This research examined the impact of oil block allocation on national development (1999 -2020). The objectives were to determine the impacts of oil block allocation on national developments and highlight the challenges of oil block allocation for national development. The need to continuously look at oil wealth and national development in Nigeria cannot be over-emphasized. Increased poverty, illiteracy and unemployment amidst oil wealth through oil block allocation necessitated this critical examination.
This research is anchored on State Fragility Theory (SFT). Institutional weakness and state instability are triggered by violence, criminality and unrest due to unfulfilled expectations; the unexplained relationship between poverty and oil wealth in Nigeria. This study used descriptive research design and content analysis. The data employed for the study were mostly gathered from secondary sources.
This work observed that oil wealth has not translated to national development due to the concentration of oil block allocation in the concentration of oil block allocation in the hands of few individuals and multinational corporations. It strongly recommended the revocation of oil block licenses and transferring ownership to the people through the federal and state government in Nigeria.
Table of Contents
1.1 Background to the Study
1.2 Statement of the Problem
1.3 Research Aim and Objectives
1.4 Research Questions
1.5 Research Hypotheses
1.6 Significance of the Study
1.7 Scope of the Study
2.0 Literature Review
2.1 Conceptual Literature Review
2.2 Empirical Literature Review
2.3 Theoretical Framework
3.1 Research Design
3.2 Population of the Study
3.3 Sample Frame and Method
3.4 Method and Instrument of Data Collection
3.5 Instrument Validity and Reliability
3.6 Data Analysis and Interpretation
3.7 Ethical Consideration and Research Limitations
3.8 Summary of Research Methodology
4.1 Data Presentation
4.2 Data Analysis and Interpretation
4.3 Discussion of Finding/Implication of the Study
5.1 Summary
5.2 Conclusion
5.3 Recommendations
Research Objectives and Themes
This study aims to investigate the nexus between the allocation of oil blocs and Nigeria's national development between 1999 and 2020, seeking to determine if oil wealth has effectively translated into socio-economic improvements for the general populace or has instead perpetuated inequality.
- The historical evolution and current nature of oil bloc allocations in Nigeria.
- The impact of opaque procurement and management of oil resources on national development.
- The correlation between oil wealth, systemic corruption, and increased poverty levels.
- Evaluation of legal and constitutional frameworks regarding the ownership of natural resources.
- Proffering policy solutions to ensure equitable benefit sharing of oil wealth for all citizens.
Excerpt from the Book
1.1 Background to the Study
From 1956 when the first crude oil was discovered in Oloibiri community in the present day Bayelsa State, Nigeria has moved steadily from an agro-based economy to a permanent oil-based economy in the early 1970s to date. Within this period, crude oil production has steadily moved from 5 million barrels (1960s), to over one trillion barrels (1990s). Government revenue also moved from just over N66 million in 1970 to N800 billion in 2018 (Romanova, 2007; Shell, 2019). As the major export earning product of the Nigerian government, the crude oil sector accounts for over 97% of total exports, 81% of total public revenue and 45% of Gross Domestic Product (GDP) (Temi, 2013). Nigeria produces over 2.4 million barrels of crude oil per day, more than 165 million cubic meters of gas per day.
Available records show that Nigeria has over 606 oil fields, 1,481 oil wells, 275 flow stations, 10 gas plants, 32 oil rigs and 4 refineries. These oil wells were allocated through procurement processes to about 13 major Multinational Oil Companies (Shell, Chevron, Mobil, Agip etc.), and indigenous oil companies (South Atlantic Company, Cavendish Petroleum, AMNI Oil Company, Old Work Field, North East Petroleum Limited, Express Petroleum, Seplat Petroleum etc.). Nigeria is the largest crude oil producing nation in Africa and the six largest in the world (Romanova, 2007). At present, there are about 92 Oil Prospecting Leases (OPLs) and 109 Oil Mining Leases (OMLs) (Temi, 2013; Shell, 2019). Most of these Oil Mining Leases (OMLs) are domiciled in the Niger Delta region. The establishment of the Niger Delta Development Commission (NDDC) during the Olusegun Obasanjo regime and the Ministry of the Niger Delta during the Umaru Musa Yar’Adua administration were in direct response to corruption and maladministration in the procurement, management and distribution of oil resources in Nigeria resulting in underdevelopment in the region amidst oil wealth.
Summary of Chapters
1.1 Background to the Study: Discusses the transition of Nigeria from an agro-based to an oil-based economy and the resulting concentration of resource control.
1.2 Statement of the Problem: Highlights the disparity between high oil revenues and the lack of corresponding national development, poverty, and infrastructural decay.
