The resource curse and the decentralization of oil revenue: the case of Nigeria

Nigeria is often portrayed as a poster child for countries experiencing the resource curse phenomenon. The pertinent question that confronts policy makers in Nigeria today is no longer whether or not Nigeria is suffering from the resource curse; rather, it is what to do about it. Since the 1980s, various policy initiatives have been adopted by the Nigerian Government to address different aspects of the resource curse but with limited success. It is therefore not surprising that regional governments within the Niger Delta have in recent years turned to Oil Producing Area Development Commissions as a means of reducing the poverty and conflict that is endemic in the region. Drawing on empirical data, this paper argues that the Oil Producing Area Development Commissions have been unable to improve the lives of the people in oil producing communities. It is suggested that this is due largely to their inability to alter the opportunities and incentives for rent seekers and allow for active community and civil society participation. The paper concludes by considering the implications for the resource curse and the way forward for these commissions.