Analysis of the Relationship Between Environmental Degradation of Oil Companies and Economic Growth of Nigeria

Ndubuisi Chinedu Jonathan; Godwin Adaobi Ozioma; Ndah Eze Nwoka

doi:doi:10.11648/j.ijfbr.20180404.11

| Peer-Reviewed

Analysis of the Relationship Between Environmental Degradation of Oil Companies and Economic Growth of Nigeria

Ndubuisi Chinedu Jonathan, Godwin Adaobi Ozioma, Ndah Eze Nwoka

Published in International Journal of Finance and Banking Research (Volume 4, Issue 4)

Received: 1 August 2018 Accepted: 25 September 2018 Published: 5 November 2018

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

When natural resources such as oil and gas are enhanced for economic growth and well-being of the citizenry, the nation invariably finds herself experiencing an array of pollutants including carbon dioxide, warming, and other greenhouse emission. This research therefore is set to analyse the relationship between environmental degradation and economic growth in Nigeria. The objective of the research was decomposed to ascertain if a significant relationship exists between oil spillage and economic growth, gas flaring and economic growth and finally between number of fire outbreaks and economic growth of Nigeria. Descriptive survey research was used and data were collected via Central Bank of Nigeria statistical bulletin and Nigeria National Petroleum Corporation statistical bulletin. The population of the research were the whole oil companies operating in Nigeria. Pearson Coefficient of Correlation was the statistical tool used to analyse the hypotheses and that was done with the aid of Statistical Package for Social Sciences (SPSS). The result of the analysis showed that there is no significant relationship between oil spillage and economic growth, high significant relationship between gas flaring and economic growth and the no significant relationship between number of fire outbreaks and economic growth of Nigeria. The study thus concluded that there is no significant relationship between environmental degradation and economic growth safe for gas flaring which has a high significant relationship with economic growth and recommended among other things that the government should declare a state of emergency on gas flaring by oil companies as it was found to have a very high negative significant relationship with economic growth in Nigeria.

Published in	International Journal of Finance and Banking Research (Volume 4, Issue 4)
DOI	10.11648/j.ijfbr.20180404.11
Page(s)	67-78
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2018. Published by Science Publishing Group

Keywords

Environmental Degradation, Economic Growth, Oil Spillage, Gas Flared, Fire Outbreak

