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Impact of Multinational Oil Firms' Corporate Social Responsibility on Agricultural Development in Host Communities in Nigeria

Year 2020, Volume: 3 Issue: 2, 146 - 154, 01.04.2020

Abstract

This study examined multinational oil firms’ contributions to farming communities in their Delta State operating areas in Nigeria. The study sample size was 176 respondents. Questionnaire was administered to collect data for the study. The data were analyzed using multiple regression, descriptive statistics and 4-point likert scale. The null hypotheses were tested using t-test. The results showed that most farmers are females, 39% of respondents fell within 41-50 years of modal class age. The high proportion (84%) is literate and the oil prospective oil multinational firms’ extension services were in touch with about 73%. The aid programs of the oil multinational firms were adequate for the farmers. The t-test indicates that farmers had increased income, productivity and farm sizes after benefiting from the oil multinational firms assistance projects. Regression results showed a statistically significant effect of 1% and 5% likelihood of farmers output in the oil multinational firms region, on farming experience, chemical expenditure, farm size, value of oil multinational firms aid, age of farmers and educational level. The results implies that oil multinational firms has made significant contributions in the study area. However, payment of compensation was inadequate which could result to unquantifiable damage. It is recommended that oil multinational firms should pay compensation to affected communities to create a conductive environment for her business transaction.

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References

  • Adams A. 2014. Patterns and trend analysis of violence in oil production and oil distribution in Nigeria, from 2006 – 2014. Nigeria watch project, IFRA Nigeria e-papers series, no. 36, November, 1 – 28.Akujuru V. 2014. A Framework for determining the compensable value of damages due to contamination of wetlands in the Niger Delta of Nigeria. A thesis submitted in partial fulfilment of the requirements for the award of the degree of doctor of philosophy of the University of Salford, School of the Built Environment. Ezeh CI. 2006. Socioeconomic determinants of output and profit levels of smallholder rice production systems in Abia State, Nigeria. J. Res. in Agric. 3(3):44-60.Ezeji CE, Okonkwo ON. 2016. Corporate social responsibility: A study of oil transnational corporations in Nigeria. International Journal of Business and Law Research 4(2):1-9.Etim NA, Benson DN. 2016. Willingness to pay for organic fertilizer by resources poor vegetable farmers in the humid tropic. J. Agric. and Ecol. Res. (62): 1-11.Ite EU. 2007. Changing times and strategies: Shell’s contribution to sustainable community development in the Niger Delta, Nigeria. Sust. Develop. 15 (1):1-14.Nwachukwu I. 2008. Planning and evaluation of agricultural and rural development projects. Umuahia, Lamb House Publishers, Nigeria.Nwankwo BO. 2015. The politics of conflict over oil in the Niger Delta region of Nigeria: a review of the corporate social responsibility strategies of the oil companies. American J. Edu. Res, 3(4), 383 – 392.Nwaobiala CU. 2010. Economic analysis of swamp rice production in Ebonyi southern agricultural zone of Ebonyi State, Nigeria. J. Agric. and Social Res.(JASR) 6(2):157-166.Nweze PN, Edame CE. 2016. An empirical investigation of oil revenue and economic growth in Nigeria. European Sci. J. 12(25), 271 – 294.Ofuoku AU, Uzokwe UN, Ideh V. 2006. Comparative analysis of cooperative and non-cooperative fish farmers in central agricultural zone of Delta State, Nigeria. Ext. Farming Sys. J., 2(1): 97 – 102.Okolie-Osemene J. 2015. Oil companies and lethal violence in nigeria: patterns, mapping and evolution (2006 – 2014) Nigeria watch project, IFRA-Nigeria e-papers series, no. 44. Olisemauche OO, Avwerosuoghene OP. 2015. The effect of gas flaring on agricultural production of Okpai, Ndokwa east local government area, Delta State, Nigeria. Standard Sci. Res. and Essays, 3(9): 266 – 272.Omofonmwan SI, Odia LO. 2009. Oil exploitation and conflict in the Niger-Delta region of Nigeria. J. Human Ecol. 26(1): 25-30.Oseji OJ. 2011. Environmental impact of gas flaring within Umutu-Ebedei gas plant in Delta State, Nigeria. Scholars Research Library; Archives of Appl. Sci. Res., 3 (6), 272–279.Ozabor F, Obisesan A. 2015. Gas flaring: impacts on temperature, agriculture and the people of Ebedei in Delta State Nigeria. J. Sust. Society, 4(2), 5 – 12.Shell Petroleum Development Company (SPDC) (2004). The new approach: sustainable community development SPDC: Lagos, Nigeria.Tawari C, Davies CC. 2010. Impact of multinational corporations in fisheries development and management in Niger Delta Nigeria. Agric. and Bio. J. North America. 1(2):146-151.Ugoh CS, Ukpere IW. 2010. Oil politics and the Niger Delta Developmental Conundrum. African J. Bus. Mgt, 4(6), 1166 – 1174.
Year 2020, Volume: 3 Issue: 2, 146 - 154, 01.04.2020

