Global Oil Crisis and its Impact on the Development in the Agriculture Sector (Rice Production) in Nigeria.

Oil is a global product that constitutes a greater percentage of many producing nation *s GDP and revenue earning. Its importance cut across all sectors of the economy. Oil, as source of energy, influences education, communication, agriculture, industry, science, transportation, production, and distribution. The sector plays an important role in the development of international trade, capital flow, and international politics. In the 1970s, Oil crises created a downturn in the global economy. The global oil crisis led to stock market crash, rising inflation, high unemployment, job cuts, food insecurity, and general economic recession. There was global energy crisis between 1967 and 1979 (Macalister, 2011). However, the most significant of that time was the Oil embargo imposed on United States of America by the Arab oil producing exporting countries (AOPEC) in 1973. The embargo on America was a reaction to the support America gave Israel in the Yom Kippur war against Egypt, which made crude oil price to rise from $2.9 per barrel to $11.85 by 1974 (Macalister, 2011). The embargo affected the world economy, especially the west. It led to the fall of U.Kg overnment oft hat time, caused US government led by Nixon to enter into negotiation with Arab producers. The US changed her trade policies on oil. Such policies resulted in America and the west, to sort for Oil supplyf rom non-Arab nations (Milestones: 1969-1973). By US changed of her trade policy on oil, Nigeria became a beneficiary of the patronage of the west. Since then oil has dominated the Nigerian economy. United States of America remained the largest importer of Nigerian oil until 2014 when U.S started exploring shale oil. It has been noted that for the past three decades, crude oil has been the major source of revenue, energy and foreign exchange for the Nigerian economy. Oil being the mainstay of the Nigerian economy, plays a vital role in shaping the economic and the political destiny of the country (Odularu 2009).Dependency theory was adopted and the findings revealed that Nigeria over dependency on Oil suffered during the recession and the study recommends that government should diversify to other sectors such as solid mineral, transportation and agriculture with emphasis to rice production in Nigeria which has become a lucrative business due to it high level of consumption locally, nationally and internationally.