transition to civilian rule, political attempts to stabilize friction among Nigerians and multinational oil companies have been made to ensure production and cut export losses. However, fighting between rival ethnic groups continues to slow production and provides an unreliable producer that has been offset by the recent discovery of offshore oil deposits, which is expected to increase GDP.
As a major oil-producing nation, the fluctuation of Nigeria oil production, prices and inflation can cause problems for regions such as the United States, Western Europe, and Asia, who have taken refuge in Nigerian oil due to the current tension in the Middle East. With such large potential for success, Nigeria remains one of the poorest countries in the world with much of its profits going to the multinational oil companies that populate the country including Royal/Dutch Shell, ChevronTexaco, ExxonMobile, TotalfiaElf, Agip and PanOcean Oil with the NNPC receiving only 57% of profits. While multinational contractors receive almost half of Nigerian oil profits, local Nigerian contractors receive far less due to their relatively low employment in the oil industry. Not only are local contractors omitted from the large sums received by the multinational oil companies, but also most of Nigeria‟s populations are unemployed with a very small percentage benefiting from its native breadwinner.
The wide-ranging benefits of hydropower are often misunderstood or under-reported. Benefits of hydropower include flexible energy generation and storage, as well as reducing dependence on fossil fuels. Benefits to local communities include flood protection and water supply for domestic and commercial use, as well as opportunities for employment, education and recreation. Hydropower facilities also provide a boost to national economic growth through trade, transport and tourism. Environmental benefits include pollution control and reduction of carbon emissions. Hydropower can also boost food security with a reliable source of water for irrigation.