The NPRC built a 38,000b/d refinery at Alesa-Eleme near Port-Harcourt to refine local crude (Tamuno, 2006).The impact of crude oil in the Nigerian economy has a paradoxical effect in the sense that it should have only positive impact on the economy and the population, but this is not the case. As the local demand for these products increased, two major oil companies - Shell and British Petroleum - formed a 50/50 joint venture refining company in Nigeria: The Nigerian Petroleum Refining Company (NPRC) in 1960. However, serious and sustained efforts did not happen until Shell Darcy Petroleum Company commenced operation in 1956. This was the first time crude oil was discovered in commercial quantity at Oloibiri in the present day Bayelsa State in Nigeria (Tamuno, 2006). The origin of oil exploration and exploitation started in 1859, where the first oil well was drilled by Edwin L. This paper is of the view that crude oil resource is more of curse than a blessing to the Nigerian economy. However the paper is majorly going to focus on the variables between the increased GDP and the increase poverty level. The paper observes that the blessings from crude oil resource in Nigeria at large takes the form of increased government revenues, increased export earnings, the attendant improvement, opportunities and linkage effects in the economy. Since the discovery of crude oil in Nigeria the economy of Nigeria has improved, increasing the GDP through the sales of oil barrels abroad. This paper examines the question as to whether crude oil resource is a blessing or curse to Nigeria.
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