References

[1]	Adebiyi, H. O., Oladimeji, A. B., & Gambo, M. D. (2017). Prevention of environmental degradation in Nigeria: a strategy towards sustainable development. International Journal of Sciences, Engineering & Environmental Technology, 2 (3), 17-24.
[2]	Aerts, W., Cormier, D., & Magnan, M. (2006). Intra-industry imitation in corporate environmental reporting: An international perspective. Journal of Accounting and Public Policy, 25 (3), 299-331.
[3]	Afinotan, L. A., & Ojakorotu, V. (2009). The Niger Delta crisis: Issues, challenges and prospects. African Journal of Political Science and International Relations, 3, 191-198. Available from http://academicjournals.org/AJPSIR.
[4]	Akankali, J. A., & Nwafili, S. A. (2017). An assessment of the socioeconomic impact of crude oil pollution on aquaculture in gokana local government area rivers state, Nigeria. Nigerian Journal of Fisheries and Aquaculture 5 (1), 87 – 94. Available on line: http://www.unimaid.edu.ng.
[5]	Akhigbe, J. (2013). The state and development interventions in the Niger Delta region of Nigeria. International Journal of Humanities and Social Science, 3 (10), 255-263. Retrieved from www.ijhssnet.com.
[6]	Ako, R. T. (2012). Re-defining corporate social responsibility (CSR) in Nigeria’s post amnesty oil industry. African Journal of Economic and Management Studies, 3, 9-22. doi:10.1108/20400701211197258.
[7]	Ako, R. T., Obokoh, L. O., & Okonmah, P. (2009). Forging peaceful relationships between oil-companies and host-communities in Nigeria’s Niger Delta region: A stakeholder’s perspective to corporate social responsibility. Journal of Enterprising Communities: People and Places in the Global Economy, 2, 205-216. doi: 10.1108/17506200910960888.
[8]	Akpabio, E. M., & Akpan, S. N. (2010). Governance and oil politics in Nigeria’s Niger Delta: The question of distributive equity. Journal of Human Ecology, 30, 111-121.
[9]	Akpan, U. F., & Chuku, A. (2011). Economic growth and environmental degradation in Nigeria: beyond the environmental kuznets curve. Munich Personal RePEc Archive. Online at http://mpra.ub.uni-muenchen.de/31241/.
[10]	Akpomuvie, O. B. (2011). Tragedy of commons: analysis of oil spillage, gas flaring and sustainable development of the Niger Delta of Nigeria, Journal of Sustainable Development, (2), 200-210. http://dx.doi.org/105539/jsd-v4n2.
[11]	Alege, P. O., & Ogundipe, A. A. (2013). Environmental quality and economic growth in Nigeria: A fractional cointegration analysis. International Journal of Development and Sustainability, 2 (2), 580-596. Retrieved from: www.isdsnet.com/ijds.
[12]	Anyakora, C., & Coker, H. (2009). Assessment of PAH’s contamination of ground water: A case study of the Niger Delta region of Nigeria. International Journal of Risk Assessment and Management, 13, 150-170. doi:10.1504/IJRAM.2009.030327.
[13]	Araoye, F. E., Ajayi, E. O., Olatunji, T. E., & Aruwaji, A. M. (2018). Environmental cost accounting: effect of pollution on economic growth in Nigeria. Journal of Accounting and Financial Management, 4 (1), 19-31.
[14]	Atakpo, E. A., & Ayolabi, E. A. (2009). Evaluation of aquifer vulnerability and protective capacity in some oil producing communities of the western Niger Delta. Environmentalist, 29, 310-317. doi:10.1007./s10669-008-9191-3.
[15]	Atubi, A. O. (2015). Factors of environmental degradation in oil producing communities of delta state, Nigeria. Journal of Agriculture and Environmental Sciences, 4 (2), 58-70. DOI: 10.15640/jaes.v4n2a7.
[16]	Ayoola, T. J. (2011). Gas flaring and its implication for environmental accounting in Nigeria. Journal of Sustainable Development, 4 (5), 244.
[17]	Babatunde, A. (2010). The impact of oil exploitation on the socio-economic life of the ilaje-ugbo people of Ondo state, Nigeria. Journal of Sustainable Development in Africa, 12 (5).
[18]	Bayode, O. J. A., Adewunmi, E. A. & Odunwole, S. (2011). Environmental implications of oil exploration and exploitation in the coastal region of Ondo state, Nigeria: a regional planning appraisal. Journal of Geography and Regional Planning, 4 (3), 110-121.
[19]	Conwall. J. L. (n.d). Encyclopaedia Britannica. Retrieved from https://www.britannica.com/topic/economic-growth.
[20]	Duru, C. U., (2014). Environmental degradation: key challenge to sustainable economic development in the niger delta. Walden Dissertation & Doctoral Studies Collection, Walden University. Retrieved from http://scholarworks.waldenu.edu/dissertations.
[21]	Edino, M. O., Nsofor, G. N., & Bombom, L. S. (2010). Perceptions and attitudes towards gas flaring in the Niger Delta, Nigeria. Environmentalist, 30, 67-75. doi:10.1007/s10669-009-9244-2.
[22]	Ekpoh, I. J., & Obia, A. E. (2010). The role of gas flaring in the rapid corrosion of zinc roofs in the Niger Delta region of Nigeria. Environmentalist, 30, 347-352. doi:10.1007/s10669-010-9292-7.
[23]	Elvidge, C. D., Ziskin, D., Baugh, K. E., Tuttle, B. T., Ghosh, T., Pack, D. W. & Zhizhin, M. (2009). A fifteen year record of global natural gas flaring derived from satellite data. Energies, 2 (3), 595-622.
