The Cost of Oil Spillage and Gas Flaring on The Socio-Economic Development of The Niger Delta Region of Nigeria

Abstract

The research examined the total loss revenue associated with the frequent oil spillage and gas flaring in the Niger Delta region of Nigeria and its effects on the socio-economic development of the region between 1979 and 2008. In carrying out the study, the survey research method was used while observation, interview, literature review and internet were employed as techniques of data collection. The findings of the study revealed that the total loss revenue of oil spillage and gas flaring was significantly influenced by the rate of oil spilled and gas flared, the quantity of oil spilled and gas flared. The study also revealed that the total loss revenue of oil spillage and gas flaring have no significant effect on the socio-economic development of the Niger Delta as measured by the rate of poverty in the region.  The following recommendations were made.  Government should, as a matter of urgency enact a law to control oil spillage and gas flaring which total lost revenue stood at US$175,795,811.00 equivalent to N20,671,321,766.00 and the establishment of oil spilled compensation fund to take care of the effects of oil spillage and gas flaring in the region.

Keywords: Total loss revenue, total oil spilled lost, total gas flared lost, average rate of poverty, the Niger Delta Region.