CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction
This chapter gives a brief discussion of research methodology and the theoretical concepts of the analytical tools used. This chapter is divided into five sections for easy understanding.
3.1 Selection of Data
We obtained data from two major sources, primary and secondary sources. For the primary data; we had to rely on the questionnaire and oral interviews. The necessary secondary sources used in this study comprise books related to the study, periodicals, economic reports, official documents, daily newspapers and other library sources.
3.2 Questionnaire Design
The questionnaire is designed in such a way that it will be filled by the respondents. We adopted the method to obtain the necessary information from respondents of diverse social strata; to encourage different views.
3.3 Data Collection Method
The collection of data for this research was multi-dimensional involving a wide spectrum of research instruments such as questionnaire, interviews and library (desk) research.
Fifty questionnaires were distributed to different sectors of the economy to enable us obtain their independent views about the standard of living of the people and the infrastructural development in Nigeria vis-à-vis oil sector contribution.
Random sampling method is used to ensure the accuracy of the investigation, hence reduce bias. The idea of sampling which is to obtain part of the information of the entire population, can be inferred. Besides, the researcher made use of various libraries both private and public in Scouting for relevant books, economic reports, periodicals, newspapers and other relevant mater These documents contributed tremendously in the review of ‘related literature and in the formulation of statement of problem.
3.4 Analysis of Data
It is pertinent to remember that the specific objective of this research is to ascertain the effects of oil production on infrastructural development of the country and the standard of living of Nigerians. Therefore, for the purpose of this study, the analysis of data will be based on statistical method and simple percentages.
The choice of these analytical tools among other tools is to exploit the ability inherent in this tool in testing the relationship existing between the variables involved in this research.
Z – test is used in the testing of the formulated hypothesis, bearing in mind the sample size. With Z-test, we will be able to establish the validity of our hypothesis and the extent to which the relationship exist between the variables.
3.5 Theoretical Concept of Analysis
We employed normal (Z-test) in order to statistically test the formulated hypothesis in the research study. It is necessary to use this z -test since the sample size is greater than thirty. It is depicted thus:
Z = P-P = P-P
P SP
Where SP = P-P = Sample standard error
n
Where:
P = proportion found in the sample
P = the population proportion
n = Number of people interviewed
This is the most appropriate test for testing proportion as this gives a good approximation to binomial distribution for a large sample size
(N).
Assumption
It is assumed that if the population is indifferent to the effects of oil production vis-a-vis infrastructural development in Nigeria and the standard of living of Nigerians, then the probability of the respondents answering yes or No should be equal, that is
P = q = 0.5
Where q = 1-P and P = Pr of agreeing that oil sector has positive effects on infrastructural development and standard of living of Nigerians.
Decision Rule
If the calculated Z is greater than the tabulated or theoretical Z, we reject the null hypothesis, otherwise we accept it if the calculated Z is less.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.0 Introduction
This chapter deals with the analysis of data collected through questionnaire administered to respondents. For clarity of purpose, tables are used in order to classify and tabulate the raw data collected. The simple percentage is used to analyze response from the sample population, while Z test is used to test the formulated hypotheses.
4.1 Social Strata of Respondents
From table 1 below, it will be seen that out of the forty eight(48) responses, seventeen (17) or 35.4% are of lower class. Twenty (20) or 41.6% are of the middle class, while eleven (11) or 23%
are of the upper class.
Table I Responses on the Social Strata of the respondents
|
Options |
No of Responses |
Responses(%) |
|
(a) Upper class |
17 |
35.4% |
|
(b) Middle class |
20 |
41.6% |
|
(c) Lower class |
11 |
23.0% |
|
Total |
48 |
100% |
Source: Nweke’s Field Survey, 2013
Table I
From the above analysis, It is clear that majority of the population is of middle class.
4.1.2 The Standard of Living of Average Nigerian
The table II shows that thirty one (31) or 64.6% out of the forty eight (48) responses said that the standard of living of Nigerians is low. While seventeen (17) or 35.4% said that the standard of living of Nigerians is average and none said it is high.
