TABLE OF CONTENTS
ABSTRACT. ii
TABLES OF CONTENTS……………………………………………………..iii
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study. 1
1.2 Statement of the Problem.. 4
1.3 Objectives of the Study. 6
1.4 Research Questions. 6
1.5 Research Hypothesis. 7
1.6 Significance of the Study. 7
1.7 Scope of the Study. 8
1.8 Limitations of the Study. 8
1.9 Organization of the Study. 8
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Introduction. 10
2.2 Theoretical Review.. 10
2.2.1 Corporate Social Responsibility (CSR) Theory. 10
2.2.2 Resource Curse Mitigation Theory. 11
2.2.3 Inclusive Business Model Theory. 11
2.2.4 Energy Transition and Diversification Theory. 11
2.3 Conceptual Review.. 12
2.3.1 Overview.. 12
2.3.2 Historical Context 12
2.3.3 Corporate Social Responsibility. 13
2.3.4 Environmental Sustainability. 13
2.3.5 Economic Diversification. 13
2.2.3.6 Local Content Development 13
2.3.7 Governance and Transparency. 14
2.3.8 Social Impact and Community Engagement 14
2.3.9 Technology and Innovation. 14
2.3.10 Challenges and Controversies. 15
2.4 Empirical Review.. 15
2.5 Summary of Literature Review.. 17
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design. 18
3.2 Area of Study. 18
3.3 Population of the Study. 18
3.4 Sampling Technique and Sample Size. 19
3.5 Data Collection Instruments. 19
3.6 Sources of Data. 20
3.7 Method of Data Collection. 20
3.8 Method of Data Analysis. 20
3.9 Ethical Considerations. 21
3.10 Limitations of the Study. 21
CHAPTER FOUR
DATA ANALYSIS AND INTERPRETATION
4.1 Preamble. 22
4.2 Socio-Demographic Characteristics of Respondents. 22
4.3 Analysis of the Respondents’ Views on Research Question one: 26
4.4 Research Hypothesis. 36
4.5 Discussion of Findings. 38
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Findings. 41
5.2 Conclusion. 42
5.3 Recommendations. 43
REFERENCES. 45
APPENDICES. 51
Appendix I: Research Questionnaire: The Role of Oil and Gas Companies in Promoting Sustainable Development in Nigeria (A Case Study of Chevron) 51
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
The most widely recognized definition of sustainable development comes from the Brundtland Commission, which defines it as development that satisfies current needs without impeding the ability of future generations to satisfy their own (International Institute Sustainable Development, 2019; Dalibi et al. (2017). In order to ensure that future generations can live with a quality of life that is comparable to our own, sustainable development is essential because it promotes a balanced relationship between human activity and the environment (Nnaemeka-Okeke, 2016).
Sustainable development policy prioritizes resource conservation for the future, which sets it apart from traditional environmental policy, which likewise aims to address the negative effects of environmental degradation (United Nations, 2018). In 2015, all United Nations Member States adopted the Sustainable Development Goals (SDGs), a global call to action to eradicate poverty, safeguard the environment, and guarantee that everyone can live in peace and prosperity by 2030. These 17 interconnected goals serve as the "blueprint for achieving a better and more sustainable future for all". Among various global issues, they address poverty, inequality, environmental degradation, climate change, peace, and justice (Emeka-Okoli et al., 2024). While the Sustainable Development Goals (SDGs) are designed to be universal, there can be notable differences in their significance and the ways different businesses support them. The distinct connection between the oil and gas sector and several SDGs highlights its potential role in advancing development. This industry is vital to the global economy as it supplies energy for numerous industrial processes, transportation, heating, and electricity generation (Nzeako et al., 2024).
Hydrocarbons such as natural gas and crude oil are explored, extracted, refined, distributed, and transported in this industry. Both onshore and offshore resources are used by a wide range of businesses, from small independent operators to major multinational corporations. Significant technological developments over time have increased the sector's exploration and extraction methods' efficiency (Ekechi et al. 2024). Within Nigeria's economic framework, oil and gas companies have a complex and vital role to play in fostering sustainable development (Emeka-Okoli et al. 2024).
Nigeria is a major player in the global oil and gas industry due to its substantial oil reserves, which place it among Africa's top oil producers. But the process of extracting these resources has frequently led to environmental damage, social problems, and economic disparities. The need for Nigerian oil and gas firms to adopt sustainable practices in line with the nation's long-term development goals is becoming increasingly apparent (World Bank, 2020).
