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ASSOCIATED GAS FLARING AND RE-INJECTION POLICY MAKING AND IMPLEMENTATION IN NIGERIA (1960-2010)

 

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

Since Nigeria's independence in 1960, the oil and gas industry has been a cornerstone of its economy, contributing significantly to its GDP and foreign exchange earnings (OPEC, 2020). However, the extraction of crude oil often results in the simultaneous release of associated natural gas through flaring, due to technical, economic, and regulatory challenges (Okoh & Osemwinyen, 2020). This practice has raised considerable environmental concerns, including air pollution, climate change impacts, and health risks to local communities living near oil-producing regions (World Bank, 2019).

The Nigerian government initially lacked stringent regulations to control gas flaring, leading to widespread environmental degradation and social discontent (Ite, 2018). Throughout the decades, various policy interventions were attempted to address these issues, aiming to reduce flaring through incentives, penalties, and technological advancements in gas re-injection technologies (Energia Limited, 2021).

During the 1970s, Nigeria's oil production surged, accompanied by a proportional increase in gas flaring, prompting international and domestic pressure for regulatory reforms (EIA, 2021). The introduction of the Associated Gas Re-injection Act of 1979 marked a pivotal moment, mandating oil companies to re-inject associated gas or face penalties (UNEP, 2020). Despite these efforts, implementation challenges persisted due to infrastructural limitations, economic considerations, and regulatory enforcement gaps (Nwoko & Ebewore, 2019).

The 1990s witnessed renewed efforts with the establishment of the Department of Petroleum Resources (DPR) to oversee compliance and promote gas utilization projects (NEITI, 2020). However, progress remained uneven, with some companies complying more rigorously than others due to varying economic incentives and operational constraints (Ladan, 2018).

By the turn of the millennium, Nigeria faced increasing scrutiny over its environmental policies related to gas flaring, particularly in light of global climate agreements and sustainable development goals (WBGU, 2019). The Nigerian Gas Master Plan of 2008 aimed to accelerate gas infrastructure development and reduce flaring through market-driven mechanisms and partnerships with international oil companies (NNPC, 2021). Despite these initiatives, challenges such as pipeline vandalism, regulatory inconsistencies, and fluctuating global oil prices continued to impact implementation effectiveness (Ite, 2019).

In conclusion, the policy-making and implementation of associated gas flaring and re-injection in Nigeria from 1960 to 2010 reflect a complex interplay of economic, environmental, and regulatory factors. While significant strides have been made in reducing flaring volumes and promoting gas utilization, sustained efforts are required to achieve complete eradication and maximize economic benefits from gas resources (UNIDO, 2021). Future strategies should focus on enhancing regulatory frameworks, incentivizing sustainable practices, and fostering international cooperation to mitigate environmental impacts and promote energy security (Olaniyan & Akinbode, 2020).

STATEMENT OF THE PROBLEM

The problem statement regarding associated gas flaring and re-injection policy-making and implementation in Nigeria from 1960 to 2010 centers on the persistent environmental, economic, and social challenges caused by extensive gas flaring in the country's oil-producing regions. Despite decades of regulatory efforts and policy interventions, Nigeria continues to face significant issues related to air pollution, climate change impacts, and adverse health effects on local communities living near oil extraction sites (Okoh & Osemwinyen, 2020; World Bank, 2019). The inadequate enforcement of existing regulations, coupled with infrastructural deficiencies and economic considerations, has hindered effective reduction of gas flaring volumes and hindered the maximization of economic benefits from associated gas (Ite, 2018; Nwoko & Ebewore, 2019). Additionally, fluctuating global oil prices and geopolitical factors have further complicated efforts to incentivize comprehensive gas utilization projects and sustainable practices (UNEP, 2020; NNPC, 2021). Therefore, the fundamental problem lies in the need for enhanced regulatory frameworks, improved infrastructure, and sustainable economic incentives to achieve significant reductions in gas flaring and harness Nigeria's gas resources for national development (Ladan, 2018; NEITI, 2020).

OBJECTIVE OF THE STUDY

The main objective of this study is to determine the effectiveness of the associated gas flaring and re-injection policy-making and implementation in Nigeria from 1960 to 2010. Specific objectives include:

i.          To evaluate the impact of associated gas flaring on environmental pollution and climate change in Nigeria during the study period.

ii.         To determine the economic implications of gas flaring and re-injection policies on Nigeria's oil and gas sector between 1960 and 2010.

iii.        To find out the challenges and barriers encountered in the implementation of associated gas re-injection policies in Nigeria over the decades.

