Moses Orshio Adasu University, Makurdi

Political Economy Analysis of The Rentier State: The Nigerian Experience

Franc Ter Abagen, Ph.D & Favour Shoon Shom

Abstract

The paper examines the political economy of rentier states with specific emphasis on social, political and economic development of the Nigerian state. The question posed was whether there exists a correlation between natural resources endowment and economic development. The Marxist alienation theory was adopted as a framework of analysis. Using textual analysis, it was discovered that rent-seeking is not completely bad for economic growth, however, most rents are ultimately dissipated, and produces divided societies and non-inclusive politics. It was concluded that Nigeria is a typical example of a rent-seeking state since over eighty percent of its wealth or earnings are derived from a natural resource-oil; and the leadership in Nigeria has exhibited remarkable penchant for cornering and misappropriating the wealth, hence the deplorable level of development in the country in-spite of her huge revenues from oil. The study generally recommends major policy re-forms that will strengthen regulatory institutions to act as checks and balances that will ensure the effective use of these resources.

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