ASSESSMENT OF ACTIVITIES OF ABIA STATE OIL PRODUCING AREA DEVELOPMENT COMMISSION AMONG RURAL COMMUNITIES IN ABIA STATE, NIGERIA

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ABSTRACT

The study assessed the activities of ASOPADEC among rural communities in Abia State, Nigeria. Specifically, the study described the socio-economic characteristics of the respondents, ascertained the extent to which ASOPADEC carried out her activities, ascertained the contribution of ASOPADEC towards community development, determined the perceived effect of ASOPADEC activities on the livelihood of beneficiaries, and ascertained the perception of the respondents towards ASOPADEC activities. The population of the study comprises of all the rural households in the oil producing areas of Abia State. Multistage sampling technique was used to select a sample size of 150 respondents using structured questionnaire. Descriptive statistics such as frequency, percentage and means and inferential statistics such ordinary least square regression analysis were used in analyzing the data. Results indicated that mean ages of the respondents was 37.5 years. Majority (78.0%) of the respondents were married with a mean household size of 5 persons. The mean monthly income was N57,503. The result revealed that ASOPEDEC activities were moderately carried out in the study area mostly in facilitating skill acquisition (x̅ = 3.86), provision of educational supports (x̅ = 3.53), and rehabilitation of markets (x̅ = 3.18). The result showed that ASOPADEC contributed mostly in rehabilitation of existing infrastructure in the area (x̅ = 3.18), facilitating the delivery of equipment and rehabilitation of health centres, mobile health, clinics (x̅ = 3.02). The result also showed that the effect of ASOPADEC was most prominent in youth development via skill acquisition (x̅ = 3.37), infrastructural development (x̅ = 3.31), and providing education for children through scholarship scheme (x̅ = 3.25). The result of the ordinary least square regression analysis showed that the coefficient of offering of scholarship (4943.598), youth and women empowerment (6455.393), facilitating skill acquisition (6224.787), and educational supports (9708.075) were positively and significantly related.to livelihoods status of respondents at 5%, 1%, 5%, and 1% level of significance respectively. The result also showed that the coefficients of sex (6.2582), education (0.0487), and income (4.53E-07) were significantly related to respondents’ perception regarding performance of activities of ASOPADEC at 1% significant level. The study conclude that ASOPADEC activities have moderately contributed to the infrastructural development as well as the livelihoods of the participating communities. It was recommended that Abia state Government should provide all vital financial and logistics support to ASOPADEC to enable her carry out her activities more effectively in Abia   state. ASOPADEC should commit more attention and resources towards providing infrastructural facilities in the rural communities and demonstrate concerted efforts to enhancing the development of the communities in the study area.









TABLE OF CONTENTS


Title Page                                                                                                                              i

Declaration                                                                                                                          ii

Certification                                                                                                                       iii

Dedication                                                                                                                           iv

Acknowledgement                                                                                                               v

Table of Contents                                                                                                                vi

List of Tables                                                                                                                     viii

List of Figures                                                                                                                     ix

Abstract                                                                                                                               x

 

CHAPTER 1: INTRODUCTION          

1.1  Background of the Study                                                                                                1

1.2  Statement of Problem                                                                                                     3

1.3  Research Questions                                                                                                        6

1.4  Objectives of the Study                                                                                                  6

1.5  Hypotheses                                                                                                                     6

1.6  Justification of the Study                                                                                                7

1.7  Scope of the Study                                                                                                          9

 

CHAPTER 2: LITERATURE REVIEW

2.1 Oil Exploration and Exploitation in Nigeria                                                                10

2.2 Consequences of Oil Exploration and Exploitation on the Host Communities           13

2.3   Poverty in the Niger Delta Region                                                                              16

2.4   Effects of Oil Production on the Socio-Economic Condition of the Rural Dwellers 19

2.5   The Niger Delta Development Commission (NDDC)                                                26

2.5.1 The NDDC mandate                                                                                                 28

2.6  Abia State Oil Producing Areas Development Commission (ASOPADEC)              29

2.7    Theoretical Framework                                                                                              32

2.7.1 Conflict formation theory                                                                                          34

2.7.2 Conflict transformation theory                                                                                  35

2.7.3 Conflict management theory                                                                                     36

2.7.4 Compromise theory                                                                                                   37

2.8  Conceptual Framework                                                                                          37

 

CHAPTER 3:  METHODOLOGY

3.1 The study Area                                                                                                             40

3.2 Population of the Study                                                                                                41

