Abstract
Petrodollar politics has become significant in contemporary international relations, particularly in shaping the interactions between major global powers and oil-producing states. The paper examined the dynamics of petrodollar politics, the United States’ intervention in Venezuela, and the implications of these developments for Nigeria, a major oil-producing country. Using a descriptive research design, qualitative analysis of secondary sources, and resource curse theory, the paper argues that Venezuela’s vast oil reserves and its attempts to pursue independent economic and energy policies contributed to rising tensions with the United States. The report posited that, through a combination of economic sanctions, financial restrictions, and diplomatic pressure targeting Venezuela’s state oil company, the United States significantly limited the country’s access to international oil markets and financial systems. These measures contributed to the decline of Venezuela’s oil sector and exacerbated the country’s economic crisis, demonstrating how oil resources and the dominance of the U.S. dollar in global energy transactions can influence international political outcomes. The paper also revealed that, like Venezuela, Nigeria faces vulnerabilities associated with dependence on oil revenues and exposure to global energy politics. The study concluded that although oil wealth can enhance national economic capacity, excessive dependence on petroleum resources can increase susceptibility to external economic and geopolitical pressures. Consequently, the paper recommends, amongst others, that Nigeria must prioritize economic diversification, strengthen domestic institutions, and adopt a strategic foreign policy in order to reduce vulnerability within the evolving global political economy.
Keywords: politics, petrodollar politics, crude oil, United States, Venezuela, Nigeria.