Comparative Assessment Of The Socio-Economic Effect Of Crude Oil Exploitation

Project and Seminar Material for Geology

Comparative Assessment Of The Socio-Economic Effect Of Crude Oil Exploitation


Abstract


This research work is centered on the comparative assessment of the socio-economic effect of crude oil exploitation in the Niger Delta Region. It also focuses on how the Niger Delta environment is contaminated via the activities of oil exploitation, thereby leading to abrupt destruction of her natural habitats. As a result, hardship in survival of the inhabitants owing to refusal of the Federal government and Multinational oil companies to embark on drastic human and infrastructural development as an alternative to the bastardized environment in the Niger Delta. The methodological approach to this research work is based on content analysis of literature on available textbooks, journals, magazines, newspapers, internet sources, articles and other unpublished works by professionals. Against this backdrop of the research, we come to bear the fact that oil exploitation in the Niger Delta overtime has been wrongly fashioned and confirms the position of the Niger Deltans been deprived, alienated, marginalized and neglected. Also ascertained was the justification of the crises condition of the people of the Niger Delta as a result of idleness and poverty amidst the oil wealth. Despite the inadequacies in the development relations between the oil Host region and the Federal government/MNOCs, all hopes are not lost. Sustainable development could still be attained in the Niger Delta Region when environmental protection laws alongside favourable oil industry and land tenureship/derivation principles are stringently put in place in the Nigerian polity. Also significant in our findings is the machinery of governance to treat Niger Delta Region issues with probity, accountability and service to the people.


Table Of Content


Preliminary Page(s)

  • Title page
  • Certification page
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of content

Chapter One:

Introduction

  • 1.1 Background of the study
  • 1.2 Statement of problem
  • 1.3 Research questions
  • 1.4 Objectives of the study
  • 1.5 Significance of the study
  • 1.6 Literature review
  • 1.7 Hypothesis
  • 1.8 Method of data collection/analysis

Chapter Two:

Oil Exploitation And The Niger Delta Environment

  • 2.1 The Composites of the Niger Delta Environment
  • 2.2 Oil Exploration and its Resultant Effects on the Environment
  • 2.3 Oil Prospecting and the Era of Arms Proliferation in the Region
  • 2.4 Poverty Perpetuated Amidst Oil Exploitation in the Niger Delta

Chapter Three:

Oil Host Communities And Infrastructural Neglect

  • 3.1 Infrastructural Neglect – The Oloibiri Example
  • 3.2 Federal Government Boards/Commissions forHost Communities Development – A Mirage.
  • 3.3 Expropraitory Laws of the Federal Government Against Oil Host Communities.

Chapter Four:

The Politics Of Oil Exploitation And Reactions From Niger Delta Oil Host Communities

  • 4.1 Elites and Conflicts Generation in the Niger Delta Oil Host Communities.
  • 4.2 Brief History of Crisis/Chronology of Crises in the Niger Delta.
  • 4.3 Impact of Crisis on Oil Production.

Chapter Five:

Summary And Conclusion

  • 5.1 Summary
  • 5.2 Conclusion
  • Recommendation
  • Bibliography

Chapter One


Introduction

1.1 Background Of The Study

Petroleum is among the various resources produced by nature. They are used by human to satisfy their needs such as transportation, cooking, electricity power supply and others (Mike, 2012). The exploitation of natural resources such as crude oil is the use of natural resources for economic growth, of sometimes with a negative connotation of accompanying environmental degradation (Cronin, 2009). It started to emerge on an industrial scale in the 19th century as the extraction and processing of raw materials (such as in mining, steam power, and machinery) developed much further than it had in pre-industrial eras. During the 20th century, energy consumption rapidly increased.

In the last fifty-five (55) years, the Niger-delta region has experienced increased activities in the area of oil exploration and exploitation, refining and products marketing operations while the same activities have generated immense finance for the country as a whole, it has created health and environmental problems to the host communities in the Niger Delta Region. According to Omajemite (2008), the operation of the oil industries have introduced pollutants such as liquid discharge and oil spills into the air, land and water component of the environment. This oil activities though contributed to the Nigerian economy, notwithstanding the area has been subjected to series of degradation and the member of the host communities suffering untold hardship. The whole process of obtaining fuel mineral, from exploration, extraction processing and transportation as well as storage and consumption generate one form of pollution or the other. For example, during exploration, drill cutting, drilling mud and fluids are used for stimulating of crude oil, damage to pipeline and accident involving road trucks and tankers generate oil and hydrocarbon emission. These have a far more reaching effect on the environment (FEPA, 2001). The entire process of oil extraction negatively affects the environment basically through pollution which invariably leads to other kinds of problem stated the crude oil is so dangerous that when the oil touches the leaf of food crops or whatever economic tree in the area, the plants dries off immediately. This destructive effect of oil exploitation on plants invariable leads to poor agricultural yield in the region.

The exploration of crude oil Nigeria has led to a considerable economic growth in the country. Crude oil was discovered in commercial quantities in the Niger Delta Region, specifically in the present Oloibiri in 1956 (Omofonwa and Odia, 2009). Since then oil exploration and exploitation as continued resulting in to what is termed environmental destruction and degradation due to neglect and less concern of the multinational companies in environmental management in the area. The first shipment of oil to Europe was in 1956 from a modest production of 5,000 barrels per day in 1958, it reached a peak of 2.3 million barrels per day in 1979. By the 1970’s oil has become the fiscal basis of the Nigeria state, effectively replacing agriculture as the basis of revenue generation in Nigeria (Mike, 2012). The Central Bank of Nigeria (CBN) in its 1981 annual report inferred that oil accounted for than 90%of Nigeria Exports by value and about 80% of total government revenue as at December 31st 1981, there is no doubt that the Nigeria oil industry has affected the country in a variety of ways at the same time. On one hand it has fashioned a remarkable economic landscape for the country. One major pollutant that has stimulated pollution of crude oil can occur as spillage from on-share or off-shore operation of the petroleum industry. It is therefore believed that when these oil spills occur, they affect the flora and fauns aquatic animal which constitutes major protein resources for man.

In the course of crude oil exploration various materials are also released into the environment, such as Benzes and poly-nuclear aromatic hydrocarbon on oil and water bodies. The toxicity of the oil adversely affects the soil, plants, animals and water resources. According to Mike (2012) during exploration and exploitation of oil, rural communities have to the destruction of farm lands vegetation and pollution of streams. Accordingly, Badego and Nwilo (2005) noted that the exploration of crude oil is a major environmental problem in Nigeria. They posited that between 1976 and 1996, Nigeria recorded a total number of 4,835 oil incidents which resulted in a loss of 1,896, 960 barrels of crude oil to the environment (NNPC Statistical Bulletin, 2015). Between 2006 and 2010, according to Lawrence, Musari and Okere, (2010), Nigeria recorded a total 23 percent were caused by equipment failure, operational maintenance error and corrosion while 45 percent had been attributed to sabotage and vandalisms (NNPC Statistiacal Bulletin, 2015). The remaining 32 percent was attributed to leakages and other mechanical and human errors.