[24]	Escobar, L. F., & Vredenburg, H. (2011). Multinational oil companies and the adoption of sustainable development: A resource-based and institutional theory interpretation of adoption heterogeneity. Journal of Business Ethics, 98, 39-65. doi:10.1007/s10551-010-0534-x.
[25]	Etuonovbe, A. K. (2009). The devastating effects of environmental degradation - A case study of the Niger Delta region of Nigeria. FIG Working Week, Israel.
[26]	Eze, J. C., Nweze, A. U., & Enekwe, C. I. (2016). The effects of environmental accounting on a developing nation: Nigerian experience. European Journal of Accounting, Auditing and Finance Research, 4 (1), 17-27. Retrieved from www.eajournals.org.
[27]	Federal Environmental Protection Agency (1992). Environmental Impact Assessment Act. Retrieved from www.nigerialaw/federalenvironmentalprotectionagency.
[28]	Ihayere, C., Ogeleka, D. F., & Ataine, T. I. (2014). The effects of the Niger Delta oil crisis on women folks. Journal of African Studies and Development, 6 (1), 14-21. doi:10.5897/JASD11.078.
[29]	Imobighe, M. D. (2011). Paradox of oil wealth in the niger-delta region of nigeria: how sustainable is it for national development. Journal of Sustainable Development, 4 (6), 160-168.
[30]	Jimoh, H. I., Ajewole, O. D., Onotu, S. I., & Ibrahim, R. O. (2011). Implications of land degradation, reclamations and utilizations in the oil producing areas of Nigeria: Perspectives on environmental sustainability and development. International Journal of Business & Social Science, 2 (22), 248-254. Retrieved from http://www.Ijbssnet.com/.
[31]	Kijima, M., Nishide, K., & Ohyam, A. (2010). Economic Models for the Environmental Kuznets Curve, Journal of Economic Dynamics& Control, 34, 1187-1201.
[32]	Kingston, K. G. (2011). The dilemma of minerals dependent economy: The case of foreign direct investment and pollution in Nigeria. African Journal of Social Sciences, 1, 1-13. Retrieved from http://mpra.ub.uni-muenchen.de/29046.
[33]	Odoemene, A. (2011). Social consequences of environmental change in the Niger Delta of Nigeria. Journal of Sustainable Development, 4 (2), 123-135. doi:10.55539/jsd.v4n2p123.
[34]	Ogboru, I., & Anga, R. A. (2015). Environmental degradation and sustainable economic development in Nigeria: A theoretical approach. Researchjournali’s Journal of Economics, 3 (6), 1-13.
[35]	Oguduvwe, J. I. P. (2013). Poverty in oil rich Delta: A study of selected oil producing communities in Delta State, Nigeria. Global Research Journal of Education, 3 (1), 1-11. Retrived from http://www.globalresearchjournals.org/journal/grje.
[36]	Okpako, J. E. F. (2014). Influence of oil activities on the socio-economic and environmental health of host Niger Delta communities in Nigeria. Mediterranean Journal of Social Sciences, 5 (17), 97-106. Doi:10.5901/mjss.2014.v5n17p97.
[37]	Okpara, C. (2012). Right to a clean and healthy environment: The panacea to the Niger Delta struggle. Journal of Politics and Law, 5, 3-8. doi:10.5539/jpl.v5n1p3.
[38]	Okpo, O. C., & Eze, R. C. (2012). Vandalization of oil pipelines in the Delta Niger region of Nigeria, and poverty: An overview. Studies in Sociology of Science, 3 (2), 13-21. doi:10.3968/j.sss.1923018420120302.2950.
[39]	Olufemi, O. (2010). Corporate social responsibility of multinational oil corporations to host communities in Niger Delta Nigeria. Ife Psychologia, 18 (2), 21-36. doi:10.4314/ifep.v18i2.56641.
[40]	Omojimite, B. U. (2012). Sustainable development, peace and security in the Niger Delta region. European Journal of Social Sciences, 28, 549-558. Retrieved from http://www.europeanjournalofsocialsciences.com.
[41]	Omorede, C. K. (2014). Assessment of the impact of oil and gas resource exploration on the environment of selected communities in Delta State, Nigeria. International Journal of Management, Economics and Social Sciences 3 (2), 79-99.
[42]	Oyebamiji, M. A., & Mba, C. I. (2014). Effects of oil spillage on community development in the Niger Delta region: implications for the eradication of poverty and hunger (millennium development goal one) in Nigeria. World Journal of Social Science, 1 (1), 27-36. doi:10.5430/wjss.v1n1p27.
[43]	Smulders, S. (2000), Economic Growth and Environmental Quality. Principles of environmental and Resources Economics, Henk Folmer and Landis Gabel (eds), Edward Elgar.
[44]	Sonibare, J. A., Adebeyi, F. M., Obanijesu, E. O., & Okelana, O. A. (2010). Air quality index pattern around petroleum production facilities. Management of Environmental Quality, 21, 379-392. doi: 10.1108/14777831011036920.
[45]	Uchegbu, S. N. (1988). Environmental Management and Protection. Enugu, NG: Spotlite Publishers.
[46]	Uchegbu, S. N. (2002). Environmental Management and Protection. Enugu, NG: Precision Printers and Publishers.
[47]	Ukpong, S. J. (1994). Global and Nigerian Environment Problem analysis. Calabar, NG: SIRF.
[48]	United Nations Environment Program. (2011). Environmental assessment of Ogoniland report. Retrieved from http://www.unep.org/Nigeria.
[49]	Wikipedia, (2018). Economic growth. Retrieved from https://en.wikipedia.org/w/index.php?title=Economic_growth&oldid=848026687.
[50]	World Bank (1991). Environmental Assessment Source Book. Washington D. C. World Bank. Tech. Pap., p. 139.

