ABSTRACT
This research work attempts to
examine the impact of sustainable environment and economic growth in Nigeria.
The objectives to the study are to examine the impact of environmental
resources on sustainable economic development in Nigeria with particular
reference to Nigeria National Petroleum Corporation (NNPC) and to find out the
extent to which the activities of oil exploitation have affected the Nigeria
society, also to examine the various government acts, decrees, policies and
regulations on environmental protection and their participating interest in the
operations of the company in the event of a successful exploration effort.
The method of data analysis that
will be adopted in this study is mainly regression analysis, which shows the
relationship between environmental resources/community developments strategies
include; industrial development, energy development and health care services
delivery.
Lastly, the finding was that the
main sources of revenue in the country have failed to provide required energy
for the industrial growth and the health sector which has been in the bad
condition. It should be noted that Nigeria is the sixth largest country in the
world that produce oil but the level of development cannot be compared with any
of the countries In the world's oil revenue has succeeded in assisting many.
TABLE OF CONTENTS
CHAPTER ONE
1.1
Introduction
1.2 Statement of the Problem
1.3
Aim and Objectives of the Study
1.4
Research Questions
1.5
Research Hypothesis
1.6
Research Methodology
1.7
Significance of the Study
1.8
Scope and Limitation of the Study
1.9
Definition of Terms
1.10
Organisation of the Study References
CHAPTER TWO: LITERATURE
REVIEW
2.1
Introduction
2.2 Definition and
Conceptualization of the Term Environmental Management and Related Terms
2.2.1
Environment
2.2.2
Ecosystems
2.2.3 Ecology
2.3
Oil Mining and Its Environmental
Hazards
2.4 Sustainable Economic
Development and Environmental Management Economic Development
2.5
Deregulation and Standard of Living
2.6
Environmental Impact Assessment
2.7
Oil, Environmental Conflict and
National Security in Nigeria
2.8
Deepened Tensions in the Niger Delta
References
CHAPTER THREE:
STRUCTURE OF THE STUDY
3.1
History of Nigeria Oil and Gas.
3.2 Background of Nigerian
National Petroleum Corporation (NNPC) and its Organization
3.3
The Nigerian Gas Company Limited
(NGC)
3.3.1 National Engineering and Technical Company Limited
(NETCO)
3.4
The Ministry of Petroleum Resources
3.5
The Contributions of Petroleum
Industry NNPC Government Revenue
3.6
Employment and Manpower Development
3.7
Infrastructural Development
3.8
The Effects of Government Over
Concentration on NNPC Over Agriculture
3.9
Restructuring of NNPC
References
CHAPTER FOUR: RESEARCH
METHODOLOGY, DATA
ANALYSIS AND
INTERPRETATION OF RESULTS
4.1
Methodology
4.2
Methods of Estimation of Analysis
4.3
Model Specification
4.3.1
Econometric Model Specification
4.3.2 APriori Expectation
4.3.3 Specification Bias
4.4
Limitations of the Study
4.4.1 Interpretation and Analysis of Results
CHAPTER FIVE: SUMMARY, CONCLUSION AND
RECOMMENDATIONS
5.1
Summary
5.2
Conclusion
5.3
Recommendations
References
Appendix
CHAPTER ONE
1.1
INTRODUCTION
Natural resources are an
important material basis for a stable national economy and social development.
They can be divided into two categories: the exhaustible, such as minerals, and
the inexhaustible, such as forests and grasslands. With industrialization and
urbanization, mankind's great demand for natural resources and their
large-scale exploitation and consumption has resulted in the weakening,
deterioration and exhaustion of these resources. One difficult task faced by
all countries is to guarantee the lasting utilization of natural resources at
the lowest possible environmental cost while still assuring economic and social
development.
The term sustainable development
has become the buzzword of the 90s. It has been broadly adopted by national and
international leaders, industry groups, academics, NGOs, the media,
environmental consultants among others as the guiding principle of development.
However, there is a huge gap when translating sustainable development from an
abstract goal into how it can be implemented and realized in the complex arena
of real-world problems and situations,
especially in a developing country like Nigeria. Sustainable development
involves meeting the needs of the present
without compromising the ability of future generations to meet their needs. In
short, sustainable development is a road map that guides us on our journey to
become a meaningful part of the solution to environmental challenges we face.
