– Effects of Oil Exploitation on the Efficiency of Artisanal Fishing Households in the Niger Delta Region –
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ABSTRACT
This study presents the empirical analysis of the effects of oil exploitation on the efficiency of artisanal fishing households in the Niger Delta region, Nigeria. The selection of respondents was multi-staged and involved purposive sampling as well as random sampling methods.
A structured questionnaire and interview schedule were used to elicit information from a randomly selected sample of 160 artisanal households from Delta and Bayelsa States, Nigeria.
Descriptive statistics, stochastic frontier production and cost function models, inefficiency effects model and multiple regression analysis were used in analyzing the data. Among the major findings were that 84% of the respondents were male-headed households.
Fifty per cent were between 41-50 years. Sixty-three per cent were illiterates while 87% were. The average household size was 7 persons. About 49% of the respondents had a fishing experience of above 16 years with a mean experience of approximately 15 years.
The average annual income per household was N96, 386.00. About 85%, 6%, 6% and 4% used different fishing gears such as nets, trap, longline and hooks, and fence fishing, respectively. The mean technical efficiency was 73%.
The Cobb-Douglas stochastic frontier model showed that labour, the quantity of bait used and capital inputs had positive signs and were highly significant at 1% level of probability.
TABLE OF CONTENTS
Title page ………………………………………………………………………………………… i
Certification ……………………………………………………………………………………… ii
Dedication………………………………………………………………………………………… iii
Acknowledgement……………………………………………………………………………… iv
Abstract……………………………………………………………………………………………. v
Table of contents ……………………………………………………………………………….. vi
List of tables…………………………………………………………………… ix
List of figures…………………………………………………………………… x
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study ………………………………………………………………. 1
1.2 Problem Statement………………………………………………………………………… 8
1.3 Objectives of the Study………………………………………………………………….. 11
1.4 Research Hypothesis……………………………………………………………………… 11
1.5 Justification of the Study ……………………………………………………………….. 12
1.6 Limitations……………………………………………………………… . 13
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Crude Oil Exploitation and Nigerian Economy ………………………………. 14
2.2 Degradation due to Oil Exploration and Production in Nigeria…………. 14
2.3 Effects of Crude Oil Exploitation on the Environment and agriculture. 17
2.4 Production Efficiency…………………………… ………………… 18
2.4.1 Technical Efficiency…………………………………………………… 18
2.4.2 Allocative or price efficiency………………………………………….. 19
CHAPTER THREE
METHODOLOGY
3.1 The Study Area…………………………………………………………. 45
3.2 Sampling Procedure…………………………………………………………………… 45
3.3 Data Collection…………………………………………………………………………. 47
3.4 Analysis of Data…………………………………………………………… 48
3.4.1 Model Specification………………………………………………………… 49
3.4.1.1 Stochastic Frontier Production Function Model………………………… 49
CHAPTER FOUR
RESULTS AND DISCUSSION
4.1 Socio-Economic Characteristics of the Respondents……………………… 56
4.2 Artisanal Households Fishing Systems……………………………………… 59
4.3 Technical and Economic Efficiencies of Artisanal Fishing Households…… 60
4.3.1 Estimated Production Function………………………………………………………….. 60
4.3.2 Sources of Technical Efficiency…………………………………………… 61
4.3.3 Estimated…Cost Function………………………………… ……………. 63
4.3.4 Sources of Economic Inefficiency……………………………………………65
4.4 Estimating the Technical Efficiencies of the Artisanal Fishing Households…….67
4.4.1 Technical Efficiency…..Estimates……………………………………………………….. 67
4.4.2 Estimation of Economic Efficiency………………………………………… 68
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary ………………………………………………………………. 80
5.2 Conclusion…………………………………………………………………… 82
5.3 Recommendations…………………………………………………………… 83
5.4 Contribution to knowledge…………………………………………………. 84
5.5 Areas for Future Research…………………………………………………… 85
REFERENCES…………………………………………………………………. 86
APPENDIX I ………………………………………………………………. 96
INTRODUCTION
The search for oil in Nigeria started in 1906 when the Nigerian Bitumen Corporation (NBC) drilled fourteen wells in Lagos area (Pearson, 1970). This move was
however called off due to the outbreak of World War I. Pearson (1970) stated that Shell made Nigeria’s first commercial oil discovery in 1956 at Oloibiri located in Bayelsa State.
This according to Pearson (1970) and Ozobia (1998) led to the discovery of numerous other oil fields and subsequently to the development of various terminals. Oil spillage and pollution are some of the negative by-products of the petroleum industry and its effect on socio-economic life of the artisanal households is a source of major concern.
The exploration and exploitation have had impacts on the environment through frequent spills, pipe explosions, pollution, sabotage, gas flaring and effluent emission.
Other sources of oil pollution to the environment include transportation, effluent water from oil refineries, lubrication oils and other wastes in the form of sludge, bitumen, slops and oil sand/sediment present in large amount within oil flow stations, storage terminals and tanks (Ogri, 2001; Nwilo & Badejo, 2005).
REFERENCES
Abang, S.O; E. Ekpeni & W.W. Usani (2001). Technical and allocative efficiencies of small scale growers in five selected local government areas of Cross River State.
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Abowei, J.F.N, J.A. Akankali, C.C. Tawari & A.D.I. George (2008). A review of conservation and management of fisheries resources; Niger Delta, Nigeria. Journal
of Aquatic and Environmental Studies Review 1: 1-35.
Adebowale. Y (1996, July 5). Oil woes: A four-year record of fuel scarcity shows a worsening crisis in Nigeria. Newswatch Magazine p10.
Adegeye,A. J & J.S.Dittoh (1985). Essential of agricultural economics. Impact publishers Nigeria ltd, Ibadan.
Adekoya, B.B. & J.W. Miller (2004). Fish cage culture potential in Nigeria: An overview. national cultures. Agriculture Focus. 1 (5): 10.
Adeoti , A. I ; O.E, Olayide & A. S. Coster ( 2010). Flooding and welfare of fishers households in Lagos State, Nigeria. Journal of Human Ecology 32(3): 161-167.
Afolabi, O.A, S.A. Adeyemi & M.A Imebore (1985). Studies on toxicity of some nigerian crude oil on some aquatic organisms. In proceedings of 1985 International seminar on petroleum industry and the nigerian environment, Lagos. Pp 269-273.
Afriat,S.N (1972).Efficiency estimation of the production function. International Economic Review, 13:568-598.
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