ABSTRACT
This research work
which is on the impact of multinational companies in the development of the Niger
Delta ( a case study of SPDC Porthacourt) focused on the determination of the
contributions of the Shell Petroleum Development Company (SPDC) on the
development of the Niger Delta are (Delta State a Niger Delta State) in the
provision of employment and infrastructural facilities such as education,
health, electrification, agriculture and others. And also to examine the
negative impact such as pollution (water, land, air) on the environment and on
the lives of the people. Based on these problems the research examined the role
played by SPDC in provision of
employment and infrastructural facilities (education, health and others). The
impact of SPDC in the communities covered by its operations was also examined
and also to investigate how their activities affect the environment and to
ascertain whether the objective was achieved or not. Simple percentage and
chi-square were used to ascertain if the role multinational corporation in the
development of the Niger Delta has a negative effect or a positive effect. The
research concluded that the impact of multinational corporations has a negative
effect in the development of the Niger Delta area. As such the following were some of the measures
recommended by the researchers. First, the company should spread its
development activities to cover more communities in the area to ensure even
distribution of its activities in the area. Secondly, the federal government
should monitor the proper implementation of its policy on the contributions of
multinational at companies development of their host community. Thirdly, the
number of educational scholarship awarded should be increased can it should not
across all levels. Also the oil companies must be go beyond scholarship awards
to the integrations of the awards with appointment in the oil service business.
Providing farms with the necessary funds necessary funds and providing them
with modern farming implement and machines including fertilizers should
encourage agriculture. This will go a long way to uplift farming from the
subsistence level to mechanized level. This is expected to lead to increase
food production in the long run. Finally, a significant portion of the
employees of these multinational oil companies should come from indigenes host
communities.
TABLE
OF CONTENTS
TITLE PAGE - ii
DECLARATION - iii
CERTIFICATION -
DEDICATION - v
ACKNOWLEDGEMENTS - vi
CHAPTER
ONE
INTRODUCTION
1.1
Background of the Study
1.2
Statement of Problem
1.3
Objective of the Study
1.4
Significance of the Study
1.5
Scope of the Study
1.6
Hypothesis of the Study
1.7
Limitation of the Study
1.8
Definition of Key Term
CHAPTER TWO
LITERATURE REVIEW
2.1 History of Multinational Corporation in
Nigeria
2.2 Brief
History of Shell Petroleum Development Company (SPDC)
2.3 The Role of Multinational
2.4 The Exploitation and Underdevelopment
2.5 Current Response to the Oil Revenue
Question
2.6 The
Contributions of Shell Development Company to the Development of the Niger
Delta
2.7 Repatriation
of Profit by MNCS in Development Countries
CHAPTER THREE
RESEARCH METHODOLOGY
3.1
Types of Data to be
Collected
3.2
Method of Data Collection
3.3
Method of Data Analysis
CHAPTER FOUR
4.0 Data Presentation and Analysis
4.1 Contributions of SPDC to Community
Development
4.2 Test of Hypothesis
4.3
Decision Rule
CHAPTER
FIVE
5.1 Summary of Findings
5.2 Recommendation
5.3 Conclusion
Bibliography
Appendix: Questionnaire
CHAPTER
ONE
INTRODUCTION
1.1
BACKGROUND
OF THE STUDY
A
considerable proportion of the inflow of goods and factors between countries
take place within multinational corporations (MNCS). As an operating definition
we associate this with firms, which own and control income generating assets in
more than one country (Buckley and Cassan, 1985).
The
United Nations Organization (UNO) defines Multinational Corporation (MNCs) as
enterprise which own control production or service facilities outside the
country in which they are based. The multinational corporation (MNCS) is an
agency of direct, as opposed to port folio investment in foreign countries. It
is not always incorporated or private. It can be cooperative or stated owned
entity. Almost every large business organization has some direct or indirect
involvement with foreign countries, but only when an enterprise confronts one
or more of the problems of designing, producing, marketing, of financing its
products and services. Within and among foreign nation does it become truly a
multinational.
