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THE
NIGER DELTA CRISIS AND ITS IMPACT ON ECONOMIC GROWTH IN NIGERIA (1999-2007).
TABLE OF CONTENTS
PAGES
Title Page i
Certification ii
Dedication iii
Acknowledgment iv
CHAPTER
ONE
1.0 Introduction
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
CHAPTER
TWO
2.0 Literature
review and theoretical framework
2.1 Introduction
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
2.10 Population
2.11 Niger Delta Culture
CHAPTER
THREE
3.0 Research
methodology
3.1 Introduction
3.2 Research
design
3.3 type
of sources of data
3.4 Methods
of data collection
3.5 Techniques
of data analysis
CHAPTER
FOUR
4.0 Data
presentation and analysis
4.1 Introduction
4.2 Data
presentation
4.3 Data
analysis
4.4 Testing
of hypothesis
CHAPTER
FIVE
5.0 Introduction
5.1 Summary
of major findings
5.2 Conclusion
5.3 Recommendations
Appendix 1- questionnaire sample
Appendix 2- testing of hypothesis table
Appendix 3- testing of hypothesis table
Bibliography
ABSTRACT
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.
CHAPTER ONE
INTRODUCTION
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.
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