Why We Feel Unsafe When We Get Rich? Review on the Empirics of Corruption, Oil Rents and Insecurity in Nigeria

Abstract

The empirical submissions that oil rents cause internal conflict have been widely supported by many researchers but criticized on the basis that oil dependence and conflict are influenced by other factors endogenously. In this paper, we review the empirics and interaction between corruption, oil rents and insecurity in Nigeria. Based on the theoretical submissions of the “Resources Curse Thesis”, the paper argues that Nigeria’s security challenges are more or less driven and triggered by corruption and oil rent, and the fact remains that oil rents tend to affect all economic activities, shaping the political system which certainly presents a reasonable explanation for both economic and political “Dutch Disease”. However, we upheld the proposition that due to corruption, oil is problematic because the unearned income received by the government from oil rents leads to the neglect of other key aspects of the economy especially peace and social security.