Energy, Trade and Power in Shaping US-Nigeria Economy Relations

Abstract

The objective of this study is to examine the role of oil, trade, and power in shaping United States–Nigeria economic relations; Emphasises was laid on how oil, trade and power have since independence outlined the relationship between the two countries. It also examined how energy has been able to change the perspective of the relation between the two states. The objective of the work is to explain how crude oil exportation has changed the economic diplomacy between the two countries. It also examines how trade and power has been able to move the global energy. The work chose a qualitative approach as a method to analyze the data. It also used secondary data relying on policy reports, statistical data and scholarly work. Publications about the beginning of US-Nigeria relations and the impact on the economic policy of the two countries were delved into. The theory of interdependence was used for the analysis. This explained the agreement between the two countries having areas that refused to correspond to each other in their economic relation thus creating figures for the distribution of power and authority. The paper found out that United States of America had dominated the exportation of oil right from the inception and oil has also in turned dominated the Nigerian trade. This has made energy the most important part of the bilateral economic diplomacy between Nigeria and the U.S.  It was also discovered that the U.S shale energy had reduced its dependence on Nigeria for her Oil. It also configured the direction of trade, which made them to determine the market price of the crude oil. Moreover, the U.S. also moved its dedication to renew energy, reforms on governance and also invested in some other sectors of the Nigerian economy. The paper therefore concluded that the U.S.- Nigeria relations has created a big amount of emphasizes on Oil. To reduce its centrality would be based on the United States of America’s decision. The paper recommended that Nigeria should vary the range of export product in her economy beyond dependence on oil; her other sectors should also be enhanced to ensure a vibrant bilateral economic relation. .