CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The Nigerian petroleum industry has been confronted by two sapping challenges over the years. The challenges relate to the prevalence of militancy and oil pipeline vandalism in the Niger Delta.

While the former has significantly attenuated in the aftermath of the Amnesty deal in 2009 (Okoli, 2013), the latter appears to have escalated both in incidence and impact. According to Ogbeni:

A total of 16,083 pipeline breaks were recorded within the last 10 years adding that while 398 pipeline breaks representing 2.4 percent were due to ruptures, the activities of unpatriotic vandals accounted for 15, 685 breaks which translated to about 97.5 percent of the total number of cases (Ogbeni, 2012, para 8).

Indeed, the incidence of oil pipeline vandalism has been on the hike in Nigeria. According to the 2013 annual report of the Nigerian Extractive Industry Transparency Initiative (NEITI), Nigeria lost a total of 10.9 billion US Dollars to oil theft between 2009 and 2011 (NEITI, 2013; Onoja, 2013). This loss adumbrates the significance of vandalism as a veritable problem in the Nigerian oil industry. The implication of oil pipeline vandalism vis-a-vis Nigeria’s security has been vividly demonstrated by its nexus with economic, environmental, and humanitarian losses and consequences (Onuoha, 2009). In effect, oil pipeline vandalism has been associated with consequences which holds negative implications for national issue of oil pipeline vandalism, in spite of its topical relevance, has not received adequate emphasis in the existing literature. Again, the bulk of the extant works in the area of inquiry has tended to be merely journalistic, benefit of analytical rigours and systematization. This has necessitated a systematic investigation into the problematic. This paper, therefore, an attempt is made to establish the relationship between oil pipeline vandalism and national security in Nigeria. The paper posits that oil pipeline vandalism results in untoward outcomes which threaten Nigeria’s national security.

The discovery of crude oil in commercial quantity in Oloibiri in 1956 marked the birth of the petroleum industry in Niger. Since then, the Nigeria economy has been more or less dependent on petroleum. To facilitate the distribution of crude oil product from the oil rich Nigeria Delta to other parts of the country, a network of oil pipelines was constructed to inter-link some states at strategic locations (Onuorah, 2007).

Nigeria has a total pipeline grid of 5001 kilometers. This consists of 4315 kilometers of multiproduct pipelines and 666 kilometers of crude oil pipelines. These pipelines transverse the country, forming a network that inter-connects the 22 petroleum storage depots, the four refineries at Port-Harcourt (I and II), Kaduna and Warri, the off-shore terminals at Bonny and, Escravos, and the jelties at Alas Cove,

Calabar, Okirika and Warri (Onuoha, 2007, p.6). This system of oil pipelines is used to transport crude oil to the refineries in Port-Harcourt (I and II), Warri and Kaduna, covering a total distance of 719 kilometres. The multi-product pipelines are used to transport products from the refineries/import receiving jetties to the 22 petroleum storage depots at various places in the country. The storage infrastructure consisting of 22 loading depots linked by pipeline of various diameters has aggregate installed capacities of 1,266890 (PMS), 676 400 (DPK), 1007 900 (AGO), and 74 000 (ATK) m3tonnes (Special Committee on the Review of Petroleum Products Supply Distribution- SCRPPSD, 2000, p.10).

1.2 STATEMENT OF RESEARCH PROBLEM

The level at which the Nigerian pipe line are been vandalized and oils are made away in large quantity, the loose security strength of the country and the attitude of the country leaders towards this issue. The story of vandalized pipe lines in Nigeria is becoming concurrent, property are vandalized by the vandals and no one says nor do anything about it. It has been the main issues in the research work, pipe line vandalization.

Overall, oil pipeline vandalism constitutes a veritable threat to Nigeria’s national security. As it has been observed in the preceding sections of this writing, the impact and implications of pipeline vandalism have been critically detrimental to the concerns of public safety and development in Nigeria. To say the least, therefore, the prevalence of oil pipeline vandalism in Nigeria over the years has presented the country with crucial national security challenge.

1.3 OBJECTIVES OF THE STUDY

Due to the concurrent issues of vandalization in the country, which the leaders of this country does nothing about it, the researcher seeks to bring to the notice of the country, the citizen of this great country the implication of this incidence to the economic development of our nation.

Also, the objectives of the researcher in this study is that at the end of this research work it will help to bring an end to this issues, as it will educate the masses the importance of securing their property because this assets are part of the nation’s own which every one of this nation is part of.