The growth of oil operations has
no doubt resulted in an unprecedented rate of economic growth and development
in most countries of the world. The industry has produced tile needed oil to
power factories, run vehicles, ships, aircrafts and railways, to heat and light
homes and offices, to lubricate machinery and to provide bitumen to surface
roads, it also provides hundreds of chemicals that are useful in agricultural
production, industrial activities and the production of a large number of foods
that needed on daily basis.
Not only is oil essential to
modern life but it is also deeply rooted in tile very hearth of politics and
the special interests of a few powerful people. As tile Organization of
Petroleum Exporting Countries (OPEC) recently stated, oil is not an ordinary
product but "a strategic asset." Oil has been used between nations
for political leverage, through embargoes and sanctions. In addition, oil
wells, refineries, and tankers have been the target of terrorist attacks often
causing terrible damage to the environment.
Historical records tell of the
fact the Plundering of African natural resources fuelled the industrial
revolution of Europe. Energy demands in the 20th century brought on
the search for crude oil wells worldwide and Nigeria was not left out. From
1956, when the first oil well %Vas successfully drilled in Nigeria, scrambling
for Nigeria's resources by the Europeans took on a new dimension.
The oil boom era of the 1970s
saw the downward plunge of the agricultural sector. There was a complete
paradigm shift from the nation's then agrarian culture to oil driven culture,
moving ultimately from renewable natural resources to un-renewable resource trade. From the
70s through to the early 80s we witnessed a
drastic drop in local food production. Importation rates of foods and finished
products increased dramatically and our foreign debt escalated rapidly,
bringing the economy to a crisis. During this period, from 1958 to 1983, we
have recorded $101 billion in estimated oil revenue earnings.
In a country where agricultural
accounts for about 40% of GDP and oil production and exports (exporting over 2
million barrels/day) ranks 6 worldwide, government's management structure and
environmental action plan is essential to maintain balance and reduce abuse.
The question here is what has been the role of the Nigerian government in the management of its natural resources? To
attempt an answer, one can say that even though the legal framework and
institutional structure for natural resources management is firmly established,
it still lacks the strength and drive which natural resource management
deserves. Management structure at best is fragmentary, and there exists similar
government agencies carrying out the same functions, often times leading to
conflict between government agencies and stakeholders. Oil was discovered in
Nigeria in 1956 at Olobiri in the Niger Delta after half a century of
exploration. The discovery was made by Shell-BP, at the time sole
concessionaire. Nigeria joined the ranks of oil producers in 1958 when its
first oil field came on stream producing 5,100 bpd. After 1960, exploration
rights in onshore and offshore areas adjoining the Niger Delta were extended to
other foreign companies. In 1965, the EA field as discovered by Shell in
shallow water Southeast of Warri.
In 1970, the end of the Biafran
war coincided with the rise in the world oil price, and Nigeria was able to
reap instant riches from its oil production. Nigeria joined the Organization of
Petroleum Exporting Companies (OPEC) in 1971 and established the Nigerian
National' Petroleum Companies (NNPC) in 1977; a state owned and controlled
company, which is a major player in both the upstream and downstream sectors.
The role of the Nigerian
Government in the oil industry has, over time, evolved from regulatory and
supervisory nature to direct involvement in oil exploration and development.
Government's initial interest was mainly in the collection, of royalties and
other dues from the oil companies, and in the making of statutory laws that
regulated the activities of the oil industry. The lack of direct involvement in
the early days can be attributed to the relatively insignificant contribution
of oil revenues played within the overall economy before the late sixties. The
absence of the locally trained personnel and expertise was another factor
preventing the government's direct participation oil industry activities.
By 1971, however, oil revenues
had become very important to the economy. To strength and establish government
control In the industry, the Nigerian National Oil Corporation (NNOC) was
established" by decree in 1971 as an integrated oil company. It was also
in that year that Nigeria joined the Organization of Petroleum Exporting
Countries (OPEC) as the 1 1 member. It was believed that if government had
snore say in running of tile oil industry, it could achieve its goals of rapid
industrial and commercial development. Today, government participation stands
at 55% in Shell and 60% in
Chevron Texaco, Exxon Mobil, Agip, Elf and Pan Ocean.
