PEACE ACCOUNTING AND ETHNIC UNREST. ISSUES, PROBLEMS AND PROSPECTS: A STUDY OF MINISTRY OF NIGER DELTA AFFAIRS.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The exploitation and production of oil in the Niger- Delta have created some of the largest fortunes for the multinational companies and have helped to achieve impressive economic growth and development of the Niger state, but little or no attention has been directed by both the multinational companies and the Nigeria governments to the effects of such oil activities on the welfare of oil producing communities (Ikein,1990). Oil has not as expected brought prosperity, better living conditions and governmental attention and development; rather it has become a curse and impoverishes the inhabitants of the Niger-Delta region. (Akeen,2010). However a fight for their rights against the multinational companies and the Federal Government has resulted in large-scale violence, crisis, social tension, hostage taking, man slaughter, kidnapping and other social vices of the region. Which has led to the withdrawal of major oil producing companies from the region (Ibeanue, 2005)? The low level of oil production as a result of insecurity of lives and property in the region has a strong negative impact on the Nigerian economy (Ikelegbe, 2008). In their effort to bring the situation under control, the        multinational companies, governments and other stakeholders have been clamoring for peace in the Niger- Delta region to boost economic development.

However, the term peace is relative and the conditions for peace differ from one society or nation to another. Ibeanue (2005) asserted that peace is a process involving activities that are linked to increasing development, respect and tolerance between people, wholeness and making whole, and the absence of war.Despite its relative nature, peace has a common denominator, i.e. the harmonious or friendly pursuit of individual and collective interest defined by rules of conduct or standard of behavior. Thus, in this context, peace is described' as a condition in which people live in agreement with accepted standards of conduct or rules of behavior that promote public good and the happiness of everyone.

Moreover, various strategies are being devised by the multinational companies and the government for the enthronement of peace in the Niger-Delta region of Nigeria. Multinational companies are spending so much money to hire security agents to protect their facilities and personnel from militant attacks. The government on the other hand is spending huge amount of money to maintain peace-keeping forces in the region. In 2009, the Federal Government of Nigeria under the administration of President Umaru Musa Yar,Adua, granted amnesty to militants and these former militants are currently on the payroll of the government thereby reducing government current revenue. Akeem and Erhun (2010) posited that the recurrent expenditure of the Federal Government increases on a basis at an average of 12.69 due to security measures taken by governments to ensuring peace in the Niger-Delta region. It is upon this premise that this paper tends to investigate the impact of cost of peace-keeping in Niger-Delta region and the economic development of Nigeria.

1.2 Statement of the research problems

The Niger-Delta had witnessed severe economic deprivation and social exclusion in sharp contrast to the enormous wealth of the area. Environmental degradation, lack of infrastructural facilities, inadequate provision of functional educational system and deplorable socio- economic standard paint the picture of the area in spite of the huge wealth carted away by the foreign workers, especially the expatiate that also live in affluence, in contrast to the abject poverty and deprivation of the indigenes on whose land the foreigners got their wealth. There had been environmental pollution, forced unemployment as a result of land and water pollution arising from oil spillage.

However, a fight for their rights against the multinational companies and the federal Government has resulted in large-scale violence crisis, social tension, hostage taking, man slaughter, kidnapping and other social vices of the region. The aftermath of these vices, is the high degree of insecurity in the region, which has led to the withdrawal of major oil producing companies from the region. The low level of oil production as a result of insecurity of lives and property in the region has a strong negative impact on the Nigeria economic (Ikelegbe, 2008).

There is need for peace and in their effort to bring the situation under control, the multinational companies, governments and other stakeholders have been clamoring for peace in the Niger-Delta region to boost economic development. The government responses since 1957 when oil was first discovered in commercial quantities at Oloibiri had not abated agitations at Niger-Delta in 2008.1.

