EVALUATION OF THE COST OF OIL SPILLAGE ON THE NIGER DELTA REGION OF NIGERIA

CHAPTER ONE

INTRODUCTION

1.1. BACKGROUND OF THE STUDY

Oil spillage is a global issue that has been occurring since the invention of fossil fuel that was a part of the commercial revolution.  The whole spillage of fossil fuel into the oceans, seas and rivers through human activities is calculable to vary zero.7-1.7 million tons each year (www.science.irank.org). Oil spills have posed a serious threat to the setting of the oil manufacturing areas, that if not effectively checked will result in the whole destruction of ecosystems. The Niger Delta is among the 10 most significant ground and marine ecosystems within the world. The industry placed at intervals this region has contributed vastly to the expansion and development of the country that could be a undeniable fact that cannot be controversial however unsustainable oil exploration activities has rendered the Niger Delta region one in every of the 5 most severely fossil fuel broken ecosystems within the world. Studies have shown that the amount of oil spilled over fifty years was a least 9-13 million barrels that is comparable to fifty Exxon port spills (FME, et. al. 2006). In 1956, Shell British fossil fuel (now Royal Dutch Shell) discovered fossil fuel at a village Oloibiri in Bayelsa state placed at intervals the Niger Delta of Federal Republic of Nigeria (Anifowose, 2008; Onuoha, 2008) and industrial production began in 1958. As of 2006, there square measure eleven (11) oil firms operational 100 and fifty- 9 (159) oil fields and one thousand four hundred and 81 (1,481) wells within the Niger Delta in Federal Republic of Nigeria (The Guardian, 2006). Human activities and people of oil exploration and exploitation raise variety of problems similar to depletion of multifariousness, coastal and bank erosion, flooding, oil spillage, gas flaring, sound pollution, waste product and waste pollution, land degradation and soil fertility loss and deforestation, that square measure all major environmental problems. Oil exploration and exploitation has been in progress for many decades within the Niger Delta. It's had fatal impacts on the setting within the region and has adversely affected individuals inhabiting that region. Odeyumi and Ogunseitan (2011) wrote a paper on the expansion and development of the oil and organic compound business in Federal Republic of Nigeria with stress to the notable cases of pollution disturbances throughout the twenty five years of its existence, light causes and effects on the social, economic, agricultural and ecological characteristic on human and different organic phenomenon occupants of the oil region. Recommendations got as guide, for the activities of the Nigerian National fossil fuel Corporation (NNPC) within the interference, control, treatment of oil and organic compound pollution. Celestine (2011) mentioned the results of intensive oil resource extraction on the setting of the oil bearing Niger Delta communities and environmental issues similar to resource degradation, pollution and economic condition within the Niger Delta communities. Tolulope (2010) wrote on the oil spillage incidences in Federal Republic of Nigeria with its negative implication to the setting, accenting on the extent of hazards and also the tendency of fossil fuel merchandise to foul the setting. Twumasi and Merem (2006) explored the applying of GIS and remote sensing within the tropical coastal zone setting with stress on the environmental impact of development within the Niger Delta region. The results showed decline in water bodies, angiospermous tree forest and several other cases of oil spills. Chukuezi (2006) wrote a paper on the implications of oil exploration and environmental degradation to property development within the Niger Delta. Explaining this has culminated into economic condition, restiveness and human insecurity within the region. In general, the assessment of different researchers into this issue acknowledges that the industry has beyond any doubt brought economic profit to the Nigerian state however has left environmental pollution issues with visible physical destruction. The interference of environmental degradation could be a task that has got to be pursued smartly. Amu (2009) aforementioned that the identification of issues, style and applying applicable sanctions could be a major issue that must be resolved and has got to begin with amendment within the gift judicatory and angle towards the proceeding of  environmental problems yet as a reform in environmental policies.

