Effects of Oil Exploitation on the Efficiency of Artisanal Fishing Households in the Niger Delta Region
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– Effects of Oil Exploitation on the Efficiency of Artisanal Fishing Households in the Niger Delta Region –
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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%.
1.1 Background of the Study
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 washowever 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).
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