Previous studies have focused mainly on oil exploitation and gas flaring activities and its environmental impacts in Nigeria especially oil producing states but none have laid emphasis on the socio-economic effect of crude oil exploitation in Ughelli and Warri. This study therefore seeks to fill the gap that exists in literature on the topic under consideration.

The ecology of the Niger Delta tolerates myriad species of terrestrial and aquatic plants and animals and human beings. The region posses a division of four (4) ecological zones viz: Costal inland zone, Mangrove swamp zone, Fresh water zone and Low level rain forest zone. It is considered the most tremendous wet land in the African continent and among the three (3) largest in the world. The Niger Delta region is consist of rivers, creeks, estuaries or seas and the area accumulatively measures up to 2, 370 square kilometers, while stagnant swamps covers up to 8, 600 square kilometers.

As a matter of facts, this research will be focused on the real “deltaic” zones of the Niger Delta where the real challenges of development are prominent in order to properly assess and harness “oil exploitation and challenges of development in the Niger Delta.


1.2 Statement Of Problem

The socio-economic effects of crude oil exploitation from the activities of the oil industry resulting in environmental problems such as degradation cannot be ignored. The problems associated with oil exploitation as summarized by Olojoba (2009) include; pollution, environmental degradation, damage to farm produce, loss of farmlands, economic hardship, among others. These problems have continued to affect the inhabitants of Warri and Ughelli especially their source of livelihood and socio-economic life.

In recent times crude oil exploitation have damaged completely or seriously disorganized the economic and social activities of the oil producing communities in Ughelli and Warri. Agriculture, farming and fishing are the basic economic activities of the people in Ughelli and Warri, but these activities have reduced drastically due to the effect of crude oil exploration on the environment (Ejola 2000).

Presently, oil exploitation has posed serious threat to the socio-economic activities of various oil producing communities especially in Warri. These socio-economic activities ranges from trading, farming activities, to various businesses. It is of no doubt today that, oil exploitation has hindered socio-economic growth in various oil producing areas (community) since most people depend on the natural resources for their source of survival and major means of livelihood. Also the exploitation of oil in Ughelli and Warri respectively have negative socio-economic impact leading to housing problems, increase in crime rate in the core city, health issues, educational decay and insecurity as a result of various conflict that emanate from oil exploitation activities especially among the youths (Mike, 2012).

Oil exploration and exploitation has been on-going for several decades in the Nigeria Delta. It has had impacts on the environment in the region and has adversely affected people inhabiting that region. The Niger Delta region especially Warri and Ughelli consists of diverse ecosystems of mangrove swamps, fresh water swamps, rainforest and is the largest wetland in Africa and among the ten (10) most important and marine ecosystems in the world (Barry, 2015), but due to oil pollution the area is now characterized by contaminated streams and rivers, forest destruction and biodiversity loss in general, the area is an ecological wasteland. This affects the livelihood of the indigenous people who depend on the ecosystem services for survival leading to increased poverty and displacement of people.

This study is therefore conducted to address the aforementioned problem(s) and suggest possible ways to solve the problems associated with oil exploitation and its socio-economic effect on the study areas.


1.3 Research Questions

It is in the light of the above intricacies that the researcher intends to focus attention on the following research questions:

  1. Is there any link between oil exploitation in the Niger Delta Region and growing poverty level in the oil bearing communities?
  2. Has oil prospecting improve infrastructural facilities in the Niger Delta Region?
  3. Has the crises situation in the Niger Delta Region reduced the oil producing capacity of Nigeria?

1.4 Objectives Of The Study

The broad objective of this research is to investigate oil exploitation and challenges of development in the Niger Delta region.

However the specific objectives are two fold.

  1. To systematically investigate if there is any relationship between crude oil exploration and the poverty level of oil bearing communities.
  2. To critically examine whether oil proceeds had not improved infrastructural needs of the Niger Delta and the effects of crises on oil production in Nigeria.

1.5 Significance Of The Study

We firmly believe that the findings of this study shall be of immeasurable value to the oil host communities, the Niger Delta region, oil companies, state governments in the Niger Delta and the Federal government.

The study shall expose certain shortcomings in our approach as students/researchers to tackle the Niger Delta question in the Nigerian Federation. Multi-national oil companies (MNOCs) and government shall through the result of this research rededicate their efforts to the morality issues of why the Niger Delta region requires aggressive development.

Equally significant is that subsequent researchers will find results of the project useful particularly in the fields of social sciences and crises management oriented topics.

research will equally serve the task of filling a gap in existing literature and ultimately add to knowledge because the work is not devoid of the academic tradition of knowledge built on existing knowledge. Therefore, researchers/scholars in this era of western capitalist economy with its major tenets of globalization, market forces and liberalization of trade, the MNCs are on the offensive in both the extractive and manufacturing sectors all over the world. The agents and the states propagating these ideas refer to it as social relations.

This research work will reveal the hidden character which is causing instability in a region which is poverty stricken in the midst of plenty, the Niger Delta Region of Nigeria, an environment responsible for the economic boom which the Nigerian government has enjoyed for decades but nothing to show in the region.

Finally, for practicality, the research will serve as a means to understanding the intrigues in oil production that metamorphosed to underdevelopment and crises in the Niger Delta Region. Hence, the tasks of solving the crises and possible enhancement of socio-economic development and unity of the Niger Delta and Nigeria as a whole is achievable via application of moral standard to oil exploitation as cited in this study.


1.6 Literature Review

The core variables of the research which are oil exploitation and challenges of development in the Niger Delta region will be the basis for our literature review.

The issue of oil exploitation and challenges of development in the Niger Delta region of Nigeria has created a lot of devastating effect on the oil bearing communities otherwise referred to as the (HOST COMMUNITIES). The socio-economic malady has no doubt attracted the attention of many scholars and social workers. However, the two major variables of the research which are: Oil exploitation and Challenges of development in the Niger Delta will be explored then a thorough review of literature will follow.

Oil Exploration And Exploitation

The oil prospecting and exploitation in the Niger Delta has not only altered people’s livelihoods, but continues to disrupt the natural balance of the region’s earth crust. George (2000) recognizes the methods of oil exploration, namely: Analysis of existing geological and other information; seismic surveys; and exploration drilling; He mentioned that of particular destructive impact of the earth’s make-up is the use of seismic survey.

