THE NIGER DELTA CRISIS AND ITS IMPACT ON ECONOMIC GROWTH IN NIGERIA (1999-2007).
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THE NIGER DELTA CRISIS AND ITS IMPACT ON ECONOMIC GROWTH IN NIGERIA (1999-2007).
TABLE OF CONTENTS
Title Page i
1.1 Background of study
1.2 Statement of problem
1.3 Research question
1.4 Objective of study
1.5 Research hypothesis
1.6 Research methodology
1.7 Significance of study
1.8 Organization of study
1.9 Scope and limitation of study
1.10 Definition of terms
2.0 Literature review and theoretical framework
2.2 Causes Niger Delta crisis
2.3 Nature of youth restiveness in the Niger Delta Region
2.4 Conflict resolution in Niger Delta
2.5 Politics of oil and gas in the Niger Delta
2.6 Revenue allocation formular
2.7 The NDDC bill and its politics
2.8 Geography of the Niger Delta
2.9 Political definition of the Niger Delta
2.11 Niger Delta Culture
3.0 Research methodology
3.2 Research design
3.3 type of sources of data
3.4 Methods of data collection
3.5 Techniques of data analysis
4.0 Data presentation and analysis
4.2 Data presentation
4.3 Data analysis
4.4 Testing of hypothesis
5.1 Summary of major findings
Appendix 1- questionnaire sample
Appendix 2- testing of hypothesis table
Appendix 3- testing of hypothesis table
This study was fundamentally conversed with the investigations of the various implant of the protracted Niger Delta crisis on the economic growth and development of Niger within the period 1999-2007. Against this backdrop, the cross sectional research design method was adopted as the studies research design whole the population set was made up of senior oil firm’s workers, Niger Delta opinion leaders and activists among others. Furthermore a carefully designed question naira was employed as the data collection instrument, while the fearsome product moment correction method was in testing the truth and virilities of the formulated hypotheses hastily, the simple arithmetic percentages method was used in analyzing data related to the study research questions. Some of the major finding of the study was that the causative factors of the crisis include: absence of basic infrastructural facilities in the area high rate of youth employment use of coercive forces to suppress genuine agitation of Niger Delta among others: the crisis manifested in several ways which include: disruption oil activities vandalitation of petroleum products pipelines, kidnaping of oil workers and others, furthermore, it was found that the crisis had led to loss of investors’ confidence in the country: loss of jobs due to forced closure of firms, loss of revenue accruable to the various levels of government. The result of the formulated statement of hypotheses showed that: The no-adoption of the 50% detrains formula had a negative significant impact of the volume of oil exports in the period under consideration, and there was a significant relationship between the level of armed struggle in the region and the level of confidence investors hard in the nation’s economy. From the foregoing, it was concluded that the prevailing crisis in the Niger Delta Region has sermons negative impact of the growth and development of the nation’s economy also it has dire consequence of the socio-political setting hard in the nation especially in the south geo-political sub-region. The following were here by recommended: massive and repaid provision of basic infrastructural fatalities in the terms and villages in the region. Provision of employment for youths from the area. Stoppage of the use of caressed instruments to suppress genuine agitation of Niger Delta regions. Accelerated training of Niger Delta in skill that are required by firms operating in the area, upward of the current 13% derivation to a minimum of 40% to oil producing states among others.
1.1 BACKGROUND OF THE STUDY
At independence in 1960 Nigeria was a federation of three regions East, North and West. These three federating was had autonomy and self-determination rights in the true sense of a federation. These regions consisted of numerous nationalities, and were operated as purely unitary system.
The political ascendance of the three major nationalities Hausa/Fulani in the North Ibo in the East and Yoruba in the West as contrived by the colonialists, this arrangement resulted in the agitation of the minority ethnic, nationalities such as the Ijaw and Edo of the Niger Delt and Tivs of the middle belt their agitation was borne out of fear of marginalization and domination which before independence the colonial government give attention to through the constitution of will nicks minorities commission (1957).
