Table of Contents
ABSTRACT.. 2
CHAPTER ONE.. 6
INTRODUCTION.. 6
1.1 Background to the Study. 6
1.2 Statement of the Problem... 7
1.3 Objectives of the Study. 8
1.4 Research Questions. 8
1.5 Research Hypothesis. 9
1.6 Significance of the Study. 9
1.7 Scope of the Study. 10
1.8 Limitations of the Study. 10
1.9 Organization of the Study. 10
CHAPTER TWO.. 12
REVIEW OF RELATED LITERATURE.. 12
2.1 Introduction.. 12
2.2 Theoretical Review.. 12
2.3 Conceptual Review.. 14
Historical Context and Evolution of Oil Theft:. 15
Economic Implications of Oil Theft. 15
Environmental Degradation and Social Costs. 15
Policy Implications and Mitigation Strategies. 16
EMPIRICAL REVIEW... 17
Chapter Three. 21
Research Methodology. 21
Research Design.. 21
Data Collection.. 21
Sampling. 21
Data Analysis. 22
Ethical Considerations. 22
Limitations. 22
CHAPTER FOUR.. 24
DATA ANALYSIS AND INTERPRETATION.. 24
4.1 Preamble. 24
4.2 Socio-Demographic Characteristics of Respondents. 24
4.3 TABLES BASED ON RESEARCH QUESTIONS.. 28
4.3.1 Analysis of the Respondents’ Views on Research Question one:. 28
4.5 Discussion of Findings. 36
CHAPTER FIVE.. 39
SUMMARY CONCLUSION AND RECOMMENDATIONS.. 39
5.1 Summary of Findings. 39
5.2 Conclusion.. 39
5.3 Recommendations. 41
References:. 42
Research Questionnaire: The Impact of Oil Theft on the Nigerian Economy. 43
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
1.1 Background to the Study
In certain circles, there is consensus that Crude Oil serves as the backbone of the modern economy, emerging as the predominant commodity globally, giving rise to a multitude of derivative products. Referred to as the "mother of all commodities," its significance lies in its role in manufacturing various items such as gasoline, synthetic fabrics, plastics, and pharmaceuticals (Investinganswers, 2011).
Crucially, contemporary nations find it challenging to exist without crude oil products, leading Smil (2008) to characterize it as the "lifeblood of the modern world." According to Smil, without oil, globalization, plastic production, transportation, and the global landscape as we know it would cease to exist. Yergin (2008) goes so far as to dub it "the world's most important resource." Recognizing its importance, Feyide (1986) aptly notes that oil serves as both a raw material and a potent source of energy, impacting the lives of individuals worldwide and shaping the destinies of nations.
While some countries strive to diversify their economies, Nigeria remains predominantly dependent on the oil sector for its economic sustenance, despite efforts to develop other mineral resources (Okere, 2013). Over 90% of Nigeria's export and foreign exchange earnings, as well as over 70% of its total revenue, come from oil and gas resources in the Niger Delta region (Ekuerhare, 2002). This heavy reliance on crude oil has significant implications for the country's economic viability and development initiatives (Wilson, 2012).
Despite being a crucial component of Nigeria's economy, crude oil faces challenges such as theft, vandalism, and criminal activities, resulting in substantial daily losses (Adeboboye, 2013). The vandalism of oil pipelines in the Niger Delta region has reached alarming levels, potentially jeopardizing Nigeria's economic stability. Presently, the country is losing over 800,000 barrels of crude oil per day due to pipeline vandalism and related criminal activities, significantly impacting its oil production (Vangardngr, 2016).
1.2 Statement of the Problem
The issue of oil theft poses a significant challenge to the Nigerian economy, warranting in-depth investigation and analysis. With Nigeria heavily reliant on oil as a major source of revenue, the persistent and widespread nature of oil theft has far-reaching implications for the country's economic stability. The pilfering of oil, involving illegal activities such as pipeline vandalism and criminal enterprises, not only results in substantial financial losses but also undermines the nation's developmental aspirations. The impact of oil theft extends beyond economic considerations, affecting environmental sustainability and social well-being. This research aims to comprehensively examine the multifaceted consequences of oil theft on the Nigerian economy, shedding light on the interconnected factors that contribute to its prevalence and exploring potential strategies to mitigate its adverse effects. Through a thorough investigation, this study seeks to provide valuable insights and recommendations that can inform policy interventions and foster sustainable economic growth in Nigeria.
The issue of oil theft poses a significant challenge to the Nigerian economy, warranting in-depth investigation and analysis. With Nigeria heavily reliant on oil as a major source of revenue, the persistent and widespread nature of oil theft has far-reaching implications for the country's economic stability. The pilfering of oil, involving illegal activities such as pipeline vandalism and criminal enterprises, not only results in substantial financial losses but also undermines the nation's developmental aspirations. The impact of oil theft extends beyond economic considerations, affecting environmental sustainability and social well-being. This research aims to comprehensively examine the multifaceted consequences of oil theft on the Nigerian economy, shedding light on the interconnected factors that contribute to its prevalence and exploring potential strategies to mitigate its adverse effects. Through a thorough investigation, this study seeks to provide valuable insights and recommendations that can inform policy interventions and foster sustainable economic growth in Nigeria.
1.3 Objectives of the Study
The main objective of the study is to examine the impact of oil theft on Nigerian economy. Specific objectives of the study are:
- To assess the quantitative impact of oil theft on the Nigerian economy.
- To examine the social and environmental consequences of oil theft in Nigeria.
- To assess the effectiveness of current countermeasures and policies aimed at combating oil theft in Nigeria.
1.4 Research Questions
To guide the study and achieve the objectives of the study, the following research questions were formulated:
- What is the annual financial loss incurred by the Nigerian government due to oil theft?
- How does oil theft contribute to environmental degradation in the Niger Delta region?
- What are the existing regulatory frameworks and law enforcement strategies to prevent and combat oil theft in Nigeria?
1.5 Research Hypothesis
The following research hypothesis was developed and tested for the study:
Ho: There is no statistical significant relationship between oil theft and economy of Nigeria.
1.6 Significance of the Study
The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:
Firstly, the paper will benefit major stakeholders and policy makers in the oil and gas sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.
Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.
Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.
1.7 Scope of the Study
The study is delimited to the Nigerian Economy. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.
1.8 Limitations of the Study
The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.
1.9 Organization of the Study
The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.
Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.
Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.
Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.
Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.
