Oil to such illegal refineries is obtained by stealing from legitimate oil pipelines, which is a popular business among unemployed and poor Nigerians. However, it was only last February when Nigerian authorities pronounced that they would put a stop to this practice, but obviously without great success.
The explosion reminds us that incapable politicians combined with inefficient - and obviously corrupted - authorities are a serious risk for poor people. But it is not only that, but also a barrier to development of national economy.
Actually, Nigeria had a notable economic success between years 2000 and 2015, which resulted in e.g. almost tenfold increase of Gross Domestic Production. But since 2015 the GDP has reduced by about one fifth, mostly due to low oil prices and COVID-19 pandemic.
At the same time (i.e. 2000-2020) the population size of the country has increased by 70 percent. Consequently, the rapid economic development per capita seen during the first three quarters of the time has turned to considerable recession.
The future of Nigeria does not look very good. As oil is the basis of its economy, the green economy transition in western countries will hit the rapidly growing Nigerian population hard. In a very short time, however, the ban of Russian oil in Europe might give Nigerian leaders a window of opportunity.
Thus, it remains to be seen, if that opportunity will be used to diversify the economic basis of the country, or will the money flow in the pockets of country´s politicians and their cronies in the form of corruption. If so, the price will be high to ordinary Nigerians.
But not only for them, but recession together with quickly growing population in Nigeria could push people to search for better life in Europe as soon as the borders closed due to COVID-19 will be opened. Therefore, corruption in Nigeria may have a major effect also for people living in the European Union in a form of increased immigration.
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