1.2. STATEMENT OF PROBLEM

Oil spillage is a common occurrence in the Niger Delta and is caused by poor infrastructure maintenance, human error, and intentional vandalism or theft of oil resulting in spills or leaks during processing and transportation (Amnesty International, 2009). Over the years from 1976 to 1996, spill incidents in total of 4,835 were recorded with 1.897 million barrels of oil lost as pollution to the environment (Orimoogunje &Ajibola-James, 2013). UNDP (2006) estimates that between 1976 and 2001, an approximate of 6,800 spills totalling 3 million barrels of oil were recorded in the Niger Delta region. Oil spill cases appear to be increasing over the years. This can be attributed to increased oil production and the lack of enforced regulatory control regarding environmental relations. The estimated barrels of crude oil spilled annually in the Niger Delta over surface and ground waters as well as vegetation and air is 240,000 (Ordinioha & Brisibe, 2013). The health effects of these pollution activities include contamination and poisoning of water, food and the environment resulting in ill health and death (World Health Organization [WHO], 2011). Oteh and Okpo (2012) gave account of oil spills in the Niger Delta in the past fifty years at an average 1.5 million tons, fifty times more than the volume of oil recorded in 1989 in Exxon Valdez oil spill in Alaska, with corrosion accounting for 50% of the spills, 28% due to sabotage, and 22% to oil production drills and operations. The severity of these frequent and collectively massive spills is only amplified by other environmental problems in the region like seasonal floods and a limited land space which does not allow for human resettlement thus constraining development (UNDP, 2006). This is also more critical in the case of a serious spill as people are not able to relocate to another nearby place for development due to the shortage of land. While economic gains exist in the exploration of oil in the Niger Delta, the losses due to hazards appear to exceed the benefits for the residents of the region and oil workers who are both at risk due to exposure and are directly affected from the negative impact of oil spills in the region, which are evident in the damages done to the region’s ecosystem.

1.3 AIMS OF THE STUDY

The major purpose of this study is to evaluate the cost of oil spillage on the people of Niger Delta region of Nigeria. Other general objectives of the study are:

1. To examine the causes of oil spill occurrence in Niger delta region of Nigeria.
2. To examine factors affecting the management system to reduce oil spill in the region.
3. To examine the cost of oil spillage on the people of Niger Delta Region.
4. To examine the impacts of oil spillage in the Niger Delta Region of Nigeria.
5. To examine the relationship between cost of oil spillage and the life expectancy of the Niger Delta region.
6. To examine the management system adopted for the control of oil spill in the Niger Delta Region of Nigeria.

1.4 RESEARCH QUESTIONS

1. What are the causes of oil spill occurrence in Niger delta region of Nigeria?
2. What are the factors affecting the management system to reduce oil spill in the region?
3. What is the cost of oil spillage on the people of Niger Delta Region?
4. What are the impacts of oil spillage in the Niger Delta Region of Nigeria?
5. What is the relationship between cost of oil spillage and the life expectancy of the Niger Delta region?
6. What are the management systems adopted for the control of oil spill in the Niger Delta Region of Nigeria?

1.5 RESEARCH HYPOTHESES

H01: Cost of oil spillage has no significant effect on the people of Niger Delta Region.

H02: There is no significant relationship between cost of oil spillage and the life expectancy of the Niger Delta region.

1.6 SIGNIFICANCE OF THE STUDY

The research has a significant role to play in discovering appOSCches to prevent, respond and manage issues like such presented by oil spillage in oil production activities in the Niger Delta Region of Nigeria. This study will critically investigate and analyse the causes and provide recommendations for the improvement of oil spills management in the Niger Delta region of Nigeria, in order to reduce and where possible prevent the occurrence of oil spillages in the region. The study will also be significant to the government in the management of oil spillage because too much oil spill affects the economy.

1.7    SCOPE OF THE STUDY 

The study is based on evaluation of the cost of oil spillage on the people of the Niger Delta Region of Nigeria.

1.8 LIMITATION OF STUDY

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.8 DEFINITION OF TERMS

Cost: An amount that has to be paid or given up in order to get something. In business, cost is usually a monetary valuation of (1) effort, (2) material, (3) resources, (4) time and utilities consumed, (5) risks incurred, and (6) opportunity forgone in production and delivery of a good or service. All expenses are costs, but not all costs (such as those incurred in acquisition of an income-generating asset) are expenses.

Oil Spill: An oil spill is the release of a liquid petroleum hydrocarbon into the environment, especially the marine ecosystem, due to human activity, and is a form of pollution. The term is usually given to marine oil spills, where oil is released into the ocean or coastal waters, but spills may also occur on land. Oil spills may be due to releases of crude oil from tankers, offshore platforms, drilling rigs and wells, as well as spills of refined petroleum products (such as gasoline, diesel) and their by-products, heavier fuels used by large ships such as bunker fuel, or the spill of any oily refuse or waste oil.