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STATISTICAL ANALYSIS OF COAL PRODUCTION IN NIGERIA (1990-1999)

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Nigeria, a country abundant in natural resources, has long been recognized for its potential in the energy sector, particularly in the realm of coal production. Historically, coal has played a significant role in Nigeria's energy mix, contributing to industrial development, power generation, and economic growth. The period between 1990 and 1999 stands as a crucial juncture in Nigeria's coal industry, marked by various socio-political and economic changes that influenced production patterns and dynamics.

The Nigeria Coal Corporation information manual (1990) states that “Coal was first discovered in 1909 at streams along Udi escarpment in Enugu state by the first group of British colonial adventures in Nigeria following a survey by the then colonial mineral survey department of southern Nigeria, actual mining started in 1916 at the foot of Udi hill along Enugu escarpment”.Iwu (1990) stated that “initially, the Coal industry was a unit of the marine department and Coal produced was supplied to the British for their steam boats. Other supplies were to the Nigeria Railways for the steam locomotives engines. Following the increase in transportation activities by rail, the Coal industry was excised from the marine department and established with the Nigerian Railway in 1937. Increased political awareness and a strike actin by Coal miners to back up demand for wage increase resulted in the gunning down of twenty-one Coal miners at Iva valley mine by their employers on 18th November 1949. THE THEN British government set up a commission of inquiry headed by Sir Fitzgerald. This commission recommended that independent body been set up to manage government established business. In 1950 by the ordinance No.29. The Nigerian Coal Corporation was born”.

Iwu (1990) went further to state that” the Nigeria Coal Corporation was then managed by the British was charged with the responsibility to prospect, mine, treat and market Coal and Coal by products in Nigeria. However, it was the shooting of the twenty-one (21) coal miners in Enugu that awakened the spirit of nationalism which subsequently gave birth to Nigeria’s independence in October 1960. The Coal industry gave rise to the first set of industries in Nigeria besides providing all the energy requirements for the nations premier industries, Coal became one of the major foreign change; earners for the then British colony. The principal consumers of Coal are: The cement factories construction companies and overseas market.

1.2 Statement of the Problem

Despite its potential, the Nigerian coal industry has faced numerous challenges, ranging from infrastructural deficits to policy inconsistencies. Understanding the underlying issues impeding coal production during the 1990s is imperative for addressing present-day energy challenges and devising effective strategies for sustainable energy development.

1.3 Objectives of the Study

The main objective of this study is to determine the factors influencing coal production in Nigeria during the period 1990-1999. Specific objectives include:

i.                To evaluate the impact of government policies on coal production.

ii.              To determine the influence of infrastructural development on coal mining activities.

iii.            To find out the effects of socio-political factors on coal production dynamics.

1.4 Research Questions

i.                What is the impact of government policies on coal production in Nigeria during 1990-1999?

ii.              What is the influence of infrastructural development on coal mining activities in Nigeria during the specified period?

iii.            How does socio-political instability affect coal production dynamics in Nigeria from 1990 to 1999?

1.5 Research Hypotheses

The research hypotheses corresponding to the formulated research questions are as follows:

Hypothesis I

H0: There is no significant impact of government policies on coal production in Nigeria during 1990-1999.

H1: There is a significant impact of government policies on coal production in Nigeria during 1990-1999.

Hypothesis II

H0: There is no significant influence of infrastructural development on coal mining activities in Nigeria during 1990-1999.

H2: There is a significant influence of infrastructural development on coal mining activities in Nigeria during 1990-1999.

Hypothesis III

H0: There is no significant effect of socio-political instability on coal production dynamics in Nigeria from 1990 to 1999.

H3: There is a significant effect of socio-political instability on coal production dynamics in Nigeria from 1990 to 1999.

1.6 Significance of the Study

This study holds significance in several aspects. Firstly, it provides valuable insights into the historical context of coal production in Nigeria, shedding light on the factors influencing its trajectory during the 1990s. Secondly, the findings of this research can inform policymakers, industry stakeholders, and investors in devising strategies for revitalizing the coal sector or transitioning towards alternative energy sources. Moreover, understanding the challenges faced by the coal industry in the past can offer lessons for addressing current energy challenges and promoting sustainable energy development in Nigeria.

1.7 Scope of the Study

This study focuses on the statistical analysis of coal production in Nigeria specifically during the period 1990-1999. It encompasses an examination of government policies, infrastructural development, and socio-political factors influencing coal production dynamics within this timeframe.

1.8 Limitations of the Study

While this research endeavors to provide a comprehensive analysis of coal production in Nigeria during the 1990s, certain limitations are acknowledged. These include data availability constraints, potential biases in historical records, and the complexity of socio-political dynamics impacting coal production. Additionally, the scope of the study may restrict the generalizability of findings beyond the specified period and geographical context.

1.9 Definition of Terms

For clarity and precision, key terms utilized throughout the study are defined as follows:

Coal Production: The process of extracting coal from mines and preparing it for utilization as a source of energy or raw material.

Government Policies: Regulations, directives, and measures implemented by governmental authorities pertaining to the coal industry.

Infrastructural Development: The construction and improvement of physical structures and facilities supporting coal mining activities, such as transportation networks and power plants.

Socio-political Factors: Social and political conditions, including governance, stability, and public sentiment, influencing coal production dynamics.