According
to Nwankwe A.A. (1981) multinational corporations is partly designed as a
company which has its parent headquarters, located in a developed country and
subsidiary operation in a number of other country that is controlled by
another, not necessarily a parent company, in another country.
Foreign
monopolies adversely militate against all efforts by developing countries to
achieve take off into sustained growth. They invest capital in extractive
industries. As a result, the large share of the economic surplus generated from
the extractive industries goes to the countries of foreign monopolies and
because investment is not in productive industries of resources are
non-existent. Thus the determination of these developing countries to have
industries that will generate forward and backward linkage in economy is
frustrated.
Multinational
corporations, which are depicted in some quarters as key instrument for
maximizing World Welfare are seen on others as dangerous.
Their
ability to tap financial, physical and human resources all over the World,
their capacity to develop new technologies and skills and their managerial
supremacy to translate resources into specific outputs have proven to be
outstanding.
In
the last decade or two, some economist in developing countries especially those
of Latin America have taken a fresh and unbiased look at the sole of
multinational corporations in developing. Countries they found a great deal of
exploitation and argued that these countries take more from the developing
countries than they put in. this revelation forced the United Nations
Organization, especially the United Nations Conference on trade and development
and the regional economic commissions, to undertake studies on the impact of
multinational corporations in the development of the economies of the
developing countries.
It
may be argued that the oil companies operating in these areas have been doing a
lot such as intensification of training programmes for indigenous employees
with the aim of improving the productive capability of these employees. Others
have argued that there is lack of popularity of the oil compares as regards the
concept of social responsibility. It could also be said that most of these
multinational companies such as shell have engaged in developmental projects.
Apart from the gains from the companies, there are also pains with these
communities suffer. Example of such include oil spoilage just like recent oil
spoilage in some communities in Gbaramatu clan. Others include pollution of all
kings like air, water, land etc.
Which
have a negative impact on the environment. This was the view of Aboribo R.O.
(2000) in the paper he presented on the National Conference on management of
petroleum and energy resources for sustainable development in the Niger Delta.
The focus of this research work is on the impact of multinational corporations
in the development of the Niger Delta as it lays emphasis on the provision of
infrastructural facilitates and impact on the environment.
1.2
STATEMENT
OF PROBLEM
The
people of the Niger Delta were basically farmers, fishermen, hunter and trader.
Before the coming of the multinational oil companies (MOC) such as shell
petroleum development company (SPDC), Mobil Producing Nigeria Unlimited (MPNU),
Chevron – Texaco Nigeria limited, formerly Texaco Overseas (Nigeria) petroleum
company unlimited (TOPCON) and Chevron Petroleum Company of Nigeria limited respectively and
others. The activities of these oil companies have affected the social and
economic activities of the people in this area. In the past the people of the
Niger Delta used to enjoy bountiful harvest from their produce, have large
number of catches, which were used for both commercial purposes and for local
consumption. The activities of these multinational companies such as Shell
Petroleum Development Company, involves the generation of Seismic Waves in the
earth by near surface explosion of dynamite. This action produce earthquake
which causes rock failure, soil subsistence, structural damages to building and
genocide on both land, animals and fish gas flaring cause air pollution,
destruction of plants around the flaring areas and also contributes to soil
infertility. Also the activities of MOCs affected the water (pipe-borne) in
some parts of Porthacourt last year. These multinational oil companies have not
done enough to alleviate the suffering of the people, this has resulted in
youth restiveness and more recently women restiveness in Porthacourt and the
Niger Delta in general.
1.3
OBJECTIVE
OF THE STUDY
This
research work focuses on the impact of multinational corporations in the
development of the Niger Delta. The topic was chosen as a result of the
controversy surrounding their contributions to development especially in the
areas covered by the operation of Shell Petroleum Development Company.
