To what extent has Nigeria's resource curse affected quality of life outcomes?

# Abstract Nigeria is one of the world's most resource-rich countries, yet it continues to experience persistent poverty, weak public services, and comparatively low human development outcomes. This apparent contradiction is commonly explained through the resource curse hypothesis, which argues that abundant natural resources can undermine long-term development when combined with weak institutions and ineffective governance. While previous studies have largely focused on the direct relationship between resource dependence and economic growth, less attention has been given to the broader mechanisms through which resource wealth ultimately affects citizens' quality of life. This thesis investigates the extent to which Nigeria's dependence on oil has influenced quality of life outcomes by examining the interaction between natural resource dependence, institutional quality, public investment, human capital, and political stability. Rather than treating these factors as isolated determinants, the study adopts a systemic perspective in which institutional mechanisms are interconnected and jointly shape development outcomes. The theoretical framework proposes that oil dependence affects quality of life indirectly by influencing governance, investment decisions, and the accumulation of human capital, while macroeconomic conditions and political stability reinforce or weaken these relationships. To empirically assess these mechanisms, the study develops a quantitative model using secondary macroeconomic data from internationally recognized sources. Quality of life is measured through the Human Development Index (HDI), while explanatory variables include oil rents as a percentage of GDP, institutional quality, government gross fixed capital formation, human capital indicators, GDP per capita, and political stability. The analysis evaluates the relative contribution of each variable and their combined effect on human development in Nigeria. The findings are expected to demonstrate that the impact of natural resource dependence on quality of life is largely indirect and mediated by institutional performance rather than determined solely by the availability of natural resources. The study contributes to the resource curse literature by emphasizing the interconnected nature of institutional mechanisms and by providing an integrated framework for understanding how resource wealth can either constrain or promote sustainable development. The results also offer policy implications for resource-dependent emerging economies, highlighting the importance of strengthening governance, improving public investment efficiency, and expanding investments in human capital to translate natural resource wealth into higher living standards.