This method involves the gathering of information through sound waves into the earth’s crust to measure the depth of the rock layers and the use of dynamites and other explosives. The explosives are either detonated in the bowels of the earth through water bodies or dry land. In addition to its direct impact on the aquatic stocks in the area, the after effects or shocks are known to sometimes cover as much a radius of 10 kilometers (Bassey, 2001). The implication of this is that, the more oil is explored in the Niger Delta region using this method, the more the region’s natural environment witness shocks and rifts in its crust.

Development

Development means different thing to different people, depending on their intellectual, ideological beliefs and the issues in question (Obinozie, 1999:157). Thus, it is seen as the process by which people, based on their choices and value create and recreate themselves and their life circumstances to realize higher levels of civilization (1996:125). It also means reduction in the level of poverty, unemployment and inequality (Secre,1975) Another definition of development is that: it is the liquidation of poverty, employment generation and satisfaction of basic needs. (South commission report, 1993:13-14). Development also refers to the efforts and results of transforming the physical and social environments within which human beings operate for the purpose of enhancing their standard of living. (Anikpo 1996:6); another definitions says development means an increase in percapital income, reduction of absolute poverty and equal distribution of income (Meieir, 1970).

Development efforts are connected and it includes those directed at deliberately eliminating obstacles that militate against the desire of individuals and corporate groups to free themselves from all natural and artificial obstacles. They also include the advancement of human capacity to exploit, annex, and utilize the historical, cultural and environmental based resources in order for man to achieve a more fulfilling life. However, resources and capabilities for development are usually not only complex but also in short supply. A high degree of collaboration is always needed. Thus, development partnership is a mechanism for ensuring that the comparative advantages of different actors, share and stakeholders are harmonized in a mutually supportive manner for the benefit of all.

It is an obvious fact that the concept of development is a man – centred process that leads to qualitative improvements in the standard of living. The measurement of development include, advanced infrastructures, enhanced education, training and greater employment opportunities, affordable cost of living, probity and accountability in governance, greater self-reliance especially, stability, affordable food, production, development of technology, improved productivity, sustained political stability, and a healthy population (Onuoha, 1999:71-72).
Therefore, there is no doubt that development addresses a number of objective factors that include conflicts and insecurity. Poverty, unemployment, uneven distribution of income and resources and political instability etc. which are causal factors of conflict, but with development these are tackled.

The Nigerian State And Curse Of Oil Production

Yakubu Gowon former Head of State of Nigeria (July 29th 1966 – July 29th 1970) delivered a key note address at the opening session of the international conference of the Nigeria state, oil industry and the Niger Delta on the 11th March, 2008 in his words:

Specific regulations were not put in place to remedy the Niger Delta and such regulations were to be reviewed from time to time. Efforts were made to develop the oil producing areas. Both Federal and state governments consider such efforts and plans in their government development plans.

Niger Delta is overdue for development. The plans earlier put in place during my administration which would have addressed the problems were not only implemented but totally abandoned to the detriment of the region and nation (Yakubu Gowon, 2008).

Nigeria is the largest exporter of oil in the Sub-Saharan Africa with a production figure of 2.3 million barrels per day (bpd) hence, Nigeria is ranked behind the world’s oil giants: Saudi Arabia, Venezuela, Iran, and the United Arab Emirates. Nigeria’s petroleum revenue averagely accounts for over 85% of the Federal Government’s income and more than 95% of export earning. However, Nigeria at large in the midst of this wealth records an overwhelming high level poverty (with 70% living on less than one dollar a day), 40% lack sanitation and safe water, 82% lack access to regular power supply and 46% predominant infant mortality rate (Okaba, 2005).

Oil exploitation and exploration which recorded its boom in the early 1970s in Nigeria’s Niger Delta Region which was a rare opportunity to develop the Niger Delta and Nigeria at large turned to a breeding ground for official squandemenia. For instance, Nigeria hosted the FESTAC 77 so lavishly that Nigeria’s bid to host the next edition declined the offer. This was because the degree of profligacy and portrayed acts of corruption and was after many years ranked amongst the most corrupt four nations of the world (Transparency International 2001:16).

Presently, infrastructure decay is experienced in all sectors of the Nigerian nation – state, education, health, energy, water, road, sports, transport, housing etc. (Tell 2008a: Tell 2008b). Okaba, (2005) states that it is in the midst of this general deterioration of living conditions is the prevalence of a complex circle of state oppression, repression and militarization within and around the oil industry as oil spills and other forms of human environmental abuses result in further accentuation of mass poverty and general insecurity in the Niger Delta Region. It suffices to state that the revolutionary struggles in the Niger Delta region against state led economic exploitation, social exclusion and political marginalization of the Niger Delta which span over five centuries spreading from the era of pre-colonialism.

The Niger Delta region is the lowest ranking region compared to her counterparts in other oil producing regions in the world. Recent analysis of poverty and Human Development Index (HDI), a standard measure of well being encompassing the longevity age, knowledge and decent standard of living qualified in terms of access safe and clean drinking water, quality health and educational services, electricity, roads, gainful employment, political participation etc, painted a very sordid picture of the Niger Delta as the area’s HDI is as low as 0.564 this ranking compared to oil and gas producing regions in Saudi Arabia (0.800), United Arab Emirate (0.846), Kuwait (0.844), Libya (0.67), Venezuela (0.772), and Indonesia (0.670 (Human Development Index Report 2005)
In the same line of argument, Okowa (2005) stated that the long years of oil exploration in the Niger Delta region resulted to long years of resource conflicts, poor local service delivery, economic exploration, social marginalization, infrastructural neglect and worst of all, environmental degradation have transformed the Niger Delta into a zone of frustrated expectations, dashed ambitions and unprecedented restiveness.

In fact, oil exploitation in the Niger Delta is an emergent phenomenon of environmental refugesm resulting from land degradation and decreasing agricultural profitability, oil induced inter/intra communal crisis has driven 60% of youths from the comfort of their traditional homes into the hell of urban shanty settlements in Warri, Port-Harcourt, Yanagoa, Calabar, Eket, etc. leading to unwanted rural – urban migration thereby creating crisis of population explosion in the Urban centres making it unsafe for both the rich and poor.

Destructive and ravaging changes evaded the agrarian lands of the Niger Delta as a result of the oil and gas exploitation activities. Particularly the natural resources base crucial to sustaining independent indigenous livelihood. In most parts of the Niger Delta, lands that were very fertile are no longer productive. The peasants have lost the fertility of their lands to oil exploration. The resultant alienation of the people from their home lands local substance base has intensified effective and inequitable land use practices (Okaba, 2005). As a matter of fact, various attempts by the local people to avenge this economic disarticulation perpetrated by the state and oil companies have always compounded their environmental crisis leading to more devastating pollution and frequent los of valuable lives and property. Similarly, Alowei, (2000) stated that, the economic tragedies of these local oil bearing communities in the Niger Delta are heightened by the non diversification of the rural economy which was predominated by oil, subsistence farming been destroyed by oil exploitation then the local people are also excluded from the oil business or the benefits of the oil business; such as contracts awareness, employment, inadequate or no compensation (Alowei, 2000).