RESEARCH QUESTION

i.          What is the extent of environmental pollution and climate change impact caused by associated gas flaring in Nigeria during the period from 1960 to 2010?

ii.         What is the economic impact of gas flaring and re-injection policies on Nigeria's oil and gas sector between 1960 and 2010?

iii.        How does the implementation of associated gas re-injection policies in Nigeria face challenges and barriers over the decades?

RESEARCH HYPOTHESES

Hypothesis I

H0: There is no significant impact of associated gas flaring on environmental pollution and climate change in Nigeria from 1960 to 2010. H1: There is a significant impact of associated gas flaring on environmental pollution and climate change in Nigeria from 1960 to 2010.

Hypothesis II

H0: There is no significant economic impact of gas flaring and re-injection policies on Nigeria's oil and gas sector between 1960 and 2010. H2: There is a significant economic impact of gas flaring and re-injection policies on Nigeria's oil and gas sector between 1960 and 2010.

Hypothesis III

H0: There is no significant correlation between the implementation of associated gas re-injection policies and the challenges faced in Nigeria over the decades. H3: There is a significant correlation between the implementation of associated gas re-injection policies and the challenges faced in Nigeria over the decades.

 

SIGNIFICANCE OF THE STUDY

The significance of this study on associated gas flaring and re-injection policy-making and implementation in Nigeria from 1960 to 2010 is multifaceted and critical for various domains. Firstly, it aims to comprehensively assess the environmental impact of associated gas flaring, shedding light on the extent of pollution and climate change effects caused by these practices. Such insights are crucial for informing future environmental policies and strategies aimed at mitigating these impacts, as documented by Okoh and Osemwinyen (2020).

Secondly, the study seeks to analyze the economic implications of gas flaring and re-injection policies on Nigeria's oil and gas sector. By evaluating these policies, the research aims to uncover their broader economic significance, including implications for revenue generation, resource utilization efficiency, and economic diversification strategies as noted by NNPC (2021).

Thirdly, it aims to evaluate the effectiveness of existing policies and regulatory frameworks concerning gas flaring. By doing so, it will provide insights that can guide policymakers in improving policy frameworks, enforcement strategies, and incentives to promote sustainable gas utilization practices, as observed by Ite (2018).

Fourthly, the study will investigate the social dimensions of gas flaring, particularly its impact on community health. By understanding the health risks posed to communities living near oil fields, the study can inform interventions aimed at protecting community health and well-being, addressing concerns related to respiratory diseases and other health risks associated with exposure to flaring emissions, as observed by the World Bank (2019).

Lastly, the findings of this study are expected to support Nigeria's commitments to international climate agreements and its efforts to reduce carbon emissions. By providing data to monitor progress towards these global environmental goals, the study contributes to Nigeria's environmental stewardship and sustainable development efforts, as noted by UNEP (2020).

Overall, this study's comprehensive analysis and findings are anticipated to offer valuable insights for policymakers, industry stakeholders, environmental advocates, and researchers interested in sustainable development, environmental protection, and energy policy in Nigeria and similar contexts globally, as highlighted by Ladan (2018) and NEITI (2020).

SCOPE OF THE STUDY

The scope of this study on associated gas flaring and re-injection policy-making and implementation in Nigeria from 1960 to 2010 is defined by its focus on several key aspects within a specific timeframe and geographical context. Firstly, the study will encompass an in-depth analysis of historical trends and developments related to gas flaring practices in Nigeria's oil-producing regions from the period of independence in 1960 to the year 2010. It will examine the evolution of regulatory frameworks, policy interventions, and technological advancements aimed at mitigating associated gas flaring and promoting re-injection strategies.

Secondly, the study will evaluate the environmental impact of gas flaring, specifically focusing on its effects on air quality, climate change, and ecosystem health. This includes assessing the extent of environmental pollution caused by flaring emissions and the effectiveness of mitigation measures implemented during the study period.

Thirdly, the economic implications of gas flaring and re-injection policies on Nigeria's oil and gas sector will be analyzed. This involves examining the economic costs and benefits associated with flaring reduction efforts, revenue losses or gains, and the overall economic impact on national development objectives.

