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ENVIRONMENTAL EFFECTS OF PIPELINE VANDALISATION AND ITS ECONOMIC IMPLICATION

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF STUDY

Nigeria is a nation blessed with abundance of natural resources; over the years the oil and gas sector has being the major contributor to the nation’s economy since the deviation from agriculture. Among all the states in Nigeria, those states under the Niger-delta region are the pivot behind the national power in the oil and gas sector.

Over the years the region has suffered environmental degradation and charges of marginalization in the provision of employment, patronage and ancillary contracts and this has fueled up the growth of conflict in Nigeria; the effect of this conflict became more pronounced in the 1990’s with local militias constantly using violent protest as a medium to subvert, delay and obstruct the oil and gas activities which in turn resulted to conflict termed “petro violence”.

According to (Watt, 1999) stated that because of the nature of the Nigeria’s political economy as being overly oil-dependent neo-patrimonial state, the oil resources and oil rents are paramount in shaping the national political discourses and increased broad rhythm of social conflicts, including the ongoing security threats in the oil producing sector of Nigeria.

Since the discovery of oil and gas (ONG) in this region (Niger delta) in the year 1956, there have a decline in both political and the socio economic wellbeing of the people in Niger delta region because of environmental degradation caused by lack of regulation and abuse of oil and gas exploration and other production activities.

The continuous growth of joblessness in this area of the Niger delta has lead to the growth of crimes, criminal activities and other political violent activities.

With regard to the proximity and the ease of access of the region’s energy infrastructure to the inhabitants, oil pipeline vandalism and the practice of illegal bunkering has become the major issue that has a role to play in speeding up criminality, population displacement which in turn has a negative effect on social integration of communities in this region. The oil and gas exploration processes like extraction and transportation has significant effect on the lives of the people in region and the environment. The people in this region are mostly engaged in farming and fishing; you could imagine a situation where these people cannot farm no fish due to too much oil on the water bodies and their farm lands; the negligence to this effect from most of the multination companies (MNOCs) and the federal government of Nigeria was what lead to the protests. The continuous negligence to the protest of the people in this region was what lead to the vandalization of oil pipelines conveying crude oil which in turn have a negative effect on the economy and the economic development of Nigeria.

1.2 STATEMENT OF PROBLEM

What really led to the study of environmental effects of pipeline vandalization and its economic implication was the continuous growth of joblessness in the Niger delta region, the effect of oil and gas exploration on the people and their environment and the negligence from the multinational companies and the federal government of Nigeria. The region is the major contributor to the Nigeria oil and gas sector yet the developmental process in terms of infrastructure is overly neglected.

1.3 AIMS AND OBJECTIVES OF STUDY

The main aim of the research work is to determine the effect of pipeline vandalization on the environment. The specific objectives of the study are stated below as follows:

1. To examine the effect of pipeline vandalization on the environment and national security

2. To examine the relationship between pipeline vandalization and the socio economic development of Nigeria

3. To discuss the role of multinational companies in the resolution of conflict and the promotion of socio economic integration of communities

4. To examine the effects of vandalization on fueling energy and security crisis in the country

5. To proffer recommendation for the resolution of conflict and to encourage further research on the above topic.

1.4 RESEARCH QUESTIONS

The study came up with the following research question so as to ascertain the above objectives:

1. What is the effect of pipeline vandalization on the environment and national security?

2. Is there any relationship between pipeline vandalization and the socio economic development of Nigeria?

3. What are the roles of multinational companies in the resolution of conflict and the promotion of socio economic integration of communities?

4. What are the effects of vandalization on fueling energy and security crisis in the country?

1.5 RESEARCH HYPOTHESES

Hypothesis 1

H0: pipeline vandalization has no significant effect on the environment and the Nation’s economy

H1: pipeline vandalization has significant effect on the environment and the nation’s economy

Hypothesis 2

H0: there is no significant relationship between pipeline vandalization and the socio economic integration of communities in the Niger delta

H1: there is significant relationship between pipeline vandalization and the socio economic integration of communities in the Niger delta

1.6 SIGNIFICANCE OF STUDY

The study will be of immense benefit to the people of the Niger Delta, the multinational companies, the state and the federal government of Nigeria as it will discuss the major causes of pipeline vandalization and solution to the effect on the national economy. The study will also benefit other researchers that wishes to carry out similar research on the topic.

1.7 SCOPE OF THE STUDY

The study environmental effects of pipeline vandalization and its economic implication is limited only to the Niger Delta region, the people in this region, the multinational companies and the federal government of Nigeria.

1.8 LIMITATION OF STUDY

FINANCIAL CONSTRAINTS: Due to unavailability of enough funds for the purpose of the research work, the researcher was not able to cover all the areas of the community, but the researcher was able to get good responses that are relevant to the research work.

TIME CONSTRAINTS: The rural areas normally have bad roads, and the researchers does not know almost all the areas in Niger Delta region; as a result, the researcher was left with a little time to reach out to the respondents but he or she was able to meet up with the required time for the submission of the research work.

1.9 DEFINITION OF TERMS

PIPELINE VANDALIZATION: refers to the willful or deliberate act of damaging petroleum pipelines with the sole aim of stealing crude oil and associated petroleum products.

DEGRADATION: the condition or process of degrading or being degraded, it could reduced in quality of the environment in accordance to study

CONFLICTS: a serious disagreement or argument, typically a protracted one.

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