IMPLICATIONS OF CRUDE OIL EXTRACTION ON AGRICULTURE AND LIVELIHOOD IN OIL PRODUCING RURAL COMMUNITIES IN NIGERIA

Inibehe George Ukpong and Ekemini Obok

Review of Agricultural and Applied Economics (RAAE), 2018, vol. 21, issue 2

Abstract: Activities of the oil and gas (O&G) industry directly influence the natural potentials of the ecosystem and human livelihood. In particular, the impacts of crude oil extraction grossly interfere with the daily economic life of man and the natural environment. This study evaluates people’s perception of the implications of crude oil extraction on agriculture and people’s livelihood in oil producing rural communities in Nigeria with particular focus on the Niger Delta region, an area where most onshore and offshore crude oil extractions are carried out. The bias in this study came from the fact that crude oil is mainly either extracted or transported across rural communities in the region through water routes and/or arable lands, the population here almost solely depends on natural resources – water and land – for their daily livelihood. Findings suggest that livelihood sources in the region are under evident direct threat of pollution and other impacts of the O&G industry. Results obtained from the descriptive analysis of 446 respondents indicate a perception of high impact of crude oil extraction on food prices (74.7%), food safety (60.5%), crop yield (48.2%) and animal production (28.3%). The results of the Ordered Probit regression analysis suggest that farmers and fishermen are more vulnerable or mostly affected by impacts of crude oil extraction in the region. The study thus opined that adequate mitigation of negative impacts of crude oil extraction would promote improved food safety, affordable food supply and improved household income in oil producing rural communities. Therefore, the O&G industry should intensify its commitments towards mitigating undesirable implications of exploration and extraction activities by O&G companies in the oil producing areas. In a bit to mitigate prevailing livelihood problems in the Niger Delta region, there is a need for O&G companies and government to provide necessary compensations, trainings and other support to help the rural people sustain their livelihood. In addition, all stakeholders in the O&G industry should collaborate with academic and research institutions to promote research in agriculture towards achieving improved food production and food safety in areas affected by impacts of crude oil extraction.

Keywords: Community/Rural/Urban Development; Environmental Economics and Policy (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:roaaec:281199

DOI: 10.22004/ag.econ.281199

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