Nigeria's latest experiment with
democracy has not scientifically assuaged the grievances among ethnic
communities of the Niger Delta. The democratic system inaugurated in 1999 has
allowed for the election of representatives at the local, state; and national
levels, and the constitution increases the share of oil revenues allotted to
the communities of the Delta. President Obasanjo's government also created a
Niger Delta Development Commission (NNDC) to oversee economic development in
the region. Yet the restiveness of the oil producing communities has not
abated, as evident in continual hostage taking of oil company employees,
sabotage of petroleum facilities, and periodic clashes with government security
forces.
1.2
STATEMENT OF PROBLEM
The low capacity utilization of
Nigeria's state-owned refineries and petrochemicals plants in Kaduna, Port
Harcourt and Warri, the sorry state of despair, neglect, and repeated
vandalisation of the state-ran petroleum product pipelines and oil movement
infrastructure nationwide, the collateral damage of institutionalized
corruption, with the frightening emergence of a local nouveau riche oil mafia
that controls, and coordinates crude oil, and refined petroleum products
pipelines sabotage, and theft ("illegal bunking") nationwide, the
insatiably corrupt military Task Force
operatives that assist diversions of both crude oil and petroleum products, and
large-scale crossborder smuggling of petroleum products, all of which are the
root causes of the protracted, and seemingly intractable severe fuel crises
that have bedeviled the country relentlessly, for close to a decade now, are
all predictable outcomes of government involvement in the downstream sector of
the Nigerian Petroleum industry, over the past quarter of a country.
The oil companies make up the largest
industry in the Niger Delta region. Despite this, unemployment levels are still
high, especially in the rural areas where oil and gas reserves exist. In this
region exist oil well reserves (17.9 barrels) and gas wells (3.4 trillion
m3),contributing about 80% of federal government revenue.
Despite this vast coastal
wealth, GNI per capita is below the national average of US$280. Pollution of
coastal corridor and wetlands is a recurrent disaster. Gas flaring has become a
notorious pollutant of the local communities of the Delta. Oil spills and gas
flaring has destroyed whole fishing communities, reducing needed fishery
resources, terrestrial vegetations and compromising the health of local people
in and around oil installations.
Nigeria's resources base
includes a vast network of rivers, floodplains and a rich rainforest network,
with vast deposits of minerals. However, about 95% of natural
forest cover has been last lost to deforestation, leaving 5% contained in the
Southeast region. While dams upstream are a constant headache and threat to the
rich coastal biodiversity, deforestation ravages the teeming rainforest
ecosystem.
1.3
THE AIM AND OBJECTIVES OF THE STUDY
The aim of this study is to
examine the impact of environmental resources on sustainable economic development in
Nigeria with particular reference to Nigeria National Petroleum Corporation
(NNPC). Specifically the study will seeks to:
(a) Find out the extent to which
the activities of oil exploitation have affected the Nigeria society.
(b) Examine the various
government acts, decrees, policies and regulations on environmental protection
and their participating interest in the operations of the company in the event
or a successful exploration effort.
(c) To analyze the contribution
of NNPC toward the development of the Niger-Delta vis-a-vis infrastructure,
education, health etc and the way and manner
the wealth and resources from the region IS being distributed.
(d) Finally, the Study aims at
making suggestions and recommendations that will help in providing lasting
solution to the Delta's renewable natural resources that are being exploited in
unsustainable ways and also to stop hostage-taking and conflict in Niger Delta.
1.4
RESEARCH QUESTIONS
Therefore, the statement of
problems is stated below by finding answers to the following questions:
a. What are the impacts of
environmental resources on sustainable economic growth in Nigeria?
b. What are the various
government acts, decrees, policies and regulations on environmental protection
and their participating interest in the operations of the company in the event
of a successful exploration effort?
c. What are the contributions
of NNPC toward the development of the Niger-Delta vis-a-vis infrastructure,
education, health etc and the way and manner the wealth and resources from the
region is being distributed.
d. What are the suggestions and
recommendations that will help in providing lasting solution to the Delta's renewable natural resources that are being exploited in
unsustainable ways and also to stop hostage-taking and conflict in Niger Delta?
