Which of the following is NOT a positive contribution a petroleum to Nigeria economy?

Analyze the question: You are asked to find the option that is NOT a positive contribution of petroleum to Nigeria's economy. So four options are benefits, and one is a drawback.

Concept: Petroleum has contributed to Nigeria in many ways, but it has also caused problems, such as over-dependence on one product (the "Dutch disease" effect). When a country relies mainly on a single product for its revenue and exports, it is called a mono-product economy. This is risky because the economy becomes vulnerable to price shocks in the world market, and other sectors such as agriculture and manufacturing are neglected.

Step-by-step check of the options:

• A. Development of infrastructure: Oil revenue has funded roads, bridges, power projects, and other facilities. This is positive.
• B. Increase in national income: Oil earnings raise GDP and government revenue. This is positive.
• C. Major employer of labour: The oil and gas industry provides jobs, directly and indirectly. It is generally listed as a benefit in exam answers. This is positive.
• D. Major foreign exchange earner: Crude oil makes up the bulk of Nigeria's export earnings. This is positive.
• E. Turning the nation to a mono-product economy: This is a negative effect. It led to the decline of agriculture (cocoa, groundnut, palm oil, etc.) and left the economy exposed to oil price swings. This is NOT a positive contribution.

Answer: E

Exam tip: In "NOT" questions, look for the option with negative wording or consequences, such as "over-dependence," "neglect," "decline," or "mono-product." Also, read the question twice so you do not choose a positive option by mistake.