Table II. Responses on the Question of Standard of Living of Average Nigerian
|
Options |
No of Responses |
Responses(%) |
|
(a) Low |
31 |
64.6% |
|
(b)Average |
17 |
35.4% |
|
(c)High |
– |
0% |
|
Total |
48 |
100% |
Source: Nweke’s Field Survey, 2013
Table ii:
The above table therefore is a clear evidence that the standard of living of average Nigerian is low.
4.1.3 The Condition of Nigeria Growth
From table 111 below, it can be seen that out of forty eight (48) responses, 28 or 58. 3%, said that our economic growth is increasing. Nine (9) or 18.8% said that it is decreasing while Eleven (11) or 22.9% said that it is constant.
Responses on the Condition Economic Growth
|
Options |
No of Responses |
Responses (%) |
|
(a.) increasing |
28 |
58.3% |
|
(b.) decreasing |
90 |
18. 8% |
|
(c.) constant |
11 |
22. 9% |
|
Total |
48 |
100% |
Source: Nweke’s Field Survey, 2013
Table iii
Based on this, one could conclude that the Nigeria economic growth is increasing.
4.1.4 The Contribution of Oil Sector to the Overall
Economic Growth of Nigeria
From table iv below, it can be observed that out of the total number of forty-eight respondents, eighteen (18) or 37.5% of them were of the view that the contribution of oil sector to the overall economic growth of Nigeria is low, ten (10) or 20.8% said that it is high while twenty (20) or 41.7% said that it is on average.
Responses on the Contribution of Oil Sector to the Overall Economic Growth of Nigeria
|
Options |
No of Responses |
Responses (%) |
|
(a.) low |
18 |
37.5% |
|
(b.) high |
10 |
20.8% |
|
(c.) average |
20 |
41.7% |
|
TOTAL |
48 |
100%. |
Source: Nweke’s Field Survey, 2013 Table iv
It is therefore discernible that the contribution of oil sector to the overall economic growth of Nigeria is average.
4.1.5 Level of Infrastructural Development in Nigeria vis-à vis Oil Sector Contribution to Overall Economic Growth
Based on table v below, it could be seen that of the total respondents of forty eight (48), twenty two (22) or 45 are of the view that the level of infrastructural developments in Nigeria vis-a-vis oil sector. contribution to overall economic growth is low. Twenty six (26) or 54. 2% said that it is average and none said it is high.
Responses to the Growth of Infrastructural Development of Nigeria vis-a-vis Oil Sector
|
Options |
No of Responses |
Responses (%) |
|
(a.) low |
22 |
45. 8% |
|
(b.) average |
26 |
54 .2% |
|
(c.) high. |
||
|
TOTAL |
48 |
100% |
Source: Nweke’s Field Survey, 2013 Table v
From this, it could be concluded that the level of infrastructural development in Nigeria vis-a-vis oil sector contribution to overall economic growth is average.
4.1.6 Impact of Oil Sector Contribution on the Standard of
Living of Nigerians.
The table iv below shows the number of responses from the question on the impact of oil sector contribution on the. standard of living of Nigerians. It could be seen that twenty three (23) or 48% of the forty eight (48) respondents are of the view that the impact of
sector contribution on the standard of living of Nigerians is positive. Twenty five (25) or 52% said that it is negative, while none are neutral.
Responses on the Impact of Oil Sector Contribution to the Standard of Living of Nigerians
|
Options |
No of Responses |
Responses(%) |
|
(a) Positive |
23 |
48% |
|
(b) Negative |
25 |
52% |
|
(c)Neutral |
– |
– |
|
TOTAL |
48 |
100% |
Source: Nweke’s Field Survey, 2013 Table vi
From this table, it could be concluded that the impact of oil
sector contribution on standard of living of Nigerians is undecided.
4.1.7 Other Sectors that Contributes to the Standard of
Living of Nigerians
In table vii below, we observed that out of the forty eight (48) respondents, fifteen (15) or 3L3% are of the view that education
sector contributes to the standard of living of Nigerians. Six (6) or 12.5% said it is mining sector, twenty (20) or 41. 5% said that it is agricultural sector while two (2) or 4. 1% said that it is manufacturing sector.