Fourthly, the study will explore the regulatory and institutional frameworks governing gas flaring in Nigeria, including the roles of government agencies, international partnerships, and industry stakeholders. It will assess the enforcement mechanisms, compliance rates, and challenges faced in implementing and enforcing gas flaring regulations.

Lastly, the study will consider the social dimensions of gas flaring, particularly its impact on local communities residing near oil production facilities. This includes examining health risks associated with exposure to flaring emissions, community perceptions, and the social implications of environmental degradation caused by flaring activities.

Overall, while focusing primarily on the period from 1960 to 2010, this study aims to provide a comprehensive understanding of associated gas flaring and re-injection policies in Nigeria, addressing environmental, economic, regulatory, and social dimensions within the specified timeframe and geographical context.

LIMITATION OF THE STUDY

As with any research endeavor, this study on associated gas flaring and re-injection policy-making and implementation in Nigeria from 1960 to 2010 faces several limitations that warrant consideration. Firstly, the availability and reliability of historical data spanning five decades can pose a significant challenge. Data collection from various sources, including government records, industry reports, and academic literature, may be incomplete or inconsistent, potentially limiting the depth and accuracy of the study's findings (Okoh & Osemwinyen, 2020).

Secondly, the study's scope is confined to a retrospective analysis up until 2010, which may not capture recent developments or changes in policy and technology beyond this period. As gas flaring policies and practices continue to evolve, particularly in response to global climate commitments and technological advancements, the study's findings may not fully reflect current realities or future trends in gas flaring management (NNPC, 2021).

Thirdly, while the study aims to evaluate the environmental and economic impacts of gas flaring policies, it may face challenges in quantifying the full extent of these impacts. Factors such as indirect economic costs, social implications, and long-term environmental consequences may be challenging to measure accurately within the study's framework (Ite, 2018).

Fourthly, the study's focus on Nigeria's oil-producing regions may limit its applicability to other geographic contexts or countries with different regulatory frameworks and socio-economic conditions. Comparative analysis with other oil-producing nations could provide broader insights but falls outside the current study's scope (World Bank, 2019).

Lastly, despite efforts to incorporate diverse perspectives and stakeholder inputs, the study's conclusions may be influenced by inherent biases in data sources, researcher interpretations, and stakeholder viewpoints. Ensuring transparency and rigor in data analysis and interpretation will be critical to mitigating these potential limitations (UNEP, 2020).

In conclusion, while this study endeavors to provide valuable insights into associated gas flaring and re-injection policies in Nigeria, it is essential to recognize and acknowledge these limitations to ensure the study's findings are interpreted within appropriate contexts and its recommendations are applied judiciously in policy and practice (Ladan, 2018; NEITI, 2020).

DEFINITION OF TERMS

  Associated Gas Flaring: The process of burning off natural gas that is produced as a by-product during oil extraction, typically due to technical constraints or economic reasons, leading to environmental and economic implications (Okoh & Osemwinyen, 2020).

  Re-injection: The practice of returning associated gas back into underground reservoirs after extraction to enhance oil recovery and reduce gas flaring, aiming to maximize resource utilization and minimize environmental impact (NNPC, 2021).

  Policy-making: The process by which governmental and regulatory decisions are formulated and implemented concerning the management, regulation, and mitigation of associated gas flaring activities (Ite, 2018).

  Implementation: The practical application and execution of policies, regulations, and strategies related to associated gas flaring and re-injection within Nigeria's oil and gas sector, encompassing operational practices and compliance measures (World Bank, 2019).

  Environmental Impact: The effects of associated gas flaring on the natural environment, including air quality degradation, climate change contributions, and ecosystem disturbances, influencing ecological balance and human health (UNEP, 2020).

  Economic Implications: The financial costs and benefits associated with gas flaring and re-injection policies, encompassing revenue generation, economic growth contributions, and resource utilization efficiency in the oil and gas industry (Ladan, 2018).

  Regulatory Frameworks: The set of laws, rules, guidelines, and institutions governing the exploration, extraction, and management of natural resources, including policies aimed at controlling and reducing associated gas flaring (NEITI, 2020).

  Social Impact: The effects of associated gas flaring on local communities and stakeholders, encompassing health risks, socio-economic disruptions, and community perceptions, influencing social well-being and development outcomes (Ite, 2018).

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