Cite This Article

Plain Text BibTeX RIS

APA Style

Ndubuisi Chinedu Jonathan, Godwin Adaobi Ozioma, Ndah Eze Nwoka. (2018). Analysis of the Relationship Between Environmental Degradation of Oil Companies and Economic Growth of Nigeria. International Journal of Finance and Banking Research, 4(4), 67-78. https://doi.org/10.11648/j.ijfbr.20180404.11

Copy | Download

ACS Style

Ndubuisi Chinedu Jonathan; Godwin Adaobi Ozioma; Ndah Eze Nwoka. Analysis of the Relationship Between Environmental Degradation of Oil Companies and Economic Growth of Nigeria. Int. J. Finance Bank. Res. 2018, 4(4), 67-78. doi: 10.11648/j.ijfbr.20180404.11

Copy | Download

AMA Style

Ndubuisi Chinedu Jonathan, Godwin Adaobi Ozioma, Ndah Eze Nwoka. Analysis of the Relationship Between Environmental Degradation of Oil Companies and Economic Growth of Nigeria. Int J Finance Bank Res. 2018;4(4):67-78. doi: 10.11648/j.ijfbr.20180404.11

Copy | Download

@article{10.11648/j.ijfbr.20180404.11,
  author = {Ndubuisi Chinedu Jonathan and Godwin Adaobi Ozioma and Ndah Eze Nwoka},
  title = {Analysis of the Relationship Between Environmental Degradation of Oil Companies and Economic Growth of Nigeria},
  journal = {International Journal of Finance and Banking Research},
  volume = {4},
  number = {4},
  pages = {67-78},
  doi = {10.11648/j.ijfbr.20180404.11},
  url = {https://doi.org/10.11648/j.ijfbr.20180404.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20180404.11},
  abstract = {When natural resources such as oil and gas are enhanced for economic growth and well-being of the citizenry, the nation invariably finds herself experiencing an array of pollutants including carbon dioxide, warming, and other greenhouse emission. This research therefore is set to analyse the relationship between environmental degradation and economic growth in Nigeria. The objective of the research was decomposed to ascertain if a significant relationship exists between oil spillage and economic growth, gas flaring and economic growth and finally between number of fire outbreaks and economic growth of Nigeria. Descriptive survey research was used and data were collected via Central Bank of Nigeria statistical bulletin and Nigeria National Petroleum Corporation statistical bulletin. The population of the research were the whole oil companies operating in Nigeria. Pearson Coefficient of Correlation was the statistical tool used to analyse the hypotheses and that was done with the aid of Statistical Package for Social Sciences (SPSS). The result of the analysis showed that there is no significant relationship between oil spillage and economic growth, high significant relationship between gas flaring and economic growth and the no significant relationship between number of fire outbreaks and economic growth of Nigeria. The study thus concluded that there is no significant relationship between environmental degradation and economic growth safe for gas flaring which has a high significant relationship with economic growth and recommended among other things that the government should declare a state of emergency on gas flaring by oil companies as it was found to have a very high negative significant relationship with economic growth in Nigeria.},
 year = {2018}
}