The era of oil exploitation in the Niger Delta has turned the region into reckless human and environment rights abuses and other forms of social injustice and atrocities chiefly perpetuated by the state and oil companies. In addition to the development of armed troops and the use of uncivilized conflicts resolution techniques by those agencies, municipal environmental protection laws and statutes particularly those concerning compensations, reparation and remediation principles are not respected in the Niger Delta. Rather the Petroleum Act and Land use Act, inland water ways Act and other obnoxious legislations have turned the region into a virtual imperial chiefdom only good enough for plunders.

Okaba, (2005a) equally stipulated some social resultant effects of the oil evils to include the emergency of war lords and myriad of armed youth groups, pirates and cult fraternity encouraged by the divide and rule tactics of the oil companies and sustained by the need to gain local control and privilege from the oil companies.

Issues of developmental challenges that culminate to underdevelopment in the Niger Delta also had inputs by key stakeholders selfish pursuits over the years. The key stakeholders in the region have propelled and pursued selfish and almost parallel economic development and social goals. These pursuits are characterized by mutual dispute and disrespect for one another. The emergent rancour and acrimony between the states, trans-National oil companies and oil Host communities have brought negative repercussions to all the parties. Rather than design and implement a mutually profitable and unanimous development plan or agenda, they have by their actions, demonstrated envy and precipitated violent conflicts within themselves. These situations, benefits the state and the oil companies including the chief stakeholders but the oil bearing rural communities are the most venerable victims as every action or inaction taken by the other parties involved in oil exploitation impact negatively on their lives and habitat (Alowei, 2000).

Okaba and Alowei both splendidly articulated why oil production in Nigeria is a mirage; however, they failed to identify or profer valuable remedy to the ugly situation. Not realizing that oil production is core to the oil Host communities and the oil companies operate with the policy of sectionalization of the Host communities. Hence, an holistic inclusion of the Host communities in the oil business would breed a more positive development oriented ideas harnessing of the people of the Niger Delta oil Host communities and the region at large.

Therefore, Host communities participation in oil companies especially forming part of the decision making channel will alleviate the developmental challenges of the Niger Delta people cum address the social maladies that always leads to crippling of the oil production capacity of the Nation.

The above proffered gap entails that oil Host communities which are key to oil exploitation should be considered first amongst equals in the oil exploitation business since our land tenure system for now does not allow proper principle of derivation which would have curbed a lot of the issue of underdevelopment and forestalling of oil production and insurgency in the Niger Delta region of Nigeria.

The Wrong Notion Surrendering The Niger Delta Oil Production In Nigeria

Agbosei, (1999) opined thatNigerian State has demonstrated over the decades that the people and environment of the Niger Delta Region is relevant to the nation as a viable economic reservoir, as she pays lip services to the frequent ecological disasters threatening the people on a seasonal basis. Successive governments in Nigeria termed the Niger Delta region “Difficult terrain” for development as a result of its “Deltaic” nature. This difficult terrain clamour by the Nigerian government encouraged successive leaders to create the challenges of development in the Niger Delta. Imagine, social infrastructures in this region are near absent. In fact, the East/West road that links the three major oil producing states (Bayelsa, Delta and Rivers) is still in a mess. The Nigerian states gets agitated only when oil production is threatened. When cases such as oil blow-out, Hostage taking of foreign oil expatriates, vandalization of pipe lines etc. are reassuredly resolved, then anything else can happen to the people God blessed with the resources but oppressed.

The Trans-National oil and gas prospecting conglomerate have over the years as part of their social responsibility embarked on several programmes of social and economic development in their host communities. This efforts too, have never in reality gone beyond addressing the immediate demands expressed in the people’s agitation for the employment of their youths in the company, provision of pipe-borne water, electricity generation, renovation of schools, hospitals, post office and bridges etc the oil companies justify their below average performance in transforming the fortunes of their host communities by referring to the insincerity of the state that gets the lion share of the oil proceeds. The oil multinationals take advantage of the naivety, lack of political will and corruption of the Nigerian State to breach with impunity most memoranda of understanding (MOU) signed with oil bearing communities. They also violate municipal and international environmental protection laws. Over 82% of crisis between the oil companies and host communities between the years 2003-2005, are traceable to disrespect for MOU by the oil company officials (Okowa, 2005). The story of developmental challenges in the Niger Delta region within have been heard of the Nigerian State is not only interested in social-economic formation and control of State power. Given the obvious and wide social and economic inequality that prevails, “Section II No, 17(1) of the 1999 Constitution which states that, “The State social order is founded on ideals of freedom, equality and justice, and 17(2) which provides that “The independence, impartiality and integrity of courts of law, and easy accessibility, thereto shall be secured and maintained” are noble but essentially not practicable. They are mere constitutional fictions. Hence, developmental challenges in the Niger Delta region had not been addressed with a moral question considering its input to the development of the Nigeria nation.

It is in the light of the above acts of the Nigerian leaders and the MNOCs toward the Niger Delta that Ake (1981) vehemently demonstrated the manner in which control rather than ownership has become a significant variable in a peripheral capital State such as Nigeria. Following a critical performance evaluation of the Nigerian State, particularly after the oil boom (Orugbani, 2002; Efemini, 2002; Okaba, 2003) all described the situation as exploitative, and irresponsible.

The Nigerian State is fundamentally a feudal system. It is true that the British introduced capitalism and liberal democracy in the course of their imperialism. However, the fundamental values remain feudal, social orientation remain feudal and liberal democratic values yet to develop fully. The institution of liberal democracy is therefore, to the extent that it appears to exist, no more than a fraudulent pretence and a defensive front. This is the crux of the matter (Okowa, 1977:56).

Off course, in a feudal system, the feudal lords own “everything”. The oil wealth of the Niger Delta belongs to the feudal lords. This is why Nigerian leaders have the impetuous to loot our resources for their private use. The looting starts at the National level and percolates to the State, Local government and communities. Therefore, in a political system impregnated with feudal orientation, it is normal for our leaders to personalize “everything”, power is personalized and societal resources are also personalized. Those who criticize the personalization of the commonwealth are seen as criminals and deviants. That is why the security agents most harass, not the looters but those who criticize the looting for the latter are obviously social deviants. It is vital to understand the fundamentally feudal orientation of our people in order to appreciate the difficulties involved in the challenges of development in the oil rich Niger Delta region of Nigeria.

Oil ordinarily should be a blessing to Nigeria in general and the Niger Delta in particular. However, the fundamentally feudal character of the Nigerian State and systemic corruption have ensured that the oil wealth derived largely from the Niger Delta has become a mixed blessing to the country as a whole but an outright curse to the region.

