http://bit.ly/KaB5Bz2.0 OIL RESOURCE EXPLOITATION IN THE NIGER DELTA.
"Oil which was first discovered in 1956 and first exported in 1958 accounted for more than 90% of Nigerian exports by value and about 80% of government revenue as at December 31, 1981….
The overall contribution of the oil sector to the national economy also grew from an insignificant 0.1% in 1959 to 87% in 1976."
There is no doubt that the Nigerian oil industry has affected the country in a variety of ways at the same time. On one hand, it has fashioned a remarkable economic landscape for the country, however on the negative side, petroleum exploration and production also have adverse effects on fishing and farming which are the traditional means of livelihood of the people of the oil producing communities in the Niger Delta, Nigeria.
If the oil industry is considered in view of its enormous contribution to foreign exchange earning, it has achieved a remarkable success. On the other scale, When considered in respect of it's negative impact on the socio-economic life and the environment of the immediate oil bearing local communities and its inhabitants, it has left a balance sheet of ecological and socio-physical disaster. This rightly provides a framework to evaluate the work of neo-classical economists whom argue that the development of primary resource materials for export in the periphery is the basis for development in the peripheral countries.
2.2 PRODUCING FOR EXPORT.
Nigeria like most other less developed countries in the early part of the 70's, were engaged in intensive natural resource exploitation as a way of stimulating economic growth. It was projected by several multilateral funding organisations such as the International Monetary Fund (IMF)and the World Bank that export drive of primary resource materials will eventually lead to economic growth and subsequently a significant reduction in the level of poverty. The projection was that the long-term gain of such a process would set the stage for a sustained economic development.
As at 1976, about 10 years from the start of the oil export drive. Figures available from the Federal Office of Statistics stated that oil has come to account for about 14% of the nation's gross domestic product (GNP) of Nigeria. 95% of the total export and over 80% of government annual revenue. Total export peaked at two million barrels of crude oil per day with price range of $18-$22 per barrel. This created more opportunity for the development of new oil fields, increase granting of mining licenses and the intensive exploitation of oil mineral resources in the Niger Delta.
The multinational oil companies made huge investments in the oil sector, which was quite technological and capital intensive. New laws were made which includes the petroleum act of 1969 and the land use Decree/Act of 1978. This legislation regulated community access to communal or open access land and they were primarily promulgated to restrict access to such land, while at the same time making it possible for the Multinational investors to have unrestricted access to explore for oil unchallenged even on sacred land.
These changes have led to a series of social conflict between the community people and the State/Oil companies as will be discussed later.
2.3 PEASANT AGRICULTURE IN THE NIGER DELTA AREAS.
Agriculture forms the most dominant economic activity in the Niger Delta. Federal Office of Statistics (F.O.S) in 1985 stated that Crop farming and fishing activities account for about 90% of all forms of activities in the area. They also estimated that about 50%-68% of the active labour force are engaged in one form of agricultural activity or the other including fishing and farming. Agricultural technology has remained relatively unchanged over the years and over 90% of the farmers are subsistent farmers operating on traditional methods using basic tools. Azibolomari 1998, p 67 stated that
"Farming technique in the Niger Delta has still remained the use of land rotation or bush fallow system characterised by land and labour being the principal inputs of production."
The organic farming technique widely used in the Niger Delta is highly susceptible to environmental changes affecting the soil, water and or deforestation because it is not technologically inspired, but rather land and labour intensive. Oil extraction and production has led to adverse environmental impact on the soil, forest and water of the Niger Delta communities. This has ultimately affected peasant agriculture in a variety of ways, which ultimately have caused problems of environmental refugees. Some of the landless farmers migrate to other more fertile lands in other rural communities, putting pressure on scarce fertile lands. While some of the displaced farmers out-migrate to the urban areas in search of other means of livelihood.
Various harmful and toxic organic compounds when introduced into the natural environment during oil extraction such as during seismic work, oil spill, gas flares and several other forms of pollution, changes the geo-chemical composition of the soil, river and other components of the environment. This in turn affects agriculture and lead to a drastic decline in output in both fishing and farming activities. Staney 1990, pp 67-79 noted that
"7.7% of the 797 people interviewed on the socio-economic impact of oil in Nigeria identified farm land pollution as a major problem".