1.5
STATEMENT OF RESEARCH HYPOTHESES
The following are the research
hypothesis for the study:
Hypothesis 1
Ho: There is no
significant relationship between environmental resources and sustainable
economic growth.
H1: There is significant
relationship between environmental resources and sustainable economic growth.
Hypothesis II
Ho: There is no significant relationship between government acts,
decrees, policies and regulations on environmental protection and their
participating interest in the operations of the company in the event of a
successful exploration effort.
H1: There is significant
relationship between government acts, decrees, policies and regulations on
environmental protection and their participating interest in the operations of the company in the event of a successful
exploration effort.
Hypothesis III
Ho: There is no
significant relationship between sustainable environment and contributions of
NNPC toward the development of the Niger-Delta.
H1: There is
significant relationship between sustainable environment and contributions of
NNPC toward the development of the Niger-Delta.
1.6
RESEARCH METHODOLOGY
The method of data analysis that
will be adopted in this study is mainly regression analysis, which shows the
relationship between environmental resources/community developments strategies
include; industrial development, energy development and health care services
delivery.
1.7
SIGNIFICANCE OF THE STUDY
Profitability of business at the
tailed end of the downstream sector would be dictated mainly by economies of
scales only the big players in the petroleum product marketing subsector would survive. Looking at the
continuing contribution of tile petroleum sector on the economy in term of
output, employment generation, self-sufficient and so on, there is no doubt that effective policies or providing enabling
environment for downstream sector will be strong factor determining their performance
in terms of stability, profitability and satisfaction on the consumer. This study therefore serves as an avenue for
analyzing the sustainable use of petroleum sector for enhanced growth in the
Nigeria economy.
1.8
SCOPE AND LIMITATION OF THE STUDY
The study examined the
sustainable use of environmental resources with the particular reference to
Nigeria National Petroleum Corporation. A glaring limitation of the company.
Nevertheless, the situation is
brought under control by relying heavily on data collected from the website of
the NNPC and petroleum companies in Nigeria. Tile researcher faced with some
problem while caring out this research work such as time constrain, non
availability of data, finance, logistic problems and etc.
1.9
DEFINITION OF TERMS
Natural Resources: A supply of something that a country and organization or a
person has and can use especially to increase wealth.
Industrialization: The people and the activities involved in producing a
particular thing, or in providing a particular service.
Urbanization: Having a lot of towns, streets, factories etc rather than
countryside.
Sustainable: Involving the use of natural products and enough in a way
that does not harm the environment
Economic: Is the process by which national income of output is
increased Economic development: Is the process of increasing real per capita
income and engineering substantial positive transformation in the various
sectors of the economy.
Hostage: Act of captured person and held prisoner by a person or
group, who may be injured or killed if people do not do what the group is
asking. Refineries: Factory where a substance such as oil is Refined (made
pure).
Oil: A form of petroleum that is used as fuel and to make parts
of machines more smoothly.
Unemployment: The number of people without a job
Deforestation: The act of cutting down or burning the trees in all area.
Ecosystem: All the plants and living creatures in a particular area considered
in relation to their physical environment.
Oil Exploitation: searching for oil in the ground
Infrastructure: The basic system and services that is necessary for a
country or an organization to run smoothly
Education: A process of teaching, training and learning, especially in
schools on colleges to improve knowledge and develop skills
Health Care: The service of providing medical care
Energy: - Ability to put
effort and enthusiasm into an activity, work etc.
1.10
ORGANIZATION OF THE STUDY
This research work will be
divided into five different chapters.
Chapter One: Consists of historical background of the study,
introduction of the research work, statement of the problem, aims and
objectives of the study, research questions, research hypothesis, research
methodology, significance of the study, scope of the study, limitation of the
study, definition of terms, plan of the study.
Chapter Two: Is always the literature review.
Chapter Three: It consists of the
structural composition of the study.
Chapter four: It consists
of research methodology, data analysis, presentation and interpretation of the
results.
Chapter Five: It also
consists of summary, conclusion and recommendations, then the references.
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