NRGI set out to collect total oil, gas and mining revenue data for the countries included in the Resource Governance Index to find out how many dollars flow to governments that mismanage the handling of their natural resources.
Sovereign wealth funds (SWFs) can be effective tools for managing natural resource revenues. However, as their numbers continue to grow, with the largest funds managing hundreds of billions or even a trillion dollars in assets, researchers are paying more attention to how well these funds are governed.
A 10-year boom in the prices of many commodities drew to a close last year. During previous booms, governments in developing countries have often squandered wealth accumulated through oil, gas and minerals, directing little of the proceeds toward effective investment or saving. When boom turned to bust, resource-rich countries were caught out, forced into debt spirals.
Most of Nigeria’s revenue comes from the oil and gas sector. The Public and Private Development Centre, which Seember Nyager leads, aims to monitor how this revenue is generated and how the government spends it.
In most countries, national governments negotiate extraction contracts with companies and collect the revenues, but it is those closest to the extraction site that see their physical and economic landscape change most dramatically.