PIPELINE VANDALIZATION IN AFRICA
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PIPELINE VANDALIZATION IN AFRICA
ABSTRACT
The recent pipeline damage by the Niger Delta Avengers and other militant groups has elicited both national and international attention due to the implications for not only African business but also the Nigerian economy as a whole.
The consequences of their actions had affected most businesses, paralysing business activities as a result of power outages and rising production costs as a result of the provision of alternative power sources, which had a significant impact on both the organisations and the country’s economy in general.
As a result, the study was carried out with the primary goal of investigating pipeline vandalism and its repercussions for economic activity in Nigeria. The study uses both primary and secondary data sources from managers and customers of corporate organisations in Nigeria’s power sector.
The data received from the hypothesis was analysed using Simple Linear Regression. According to the findings of the analysis, pipeline vandalism in Africa has a significant impact on business activities in Nigeria because it has resulted in the destruction of critical pipeline installations and constant power outages, which affect the smooth operations of business organisations and, as a result, retard economic development.
According to the study, the Federal Government of Nigeria, through the NNPC, should collaborate with the nation’s military and other security agencies to ensure adequate policing and protection of critical pipeline infrastructure throughout the country in order to halt the activities of pipeline vandals, which are wreaking havoc on the economy.
The analysis indicates that the militant organisations’ actions are significant economic sabotage that, if left uncontrolled, will continue to have a devastating effect on the country’s economy.
CHAPITRE ONE
INTRODUCTION
1.1 Background of The Study
Nigeria’s pipeline infrastructure has been repeatedly targeted by militants and pipeline vandals across the country. The frequency of such attacks has been worrying, hurting many aspects of life as well as the country’s economy as a whole.
This is causing investors (both domestic and international) to lose interest in the country’s oil sector due to security implications and effects on power generation, as well as a decline in profit and general socioeconomic development of the nation, making it difficult for business organisations to achieve their goals of being in business.
Pipeline vandalism by Niger Delta Avengers and other militant groups is on the rise in Nigeria, disrupting oil production and reducing the country’s output prediction of 2.2 million bpd to less than 1.1 million bpd (CBN, 2016).
This has impacted gas supply for electricity generation and distribution in the country, crippling business activities and economic growth. This necessitates immediate action to put a stop to the deteriorating situation
and restore confidence in the power and energy sectors, paving the way for business activities to thrive and, as a result, economic growth and development.
In light of this, this study on pipeline vandalism and its implications for business activities in Nigeria was carried out to determine the degree of the implications for business activities in Nigeria. The study’s findings will be extremely beneficial to commercial organisations, government, students and researchers, and stakeholders in the oil and gas industry.
The study concentrated on Nigeria’s South-South and South-Western regions, where large incidences of pipeline vandalism were documented. The analysis covers the period from 2015 to the first quarter of 2017, when there were several attacks on pipeline infrastructure in the region.
The study concentrated on the commercial operations that have the greatest impact on the economy’s energy/power sector (i.e., crude oil revenue, availability of Petroleum Motor Spirit [PMS], and electricity generation). The study focused on managers and other types of personnel from stakeholder organisations, including their customers.
1.2 STATEMENT OF THE PROBLEM
Pipeline vandalism is exacerbated by inadequate police and protection of pipeline infrastructure, political/militant agitation, and widespread corruption. However, the core difficulties are the effects of pipeline vandalism,
such as a drop in crude oil revenue, a scarcity of PMS, and a drop in electricity output, all of which have an impact on commercial activity in Nigeria.
The study will look into these issues and make policy recommendations. Despite the fact that several studies (such as those of Vidal, 2011, Ogbeni, 2012, and Ugwuanyi, 2013) have been conducted at various times on the impact of pipeline vandalism on the growth of Nigeria’s economy,
those studies primarily focus on the impact on the Nigerian economy without specifically studying the implications on business activities in Nigeria, which this study is intended to do.
1.3 Research Questions
The research will answer the following research questions:
What is the scope of pipeline vandalism in Africa?
To what extent does pipeline vandalism affect crude oil revenue coming to the federation account?
How does the scarcity of PMS caused by pipeline sabotage effect Nigerian commercial activities?
How does the decrease in electricity generation caused by pipeline vandalism effect Nigerian commercial activities?
1.4 Objectives of The Study
The study’s primary goal is to determine the degree of pipeline vandalism throughout Africa. The precise goals are as follows:
To examine how pipeline vandalism affects crude oil income.
To research how the scarcity of PMS caused by pipeline vandalism affects commercial activities in
To ascertain how the decrease in electricity generation caused by pipeline vandalism affects business activity in
1.5 Research Theories
During the course of this research, the following hypotheses were developed:
Pipeline vandalism has no effect on crude oil revenue coming to the federation account.
Ho2: The scarcity of PMS caused by pipeline vandalism has no significant influence on business activities in Nigeria.
Ho3: The decrease in energy generation caused by pipeline vandalism has no substantial impact on Nigerian economic activities.
1.6 Significance of Research
In theory, this research will contribute to the scholarly discussion on pipeline vandalism in Africa and its impact on oil revenue and the environment.
In practise, the findings of this study will be beneficial to socioeconomic and environmental issues.
Policy formulation to reposition, supplement, or adjust intervention techniques and methodologies in the Niger Delta to obtain maximum benefits. Finally, if the study is successful in clarifying difficulties and increasing comprehension, it will add to the body of literature on pipeline vandalism, which will assist academics and students.
1.7 Field of research
For the sake of clarity and focus, this study examines pipeline vandalism throughout Africa, with a special focus on Nigeria.
The scope was formed by the Nigerian business environment, oil price, and electricity supply.
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