Nigerians always want to know why the country is rich but the citizens are poor. It is expected that when a country is blessed with rich mineral resources exploited for about 37 years the citizens will be socio-economically better. Contrary to this,a U.N. Human Development Index (HDI) report, 2005, which ranks nations according to their citizen’s quality of life, portrayed Nigeria’s level of socio-economic development with a HDI value of 0.470. This ranked Nigeria 158th out of 177 countries, below Gambia (155th), Zimbabwe (151st), Togo (152nd) and Cameroun (144th). The study thus aimed at assessing the quality of life of Nigerians especially the oil producing communities. Data from oil/non-oil communities were thoroughly analyzed with the conclusion that although the huge oil revenue has contributed to economic growth, it has not transformed the nation’s economy which still remains largely agrarian with living standard in the country one of the lowest in the world. The findings are expected to be useful to investors in the oil industry, Managers of oil economies,Students in Schools of Mining and Oil Exploration,Students of Socio-economic Development,Administration,Geography, etc.