3.3 Sampling Procedure                                                                                                     41

3.4 Data Collection                                                                                                             42

3.5 Test of Validity of Instrument                                                                                      42

3.6 Reliability of Instrument                                                                                              42

3.7 Data Analysis                                                                                                                43

3.8 Measurement of Variables                                                                                           43

 

CHAPTER 4:  RESULTS AND DISCUSSION

4.1 Socio-economic Characteristics of the Respondents                                                   48

4.1.1 Gender                                                                                                                       48

4.1.2 Age                                                                                                                            48

4.1.3 Marital status                                                                                                             49

4.1.4 Household size                                                                                                          49

4.1.5 Farming experience                                                                                                   50

4.1.6 Cooperative membership                                                                                           50

4.1.7 Level of educational attainment                                                                                52

4.2 Extent to which ASOPADEC Carried Out Her Activities in the Study Area           52

4.3 Perceived Contribution of ASOPADEC Activities to Community Development       53

4.4 Effect of ASOPADEC Activities on the Livelihood of Beneficiaries                                55

4.5 Hypotheses Testing                                                                                                      57

4.5.1 Hypothesis 1                                                                                                              57 4.5.2 Hypothesis 2                                                                                                             59

4.5.3 Hypothesis 3                                                                                                              61

 

CHAPTER 5: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary                                                                                                                      63

5.2 Conclusion                                                                                                                    65

5.3 Recommendations                                                                                                        66

      References                                                                                                                    68

     Appendices                                                                                                                            73

 


 

 

 

 

 

LIST OF TABLES

2.1 Incidence of Poverty in the Niger Delta, 1980-2004                                                    18

4.1 Distribution of responses according to their social economic characteristics         51

4.2 Distribution of respondents on the basis of their perception on the extent to          which ASOPADEC activities were carried out in the study area                                   53

4.3 Distribution of responses according to perceived contribution of               ASOPADEC activities to community development                                            54

4.4 Distribution of responses according to effect of ASOPADEC activities                       on livelihood of beneficiaries                                                                             56

4.5 Ordinary Least Square (OLS) estimate of relationship between socio-economic characteristics of the respondents and their perception of the activities of   ASOPADEC in the study area                                                                            58

4.6 Ordinary least square regression estimate of the relationship between       ASOPADEC activities and its effect on the livelihood of the respondents                 60

4.7 Ordinary least square estimate of relationship between ASOPADEC                activities and level of community development                                        62

 

 

 

 

 

 

 

LIST OF FIGURE


2.1             Conceptual framework of the study                            39

 

 

 

 


 

 

CHAPTER 1

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Considering the Niger Delta region's sensitive and fragile ecosystem and in spite of the vast resource endowment, its immense potential for socio-economic growth, and its contribution to the development of Nigeria, the oil producing areas of the Niger Delta remain increasingly under threat from rapidly deteriorating economic and environmental conditions, as well as socio tension (Omorede, 2014). Matters have remained the same today, while some critics would say it's worsened (ANEEJ, 2014). The perception within the oil communities is that of state negligence, while valuable ecosystems, which the people rely on for their livelihood are devastated and this example has generated into violence, which subsequently deepens the people's resentment and their alienation (Ololajulo, 2006).

 

Inspite of the damaging impact of oil exploitation on the environment and livelihood of the host communities, scientific data on the long-term effects of oil exploitation on the realm are only commencing to emerge (Human Rights Watch, 1999; Nwachukwu, 1999; Aluko, 1999; Okonta and Gouglas, 2001; Onosode, 2003). The current population of Nigeria in 2021 is 211,400,708. Nigeria is African's largest oil producing country, and it's the eleventh largest producer and therefore the eight largest exporter of oil within the world.

 

In 2006, Nigeria boring averaged approximately 2.45 million barrels of oil per day, and therefore the government expects oil reserves to grow to 40 billion by 2015 (Egunjobi, 2005; Imobigbe, 2004). Nigeria contains the most important gas reserves in Africa (176 trillion cubic feet) and is global player within the production of liquefied gas (Watts 2008). Beyond vast oil and gas deposits, the region is blessed good agricultural land, extensive forests, excellent fisheries, and an outsized labour force. But juxtaposed against the potential for economic process and sustainable development are deteriorated economic and social conditions that have largely ignored by contemporary policies actions (Jonathan, 2004).