The oil industry had indeed destroyed the fundamental bases for the development of the Niger Delta region. Systemic corruption which is largely funded by oil has damaged the culture of hard work and in general the work ethics of many of the people in the region coupled with the devastated environment.

Governance has more or less lost focus as the key development institution and is now largely seen as an instrument for primitive accumulation by the privileged few (Okowa, 2007).

Nigeria is regarded as a rentier State. One major fall – out of the State rentierism has been that the nation has earned and earns huge oil revenues without production, control and responsibility. Since there has been no relationship between revenues and expenditures on one hand and citizens based taxes, the State has not been liable or responsible to the citizen and has been absolved from the citizenry. Oil has created a large system of patronage, clientelism and corruption. The consequence has been enormous oil based leakages and frittering, which with over N400 billion earned, has kept the nation tottering as one of the most endowed, one of the most corrupt and one of the poorest countries of the world.

The exploitation of oil resources in the Niger Delta by the multinational oil companies (MNOCs) supposed to maintain an equitable relation, sustainable environmental management, respect for human rights, responsive and corporate responsibilities, local participation and promotion of good governance should have ordinarily been the underline trans-national corporate objectives.

Multinational oil companies and host communities relations should also be that of mutual collaboration and support but available literature all points to the constrains; hence making the situation unfriendly and hazardous for host inhabitants.

The scholars Agbose and Okowa did not bring to the fore the force of the contemporary liberal democratic practices which are inevitable; especially today in the Nigerian setting. The liberal democratic practice in line with International Human Rights and parts also cited in our constitution guarantee some inalienable rights to the Nigerian oil Host region to agitate for fair treatment of the oil proceeds in other to develop the region.

Therefore, the era of man attached to the concept of feudalism (as Nigeria in the oil case) is no longer practicable hence, the opt for moral consideration of the oil rich region with special analysis to the oil Host communities who supposed to be the primary focal population in terms of developmental strides with the oil money but denied should be inevitably corrected.

Also significant to note is the fact that oil Host communities lack the basic indices of development such as Roads, water, light, health facilities, employment, educational infrastructures etc. The absence of the aforestated facilities in Host communities contributes enormously to the disruption of oil exploitation activities in the Niger Delta region and when corrected, it will earn the Nigerian State increased productivity in her oil earnings.

Kodjo, 1981, and Akinsinya Obi, 2001 stated that thorough examination of power relations between MNOCs with their host communities and State reveals a heavy slope in favour of the MNOCs. The huge technological and economic resources of the MNOCs is reinforced by political power situated in the joint or syndicate businesses with States that are heavily reliant on resources exploitation and rents. The MNOCs are so asymmetrically powerful and superior that even host States and particularly African oil producing States have been profoundly incapable of effectively regulating and domesticating them.

The power relation of the MNOCs and their host States (Countries) is said to be sophisticated, ruthless, hegemonical, secretive, violent, corrupt, unorthodox, criminalized, opportunistic, greedy, treacherous and exploitative (Watts, 1999; Obi, 2001; Turner 1081). Kodjo 1981 also stated that the MNOCs are said to be less altruistic and humanitarian, egocentric and selfinterested. Similarly, Akinsanya 1984, reiterated that the MNOCs in their exploitative activities, are insensitive and poorly responsive to local and regional dimensions of environmental issues. The MNOCs are said to be hostile to civil society (Warpner, 1996; Makumbe, 1998).

In extreme cases, MNOCs have sometimes forged partnerships with dictorial regimes, compromise State officials and institutions, reinforced and sometimes funded State repression and short-changed States (Ake, 1996).
Relations at the level of the indigenous people or local host, MNOCs are claimed to people or local hosts, MNOCs are claimed to sometimes erect a dislocate, represses, factionalizes, subverts, and orchestrates tensions protests and conflicts (Saro-Wiwa, 1992; Robinson, 1997; Raji and Akinsola, 2000; Human Rights Watch 1999; Frynas 2000; Crow 1995). Obi 2001, claims that MNOCs relations with host communities (HC) is underlined by corruption, divisiveness, co-optation, exploitation, betrayal and subversion which is the case of the Niger Delta, fuel tensions, conflicts and crisis.

Talking about power relations of oil multinationals and Host communities, all the authors attempted to unveil the evil and uncompromising policies of the MNOCs towards the communities and the region at large. But the issue here is that the oil companies feel that the evil syndicate of the MNOCs and the state apparatus as the only partners of the oil business is making them succeed leaving the oil Host region/communities out.

This situation is rather barbaric and it has been one of the reasons why Nigeria could not get to the zenith of oil production because the non inclusion of the Host people rather holistically has caused a lot of uproars, rancour, upheavals, acrimony and destruction of oil installations; thereby cutting short the Nigerian oil production capacity; meaning the lost is been shared by all. That is the MNOCs, the Nigerian states and the Host communities/Niger Delta region. This is because when moral consideration of developing the Niger Delta region and oil Host communities is taking as priority, it will create a mutual co-existence and the propensity for the MNOCs to harness more oil exploration will be guaranteed, then gathering of more profit will be for all that is the MNOCs and Nigeria at large.

Oil Exploitation And The Antagonistic Force Of The Multinational Oil Companies

Gidado (1999:21) stated that MNOCs while carrying out the oil exploitation activities, undermine development and real economic growth and cause socio-cultural disarticulation. The MNOCs invest capital, for instance, it is associated with huge out flow of capital through expropriation of profit and is operated in such ways as the creation of enclaves, un-integration into the economy, pillage of natural resources and exploitation of labour that is “antithetical to the host country’s development. The MNOCs have exploited the cheap labour, unequal agreements on resources and cheap raw materials to realize huge profits from developing countries. Hence, the rates of return to multinational company’s investment in the third world are said to be higher (US Department of Commerce, 1981: 27). In this respect, the MNOCs are regarded as “antagonistic or ambivalent force” (Green 1975:100). MNOCs are focussedly concerned with the control, certainty, stability and profit from their investment rather than the local economic welfare and interest; Host communities development or national objective. MNOCs are interested in the monopoly of the lucrative sectors of any economy through huge capital investments and exclusive production agreements. Through this type of investment, indigenous production and control are sole buyers and determine prices of commodities, dominate marketing and determine prices of finished goods across the globe.

The behaviour of multinational companies is notorious and are accused of “overcharging for specific services, inputing un-needed services and personnel into joint venture and production sharing agreements (Green, 1975:109). This type of situation will help to deny the Host communities, region and country the opportunity for developmental strides with social amenities via the production of such multinationals. This is exactly the case with oil exploitation in the Niger Delta.