Copy | Download

TY  - JOUR
T1  - Analysis of the Relationship Between Environmental Degradation of Oil Companies and Economic Growth of Nigeria
AU  - Ndubuisi Chinedu Jonathan
AU  - Godwin Adaobi Ozioma
AU  - Ndah Eze Nwoka
Y1  - 2018/11/05
PY  - 2018
N1  - https://doi.org/10.11648/j.ijfbr.20180404.11
DO  - 10.11648/j.ijfbr.20180404.11
T2  - International Journal of Finance and Banking Research
JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
SP  - 67
EP  - 78
PB  - Science Publishing Group
SN  - 2472-2278
UR  - https://doi.org/10.11648/j.ijfbr.20180404.11
AB  - When natural resources such as oil and gas are enhanced for economic growth and well-being of the citizenry, the nation invariably finds herself experiencing an array of pollutants including carbon dioxide, warming, and other greenhouse emission. This research therefore is set to analyse the relationship between environmental degradation and economic growth in Nigeria. The objective of the research was decomposed to ascertain if a significant relationship exists between oil spillage and economic growth, gas flaring and economic growth and finally between number of fire outbreaks and economic growth of Nigeria. Descriptive survey research was used and data were collected via Central Bank of Nigeria statistical bulletin and Nigeria National Petroleum Corporation statistical bulletin. The population of the research were the whole oil companies operating in Nigeria. Pearson Coefficient of Correlation was the statistical tool used to analyse the hypotheses and that was done with the aid of Statistical Package for Social Sciences (SPSS). The result of the analysis showed that there is no significant relationship between oil spillage and economic growth, high significant relationship between gas flaring and economic growth and the no significant relationship between number of fire outbreaks and economic growth of Nigeria. The study thus concluded that there is no significant relationship between environmental degradation and economic growth safe for gas flaring which has a high significant relationship with economic growth and recommended among other things that the government should declare a state of emergency on gas flaring by oil companies as it was found to have a very high negative significant relationship with economic growth in Nigeria.
VL  - 4
IS  - 4
ER  -

Copy | Download

Author Information

Ndubuisi Chinedu Jonathan

Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria
Godwin Adaobi Ozioma

Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria
Ndah Eze Nwoka

Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Ndubuisi Chinedu Jonathan, Godwin Adaobi Ozioma, Ndah Eze Nwoka. (2018). Analysis of the Relationship Between Environmental Degradation of Oil Companies and Economic Growth of Nigeria. International Journal of Finance and Banking Research, 4(4), 67-78. https://doi.org/10.11648/j.ijfbr.20180404.11

Copy | Download

ACS Style

Ndubuisi Chinedu Jonathan; Godwin Adaobi Ozioma; Ndah Eze Nwoka. Analysis of the Relationship Between Environmental Degradation of Oil Companies and Economic Growth of Nigeria. Int. J. Finance Bank. Res. 2018, 4(4), 67-78. doi: 10.11648/j.ijfbr.20180404.11

Copy | Download

AMA Style

Ndubuisi Chinedu Jonathan, Godwin Adaobi Ozioma, Ndah Eze Nwoka. Analysis of the Relationship Between Environmental Degradation of Oil Companies and Economic Growth of Nigeria. Int J Finance Bank Res. 2018;4(4):67-78. doi: 10.11648/j.ijfbr.20180404.11