The peasants are very reactive to these changes because of the unavailability of modern farming and fishing techniques to meet the challenges of a declining soil and Marine resources. The drastic fall in output of the agricultural product, lead to intensive exploitation of other fertile land. The long run effect of this is land degradation and immigration to other rural and urban areas, where pressure is exerted on the often inadequate and dilapidated infrastructure, leading to increase poverty.
In addition, Ikporukpo 1981, pp 23-26 stated that
"Most farmers are concerned with problems of displacement without resettlement during oil spills". Gbadegesin 1997, p 9 further noted that
"Apart from loss of farms, oil spills have led to extensive deforestation with no adequate replanting practices…this in effect has shortened fallow periods, compounded land use degradation and led to a loss of soil fertility and consequently erosion of the top soil".
Elliot 1998, p 82 stated that
"The slash and burn agriculture traditionally practised by shifting cultivators-up to 10% of the world's population-is based on ecologically sound principles. It minimises threats to the forest by leaving land fallow over periods of time long enough for regeneration…. Landless peasants whom have been forced from their own lands, increases the number of people pursuing such a subsistence life style, this contributes to deforestation through further encroachment on forest lands and reductions in fallow times".
The out-migration of the rural displaced farmers in the Niger Delta as a result of environmental degradation caused by oil extraction in the region has led a significant percentage of the local inhabitants to remain in cyclical poverty and penury. This has meant greater environmental degradation as a result of the intensive exploitation of the few remaining fertile land in the region by the residents. It has also led to increasing urban blight in the urban areas in the Niger Delta as more and more displaced rural inhabitant flood the urban areas in search of non-existent jobs.
- OIL RESOURCE EXPLORATION AND PRODUCTION.oyakihlome.blogspot.com
"Oil which was first discovered in 1956 and first exported in 1958 accounted for more than 90% of Nigerian exports by value and about 80% of government revenue as at December 31, 1981….
The overall contribution of the oil sector to the national economy also grew from an insignificant 0.1% in 1959 to 87% in 1976."
There is no doubt that the Nigerian oil industry has affected the country in a variety of ways at the same time. On one hand, it has fashioned a remarkable economic landscape for the country, however on the negative side, petroleum exploration and production also have adverse effects on fishing and farming which are the traditional means of livelihood of the people of the oil producing communities in the Niger Delta, Nigeria.
If the oil industry is considered in view of its enormous contribution to foreign exchange earning, it has achieved a remarkable success. On the other scale, When considered in respect of it's negative impact on the socio-economic life and the environment of the immediate oil bearing local communities and its inhabitants, it has left a balance sheet of ecological and socio-physical disaster. This rightly provides a framework to evaluate the work of neo-classical economists whom argue that the development of primary resource materials for export in the periphery is the basis for development in the peripheral countries.
2.2 PRODUCING FOR EXPORT.
Nigeria like most other less developed countries in the early part of the 70's, were engaged in intensive natural resource exploitation as a way of stimulating economic growth. It was projected by several multilateral funding organisations such as the International Monetary Fund (IMF)and the World Bank that export drive of primary resource materials will eventually lead to economic growth and subsequently a significant reduction in the level of poverty. The projection was that the long-term gain of such a process would set the stage for a sustained economic development.
As at 1976, about 10 years from the start of the oil export drive. Figures available from the Federal Office of Statistics stated that oil has come to account for about 14% of the nation's gross domestic product (GNP) of Nigeria. 95% of the total export and over 80% of government annual revenue. Total export peaked at two million barrels of crude oil per day with price range of $18-$22 per barrel. This created more opportunity for the development of new oil fields, increase granting of mining licenses and the intensive exploitation of oil mineral resources in the Niger Delta.
The multinational oil companies made huge investments in the oil sector, which was quite technological and capital intensive. New laws were made which includes the petroleum act of 1969 and the land use Decree/Act of 1978. This legislation regulated community access to communal or open access land and they were primarily promulgated to restrict access to such land, while at the same time making it possible for the Multinational investors to have unrestricted access to explore for oil unchallenged even on sacred land.
