During the oil boom of the 1970s, Nigeria joined OPEC and the huge revenue generated made the economy richer. Despite huge revenues from oil production and sale, the military administration did little to improve the standard of living of the population, help small and medium businesses, or invest in infrastructure. As oil revenues fuelled the rise of federal subventions to states, the federal government became the centre of political struggle and the threshold of power in the country. As oil production and revenue rose, the Nigerian government became increasingly dependent on oil revenues and the international commodity markets for budgetary and economic concerns. It did not develop other sources of the economy for economic stability. That spelled doom to federalism in Nigeria.
Who failed to use the oil revenues to invest in infrastructure?
the military administration