Copy | Download

@article{10.11648/j.ijfbr.20180404.11,
  author = {Ndubuisi Chinedu Jonathan and Godwin Adaobi Ozioma and Ndah Eze Nwoka},
  title = {Analysis of the Relationship Between Environmental Degradation of Oil Companies and Economic Growth of Nigeria},
  journal = {International Journal of Finance and Banking Research},
  volume = {4},
  number = {4},
  pages = {67-78},
  doi = {10.11648/j.ijfbr.20180404.11},
  url = {https://doi.org/10.11648/j.ijfbr.20180404.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20180404.11},
  abstract = {When natural resources such as oil and gas are enhanced for economic growth and well-being of the citizenry, the nation invariably finds herself experiencing an array of pollutants including carbon dioxide, warming, and other greenhouse emission. This research therefore is set to analyse the relationship between environmental degradation and economic growth in Nigeria. The objective of the research was decomposed to ascertain if a significant relationship exists between oil spillage and economic growth, gas flaring and economic growth and finally between number of fire outbreaks and economic growth of Nigeria. Descriptive survey research was used and data were collected via Central Bank of Nigeria statistical bulletin and Nigeria National Petroleum Corporation statistical bulletin. The population of the research were the whole oil companies operating in Nigeria. Pearson Coefficient of Correlation was the statistical tool used to analyse the hypotheses and that was done with the aid of Statistical Package for Social Sciences (SPSS). The result of the analysis showed that there is no significant relationship between oil spillage and economic growth, high significant relationship between gas flaring and economic growth and the no significant relationship between number of fire outbreaks and economic growth of Nigeria. The study thus concluded that there is no significant relationship between environmental degradation and economic growth safe for gas flaring which has a high significant relationship with economic growth and recommended among other things that the government should declare a state of emergency on gas flaring by oil companies as it was found to have a very high negative significant relationship with economic growth in Nigeria.},
 year = {2018}
}

Copy | Download

TY  - JOUR
T1  - Analysis of the Relationship Between Environmental Degradation of Oil Companies and Economic Growth of Nigeria
AU  - Ndubuisi Chinedu Jonathan
AU  - Godwin Adaobi Ozioma
AU  - Ndah Eze Nwoka
Y1  - 2018/11/05
PY  - 2018
N1  - https://doi.org/10.11648/j.ijfbr.20180404.11
DO  - 10.11648/j.ijfbr.20180404.11
T2  - International Journal of Finance and Banking Research
JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
SP  - 67
EP  - 78
PB  - Science Publishing Group
SN  - 2472-2278
UR  - https://doi.org/10.11648/j.ijfbr.20180404.11
AB  - When natural resources such as oil and gas are enhanced for economic growth and well-being of the citizenry, the nation invariably finds herself experiencing an array of pollutants including carbon dioxide, warming, and other greenhouse emission. This research therefore is set to analyse the relationship between environmental degradation and economic growth in Nigeria. The objective of the research was decomposed to ascertain if a significant relationship exists between oil spillage and economic growth, gas flaring and economic growth and finally between number of fire outbreaks and economic growth of Nigeria. Descriptive survey research was used and data were collected via Central Bank of Nigeria statistical bulletin and Nigeria National Petroleum Corporation statistical bulletin. The population of the research were the whole oil companies operating in Nigeria. Pearson Coefficient of Correlation was the statistical tool used to analyse the hypotheses and that was done with the aid of Statistical Package for Social Sciences (SPSS). The result of the analysis showed that there is no significant relationship between oil spillage and economic growth, high significant relationship between gas flaring and economic growth and the no significant relationship between number of fire outbreaks and economic growth of Nigeria. The study thus concluded that there is no significant relationship between environmental degradation and economic growth safe for gas flaring which has a high significant relationship with economic growth and recommended among other things that the government should declare a state of emergency on gas flaring by oil companies as it was found to have a very high negative significant relationship with economic growth in Nigeria.
VL  - 4
IS  - 4
ER  -

Copy | Download