However, in 2009, the federal Government of Nigeria under the administration of President Musa Yar Adua granted amnesty to militants and these former militants are currently on the payroll of the government thereby reducing government current revenue. Akeem and Erhun (2010) posited that the recurrent expenditure of the federal Government increase on a basis at an average of 12.69 due to securing measures taken by governments to ensuring peace in the Niger-Delta region. Therefore, it is on the light of the above identified problems that the study tends to examine the impact of peace keeping accounting in the economic development of Nigeria whereby the impact of cost of peace-keeping will be investigated, ascertain how oil induce militant activities in the Niger-Delta and finally identify the influence of cost of peace-keeping on the fund account of the federal government.

1.3 Objectives of the study

The primary objective of this research work is to examine the impact of peace accounting on economic development of Nigeria with reference to ministry of Niger-Delta Affairs.

But for the purpose of making reasonable conclusion, the following specific objectives are important:

1. To investigate the impact of cost of peace-keeping in the economic development of Nigeria.

2. To ascertain how oil induced militant activities in the region.

3. To identify the influence of cost of peace keeping on the fund account of the federal government.

1.5 Research Hypotheses

Ho: Cost of peace-keeping in Niger Delta region has no significant impact on economic development of Nigeria.

Hi: Cost of peace-keeping in Niger Delta region has significant impact on economic development of Nigeria.

Ho: oil has not induced militant activities in the region.

Hi: oil has induced militant activities in the region.

Ho: cost of peace keeping has no influence on fund account of the federal government.

Hi: cost of peace keeping has influence on fund account of the federal government.

1.4 Research Questions

In order that relevant information could be sources to help in the presentation and analysis of data and to make reasonable conclusion, the researcher however formulate among others the following key research questions:

1. What are the factors that are militating against the cost of peace-keeping on the economic development of Nigeria?

2      Do you think that oil will induce militant activities in the region?

3. Is there any influence of cost of peace-keeping on the fund account of the federal government?

1.6 Significance of the Study

The research work will be of great benefit to both practical and academic purpose.

This study will be of much importance and great benefit to the ministry of Niger-Delta Affairs, government and these multinational companies in general to reduce the cost of peace enthronement in the Niger-Delta region and consequently improve the economic development of Nigeria.

Academically, the work will be significant to students studying on the related topic as it would serve as a resourceful material and a well organized off-shoot for this project written.

Moreover, the data generated in this study can also be used to expand further field of knowledge of this topic from many other dimension. 

1.7 Scope of the Study

This project work is structured to revolve the cost of peace-keeping in the economic development of Nigeria with more emphasis to Abia ministry of Niger-Delta Affairs. Abia ministry of Niger-Delta Affairs was selected to represent all the ministry of Niger-Delta Affairs created to see for peace-keeping in the region. The choice of Abia ministry of Niger-Delta Affairs was also due to proximity reasons and easy accessibility of data and that it would serve as a good sample to examine the problem of cost of peace keeping in the economic development of Nigeria.

1.8 Limitation of the Study

This study faced a lot of constraints which hindered an in-depth study and research on the topic, like the time limit allotted to the paper which made it difficult for the researcher needed for the study.

The project work is being carried thereby making it impossible for the work as there is still other academic course to attend to.

Finally, the work was constrained mainly inadequate finance traced down to the economy.

1.9 Definition of Terms

It is necessary that clear definition of some technical terms and works are given to avoid any possible confusion that may arise because of its usage.

Multinational companies: According to oxford Advanced learner's Dictionary, they are company that operates in several different countries especially a large and powerful company, such as Chevron, Taxaco, Exxon-mobil, Total, Agip, SPDC, ELF and the Nigerian national petroleum corporation (NNPC).

Peace accounting: Is the systematic recording and ascertainment of the cost of peace-keeping.

Justice: The fair treatment of people.

Amnesty: According to Oxford Advanced learners, it is an official statement that allows people who have put in prison for crimes against the state to go free.

Agitation: public protest by Niger-Delta region in order to achieve political change.