Niger-Delta Crisis And Its Impact On Socio-Economic Development In Nigeria

This study focuses on the Niger Delta Crisis and its Impact on Socio-economic Development in Nigeria. The region accounts for the huge revenues to the government generated from its oil wealth. Despite the fact that the region"s major resources serves as the mainstay of the economy, the region is characterized by lack of social infrastructure, poverty, unemployment and environmental degradation, which is usually as a result of oil spillages and leaks from the oil exploration activities of oil companies. Due to this pathetic situation, the study delves into the various manifestations of crises in the Delta region, the causes of these crises, the consequences of the crisis, and the measures by the government, past and present towards tackling the imbroglio in the nation"s oil wealth region. Data for this study were drawn mainly using questionnaires and related literatures. Furthermore, data drawn from the questionnaire were analyzed using simple percentage method and chi-square. Furthermore, the study amongst other things revealed that the people of the region have been further impoverished as a result of the crisis the crisis has seriously dwindled government"s revenue the crisis has equally dwarfed the level of local and foreign investments in the region. The study concluded by making recommendations, some of which includes the government ensuring that the activities of oil companies are closely monitored and that they conform to best practices the government ensuring the oil producing communities are adequately compensated and their environment cleansed from oil spillages and leaks by multinational oil companies the government should also ensure that social infrastructure are adequately put in place by multinational oil companies, so to improve the living conditions of the people.

Introduction

1.1 Background of the Study

Nigeria is fraught with myriad problems and challenges, and one of them is the Niger Delta crisis. The Niger Delta crisis has been simmering for years, and it is holding the nation"s feet to the fire. The crisis is getting messier by the day, as it remains unresolved (Victor Dike, 2006: 25).

The area which is described as the Niger Delta region of Nigeria lies between latitudes 4o and 6o north of the Equator and 4o and 8o east of the Greenwich. According to the Niger Delta Regional Development Master Plan (2007), the Niger Delta comprises of nine states; Akwa Ibom, Cross River, Edo, Rivers, Bayelsa, Delta, Ondo, Imo and Abia.

The Niger Delta region stretches over 20,000 km2 of swamp land in the littoral fringes of the country; it embraces one of the world"s largest wetlands, over 60% of Africa"s largest mangrove forests, and one of the worlds" most extensive (Eyinla and Ukpo, 2006). Comprising mainly of a distinct aquatic environment which embraces marine, brackish and fresh water ecosystems, it encompasses the most extensive

fresh water swamp forest in West and Central Africa, and manifests an intricate network of creeks, rivers, streams, swamps, braided streams and Oxbow lakes, besides a stretch of flat and fertile land mass. Also in this region lies Nigeria"s over 35 billion barrels of proven oil reserves (Eyinla and Ukpo, 2006: 5), besides an even larger deposit of natural gas. The region also accounts for over 80% of Nigeria"s Gross Domestic Product and represents the economic jugular of the country.

Over the years, the region has been embroiled in crisis between the government forces and some militant elements that are aggrieved over certain fundamental issues affecting the Region. Since 2005, militants have fought with government forces, sabotaged oil installations, taken foreign oil workers hostage and carried out lethal car bombings. At the root of the problem is a crisis of underdevelopment. The crisis has been exacerbated by emergent issues of a gross distortion of Nigerian federalism in respect to resource control; citizenship rights and environmental degradation. Unfortunately, the external manifestation has been mainly that of violent

agitations and criminal activities of some elements taking advantage of the bad situation.

Various reasons have been given as the raison d"etre of the Niger Delta crisis; they include: structural deficiency of the Nigerian Federation, poverty/deprivation of the means of livelihood, environmental damage, lack of development and unemployment, distortions in the social and economic fabric of the local societies, human rights violations, bad governance/corruption, and alleged insincerity of the Federal Government (Ejibunu, 2007: 9-20).

Apart from the potential danger the crisis poses to the nation"s unity, its impact on socio-economic development cannot be over-emphasized. Amazie in the Vanguard (July 15th, 2007: 27) notes that trillions of naira has been lost as a result of the crisis, and that oil production quota has greatly reduced; consequently, lowering derivation fund by 13% for the states in the region. Furthermore, the crisis has also led to incessant kidnapping and hostage taking in the region. Between 2005 and 2007 about 200 expatriates have been kidnapped, although most were released within weeks in

exchange of ransoms, typically hundreds of thousands of dollars. Other dimensions of the crisis include; attacks on the lives and property, the military, waterways, organized crime and oil bunkering.

