Analysis of the Expectations and Benefits of Petroleum Resource Exploration in Oil Producing Communities of Akwa Ibom State, Nigeria.

Author(s)

Dr. Uwemedimo E. Okon , Bassey, Nsikan Edet , Christopher A. Ekpo , Sunday B. Akpan , Otu W. Ibok ,

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Volume 3 - December 2014 (12)

Abstract

The paper analyzed the expectations and benefit of petroleum resource exploration in three oil producing communities of Esit Eket, Ibeno, and Eastern Obolo Local Government Area (LGAs), Akwa Ibom State, in south-South, Nigeria. A two stage purposive sampling frame was constructed from the list of four communities, spanning three LGAs, identified. Since all the communities apparently displayed similar socio-economic and cultural characteristics, a simple random sampling technique was employed to select 28 communities with a total of 400 questionnaires, using “Yaro Yamane” formula for a finite population. The data collected was analyzed using descriptive statistics while a two way dependent t-test analysis was used in comparing the mean score of the two variables, identified as: the expectation of the host communities (independent variable) and benefit deliveries from relevant stakeholders in the oil sector (dependent variable).The result of the analysis revealed that, the expectations of the communities from oil producing activities by the Multinational Oil companies (MOCs) showed the benefits deliveries as: employment (28.50%), construction of good roads (21.75%), electricity (15%), provision of school/educational facilities (22.25%), pipe borne water (19%) and hospital/health care centre (17.75%). Finally, to some extent the oil companies have exercised their Corporate Social Responsibilities (CSR), but have not done creditably to engender the sense of partnership. The study recommends that to increase the flow of the benefits overtime by MOCs, bottom-up corporate-community partnership is relevant amongst other

Keywords

 Expectations, Benefit, corporate social responsibility, community development, Akwa Ibom State. 

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