Exploratory activities for oil started before World War I and only paused during the war years. British Shell-BP, previously Shell’s Diarcy, held the exclusive license for oil prospecting in the country and became the first company to discover the commodity in commercial quantities in 1957. Nigeria recorded its first oil consignment in 1958 and launched itself into the global arena as an oil-producing country. Prior to the country’s independence in October 1960, other multinational oil companies were also granted licenses to explore oil in the country. There is no reliable data on the total amount of revenue Nigeria has gained from oil extraction since the industry began exporting the commodity – but some estimate that it amounts to several billions of dollars.^[1] The sector now accounts for 65 percent (%) of the country’s revenues and 85% of its total exports.

The oil industry in Nigeria has a long history of involvement with international politics, reflecting the country’s colonial roots. The sector has been driven by international capital since its inception, with investment in the colonial state being a key factor. The colonization of Nigeria began in the late 19^th century with the arrival of British traders and missionaries. Originally a small coastal town, Lagos became a British colony in 1861. In 1914, the British consolidated their control over the entire region by merging the Northern and Southern protectorates to form the colony and protectorate of Nigeria. British colonial rule in Nigeria lasted from 1861 to 1960 when Nigeria gained independence.^[2] The country was significantly influenced by British political, economic, and social control during this period, which was marked by events, such as the imposition of British law and governance structures, the exploitation of natural resources, and the establishment of indirect rule in which traditional leaders were co-opted to help administer the colony. As a result, the country of Nigeria was affected by colonization, which influenced its socioeconomic, political, and economic structures. Specifically, the control of the global credit system by advanced countries of the West has had implications for the role of oil in the country’s international relations and access to fair and equitable borrowing.^[3]

This reflects Nigeria’s oil wealth’s role in international relations, both in terms of its effects on domestic politics and with multilateral and bilateral lenders.^[4] The paper is divided into five sections. After discussing how oil relates to international relations, I will discuss Nigeria’s oil wealth and its impact on socio-economic development. I will then assess the effects of oil on the country’s relationship with bilateral and multilateral lenders and finally argue how the decolonization of the oil industry in Nigeria is a solution to its current shortcomings.