Responses to other Sector that Contributes to the’ Standard of Living of Nigerians
|
Options |
No of Responses |
Responses(%) |
|
(a) Education |
15 |
31.3% |
|
(b) Mining |
6 |
12.5% |
|
(C) Agriculture |
20 |
41.7% |
|
(d) Health |
5 |
10.4% |
|
(e) Manufacturing |
2 |
4J% |
|
TABLE |
48 |
100% |
Source: Nwe ke’s Reid Survey, 2013 Table vii
Hence, it is reasonable to accept that apart from oil, sector, agricultural sector also contributes to the standard’ of living of Nigerians which is said to employ about 65% Nigerians
4.1.8 Impact of Oil Subsidy Investment in the Standard of Living of Nigerians
From table viii below, it could be seen that out of the total number of forty eight (48) respondents, eighteen (18) or 37.6% are of the view that oil subsidy investment have a positive impact on the standard of living of Nigerians. Twenty three (23) or 47.9% said that it is negative while seven (7) or 14.5% are undecided.
Responses of the Oil Subsidy Investment in the Standard of Living of Nigerians
|
Options |
No of Responses |
Responses(%) |
|
(a) positive |
18 |
37.6% |
|
(b) negative |
23 |
47.9% |
|
(c)neutral |
7 |
14.5% |
|
TABLE |
48 |
100% |
Source: Nweke’s Field Survey, 2013 Table viii
It then follows that oil subsidy investment has a negative impact in the standard of living of Nigerians.
4.1.9 Further Subsidy Withdrawal for Investment
From the
table ix below, we observe that twenty four (24) or 50% of the total respondents support further withdrawal of oil subsidy investment. Fifteen (15) or 31%’said no to further subsidy withdrawal for investment and three (3) or 19% are indifferent.
Responses of Further Subsidy Withdrawal for Investment
|
Options |
No of Responses |
Responses(%) |
|
(a) Yes |
24 |
50% |
|
(b) No |
15 |
31% |
|
(c)None |
9 |
19% |
|
TABLE |
48 |
100% |
Source: Nweke’s Field Survey, 2013
Table ix
This fact revealed that majority support the further subsidy withdrawal for investment.
4.1.10 Areas that Government should invest more of the Oil
Subsidy Withdrawal
The evidence from table x below shows that twenty (20) or 41% of the should invest more of the oil subsidy withdrawal on education. Eighteen (18)or 38% said that it is agriculture and ten (10) or 21% said that if is Health.
Responses on the areas that Government should invest more of the Oil Subsidy Withdrawal
|
Options |
No of Responses |
Responses(%) |
|
(a) Education |
24 |
50% |
|
(b) Agriculture |
15 |
31% |
|
(c) Health |
9 |
19% |
|
TABLE |
48 |
100% |
Source: Nweke’s Field Survey, 2013
Table x
It could therefore be concluded by saying that a greater percentage of the people are of the view that government should invest more of the oil subsidy withdrawal in education sector.
4.1.11 Does Oil Production in Nigeria cause any damage to the citizens of Nigeria
Table xi below shows that out of the total respondents of forty eight(48), forty (40) or 83% respondents said yes that oil production in Nigeria cause damage to the citizens of Nigeria. Two (2) or 17% are indifference and non said No.
Responses on the damage of Oil Production to the citizens of Nigerians
|
OPTIONS |
NO OF RESPONSES |
RESPONSES% |
|
(a) Yes |
40 |
83% |
|
(b)No |
– |
– |
|
(c)None |
8 |
17% |
|
TABLE |
48 |
1000% |
Source: Nweke’s Field Survey,2013
Table xi
We could therefore conclude that oil production in Nigeria cause a great damage to the citizens of Nigeria.
4.1.12 Does Oil Production in Nigeria Provide Employment Opportunities to its Citizens
From table xii below, we had evidence that twenty four or 50% of the total respondents are of the view that oil production in Nigeria provide employment opportunities to its citizens. Nineteen (19) or 40% of the people are of the view that oil production in Nigeria does not provide employment opportunities to its citizens and one (1) or 10% are in different.