1.3 Research Aim and Objectives: Outlines the research focus on examining the nature, impacts, and challenges of oil bloc allocations to propose solutions for national progress.
1.4 Research Questions: Formulates inquiries regarding the nature, impacts, challenges, and solutions related to oil bloc allocations and national development.
1.5 Research Hypotheses: Presents assumptions regarding the failure of oil wealth to translate into development and the unconstitutionality of current allocation practices.
1.6 Significance of the Study: Explains the value of the research for the Nigerian government, the populace, and the academic community.
1.7 Scope of the Study: Defines the research boundaries covering the period from 1999 to 2019 while drawing comparisons with earlier historical data.
2.0 Literature Review: Provides a comprehensive overview of conceptual and empirical studies regarding development and resource management.
2.1 Conceptual Literature Review: Examines varying definitions of development and national development within the African context.
2.2 Empirical Literature Review: Reviews previous research findings on the Nigerian oil industry, multinational involvement, and socioeconomic outcomes.
2.3 Theoretical Framework: Adopts the State Fragility Theory to analyze the connection between resource mismanagement and state stability.
3.1 Research Design: Describes the descriptive and survey-based methodological approach used in the study.
3.2 Population of the Study: Identifies the Nigerian population as the key stakeholder and subject of the research.
3.3 Sample Frame and Method: Details the purposive judgmental sampling method used to gather data across six geopolitical zones.
3.4 Method and Instrument of Data Collection: Explains the use of structured questionnaires and secondary data sources.
3.5 Instrument Validity and Reliability: Confirms the reliability of the research instruments through pilot testing and expert review.
3.6 Data Analysis and Interpretation: Outlines the statistical tools used, including percentages and Likert scale analysis.
3.7 Ethical Consideration and Research Limitations: Addresses ethical protocols and limitations regarding resource constraints and the COVID-19 pandemic.
3.8 Summary of Research Methodology: Summarizes the procedural framework established for the investigation.
4.1 Data Presentation: Displays the field survey results using tables, histograms, and pie charts.
4.2 Data Analysis and Interpretation: Interprets the findings regarding the impact of oil bloc allocations and public sentiment on resource ownership.
4.3 Discussion of Finding/Implication of the Study: Discusses the findings in the context of the initial research hypotheses and wider socioeconomic implications.
5.1 Summary: Recaps the research process and the conclusion that oil wealth has not served the masses.
5.2 Conclusion: Synthesizes the core findings, emphasizing the negative correlation between current allocation policies and national stability.
5.3 Recommendations: Proposes policy changes, including the transfer of oil bloc ownership to federal and state governments and the promotion of transparent resource distribution.
Keywords
Oil Blocs, National Development, Nigeria, Resource Management, Socio-Economic Development, Corruption, State Fragility, Oil Mining Leases, Public Revenue, Poverty, Infrastructure, Transparency, Accountability, Governance, Procurement.
Frequently Asked Questions
What is the primary focus of this research?
The research explores the impact of oil bloc allocations on Nigeria's national development between 1999 and 2020, focusing on how resource distribution influences socio-economic outcomes.
What are the core themes addressed in the work?
Key themes include the institutional opacity in oil procurement, the concentration of wealth among a privileged few, the high poverty rates amidst oil abundance, and the constitutional aspects of resource ownership.
What is the ultimate goal of this research project?
The goal is to determine why the significant oil wealth generated has failed to translate into national development and to propose policy reforms for more equitable resource utilization.
What methodology was utilized in this study?
The study employed a descriptive and survey-based research design, utilizing structured questionnaires administered to 600 respondents across six geopolitical zones in Nigeria.
What is the primary argument regarding the Nigerian oil industry?
The authors argue that the current system of allocating oil blocs to a few individuals and corporations is unconstitutional and contributes to systemic underdevelopment, corruption, and social instability.
Which specific keywords define this study?
The research is defined by terms such as Oil Blocs, National Development, Corruption, Governance, Socio-Economic Development, and Resource Management.
How does the "State Fragility Theory" apply to this research?
The theory is used to analyze how the disparity between the official policy of resource distribution and the actual, unequal allocation contributes to weak institutions, social unrest, and a fragile state structure.
What is the significance of the findings in Chapter Four?
Chapter Four presents the empirical evidence from the field survey, showing that the vast majority of citizens perceive oil wealth as being cornered by a few, thereby confirming the research hypotheses regarding the injustice of current allocation practices.
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- Leo the Great Ebenezer (Autor:in), Chris Piate (Autor:in), 2021, Oil Blocs Allocations and Nigeria’s Socio-Economic Development (1999 – 2020), München, GRIN Verlag, https://www.grin.com/document/1143439