1.6 RESEARCH QUESTION

The researcher formed some research question will guide her to carry out this work so as to have a focal point in the study. Which the questions are:

1. What are the reasons to oil pipeline vandalism in the country?

2. The implication of pipe line vandalization is drastic to the country economy, what are the possible measures to take so as to keep secure and guide of this pipe line?

HYPOTHESIS TO BE TESTED

Hypothesis

H0: Pipeline vandalization does not affect the economy of Nigeria.

H1: Pipeline vandalization affects the economy of Nigeria.

Level of significance: 0.05

Decision rule: reject the null hypothesis if the p-value is less than the level of significance. Accept the null hypothesis if otherwise.

1.4 SIGNIFICANCE OF THE STUDY

The outcome of this research work will be of beneficial help to the nation as it will highlight the effect of vandalizing the country property, in this case the vandalization of pipe line, to the economic development of this country, a highlight of its set back to the country.

1.5 SCOPE OF THE STUDY

This research work covers the country Nigeria, the vandalization of pipe line and its effects and implication to the country economic development. This work basically focus on pipe line vandalization.

1.7 LIMITATIONS OF THE STUDY

During the course of performing/researching this project work, the researcher encountered a lot of challenges as well as opposition which ranges from financial constraints, time factor. This factors in their own ways, slowed down the speedy progress of this work that resulted to the researcher not being able to finish the research work on time as is required Also, within the area of study the researcher was faced with some other forms of constrains that contributed to the limitation of this researcher work, like accessibility to data, information and facts concerning the present study due to some reasons or the other, some not willing to give out information that it is to be within the workers.

DEFINITION OF TERMS

1. A refinery is a production facility composed of a ground of chemical engineering unit processes and unit operations refining certain materials or converting raw material into product of value.

2. Environmental pollution is the undesired spread of toxic chemical into the aquatic and terrestrial habitats of the world.

3. Gas flaring is the burning of natural gas that is associated with crude oil when it is pumped up from the ground.

4. Offshore refers to the development of oil fields and natural gas deposits under the ocean.

5. Onshore refers to development of oil fields, gas deposits and geothermal energy on land.

6. Oil drilling is a complex process that involves the drilling and pumping of oil from underground well. A pump is connected to the tube and the petroleum under the surface is forcibly removed from underground.

7. Oil exploitation is the process by which usable petroleum is drown out beneath the earth's surface.

8. Oil spillage is the release of a liquid petroleum hydrocarbon into the environment, especially marine area due to human activity, and is a form of pollution.

9. Pipeline is a series of pipes often underground with pumpsand valves for flow control, used to transport crude oil, natural gas, waters, etc, especially over great distance.

10. Vandalism is action involving deliberate destruction or damage to public property, the term includes criminal damage such as graffiti and defacement directed toward any property without permission of the owner.

TABLE OF CONTENT

Title page

Certification

Dedication

Acknowledgement

Abstract

Table of content

CHAPTER ONE

1.1 Background of the study

1.2 Statement of the problem

1.3 Objectives of the study

1.4 Research Questions

1.5 Research Hypothesis

1.6 Significance of the study

1.7 Scope of the study

1.8 limitation of the study

1.9 Definition of the terms

CHAPTER TWO: LITERATURE REVIEW

2.0 Introduction

2.1 Review of Related literature

2.2 Theoretical Framework: The Queer Ladder Theory (Qlt)

2.3 The Structure of Nigeria’s Oil Pipeline System

2.4 Incidence and Prevalence of Oil Pipeline Vandalism in Nigeria

2.5 Causes of Oil Pipeline Vandalism in Nigeria

2.6 Effects of Oil Pipeline Vandalism in Nigeria

2.7 General Strategic Implications of Oil Pipeline Vandalism

CHAPTER THREE: RESEARCH METHODOLOGY

2.2 Introduction

2.3 Research design

2.4 Population of the study

2.5 Sample seize and sampling technique

2.6 Research instrument

2.7 Validity and reliability of the instrument

2.8 Method of Data Analysis

2.9 Statistical Method

CHAPTER FOUR

Data presentation and analysis

3.0 Introduction

3.1 Data analysis

CHAPTER FIVE

SUMMARY, RECOMMENDATIONS AND CONCLUSION

3.2 Introduction

3.3 Summary of findings

3.4 Recommendation

4.5 Conclusion

REFERENCES

QUESTIONNAIRE