December 18, 2025 — Dalena Reporters
Nigeria is one of the most naturally endowed countries in the world, yet it continues to rank among nations with the highest levels of poverty and inequality. From vast crude oil reserves to untapped solid minerals, fertile agricultural land and a large youthful population, the country’s wealth of resources sharply contrasts with the lived reality of millions of its citizens struggling to survive on less than $2 a day.
According to World Bank estimates, over 133 million Nigerians live in multidimensional poverty, making Nigeria home to one of the largest concentrations of poor people globally a sobering statistic for a country often described as the “giant of Africa.”
Nigeria’s Vast Resource Endowment
Nigeria possesses over 37 billion barrels of proven crude oil reserves and more than 200 trillion cubic feet of natural gas, ranking among the top hydrocarbon producers in Africa. Oil alone has generated hundreds of billions of dollars in revenue since commercial production began in the late 1950s.
Beyond petroleum, Nigeria is endowed with over 40 commercially viable solid minerals, including gold, limestone, iron ore, coal, lead, zinc, bitumen, columbite, lithium and tin. The country also has 84 million hectares of arable land, abundant freshwater resources, and a strategic geographic position that should support regional trade and industrialisation.
In theory, these assets provide the foundation for economic prosperity, industrial growth and social development. In practice, they have failed to translate into broad-based wealth.
The Resource Curse And Governance Failure
Economists often describe Nigeria’s predicament as a classic case of the “resource curse” — a paradox where countries rich in natural resources experience slower development, weaker institutions and higher poverty rates than less endowed nations.
At the heart of this problem is decades of poor governance, corruption and mismanagement. Nigeria’s oil wealth has historically been controlled by a narrow political and economic elite, while revenues meant for public services are lost to embezzlement, opaque contracts and wasteful spending.
Investigations and audits have repeatedly exposed missing oil revenues, unremitted taxes, illegal oil bunkering and fuel subsidy frauds costing the country billions of dollars annually. These losses starve critical sectors such as education, healthcare, infrastructure and job creation.
Over dependence On Oil
Nigeria’s economy has long been dangerously dependent on crude oil, which accounts for the bulk of foreign exchange earnings and government revenue. This overreliance has made the country highly vulnerable to global oil price shocks, leading to recurring fiscal crises, currency devaluations and inflation spikes.
Meanwhile, other productive sectors manufacturing, agriculture, technology and solid minerals — have remained underdeveloped due to policy inconsistency, poor infrastructure and limited access to credit. Rather than using oil wealth to diversify, successive governments entrenched dependency.
Weak Institutions And Insecurity
Weak state institutions have further compounded Nigeria’s challenges. Regulatory agencies often lack autonomy or capacity, allowing illegal mining, oil theft and environmental degradation to flourish unchecked.
At the same time, worsening insecurity including terrorism, banditry, kidnapping and communal violence has disrupted farming, investment and commerce across large swathes of the country. Entire communities have been displaced, turning productive citizens into internally displaced persons (IDPs) dependent on humanitarian aid.
Population Growth Without Human Capital Investment
Nigeria’s population estimated at over 220 million people — is both a potential asset and a major liability. Rapid population growth has outpaced investments in education, skills training and healthcare, leaving millions of young Nigerians unemployed or underemployed.
Instead of harnessing its youth as a demographic dividend, Nigeria faces a growing army of frustrated citizens with limited economic opportunities, fueling crime, migration and social unrest.
Environmental Destruction And Community Marginalisation
In oil-producing regions like the Niger Delta, decades of pollution, gas flaring and oil spills have destroyed livelihoods without adequate compensation. Communities that sit atop vast oil wealth remain among the poorest and most environmentally damaged in the country, deepening resentment and instability.
Similarly, illegal mining in rural areas has caused land degradation, water contamination and deaths, while profits flow to criminal networks rather than host communities.
The Path Forward
Experts argue that Nigeria’s poverty is not the result of resource scarcity but governance failure. Unlocking the country’s potential requires:
- Transparent management of resource revenues
- Strong anti-corruption enforcement
- Economic diversification beyond oil
- Massive investment in education, healthcare and infrastructure
- Formalisation of artisanal mining and agriculture
- Security sector reforms to restore stability
Countries with far fewer resources — from Vietnam to Botswana — have achieved sustained growth through discipline, institutions and long-term planning, demonstrating that Nigeria’s condition is neither inevitable nor irreversible.
Until Nigeria confronts its governance deficits and prioritises inclusive development, its vast natural wealth will remain a mirage, enriching a few while millions remain trapped in poverty.