Multinationals are associated with flouting Host communities, regions and states rules and policies, tax evasion, illicit payments, over-invoicing, abuse transfer pricing, poor records of receipts and exports and expatriate quota abuses. In Chad for example, the government in August 2006, asked Cheveron/Texaco (USA) and Patronas (Malaysia) to quit the country, while also sacking three ministers over allegations of tax defaults and improper tax exemptions (Daily Independent 29/08/2006;3,5). The MNCs, oil companies inclusive, operations and behaviour is said to be predacious, plundering and self-seeking. The attitude of operation and conducts undermine and negate environmental sustainability, health, structural development and nutrition of Hosts states (Irogbe 2005:45). Their sustainable business practices are poor (Moser, 2001:291). That is why oil companies in the Niger Delta region undermine their contributions to sustainable development and socially equitable growth.

Oil companies have played a significant and dominant roles in shaping and reshaping the landscape, economy, politics and socio-cultural life of the oil Host (OH) communities of the Niger Delta (ScothPegg, 1999:473-484). He also believes that Trans-national companies have pose security threats to Host local populations and indigenous and minority people in Nigeria, Peru and Colombia. The Trans-Nationals have being involved creating and exacerbating violence against local populations through fundings, supporting and inviting repressive security agencies and operating behind security shields in the face of local resistance. More specifically, in Nigeria. Pegg (1999:479-484) asserts that the multi-national oil companies are “instruments to the Nigerian states violent response to peaceful protests” while their actions have catalytic effects in bringing local populations into confrontation with state security agencies. Beside they, the oil companies have shown “a distinct lack of concern over the violence directed at the oil producing communities. The Niger Delta region after witnessing all these flares of harassments from the MNOCs and Nigerian government, coupled with the embedded developmental challenges, an increasing number of oil Host communities (HC) began to clamour for their rights often through violence (Olukoya, 1995:9). This was as a result of the insensitive and alienating state and the devastation of the environment with no development. The result has been the large scale disruptions; violence and insurrection in the region since the 1990s.

Lack Of Corporate Governance And Ethical Public/Community Relations In Mnocs And Oil Exploration

Oil exploitation in the Niger Delta suppose to undergo the actual tenets of corporate governance because oil companies are corporate outfits. Corporate governance here refers to the ways and means by which a company relates to its staffs, shareholders and stakeholders. It denotes the guiding principles, policies and actual behaviour and practices that underpin the relations within and between the company, its stakeholders and environment. It essentially consist of stakeholders of two capacities. The first group is shareholders, management staff, customers and contractors. The second group is external stakeholders made up of the economic operators, Host communities, other communities and society at large.

The attributes that associate with good corporate governance which the oil companies in the Niger Delta region lack are: growth and development of individuals and groups; observance and compliance with professional standard, rules and regulations; observance of the rule of law; right to sustainable livelihood; undermines national and international conventions; undermines legal and constitutional frameworks, no maintenance of standards and expectations in relation with environment, Host communities and citizens. Further, good corporate governance seeks to institute and further corporate responsibility to the legal, regulatory and ethical frameworks, the economy, environment, stakeholders and the larger society. Iyayi (2000:167-171) has placed the nature of MNOCs relations and strategies as dependent on the nature of the state framework if rules and regulations, the beliefs and assumptions of the MNOCs, the forms of exploitation utilized by the MNOCs and the nature of response by the Host communities (HC). Iyayi stipulates that the corrupt and weak Nigerian state facilitates the compromise and ineffectiveness of legal and regulatory frameworks in the oil industry. The corporate beliefs and assumptions of the MNOCs emphasize profit through efficient production of hydrocarbons and cost reduction. More so, the MNOCs emphasize government at all times and not the people.

Thus, agreement and deals are made with government and once obtained; it becomes a legitimate cover for all sorts of actions and behaviours. In essence, the local people in the Host communities (HCs) interest, livelihood, environment and needs are regarded immaterial and their thoughts and decisions are rendered null and void thereby making them turn frustrated in every endeavour to succeed in the pursuit of their part of the oil wealth located in their backyards. Consequently, MNOCs actions and behaviours are often antagonistic to Host communities (HCs) interests. For instance, the form of MNOC oil exploitation in Nigeria has tended to emphasize extraction and profit rather than environmental protection and minimum damage of the ecosystem.

Iyayi (2000:159-178) depicted strategies of community relations applied by the MNOCs in the Niger Delta that are always crisis driven. These strategies of community relation includes: denial, divide and rule, payment of money to selected few community leaders, silence to requests from HCs, defiance, blaming the victims, promotion of fictitious consciousness and violence, involvement in community projects etc. He also asserts that every form of Host community’s (HCs) response has envoked strategic community relations designed to suit all deceitful targets of the MNOCs at the expense of their Host.

In the modus-operandi of the MNOCs, petitions attract silence, financial gratifications and co-operation. More active community protest evoked defiance, divide and rule and violence. These are deceitful strategies employed by the oil multinational giants to always ferment trouble in the Niger Delta oil Host communities.

Silence was chosen as the dominant strategy in the early days of oil exploration and exploitation. It means ignoring community complaints, pretending there is no problem, hiding the issues, creating a picture of normalcy to the outside world and trying to create the impression that the expressed problems were imaginary creations of their detractors. Denial became a strategy as local, national and international awareness and concern and community agitation escalated since in the 1990s which together put considerable pressures on the corporate governance systems of the MNOCs. Defiance here connotes a situation of flaunting its powers, influence and importance and as a consequence becoming flagrantly unyielding to community pressures, protests and other actions. Co-optation involves selected payment of cash, gifts, contracts, employment, sponsorship of holiday trips, scholarships to identified persons and payment of medical bills in other to buy their support. The aim is to compromise them and use them as agents of pacification and division in the Host communities (HCs). This selection usually favours the strongest at a particular time. That is, the group or individual that wields more power, influence and control in the community is always more favoured especially when such group, groups or individual is interested in the dealings of the oil companies. These type of condition makes conflict, violence and rivalry among the people inevitable; hence the crisis become the conditions of “who gets what, how and when” is glaring here.

Blaming the victim is a strategy that was resorted to against the backdrop of pervasive community restiveness and conflicts and growing national and international concern. It involves holding the Host communities (HCs) responsible (Iyayi 2000:164).

Frynas (2001:44) identified public relation as a strategy of MNOCs whose purpose is to counter community protest and to improve on their image. This process of image laundering is undertaken through public relations, advertisement, sponsored radio and television productions and consultancy, which disputes, claims by protesters combat adverse publicity and pain the MNOCs as socially responsible and reputable corporate organizations whereas the reverse is the case in the Niger Delta region via the experience in the oil exploration and exploitation business of the MNOCs. The MNOCs mosta times claims to be deaf and dumb is endemic Host communities predicaments. They prefer a complain to result to crisis before pretending to be aware of what is going on in Host communities.

