The discovery of oil in Nigeria, in the 1950s boosted the economy of the country, particularly in the 1970s due to the high rise of prices resulting from the Fourth Arab-Israeli War, in which the Arab oil-producing countries retaliated the aid given to Israel sharply increased the oil-barrel price. However, the fluctuation of the oil prices due to political and economic reasons have affected the domestic economy of Nigeria becoming flooded with money in times of low oil prices which results in inflation. The existing oil reserves of Nigeria ranks the country as the sixth top oi producer in the world.