Throughout the colonial rule, the nationalities complained about domination by the three major groups in their respective regions. Shortly before independence, the minorities agitated that their areas be constituted into regions but it was only the mid-Western (Edo and Delta States) that were carved out from the Western region, while one of the most adversely affected areas in the Niger Delta was the left out.
The Niger Delta causes an area of 70,000 square kilometers and consists of a number of distinct zones, characteristic of a typical delta of a large river in tropical regions, coastal ridge barriers, mangroves, fresh water swamp forest and lowland rainforest (Niger Delta Environment Surveys 1995).
This area has been descried as one of the world largest wetlands coverage over 20,000 square kilometer in south-eastern Nigeria about 75 percent of the states in the area is riverine, inundated with water in some areas the percentage of flood drops to about 50 percent (world bank may, 1995)
The area is made up of distinct ethnic group with twenty six language group in rivers and Bayelsa States alone (Alago and Tamuno 1989). During the colonial era, the British colonialists reached as agreement with the region to be granted sovereign independent nation after exploitation and exploration of mineral for thirty years this decision was reached before the amalgamation of the Northern and Southern protectorates in 1914 by the late Governor-General Lugard.
The political Niger Delta regions comprise of the following states rivers, Bayelsa, Imo, Delta, Edo, Akwa-Ibom, Cross rivers, Ondo and Abia. The region has the largest reserve of oil and gas in the West African sub-region (NDES, KPS) hence, it has been exploited and explored since crude oil was firs found in the region since 1956 the area has therefore suffered persistent environmental degradation, pollution and devastation among the worst hit area in the region area Ogoniland, Kola Obagi, Isoko, Ughelli and others having similar bearing with the nation coastal areas.
In recent times, the person of the area has embarked on calls for resource control, equitable distribution of wealth and political offices, among others.
This study therefore seeks to undertake an empirical investigation into the impact of the Niger Delta crisis on Nigeria economic growth.
1.2 STATEMENT OF THE PROBLEM
An unsafe environment is a threat to life; it is therefore disheartening too observe that a nation is ranked among the ten largest oil producers has neglected the people from where this mineral resource is obtained from.
Furthermore, it is also true that when right of humans are tampered with, the struggle to restore them may become violent and ruthless in so much that order rights and infringed upon in the process. In fact, all over the Niger Delta region there has been continuous exploration and exploitation of crude oil by the Nigeria state and oil firms operating in the area in the past forty years.
The Niger Delta areas however, are devoid of socio-economic values and there is evidence of object negligence by government and oil firms. This situation has degenerated to the point where kidnaping of expatriate and local oil workers is rampant in the area, also seizure of oil installation disruption of oil and petroleum products pipelines area also on the increase a situation that has placed by the energy sector of the country in an epileptic condition.
It has also being stated that the country has dropped from being the 6th largest oil producer (in 1999/2000) to the eight (by 2007). The nation daily output had dropped to about 1.7 million bards per day.
All these have been attributed to the crisis in the Niger Delta region, against the backdrop; the problem statement of this study is to what extent the prevailing crisis in the region has affected the performance of the nation economy.
1.3 RESEARCH QUESTIONS
The following are the study research questions
1. What are the factors that led to the prevailing crisis in the region?
2. What is the various manifestation of the crisis in the region?
3. How has armed struggle activities affected the nation business environment?
4. To what extent has pipeline destination impaired the nation revenue earning capacity?
5. How has hostage taking activities affected foreign direct investment in the country?
6. What are the political economy effects of the crisis in Nigeria state?
7. What ate the steps to be taken minimize the impact of the crisis on the nation’s socio-economic and political environment?
8. What are the roles of the stakeholders in the evaluations of the crisis?
1.4 OBJECTIVES OF THE STUDY
The purpose for which the study is being undertaken include:
To evaluate the factor responsible for the crisis in the Nigeria Delta region.