However, Fleshman; (2000:188) stipulates that the strategy for community development adopted by MNOCs is to project a high sense of corporate social responsibility. It is claimed that for most of the MNOCs, actual community development expenditures represents only a fraction of a cent for every dollar they extract from Nigeria. According to (Iyayi 2000:164-165), violence represent by far the most important community relations strategy and also Human Rights Watch (1999:11) stipulates that encounters with the mobile police, regular police, army, Navy and now the joint task force (JTF) and the accompanying beating, arrests, detentions and worse of all, killings and destruction have been experienced by virtually all oil Host communities in the Niger Delta region, particularly those community whose groupings have protested peacefully of otherwise against the oil multinationals.

The MNOCs operated without restraints in relation to the environment for almost 30 years without serious concern about the environmental effects of their operations. The MNOCs did not pay serious or no attention to environmental degradation and health hazards attendant to their operation until these concerns became challenged largely in the early 1990s (Sumerekin&Obadare 1998:43-47). The MNOCs disregarded existing environment regulations and laws and capitalized on their weak and ineffective enforcement and implementation of the environmental laws.

Oil exploration and exploitation in the Niger Delta region is evidently creating numerous trends to conflicts generation and conflicts are endemic and pervasive and recurring especially in the Host communities; hence making the region rancorous and not convenient for peaceable developmental strides thereby creating the challenges of development in the Niger Delta region.

As a matter of facts, conflicts situations are so pervasive, that it is quite difficult to see a oil Host community that have been permanently peaceful and devoid of rancour. Even if such Host communities (HCs) were found, there may have been low intensity conflict which did not rise to the level of violence and production disruption.

There are sources of conflicts generation between MNOCs and HCs ranging from violation of MOUs, unemployment, lack of social amenities etc but the most targeted source of conflict generation in the HCs is the issue of oil spillage over the environment. The dimensions that usually led to a conflict includes (1) Often times, MNOCs attributes spillages to sabotage and HCs usually resist this claim of sabotage by the oil companies.

(2) The extend to which the oil spillage devastates and cause damages in the environment leads to conflicts. (3) The problem of clean-up of the spilled oils. (4) The fourth thing that generates conflicts and tension between HCs and MNOCs, is the issue of determination of the rate and size of compensation and the payment of the compensation. Actually, conflicts over sustained environmental degradation of land and water by communities have also increased since the 1990s, starting from Ogoni land.

Compensation stories in MNOCs is another pathetic side of oil exploration and exploitation. The Host communities are always in a weak position in the entire compensation process and oftentimes are compelled to accept what is no often. Therefore, the people do not receive compensation to “the value of the benefit lost” (Human Rights Watch, 1999).

Just to sight a few instances, SHELL was sued by four communities viz: Obatoba, Sekebolou, Ofongbere and Ekeaomo – Zion on issues of pollution of their land and water by SPDC oil spill. The legal battle lasted for 14 years. In 1997, the High court in Ugheli found Shell guilty and awarded the communities a mere N30, 298, 681 (about 318.9 USD), Shell refused to pay the fine and instead chose to appeal (Peredeke, 1999). Another, in Ejamah – Ebutu village in Rivers state, a Shell pipe-line burst in the 1960s and polluted their land and waters. After protracted unsuccessful efforts at compensation, the community took shell to court in 1983 but shell chose to settle out of court but as at 1992, there was still no settlement. The community went back to court. By 1991, there was yet no compensation or remediation of the land (Strudsholm, 1999:37-39).

The scholars Gidado, Iyayi, Frynas and Fleshmen after stipulating lack of corporate responsibility and public and community relations as indices that culminate to crisis and conflict situations among MNOCs and oil host communities in the course of oil exploitation, thereby creating underdevelopment of the oil Host communities, however, did not put it straight that corporate social responsibility once employed will also embrace good social public relation. That is to say the tenets of moral social and public relations of humanity will come to play and without been said or agitated for, the developmental requirements of the oil Host communities/region will form part of the operational plans of the MNOCs. This is because before an oil company as a corporate body come to operate, the negative environmental effects on the inhabitants are already envisaged and Environmental Impact Assessment (EIA) are always considered and enshrined in operational plans of corporate bodies but the situation is different in the relation of MNOCs oil exploitation activities and Host communities in the Niger Delta region. This situation in antiquity, created the sour relationship between the parties in the Nigerian oil industry and the quest for mutuality in the oil exploration activities is still in a situation of dilemma whereby the MNOCs are seen as the victors and the oil Host communities as the vanquish.


1.7 Hypotheses

Below are the hypotheses:

  1. The activities of oil prospecting companies appear to improve the incidence of inequality in the Niger Delta Region.
  2. The oil exploitation in the Niger Delta has not translated to improvement in infrastructural facilities.
  3. The crises situation in the Niger Delta has created an unstable oil production capacity in Nigeria.

1.8 Method Of Data Collection / Analysis

Knowledge exists with available knowledge; therefore, for this research to be meaningful, data sources would be gathered through documentary sources which includes; textbooks, journals, seminar papers, news papers and other
unpublished works. 35

The strategy of analysis to be used is content analysis. This method of content analysis would be used to systematically analyse these developments. Content analysis has been defined by (Antomia;- 1997), as “the technique for making inferences by systematically and objectively identifying specified characteristics of messages”.

The most frequent application of content analysis has been to quantitatively measure the importance of certain opinion expressed by a person or publication over a certain topic. Thus, the application of critique of the contents of the aforetasted sources will be encountered.

In the process of doing this, and of course since no research method is perfect on its ‘own’, problems of interpretation of opinion may arise. However, data collected from these sources will be juxtaposed with our
theoretical framework for logical and empirical analysis.


Chapter Five


Summary and Conclusion:

5.1 Summary:

Oil exploitation in the Niger Delta should have been concomitantly addressing the developmental challenges of the Oil Host Communities and the Niger Delta region when the resultant monetary value attached to oil production is imagined.

However, the fundamentally feudal character of the Nigerian State and systematic kleptomania have rendered the oil proceeds from the Niger Delta a mixed blessing to the region and Nigeria at large. The oil exploitation activities has indeed devastated the fundamental bases for the development of the Niger Delta region. Corruption hugely funded by oil has damaged the culture of hard work and in general the work ethics of many of the people in the region. Governance has largely lost its focus as the key development institution in society and now is mostly seen as an instrument for primitive accumulation by the privileged few.

Oil exploitation by the MNOCs were expected to manage exploitation activities responsibly, sensitively and effectively in such a way that biodiversity, ecosystem, fauna, the soil system and the atmosphere were preserved, clean, productive, stable, healthy and adequate for human livelihood. Oil exploitation in the region for over 50years has not guaranteed the positive externalities for the local economies to realize livelihood sources, traditional occupations, employment, incomes and other socioeconomic development indices towards the Niger Delta.
In the absence of exemplary character in the issues of good governance, human rights, civility and democracy in the oil exploitation activities in the region, the region especially oil Host Communities has become a breeding ground for crime, youth restiveness, state repression/violence, disarticulated and divided communities, deaths, prostitution, heightened health hazards/illness, destroyed communal tradition/social fabric and
aggressiveness all over the region.

