ABSTRACT
Both endogenous and exogenous factors have contributed to Nigeria's present economic crisis. The endogenous factor is Nigeria's inability to plan her own resources. When the price of oil rose in 1973 the industrialised world was shocked. The belief was general that the situation was a temporary one, but OPEC member nations contrary to belief continued to increase oil prices. The formation of OPEC in September, 1960 was a protest against these oil companies who alone determined what price they would pay for a barrel of crude oil. Ironically, Saudi Arabia which was apparently concerned with Nigeria's economic plight was responsible for creating the oil glut. Saudi Arabia, a founder member of OPEC, produces about 41 per cent of OPEC's total oil output. The roles of the oil producing companies of non-OPEC countries such as the UK, Norway, Mexico and Egypt helped to worsen the world oil crisis and to destabilise OPEC's oil strategy.