The Sustainable Development Goals (SDGs) have substantial implications for oil and gas operations. This integration paves the way for innovation, competitiveness, and long-term sustainability in the rapidly evolving energy sector, while also reducing negative social and environmental impacts. By incorporating SDG considerations into their business strategies, oil and gas companies can significantly contribute to global efforts to combat climate change, improve energy security, and foster economic growth and social well-being.
Oil and gas companies are increasingly incorporating environmental, social, and governance (ESG) principles into their operations in order to address these issues and advance sustainable development. This commitment includes initiatives to maintain sound corporate governance, improve social responsibility, and reduce the environmental impact of their operations. Companies are investing in strategies and tools that lower carbon emissions, prevent oil spills, and mitigate the damaging environmental impacts of exploration and extraction. They are also actively participating in community development projects and supporting healthcare, education, and infrastructure initiatives to improve the quality of life in their communities. For Nigeria to advance sustainable development, collaboration between governmental organizations, non-governmental organizations (NGOs), and oil and gas firms is essential. Effective implementation of government laws and regulations creates a framework for responsible resource management and encourages businesses to adopt sustainable practices. NGOs protect the rights of local communities and act as watchdogs, encouraging accountability, transparency, and transparency. By working together, these stakeholders lay the groundwork for sustainable development, which puts the long-term well-being of the environment and society above short-term financial gains (Okoh and Egbon, 2017). This study seeks to explore the role of oil and gas companies, with a specific focus on Chevron, in promoting sustainable development in Nigeria.Top of Form
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1.2 Statement of the Problem
The extractive industry is one of the most important industries that foster economic growth around the world, in both developed and developing countries (Valor, 2005). Yet their activities are always seen in a negative light. This is due to the undesirable consequences of mineral extraction on the host communities of the minerals, an issue that is of particular interest and concern to the general public and governments (McDonald and Young, 2012). This is especially true of the upstream oil and gas sector in Nigeria.
One significant issue is the environmental impact of oil and gas operations, including oil spills, gas flaring, and deforestation. Despite advancements in technology, incidents of oil spills continue to occur, leading to ecological damage, loss of biodiversity, and threats to the livelihoods of local communities. Moreover, the persistent practice of gas flaring, although significantly reduced in recent years, remains a concern, contributing to air pollution and climate change. Balancing the imperative for economic growth through oil and gas exploitation with the need to protect the environment is a fundamental challenge that demands innovative solutions and strict regulatory enforcement. World Bank. (2020).
Another critical problem is the social impact of oil and gas activities on local communities in Nigeria. These communities often experience disruptions to their traditional ways of life, as well as inadequate compensation for land use and environmental degradation. The lack of inclusive development initiatives and the unequal distribution of benefits from oil revenues exacerbate social inequalities, leading to tensions and conflicts.
Furthermore, issues of corporate social responsibility (CSR) and community engagement by oil and gas companies have been areas of contention, with some companies falling short in their commitments to sustainable community development. By embedding SDG considerations into their strategies, oil and gas companies can contribute to global efforts to combat climate change, enhance energy security, and promote economic development and social well-being (International Energy Agency. 2019).
1.3 Objectives of the Study
The main objective of the study is to examine the role of oil and gas companies in promoting sustainable development in Nigeria. Specific objectives of the study are:
- 1. To evaluate the contribution of oil and gas companies to economic development in Nigeria, with a focus on.
- 2. To assess the environmental impact of oil and gas operations in Nigeria, considering.
- To analyze the social and political dynamics surrounding oil and gas activities in Nigeria, examining.
1.4 Research Questions
To guide the study and achieve the objectives of the study, the following research questions were formulated:
- To what extent are oil and gas companies contributing to economic diversification and local development in Nigeria, and how can their efforts be maximized for sustainable impact?
- How effective are current environmental regulations and corporate social responsibility programs in mitigating the negative environmental impacts of oil and gas activities in Nigeria, and what are the potential future pathways towards sustainable resource management?
- How does the power dynamics and distribution of oil wealth influence social and political stability in oil-producing regions of Nigeria, and what mechanisms can be implemented to ensure equitable and transparent governance based on the principles of sustainable development?
1.5 Research Hypothesis
The following research hypothesis was developed and tested for the study:
Ho: There is no statistical significant relationship between oil and gas companies and promoting sustainable development in 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 Management 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 analyzed 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 organizations 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 Chevron. 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.