The devastating effects of oil bunkering are to say the least terrifying. The nation loses 70,000 to 300,000 barrels of oil to illegal oil bunkering, amounting to billions of dollars. At only 70,000 barrels per day with a benchmark of $60 dollars, it is estimated that the nation loses a whopping $1.5 billion per day (Washington Council on Foreign Relations Independent Task Force). Besides this major loss, oil bunkering remains a major source of funds for various militant groups in the Delta. Thus, intensifying militant insurgencies in the region.

Buoyed with the determination of putting an end to the crisis, various policy interventions have been adopted by the various governments, some of which includes increment in the derivation formula, establishment of the Niger Delta Development Commission (NDDC) as a replacement for Oil Mineral Producing Areas Development Commission

(OMPADEC). Other measures put in place include the establishment of the Federal Ministry of Niger Delta and the granting of amnesty to militants in the creeks of the Delta. Although reduced significantly, it is without doubt that these measures have not in entirety quelled the crisis in the region.

1.2 Statement of the Problem

Nigeria is the sixth largest producer of petroleum, and it is the main stay of the economy, accounting for well over 90 per cent of the exports. The low sulfur content of much of Nigeria"s petroleum makes it especially desirable in a pollution conscious world. According to the Federal Government revenue from oil sales shot up from N4,733 million in 1975 to N1.12trillion in 2005 (Aghalino, 2007: 33), and N1.3tn in 2006, while taxes from oil fetched N1.14tn in 2006 alone (The Punch, January 9, 2007: 17).

Before the advent of commercial oil production in the Niger Delta in 1958, the region was essentially a pristine environment which supported substantial subsistence resources for the mostly sedentary populations. These included among other things, medicinal herbs and barks, fish

and shrimp, crabs and clams, wood for energy and shelter, as well as a stable soil for farming and habitat for exotic wildlife. There was the Delta elephant, the white crested monkey, the river hippopotamus, as well as a colorful array of exotic birds, crocodiles, turtles and alligators. The region also accounted for a large percentage of Nigeria"s commercial fisheries industry. However, oil prospecting activities have led to the destruction of vegetation, farmlands and settlements allowing for seismic cutting lines. Furthermore, severe environmental hazards associated with this activity include destruction of fish and some other forms of aquatic life, both marine and freshwater around the prospecting sites. Noise pollution and vibration from seismographic blasting also affects buildings, fence walls, wooden bridges and access roads (Eyinla and Ukpo, 2006: 76). Oil drilling operations further pollute the underground water. Through a variety of unethical practices in drilling, more fish and fauna are destroyed, farming and fishing grounds polluted by toxic waste materials. Also in the production process, waste water is discharged from major production terminals together with other contaminants like sludge from storage tanks, oil

debris, gaseous pollutants and sanitary wastes. More of these toxic wastes are released into the already heavily polluted environment during the process of oil refining, during which process several chemicals and pollutants such as hydrogen sulphide, oil and grease, ammonia and toxic heavy metals are discharged into the environment. The process involved in petroleum resources distribution also include disruption of the sea bed by dredging activities for pipeline installation beside malfunctioning flow stations and other oil installations. Sedimentation also occurs along pipeline channels, besides pollution from tank washing, deck drainage and loading operations. In addition to these are the problems associated with the oil spillage caused by blow-outs, corrosion, equipment failure, operational error and pipeline vandalization.

It is estimated that in over 40 years of oil exploration and production in Nigeria, over 60,000 spills have been recorded, and over 2,000,000 barrels were discharged into the regions eco-system from oil spillages alone between 1976 and 1996. In 1997 and 1998, Shell Petroleum Development Company

(SPDC) spilled 106,000 from its installations at Jones creek alone. In January 1998, Mobil recorded its worst spillage at the Idoho offshore site which spread within 30 days from Akwa Ibom to Lagos.

Within the first months of 2008 alone, Nigeria recorded 418 cases of oil spills. Buttressing the high incidence of oil spillage is Asobie (2004: 25) who says that there are approximately 300 spills per year in the Niger Delta region.

According to Eyinla and Ukpo (2006: 68), there are several specific impacts of oil spills relating to the destruction of the wetlands. These include loss of fish, crustaceans and other aquatic resources, loss of livelihood through loss of fishing grounds and gears, wildlife migration, destruction of farmlands, reduced agricultural productivity and yield, displacement of inhabitants, spread of water borne epidemics, to mention a few. All of these translate to hunger, grinding poverty and disease where there are neither hospitals nor herbal remedies which have in the mean time been rendered impotent by oil production. In addition, the innumerable gas flares which dot the Niger Delta landscape waters produce

heat and light on a continuous basis, day and night. Not only can fish and fauna not breed under such conditions, they are also forced to migrate to more suitable waters elsewhere in the West African coast. Gas flaring is also associated with atmospheric and thermal pollution and the depletion of vegetation and wild life. According to Eyinla and Ukpo (2006: 70), damages to buildings, acid rain formation, depletion of floral periodicity, discomfort to humans and danger of pulmonary disease epidemic are other environmental problems arising from gas flaring. The soil, rivers and creeks of Niger Delta, which used to be alkaline in nature 17-40 years ago, have now, become dangerously acidic.

