One of the positive contributions of the petroleum industry to Nigeria’s economic development is that it

Step 1: Analyze the question The question asks for a positive contribution of the petroleum industry to Nigeria's economic development. So we must eliminate every option that describes a problem or negative effect.

Step 2: Concept Nigeria's petroleum (crude oil) sector is the country's main export. Oil exports account for the majority of Nigeria's foreign exchange earnings (often over 80-90%) and a large share of government revenue. Foreign exchange is needed to import capital goods, machinery, and essential raw materials, and to pay for international obligations.

Step 3: Evaluate each option

• A. Creates ecological problems: Negative. Oil spills, gas flaring, and pollution in the Niger Delta are environmental damage.
• B. Creates political unrest: Negative. Militancy and conflicts in oil-producing areas are examples.
• C. Creates uncertainties in government revenues: Negative. Oil prices fluctuate, making revenue unstable.
• D. Is a major foreign exchange earner: Positive. Crude oil exports bring in the foreign currency (mainly US dollars) the economy depends on.
• E. Suppresses agricultural development: Negative. This refers to the neglect of agriculture after the oil boom (the "Dutch disease" effect).

Step 4: Answer Only option D is a positive contribution.

Tip: In questions asking for a "positive contribution" or "advantage," quickly cross out options containing negative words like problems, unrest, uncertainties, suppresses. The one remaining is usually the answer. Remember the link: Petroleum → exports → foreign exchange.