These changes have led to a series of social conflict between the community people and the State/Oil companies as will be discussed later.
2.3 PEASANT AGRICULTURE IN THE NIGER DELTA AREAS.
Agriculture forms the most dominant economic activity in the Niger Delta. Federal Office of Statistics (F.O.S) in 1985 stated that Crop farming and fishing activities account for about 90% of all forms of activities in the area. They also estimated that about 50%-68% of the active labour force are engaged in one form of agricultural activity or the other including fishing and farming. Agricultural technology has remained relatively unchanged over the years and over 90% of the farmers are subsistent farmers operating on traditional methods using basic tools. Azibolomari 1998, p 67 stated that
"Farming technique in the Niger Delta has still remained the use of land rotation or bush fallow system characterised by land and labour being the principal inputs of production."
The organic farming technique widely used in the Niger Delta is highly susceptible to environmental changes affecting the soil, water and or deforestation because it is not technologically inspired, but rather land and labour intensive. Oil extraction and production has led to adverse environmental impact on the soil, forest and water of the Niger Delta communities. This has ultimately affected peasant agriculture in a variety of ways, which ultimately have caused problems of environmental refugees. Some of the landless farmers migrate to other more fertile lands in other rural communities, putting pressure on scarce fertile lands. While some of the displaced farmers out-migrate to the urban areas in search of other means of livelihood.
Various harmful and toxic organic compounds when introduced into the natural environment during oil extraction such as during seismic work, oil spill, gas flares and several other forms of pollution, changes the geo-chemical composition of the soil, river and other components of the environment. This in turn affects agriculture and lead to a drastic decline in output in both fishing and farming activities. Staney 1990, pp 67-79 noted that
"7.7% of the 797 people interviewed on the socio-economic impact of oil in Nigeria identified farm land pollution as a major problem".
The peasants are very reactive to these changes because of the unavailability of modern farming and fishing techniques to meet the challenges of a declining soil and Marine resources. The drastic fall in output of the agricultural product, lead to intensive exploitation of other fertile land. The long run effect of this is land degradation and immigration to other rural and urban areas, where pressure is exerted on the often inadequate and dilapidated infrastructure, leading to increase poverty.
In addition, Ikporukpo 1981, pp 23-26 stated that
"Most farmers are concerned with problems of displacement without resettlement during oil spills". Gbadegesin 1997, p 9 further noted that
"Apart from loss of farms, oil spills have led to extensive deforestation with no adequate replanting practices…this in effect has shortened fallow periods, compounded land use degradation and led to a loss of soil fertility and consequently erosion of the top soil".
Elliot 1998, p 82 stated that
"The slash and burn agriculture traditionally practised by shifting cultivators-up to 10% of the world's population-is based on ecologically sound principles. It minimises threats to the forest by leaving land fallow over periods of time long enough for regeneration…. Landless peasants whom have been forced from their own lands, increases the number of people pursuing such a subsistence life style, this contributes to deforestation through further encroachment on forest lands and reductions in fallow times".
The out-migration of the rural displaced farmers in the Niger Delta as a result of environmental degradation caused by oil extraction in the region has led a significant percentage of the local inhabitants to remain in cyclical poverty and penury. This has meant greater environmental degradation as a result of the intensive exploitation of the few remaining fertile land in the region by the residents. It has also led to increasing urban blight in the urban areas in the Niger Delta as more and more displaced rural inhabitant flood the urban areas in search of non-existent jobs.
- ENVIRONMENTAL AND SOCIAL IMPLICATION OF INTENSIVE OIL RESOURCE EXPLOITATION IN THE NIGER DELTA.
- In this section, the paper will look more specifically at various environmental and socio-economic problems that have been identified as a result of the intensive extraction of natural oil resources in the Niger Delta communities in Nigeria.
- ENVIRONMENTAL PROBLEMS.
- Contamination of Streams and River.
- The problem of Oil Spill.
- Forest Destruction and Bio-diversity loss.
- The Environmental Effect of Gas Flaring.
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