3min chapter

Political Theory 101 cover image

Frynas, Petrol States, and Oil Companies

Political Theory 101

CHAPTER

The Nigerian Oil Crisis

The violence disrupts the oil production. That reduces foreign investment, diminishes revenue and thereby further erodes state capacity. The demoralized electorate increasingly avoids the polls or supports rogue armed groups in a bid to protect itself from rapacious companies. A mix of order and disorder is better for the oil companies than either a fully functional state where they would have to pay the state a proper share of the revenue.

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