The major contribution of OPEC to the Nigerian economy is the
Answer Details
The major contribution of the Organization of the Petroleum Exporting Countries (OPEC) to the Nigerian economy is the stabilization of oil prices. OPEC is a group of countries, including Nigeria, that are major exporters of oil. They work together to regulate the supply of oil to the global market, in order to ensure stability in oil prices.
Oil is a significant source of revenue for Nigeria, and fluctuations in oil prices can have a significant impact on the Nigerian economy. When oil prices are high, Nigeria earns more revenue from oil exports, which can lead to economic growth and development. However, when oil prices are low, Nigeria's revenue from oil exports decreases, which can lead to economic challenges.
OPEC helps to stabilize oil prices by adjusting the supply of oil to the global market based on demand. When demand for oil is high, OPEC increases the supply to ensure that prices do not rise too high. Similarly, when demand for oil is low, OPEC reduces the supply to prevent prices from falling too low.
Therefore, the main contribution of OPEC to the Nigerian economy is the stabilization of oil prices, which helps to ensure a consistent and predictable source of revenue from oil exports. This revenue can then be used to invest in social infrastructure, including building refineries and providing subsidies on petroleum products, as well as other areas of the economy.