Therefore the objective of this research work are as
follows:
i.
To determine the
contributions of Shell Petroleum Development Company (SPDC) on the development
of the Niger Delta and Porthacourt in particular, with regards to the provision
of basic infrastructural facilities such as education, health, vocational
training, electrification to mention a few.
ii.
To examine the negative
impact such as pollution in form of oil spillage on the environment and lives
of the people.
iii.
To examine the problems
being faced by Shell Petroleum Development Company (SPDC) in the course of its
activities in the areas covered by its operation in Porthacourt and its
environs.
1.4
SIGNIFICANCE
OF THE STUDY
The
significance of the research work is to examine the negative externalities of
multinational companies as represented by Shell Petroleum Development Company
(SPDC) being the largest multinational corporating in the Niger Delta on the
people of the Niger Delta area covered by its operation such as pollution in
the form of oil spillage, land degradation etc. as well as its positive
externalist such as in the provision of good roads, hospitals, scholarship etc.
This will enable multinational companies to asses whither their impact is felt
or not.
1.5
SCOPE
OF THE STUDY
The
scope of this study is limited to one component of foreign capital inflow,
which is multinational corporations investment (MINCI). The activities of
multinational corporations have been on the increase over the years in Nigeria.
As a result on the increase over the years in Nigeria. As a result more
attention should be paid to their activities. Again it is observed that MINCI present
a unique opportunity for Nigerians. Because apart from the transfer of capital
inflow into the country, foreign investors carry with them the technology of
production, technical personnel, managerial services, entrepreneurial
innovation in product etc. which are very significant for the development of
the country.
This
is evident in Japan has been known to achieve high level of development with
the absence of natural resources, has turned information into raw materials or
new resources worth billions of dollars which she export every year, such as
her famous Japanese cars and electronic gadgets.
This
was view of Ifidon S.E. in the paper he presented at the National Conference on
management of petroleum resources.
1.6
HYPOTHESIS
OF THE STUDY
H0: The impact of multinational corporations has
a negative effect on the development of Niger Delta.
Hi: The impact of the multinational corporations has a positive
effect on the development of the Niger Delta.
1.7
LIMITATION
OF THE STUDY
The
time available for the research was relatively small, compared to the vast
volume of materials I had to digest, interviews to be conducted etc Also
financial resources required were much.
It
is also important to mention certain limitation encountered in the course of
obtaining data for this research work.
Such
limitation include having to pass through the department of petroleum resources
in the NNPC before getting data from Shell Petroleum Development Company
(SPDC). Also the non-challant attitude of some Shell Petroleum Development
Company (SPDC) employees acted as hindrances to the research work.
1.8
DEFINITION
OF KEY TERM
The
following key terms used in the research work are defined as follows:
(i)
Multinational
corporation or companies: multinational
corporations are a spill over from a healthy and cohesive internal (domestic)
economy. They do not merely engage in importing and exporting of the products
from various regions of the World, but they are directly involved in investment
abroad. The impact of multinational corporation (MNCS) on development is very
uneven and in many situations, multinational corporation (MNCS) activities
reinforce dualistic structures and further widen income inequalities.
(ii)
Development:
According to Todaro M.P. (1977), Development is seen as a multi-dimensional process
involving the reorganization and re-orientation of entire economic and social
systems. In addition it is aimed at improving the income and output. It
involves radical changes in institutional, social and administrative structure
as well as popular attitude and some time even customs and beliefs.
(iii)
Niger
Delta: The Niger Delta as described by the Henry
Wilink minorities commission of 1958 as a swampy country along the coast
between Opobo on the “mouth of Benin River”.
(iv)
Shell
Petroleum Development Company (SPDC):
SPDC as the largest multinational oil company operating in the Niger Delta
shall be used as a basis for assessing the role and impact of multinational
companies operating in the Niger Delta. As such SPDC and multinational
companies can be used inter-changeable during the course of the research work.
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