The Nigerian State's Leverage

In 1996, oil companies named Nigeria and the African region as a most attractive investment destination. The profit margin for drilling in Nigeria was relatively high. Nigerian state relied almost completely on oil revenue to fund itself in the 20th century with 98% at one point of its budget coming from oil revenue. In addition to this power dynamic, public officials in Nigeria are estimated to siphon off 10 to 15% of the government's oil revenue demanding commissions for contracts.