These abnormal conditionalities surrendering the oil exploitation business coupled with the developmental Challenges in the region creates a clear condition of alienation of the people of Niger Delta and their oil and gas resources.


5.2 Conclusion:

In a digest, exploration in the Niger Delta region of Nigeria avail the country the opportunity of harnessing an important natural resource like oil and gas, this has made Nigeria famous domestically, regionally, continentally and of course internationally. But sarcastically, the region especially oil Host Communities does not reflect that such an important natural resources deposits are found and exploited in the area judging from there physical look in terms of developmental strides.

After myriad of decades of wanton degradation of the natural environment which is the associate syndrome of oil prospecting and the refusal of both the oil companies and the Federal Government to accede to the wailings and clamous for unjust exploitation with the accompanied challenges of development in the Niger Delta region. The inhabitants of the Niger Delta resorted for solace in a rancorous manner resulting in commotion, convulsion, disturbances, turmoil, discomposure, distraction and violence in the Niger Delta region. This situation of agitation was started by the Ogonis then the Ijaws, Itsekiris and the Urhobos, etc. in the early 1990s. Subsequently, the calmous for development in the region metamorphosed to the present merger of pan Niger Delta struggle for a fair portion of the oil resource to be used for the development of the region in all realms/spheres of development.

The second chapter of the study attested to affirm the first hypothesis of the study which states: the activities of oil prospecting companies appear to improve the incidence of growing level of poverty in the Niger Delta Region. As already postulated in the work, the Niger Delta which once had friendly, inhabitable, fertile and receivable lands, topography, atmosphere, climate, rivers, creeks, lakes, streams, seas, vegetation and wildlife are being destroyed by the activities of oil exploration and exploitation in the region. Hence, the people suffer the results of scarcity of the natural products that makes life more meaningful.

Progressively, chapter three of the research proved the second hypothesis reliable. Hypothesis two (2) stipulates that: oil exploitation in the Niger Delta has not translated to improvement infrastructural facilities. The conditions of under development were proven with the empirical lack of infrastructural facilities at Oloibiri (the mother community of crude oil in Nigeria). Equally demonstrated was the ill-fated developmental studies by administrative boards put in place by the Federal Government of Nigeria. The non-inclusion of Host Communities as partners of the oil business is being strengthened by the obnoxious laws of the Federal Government thereby leaving the development challenges of the Niger Delta region also in chapter three.

In chapter four, the last hypothesis was tested and proven. The third and last hypothesis posits: The crisis situation in the Niger Delta has created an unstable oil production rate in Nigeria. Here, the factors and contribution of elites of the region to crisis was explored and incidents of conflicts in their chronology also x-rayed. Then, the clear notion of dwindling oil revenues was seen as a result of crisis that affects or truncate the production process from time to time in the Niger Delta region of Nigeria.

Sequel to the above therefore, the series of persistent spontaneous, organized actions against the oil firms and Nigerian state by Oil Host Community members are a function of the feelings of aggravated frustration and deprivation. The consistent failure of government policy instruments set up to address the challenges of sustainable development in the region, over the years, was worsened these feelings of resentment. Runaman (1992),opined that a man who has been led to expect, shall we say promotion in his job will be more aggrieved if he fails to achieve it, than a man whose ambition has not been similarly heightened! Over the years, the intervention programmes of government in addressing the issues of development of the Niger Delta have led the people to expect that their conditions of underdevelopment will soon be a thing of the past because of the attractiveness of such programmes. However, the failure of these programmes did not just “leave this region battered, desolate and ruined” (Odje 2000:63) but also heightened their feelings of severe deprievation.

Runaman (1992), rightly asserted “the magnitude of a relative deprivation is the extent of the difference between the desired situation and that of the person desiring it.” This underscores that relative deprivation is a function of the perception of the affected human actors. The degree to which this feeling is expressed is based on the degree to which actors see their situation as far away from their expectations. The empowerment of the Niger Delta is hindered as a result of the expropriatory laws we earlier enunciated in this work and as Okolie (1990:8) rightly stipulated that “oil companies benefit from Federal Decrees that deprive local communities of rights in relation to the land, they treat as theirs.” The use of oil proceeds to empower groups and communities is very important to finding an enduring remedy to the issues of dislocations and disharmonies in the Niger Delta region knowing that socioeconomic transformation of any society and the creation of a decent standard of living for the people is tied in how well individuals have been empowered to be able to contribute to the process of societal transformation.
In the case of the Niger Delta and oil exploitation, the above situation suggests that identification of the most affected groups such as, farmers, fishermen, women and youths with their heart-felt needs. This entails access to capital for self-reliance. Moreso, while emphacy is placed on oil bearing communities, community felt needs should be priotized if quick impact is to be made.

To be able to achieve the above, the responsive agencies must be adequately empowered and guided by the principles of accountability, probity and service. Sustainable development of the Niger Delta can be realized when the need for environmental protection is taking into cognizance. Stringent environmental policies and the “will for enforcement must be made if the gains of empowerment are to be sustained in the Niger Delta.


Recommendations:

In the intricacies, intrigues, power-play, misnormer, deprivation, acrimony and crisis that surrounds the oil wealth of the Niger Delta which is occasioned with development challenges in the region; we for purposes of oil exploitation to strive with peace and sustainability, hereby recommend as follows:

  1. Oil companies should partner proactively with oil Host Communities.
  2. Land acquisition should be in a cost effective way.
  3. Government and MNOCs should seek to improve the quality of life in the areas of oil exploitation activities.
  4. Government and MNOCs should always take steps to enhance, resuscitate and improve on the environmental degradation challenges of the people of the Niger Delta.
  5. MNOCs should attach priority to payment of compensation for damages that results from operations – without delay.
  6. Development issues should not be politicized and Government issues and MNOCs should contribute immensely towards the development of the areas of operation.
  7. MNOCs should imbibe the concepts of peace, mutality, harmony, commitment, and progress towards Host
    Communities’ development agenda.
  8. Above all, moral laws favourable to the oil bearing communities/region should be put in place to regulate; land tenureship, derivation, compensation, development plans, environmental hazards assessment, targets to meet emergency situations and corporate governance with honesty and service to Niger Delta people.

These proposed tenets, when explored and diligently practiced, will afford the Federal Government, Multinational Oil Communities (MNOCs), Oil Host Communities (OHCs) and the Niger Delta region the opportunity to peaceful exploit the oil resources to the zenith at every given point in time in the Niger Delta region.


Comparative Assessment Of The Socio-Economic Effect Of Crude Oil Exploitation


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