Oil spillage cost, gas flaring cost and life expectancy rate of the Niger Delta people of Nigeria

Type Journal Article - Advances in Management and Applied Economics
Title Oil spillage cost, gas flaring cost and life expectancy rate of the Niger Delta people of Nigeria
Author(s)
Volume 2
Issue 2
Publication (Day/Month/Year) 2012
Page numbers 211-228
URL http://www.scienpress.com/Upload/AMAE/Vol 2_2_10.pdf
Abstract
The study examined the degree of influence of oil spillage and gas flaring costs on
life expectancy rate of the Niger Delta people of Nigeria. It was intended to
survey the life threatening impacts of lost revenue occasioned by oil spillage and
gas flaring activities of the Oil and Gas companies operating in the Niger Delta
region of Nigeria between 1979 and 2008. The descriptive survey research method
was used to select forty oil and gas producing local government areas from the
nine states of the Niger Delta region. Data on oil spillage rate, gas flaring rate, oil
spillage volume, gas flaring volume, oil spillage cost and gas flaring cost were
obtained from NNPC, the oil and gas companies and the Central Bank of Nigeria
for the thirty years studied. Data for life expectancy were obtained from the
United Nations Common Database for the thirty years. The study revealed a total
oil spillage and gas flaring revenue lost of US $175,795,811 or
N20,671,321,766.00 with a mean life expectancy rate of 49.12 years between
1979 and 2008 with an insignificant correlation between life expectancy rate and
the costs of oil spillage and gas flaring ranging between 1.8% and 5.2% but a
significant impact of oil spillage and gas flaring activities on socio- economic
conditions and poverty rate of the people of the Niger Delta region of Nigeria for
the years studied. Based on these results, the study recommended that government
should enact mandatory legislations for oil and gas prospecting companies to
establish Oil and Gas Compensation Fund to control the frequency of oil spillage
and gas flaring in the Niger Delta region of Nigeria. Nigerian Government need to
initiate people oriented policies in governance to ensure micro economic
empowerment and human capital development of the people of the Niger Delta
region aimed at reducing the rate of poverty. There should be a conscious
implementation of the Niger Delta Master Plan to fast track infrastructural
development in the region and to enhance life expectancy rate of the people of
Niger Delta.

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