The Niger Delta crisis took a dangerous dimension in 2006 when militancy came into limelight. Militants were formed to protest marginalization, unemployment and environmental degradation caused by oil companies, their modus operandi include; vandalization of oil pipelines and installations, kidnapping expatriate oil company workers, illegal oil bunkery, drug sales (Joab-Peterside, 2007: 55). These militants included the MEND formed by the Ijaw Youth

Council (IYC), Niger Delta Vigilante (NDV), the bush boys, the Dodan barrack group, the Titanians among others. Also these militants existed as communities struggled to create their own local governments or electoral districts as a means of securing access to Federal petroleum revenue (Watts et al, 2004). Another reason for the existence of ethnic militias was self defence; to protect the families and communities during frequent inter and intra-community clashes. The objective of these ethnic vigilante groups was gradually changed from self defence and protecting the community to the collection of compensations from multi-national oil companies (MNOCs), collection of "ground rents" from oil bunkers, controlling crime syndicates and kidnapping expatriate and local oil company workers for ransom.

Succinctly put, Okengwu (2011: 23) blamed the Niger Delta crisis on unemployment failure to provide basic amenities by the government, dirty politics, security failure, support by traditional rulers and communities etc. The late Saro-Wiwa in 1985, traced the root causes of conflicts in the

Niger Delta to inequitable distribution of revenue, uneven development among the Niger Delta region.

The effects of the crisis still remain undoubtedly devastating as oil production have been shut down at times to up to 800,000 barrels per day threatening government"s plan to nearly double production by 4 million barrels per day. The crisis also cost the nation $4.4 billion (3.2billion Euros) annually. According to the International Herald Tribune (2007:

45)the campaign of the foremost militant group, MEND, has heightened tension in the area and is threatening to cripple Nigeria"s crude oil export. Experts predict that if the violence continues, oil companies operating in the area will be forced to leave, sending Nigeria"s economy in to a nose dive. Should it happen, and it is beginning to look possible with increased kidnappings and pipeline bombings in the area, MEND, would have succeeded in their campaign to bring Nigeria"s oil dependent to its knees. Already, a quarter of Nigeria"s oil output has been shut down leading to huge loss of earnings to the government (International Herald Tribune, 2007: 45).

The crisis has brought about serious security implication for the country. This is manifested in the various ways: confrontations with the military, kidnapping and hostage taking and illegal bunkering (Ejibunu, 2007: 34).

Having identified the problems posed by this study, the following questions are raised;

What are the underlying factors responsible for the crisis in the Niger Delta?

What are the manifestations of the Niger Delta crisis?

What are the effects of the crisis on the nation?

How can the Niger Delta crisis be brought to a conclusive end?

1.3 Objectives of the Study

To ascertain the immediate and remote causes of the Niger Delta crisis.

To point out the various crisis bedeviling the Niger Delta region.

To establish the socio-economic effects of the Niger Delta crisis on Nigeria.

To make appropriate recommendations on how the Niger Delta crisis can be effectively tackled?

1.4 Significance of the Study

This study has both theoretical and empirical significance. Theoretically, it is aimed at contributing to the body of existing literatures on the Niger Delta crisis.

Empirically, this study serves as an asset towards tackling the crisis in the Niger Delta region. Consequently, it is invaluable to; policy makers, government at all levels, multinational oil corporations, government ministries and agencies, most especially, the Niger Delta Development Commission (NDDC) and the Ministry of Niger Delta, researchers and civil society.

1.5 Scope and Limitations of the Study

This study covers the various degrees of crisis as perpetrated in the core Niger Delta states, comprising of South-Southern states such as; Rivers, Bayelsa, Akwa-Ibom, Cross-River and Delta States.

This study is characterized by financial constraints which posed serious logistic challenges in terms of distributing of questionnaires and deploying interview method ingathering primary data. It was also characterized by inadequate time

frame given for the completion of this study. Apart from these challenges, the study was almost marred by the nonchalant attitude of many of the respondents who showed apathy towards the filling of questionnaire. And finally, it was a Herculean task gathering secondary data on some of the issues raised in the study as they were not readily available.

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