Responses of Oil Production in Nigeria Provision of Employment Opportunities to its Citizens
|
Options |
No of responses |
Responses(9/o) |
|
(a) Yes |
24 |
50% |
|
(b) No |
19 |
40’Yo |
|
(c) None |
5 |
10% |
|
TABLE |
48 |
100% |
Source: Nweke’s Field Survey, 2013 Table xii
From the above analysis, it is clear that oil production in Nigeria provide employment opportunities to its citizens
4.1.13 Does Federal Government Effectively Allocate the
Benefits that accrue from Oil Production to Nigerians
The table xiii below shows that thirty three (33) or 68.75% are the view that government effectively allocate the benefits that accrue from oil production in Nigeria, eight (8) or 16.67% are not of the view and seven (7) or 4. 58% are indifferent.
Responses on the Allocation of Benefits that accrue from Oil Production to Nigerians< /span>
|
Options |
No of Responses |
Responses(°Io) |
|
(a) Yes |
33 |
68% |
|
(b)No |
8 |
16% |
|
(c) None |
7 |
14% |
|
TABLE |
48 |
100% |
Source: Nweke’s Field Survey, 2013
Table xiii
From the above analysis, it is evidenced that government effectively allocate the benefits that accrue from oil production to Nigerians.
4.2 Analysis of Hypotheses
In this section we shall compute and interpret statistically the various hypothesis stated in chapter I. This will be based on the theoretical concept of statistical analysis discussed in chapter 3.
4 Hypothesis I
Ho: Oil production in Nigeria over the years has not positively impacted significantly on the infrastructural development of the country; (i.e Ho; P 0.5)
H1: Oil production in Nigeria over the years has positively impacted significantly on the infrastructural development of the country. (i.e Ho; P = 0.5).
Responses to the Development of Infrastructural Development in Nigeria vis-à-vis Oil Sector Contribution to Overall Economic Growth.
|
Options |
No of Responses |
Proportion (%) |
|
Low |
22 |
0.46 |
|
Average |
26 |
0.54 |
|
High |
– |
– |
|
Total |
48 |
100 |
Table V
Calculations
P = 0.46;q = 0.54; N=48
Ho; P = 0.5
Using Z- test
Z = P-P
SP
Where SP = Square root PP/n
:.Z = Square root PP = (0.46)(0.54)
n – P 48
Z = P – P
0.071937
Z = 0.04
0.071937
= 0.556042
Z – calculated = 0.556042
We know that the value of z at 5% level of significance from
statistical table is 645 which is called z – theoretical (ZT)
DECISION RULE
If Zc > ZT we reflect H0; otherwise we accept it.
Here; Zc = 0.556042
ZT = 1.645
Since 1.645>0.556042; we accept Hi; alter hypothesis at 5% level of significance while we reflect Ho; null hypothesis. Oil production in Nigeria over the years has positively impacted significantly on the infrastructural development of the country.
4.2.2 HYPOTHESIS II
Ho; there is no significant causal relationship between oil production in Nigeria and the standard of living of Nigerians. (Ho;P=0.5) Hi; there is significant causal relationship between oil production in Nigeria and the standard of living of Nigerians. (Hi;p<0.5).
Responses on the impact of Oil Sector Contribution to the Standard of Living of Nigerians
|
OPTIONS |
NO OF RESPONSES |
RESPONSES% |
|
(a) Positive |
23 |
0.48% |
|
(b) Negative |
25 |
0.52% |
|
Table |
48 |
100% |
Table vi
Calculation
P = 0.48; q = 0.52; n=48
Using z-test
Z = P-P
SP
Where SP Z = P-P
n
SP = SQUARE ROOT 0.48(052)
48
SP = 0.072111025
Therefore Z* =
0.5-0.48
0.072111025
= Z* = 0.02
0.7211125
Z* = 0.02773501
From the statistical table it was discovered that the theoretical z (ZT) at 5% level of significance is 1.645. Therefore, since the modulus of calculated z is less than the theoretical z we reject H1; and accept Ho, the null hypothesis.
This means that there is no significant causal relationship between oil production in Nigeria and the standard of living of Nigerians.
TOPIC
APPRAISAL OF THE NIGERIA OIL SECTOR: ISSUES AND CHALLENGES (2008-2012)
A CASE STUDY OF SELECTED OIL COMPANIES
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