Abstract

Project Number

NONE

References

  • Adams A. 2014. Patterns and trend analysis of violence in oil production and oil distribution in Nigeria, from 2006 – 2014. Nigeria watch project, IFRA Nigeria e-papers series, no. 36, November, 1 – 28.Akujuru V. 2014. A Framework for determining the compensable value of damages due to contamination of wetlands in the Niger Delta of Nigeria. A thesis submitted in partial fulfilment of the requirements for the award of the degree of doctor of philosophy of the University of Salford, School of the Built Environment. Ezeh CI. 2006. Socioeconomic determinants of output and profit levels of smallholder rice production systems in Abia State, Nigeria. J. Res. in Agric. 3(3):44-60.Ezeji CE, Okonkwo ON. 2016. Corporate social responsibility: A study of oil transnational corporations in Nigeria. International Journal of Business and Law Research 4(2):1-9.Etim NA, Benson DN. 2016. Willingness to pay for organic fertilizer by resources poor vegetable farmers in the humid tropic. J. Agric. and Ecol. Res. (62): 1-11.Ite EU. 2007. Changing times and strategies: Shell’s contribution to sustainable community development in the Niger Delta, Nigeria. Sust. Develop. 15 (1):1-14.Nwachukwu I. 2008. Planning and evaluation of agricultural and rural development projects. Umuahia, Lamb House Publishers, Nigeria.Nwankwo BO. 2015. The politics of conflict over oil in the Niger Delta region of Nigeria: a review of the corporate social responsibility strategies of the oil companies. American J. Edu. Res, 3(4), 383 – 392.Nwaobiala CU. 2010. Economic analysis of swamp rice production in Ebonyi southern agricultural zone of Ebonyi State, Nigeria. J. Agric. and Social Res.(JASR) 6(2):157-166.Nweze PN, Edame CE. 2016. An empirical investigation of oil revenue and economic growth in Nigeria. European Sci. J. 12(25), 271 – 294.Ofuoku AU, Uzokwe UN, Ideh V. 2006. Comparative analysis of cooperative and non-cooperative fish farmers in central agricultural zone of Delta State, Nigeria. Ext. Farming Sys. J., 2(1): 97 – 102.Okolie-Osemene J. 2015. Oil companies and lethal violence in nigeria: patterns, mapping and evolution (2006 – 2014) Nigeria watch project, IFRA-Nigeria e-papers series, no. 44. Olisemauche OO, Avwerosuoghene OP. 2015. The effect of gas flaring on agricultural production of Okpai, Ndokwa east local government area, Delta State, Nigeria. Standard Sci. Res. and Essays, 3(9): 266 – 272.Omofonmwan SI, Odia LO. 2009. Oil exploitation and conflict in the Niger-Delta region of Nigeria. J. Human Ecol. 26(1): 25-30.Oseji OJ. 2011. Environmental impact of gas flaring within Umutu-Ebedei gas plant in Delta State, Nigeria. Scholars Research Library; Archives of Appl. Sci. Res., 3 (6), 272–279.Ozabor F, Obisesan A. 2015. Gas flaring: impacts on temperature, agriculture and the people of Ebedei in Delta State Nigeria. J. Sust. Society, 4(2), 5 – 12.Shell Petroleum Development Company (SPDC) (2004). The new approach: sustainable community development SPDC: Lagos, Nigeria.Tawari C, Davies CC. 2010. Impact of multinational corporations in fisheries development and management in Niger Delta Nigeria. Agric. and Bio. J. North America. 1(2):146-151.Ugoh CS, Ukpere IW. 2010. Oil politics and the Niger Delta Developmental Conundrum. African J. Bus. Mgt, 4(6), 1166 – 1174.
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Details

Primary Language English
Subjects Zootechny (Other)
Journal Section Research Articles
Authors

Theophilus Miebi Gbıgbı 0000-0002-1335-7231

Project Number NONE
Publication Date April 1, 2020
Submission Date November 11, 2019
Acceptance Date February 26, 2020
Published in Issue Year 2020 Volume: 3 Issue: 2

Cite

APA Gbıgbı, T. M. (2020). Impact of Multinational Oil Firms’ Corporate Social Responsibility on Agricultural Development in Host Communities in Nigeria. Black Sea Journal of Agriculture, 3(2), 146-154.

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