 

Abia established the Abia State Oil producing Area Development Commission (ASOPADEC) in order to ameliorate the suffering of the people living in oil producing communities in Abia State. Some of the functions of ASOPADEC as contained in the law include to receive and administer executively 30% of the 13% oil derivation fund accruing to the state for purposes of rehabilitation and development of oil producing areas and communities in the state including manpower and carrying out other development projects as may be determined by the commission from time to time. ASOPADEC was established in July, 2009.

 

The primary mandate of ASOPADEC is to provide intervention services and projects which are meant for improving the living conditions of the people in the oil producing areas as well as collaborating with other interventionist agencies in order to curtail disasters arising from exploitation and exploration in the oil producing areas (ASOPADEC Information Brochure, 2009). ASOPADEC provides services to the people of the oil producing areas. Owing to the activities of oil exploration, the people are exposed to several forms of environmental degradation which leads to economic deprivation and pollution of the soil and water ways which consequently results in the unwholesome outcome of farm produces, health and physical challenges amongst women, children and the elderly all as a result of the exploration of oil and gas in these communities. ASOPADEC was created to look into such areas and then provide basic amenities and in most cases palliatives to the people. 

 

1.2 STATEMENT OF PROBLEM

The petroleum industry is the backbone of the Nigerian economy accounting for over 90% of Nigeria's total foreign exchange revenue. Nigeria is that the seventh largest producer within the world and also the largest in Africa. Current daily production of fossil oil in Nigeria is over 2 million barrels, most of it's produced from the prolific Niger Delta region. (Wifa, 2015).The Niger Delta Region as noted above, produces the oil wealth that accounts for the majority of Nigeria's foreign earnings, paradoxically, however these vast revenues from a world industry have  barely touched the Niger delta's own pervasive local poverty (Wifa, 2015).

 

By the 1980s, developments within the oil producing communities clearly reflected deprivation of its inhabitants, who demonstrated resistance against the government and its producing agencies (Onuekwusi, 2006). The Niger Delta today could be a place of frustrated expectations and deep-rooted mistrust, unprecedented restiveness from time to time erupts violence. Long years of neglect and conflict have fostered a siege mentality specifically among youths who feel they're condemned to a future without hope and see conflict as a method to flee deprivation. (Wifa, 2015). In line with World organization Development Project-Niger Delta Human Development report (2006), the report reveals that though the Niger Delta has been endowed with abundance of physical and human resources, the realm suffers from declining economic performances resulting in rising unemployment, the shortage of access to basic necessities of life like water, shelter, food and clothing. Despite the areas vast reserve, the people in the region remains poor. Its education levels are below the national average and are particularly low among women. While 76% of Nigerian children attend primary schools, this level drops to 30% in some parts of the Niger Delta. Other devastating dimensions of the state of the realm is that only one-fifth of rural housing is taken into account physically sound.

 

Water borne diseases are considered common: Water related diseases represent a minimum of 80% of all reported illnesses within the region (World Bank, 1995). Electrification (despite enormous energy resource) is poor: so are water and sanitation. Energy availability is poor in a very region that has one-fifth of the energy needs of the U.S. The region must import fuel despite producing over two million barrels of fossil oil per day. There's almost a complete lack of roads in a very region whose wealth is funding gigantic infrastructural development in other parts of Nigeria and expensive peacekeeping activities in other parts of Africa. (World Bank, 1995).This has inevitably had some negative impact on the host communities.

 

Odey (2010) further confirmed that the oil development in oil producing areas has dramatically changed the host communities and brought challenges to the traditional, economic, cultural and conditions of the rural dwellers. Although crude oil production has boosted Nigerian's economy, the trickle down effects are hardly felt by ordinary members of the host communities. Instead of sharing in the benefit of the oil sector, the local communities are mainly suffering the negative impact from this development (Odey, 2010). Oil exploration and exploitation has been perceived as a curse for the people of the Niger Delta including Abia State. They have suffered environmental devastation, economic poverty, and constant conflict.

To exacerbate the situation, political thought and covetousness with respect to degenerate government authorities have kept a large number of the income from these huge stores from coming back to the oil delivering regions to help reestablish the area (Bisina, 2004). Reactions of Governments to the apparent underestimation of the district have come about to the setting up of the Niger Delta Development Board (NDDB) in 1961, Niger Delta Basin Development Authority (NDBDA) in 1976, Oil and Mineral creating Areas Development Commission (OMPADEC) in 1992 and the Niger Delta Development Commission (NDDC) in 2000.