To determine and evaluate the various dimensions of the prevailing crisis.
To evaluate the impact of the crisis on the performance of the nation economy.
To recommend ways in which the crisis could be eradicated or minimized.
1.5 RESEARCH HYPOTHESES
Two null hypotheses are formulated for the study viz;
1. The Non-adoption of an acceptable derivation formular has no significant negative impact on oil and gas operations and on the decrease in production and sales of crude oil.
2. There is no significant relationship increasing armed struggle in the Niger Delta region and enhancements of inverters confidence in the nation economy.
3. There is no significant relationship between negligence
1.6 RESEARCH METHODOLOGY
In view of the empirical nature of this study the cross sectional research design technique will be adopted. It entails taking a snapshot of the subject being investigated and then analyzing it.
Against this backdrop, the target population of this study shall be selected from the following groups, members of the business community (Chambers of Commerce) Niger Delta activists and senior staffers of oil producing firms in the state.
The convenience sampling technique will be adopted in selecting samples from the target population groups. This is attributed to the uniqueness and sensitivity of the subject being investigated.
The primary data collection instrument to be used for the study is a designed questionnaire, that shall comprise structured and unstructured questions that will enable the researcher obtain significantly viable reposes from sample elements to be selected for the study.
Lastly, data analysis shall entail the use of simple Arithmetic percentages method and the person’s product moment correlation formula for the testing of the truth and validity of the hypotheses formulated for the study.
1.7 SIGNIFICANCE OF STUDY
In view of the contemporary nature of this topic, the study shall be of tremendous benefit to
The government stakeholders in the oil industry the study shall provide viable suggestion on how to improve their relationship with host communities in the region with the goal of finding an enduring solution to the crisis.
To student the study shall provide a historical and current presentation on the Niger Delta and Nigeria economy which could be useful at present and in the future for further works on the subject and its related areas. In order words, the study will form a viable literature for students of administrative and political science.
To academicians in the field of Administrative and petroleum managements, the study findings shall provide a framework on which they could gain knowledge and further develop for the purpose of continuing their research work in this important area of study.
1.8 ORGANIZATION OF THE STUDY
The study shall be organized into the five chapters and they are briefly outlined as follows:
The first deals with the background of the study problem statement purpose of study research question hypotheses mythology scope/delamination of study organization of the study.
The second chapter shall cover all areas relevant to the Niger Delta crisis and the nation economy. It shall therefore review the following areas among others overview of the Niger Delta area, overview of armed and unarmed struggle in Niger Delta, overview of the nation economy among others.
The third chapter shall essentially deal with the geography, socio-economic and political environment of the Niger Delta region.
The fourth chapter shall entail the analysis of the primary data collected through the questionnaire to be administered by the research.
It shall therefore with the analysis of the respondent pertaining to the study research question and hypotheses.
The firth and last chapter shall tract summary of findings conclusion and recommendation on the study finding.
1.9 SCOPE AND LIMITATION OF STUDY
In view of the diverse nature of the study (geographical spread of the region) the data collection exercise shall be limited to Port Harcourt. Furthermore investigate works on the subject shall be limited to the various dimensions of the Niger Delta crisis and its attendant impact on the nation economy between the period. 1999-2007.
1.10 DEFINITION OF TERMS
Armed Struggle-This refers to the use of deadly weapons to fight for a cause.
Derivation Formula- This refers to an acceptable sharing pattern that places emphases on allocating a substantial portion of accrued revenue to the area from which it is gotten from.
Foreign Direct Investment: This refers to capital inflow from oversea countries for the purpose of undertaking investment activities.
Niger Delta Crisis- This is a general term used in describing all forms of struggles (non-violet and violet) undertaken in the Niger Delta area to show the people dissatisfaction with the excising socioeconomic and political structures and systems in place.