In the late 1950s the British discovered oil in Nigeria. Since then petroleum production has become the biggest industry in Nigeria and a primary contributor to the country’s gross domestic product. The Nigerian oil industry has however been plagued by political and economic instability. Corrupt military regimes and environmental damage has had a negative impact upon Nigeria in general.

Offshore oil drilling has also started to increase and there is still a lot of potential for growth in this sector. Offshore oil drilling has a few advantages over onshore drilling such as fewer restrictions, fewer raids by local militants and less chance of sabotage. Oil exploration and production is almost completely a joint venture partnership between foreign oil companies and the Nigerian government. Local independent companies account for only a very small amount of petroleum production. Here are some of the foreign oil companies that are operating in Nigeria: Agip, Chevron, Exxon-Mobil, Royal Dutch Shell and Total.

Nigeria also has reserves of natural gas. Unfortunately, most of the natural gas that is uncovered during crude oil extraction is burned off. This may cost Nigeria millions of dollars each day in lost revenue. Most of the country’s petroleum reserves are located in the area known as the Niger Delta. This is the area that surrounds the Niger river where it forms a delta before entering the Gulf of Guinea. There are also offshore oil reserves that are slowly being extracted by oil rigs.

You might be forgiven for thinking that the general population of Nigeria shares in the wealth that is generated by oil exports. Sadly, this is not the case. In fact, the opposite is true. Due to widespread corruption in the government the vast oil wealth is shared between only the top 1% of Nigeria’s population. The other 99% of the population has not shared in the wealth created by Nigerian oil revenue. Protests by the general population over social and economic disrepair are usually answered with the use of excessive force by the Nigerian government and military.

Since the emergence of the classic Nigeria 419 scam, the mother of many modern advance fee fraud methods, many people simply assume that anything pertaining to Nigeria is fraudulent. This might be the safest way of operating, but for some, it just isn’t realistic. International relationships in Nigeria are rising. Lagos is the former capital of Nigeria, and it is one of the fastest growing cities in the world with a current population of 8 million people.

International business is a way of life here. Business partners and associates exist in Europe, Middle East, Asia and North America. Doing business here often means opportunity and profits. With this potential reward, however, comes significant risk. Businesses aren’t alone in this increasingly risky playing field. Similar to a small business in New York or Paris having to verify it’s business relationship in Lagos, many individuals are finding personal relationships in Nigeria. Whether its romance or a new supplier, the need for a background check is critical.

Many people think the scams, such as advance fee fraud, simply aren’t going to happen to them. Unfortunately, as the world has grown wise to Nigeria’s scams, the Nigeria fraudsters have grown surprisingly sophisticated. Business scammers now have the industry know how, and they use the lingo. They have resumes and references. Beautiful women (including white women) in Lagos definitely exist, but the number of men portraying to be these women is staggering. Here too, the players are professional. They carry on phone conversatons, send email, provide visa and passport copies, and more. This is the new Nigeria 419.

How does one entering into a business or personal relationship in Nigeria find out the truth? We strongly recommend a professional background check, preferably a firm based outside of Nigeria but with local investigators who understand the local customs, people and market. Wymoo International is currently the industry leader for Nigeria background checks. According to Vice President, David Wilkerson, businesses and individuals have to “enter into relationships with insurance given the amount of fraud here, and a professional background is the prudent policy.”