 

These agencies according to the report did not make any meaningful impact on the lives and environment of the Niger Delta people mostly because the people were not sufficiently represented in the activities of the agencies. Experience has shown that any attempt at rural development which tends to exclude the people from understanding what is happening from participating in reshaping their way of life and from benefiting in the gains of the development process is unlikely to work or succeed. (Nwosu, 2007).

 

The Abia State Government in order to ameliorate the suffering of the people living in the oil producing areas in the state and to address the issue of the region established ASOPADEC. So far, there has been no in -depth assessment conducted to assess the activities of the agency in the state in order to determine its efficiency and effectiveness.

 

Similarly, there is a gap of information on the effects of ASOPADEC in the living conditions of people of Abia State. This study therefore was conceived to assess the activities of ASOPADEC in the Oil producing communities in Abia State.

 

1.3 RESEARCH QUESTIONS

The following research questions guided the conduct of this study

i.        What are the socioeconomic characteristics of the respondents in the study area?

ii.      To what extent did ASOPADEC carry out related activities to its mandate in the oil producing communities in Abia State?

iii.      What are the contributions of ASOPADEC towards community development in the State?

iv.     What is the perceived effect of ASOPADEC activities on the livelihood of beneficiaries?

v.       What is the perception of the respondents towards ASOPADEC activities in   the study area?

 

1.4   OBJECTIVES OF THE STUDY

The broad objective of the study was to assess the activities of Abia State Oil producing Areas Development Commission (ASOPADEC) among the rural communities in Abia State, Nigeria. The specific objectives of the study were to:

i.        describe the socio-economic characteristics of the respondents in the study area;

ii.      ascertain extent to which ASOPADEC carried out her activities related to its mandate in the study area;

iii.     ascertain the contribution of ASOPADEC towards community development;

iv.     determine the perceived effects of ASOPADEC activities on the livelihood of beneficiaries.

 

1.5 HYPOTHESES OF THE STUDY

HO1: The activities of ASOPADEC in the study area did not have any significant effect on the livelihood of the respondents.

HO2: Activities of ASOPADEC in the study area did not have any significant effect on the level of development of rural communities of the respondents

HO3: Socioeconomic characteristics of the respondents did not significantly affect their perception of the activities of ASOPADEC by the respondents in the study area.

 

1.6 JUSTIFICATION

 This study serves to assess ASOPADEC activities among rural communities.in Abia stateA study of this nature is therefore necessary to provide empirical data on the social and economic condition of the oil producing communities and Abia State at large. This study will assess the aids and gains of the rural dwellers in the light of the activities of ASOPADEC in their area (Oil Producing Communities).

 

Furthermore, the study will assess the activities of ASOPADEC on the rural dwellers in the study area is in tandem with the terms of reference as contained in its stated objectives. This study will serve as a base for improved Government intervention plans/programmes through the provided information base that we will generate.

 

So, far, no in depth assessment of the influence of (ASOPADEC) activities have been conducted to determine the effectiveness of the program on the oil producing of Abia State. Additionally, the study will identify possible areas of weakness in the commission, adduce reasons why the weakness exist and suggest proven recommendation for dealing with them. The ultimate goal is to strengthen the commission and improve its effectiveness. This work will also measure ASOPADEC progress per objective of the commission.

 

- Measure her achievements based on objectives

 - Improve monitoring for better result

 - Identify strength and weakness to strengthen the commission and to allow for better planning

- Help improve effectiveness for the commission in terms of change/differences/impact made on the lives of the people

- General information for planning for activities and management of the commission

- Provide room for sharing experience to avoid making similar mistakes and learning from success and imposing experiences to have a better impact.

 

The study is of immense assistance to the rural development and excision works, community leaders, NGO's, Multi-national companies, volunteers, international organizations and all other persons and authorities directly or indirectly concerned with the assessment of rural development programmes. This study contributed to knowledge in the area of rural development; provided relevant qualitative data and supportive literature for future studies.

 

It is a reliable reference material to students, scholars and researchers involved in related or similar research work. Finally, the study provoke further research on the subject, which addressed any perceived gaps left unfilled here.


1.7   SCOPE OF THE STUDY

The study covered only oil producing communities in Abia State. It was specifically focused on assessment of the activities of Abia State Oil producing Areas Development Commission (ASOPADEC) among the rural communities in Abia State,

The study was carried out in two (2) Local Government Areas (LGAs) namely Ukwa West and Ukwa East (the core oil producing areas in the state). The sample was drawn from these two LGAs in the state. Consequently, the scope of this study is limited to the fulfillment of its stated specific objective

 

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