THE NIGERIAN STATE, POLITICS OF NATURAL GAS PRODUCTION AND ENVIRONMENTAL SUSTAINABILITY IN THE NIGER DELTA REGION, 1999- 2012

i THE NIGERIAN STATE, POLITICS OF NATURAL GAS PRODUCTION AND ENVIRONMENTAL SUSTAINABILITY IN THE NIGER DELTA REGION, 1999- 2012 A PROJECT REPORT SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTER OF SCIENCE (M.Sc.) DEGREE IN POLITICAL SCIENCE (POLITICAL ECONOMY) TO THE DEPARTMENT OF POLITICAL SCIENCE, UNIVERSITY OF NIGERIA, NSUKKA BY MOKUYE, STEPHENS O PG/M.Sc/12/61998 SUPERVISOR: PROFESSOR ALOYSIUS-MICHAELS OKOLIE DATE: JULY, 2014 ii CERTIFICATION This is to certify that Mokuye, Stephens Onyekachukwu embarked on this project entitled The Nigerian State, Politics of Natural Gas Production and Environmental Sustainability in the Niger Delta Region, 1999- 2012 and meets the regulations governing the award of the degree of Master of Science, University of Nigeria, Nsukka and is approved for its contribution to knowledge Mokuye, Stephens O Date APPROVAL PAGE iii This research work by Mokuye, Stephens Onyekachukwu (PG/M.SC./12/61998) has been approved by the Department of Political Science, University of Nigeria, Nsukka By …………………… Prof Aloysius-Michaels OKOLIE Prof Jonah ONUOHA SUPERVISOR HEAD OF DEPARTMENT Prof Christopher O T UGWU DEAN, EXTERNAL SUPERVISOR Faculty of the Social Sciences DEDICATION iv To Mr Kunle Abbas Animashaun, (Coordinator, Graduate Students’ Fellowship, University of Nigeria, Nsukka (GSFUNN) 2011/2012 Session) you started this programme but the callous hands of death took you away before you could complete it We all miss you ACKNOWLEDGEMENTS v A work of this magnitude enjoyed the efforts of many individuals and here is the most auspicious opportunity to register my profound and sincere appreciation to all First, I wish to deeply thank God for His immeasurable grace, strength, inspiration and leading, particularly at those trying moments in the course of this Masters programme But for Your grace, I would have thrown in the towel My brothers, Elder Theophilus, Elder Smart and Pastor Aloysius Mokuye, and Sisters Mrs Gladys Osiele and Mrs Justina Augustine have in their own ways given me the most needed support morally, spiritually, materially and financially God bless you and your families My Supervisor, Prof Aloysius-Michaels Okolie, thank you for your patience with my slow pace, attention to details and helpful suggestions all through I have learnt a lot by working under your supervision Thank you so much Winston, Anigbogu and Ekene, Maduaguna, my very wonderful roommates and friends of long standing for your cooperation, understanding and supports You chose to be inconvenienced for me to make use of your Personal Computers at little or no notice for days Chimnonso Ndumele also was part of this team of understanding trio Noni, your moral support is also herein being appreciated God bless you all Your sacrifices for my sake will be rewarded speedily I shall not forget to appreciate Members of the Graduate Students’ Fellowship, (GSF) University of Nigeria, Nsukka (UNN), especially the 2010/2011 Executive Committee (Exco) members who worked with me for a good working relationship and for providing the needed encouragement to me at the threshold of my academic trials Mr Joseph, Iorliam and late Mr Kunle Animashaun deserve special recognition in this group Thank you for relieving me of the financial burden contiguous to this programme For the authors and scholars ahead of me, thank you for your works which made this study possible I also acknowledge my lecturers in the Department of Political Science under whose tutelage I hide and from whose wealth of intellectual sagacity I drank since my undergraduate days My Pastors and spiritual leaders have equally done a great deal of work in the course of this programme Revd Dr Dan Ozoko, Revds Innocent Eleke and Nkechi Etta, your messages were more than enough motivations for me in the pursuit of this whole programme God knows how much you have impacted my life I equally thank all the friends and 2012/2013 course mates, especially those of Political Economy option Thanks for a worthwhile relationship MOKUYE,Stephens Onyekachukwu PG/M.SC/2012/61998 TABLE OF CONTENTS Title Page: I vi Certification Page: II Approval Page: III Dedication: IV Acknowledgements: V Table of Contents: VI Abbreviations/ List of Acronyms: IX List of Map: XII List of Tables: XIII Abstract: XIV CHAPTER ONE 1.1 INTRODUCTION 1.2 STATEMENT OF THE PROBLEM 1.3 OBJECTIVES OF THE STUDY 10 1.4 SIGNIFICANCE OF THE STUDY 10 1.5 LITERATURE REVIEW 11 1.5.1 Government Policies and Environmental Sustainability 11 1.5.2 Nigerian State and the Implementation of Environmental Policies 13 1.5.3 Summary of Literature Review 23 1.6 THEORETICAL FRAMEWORK 25 1.6.1 Application of the Rentier-State Theory 26 1.7 HYPOTHESES 28 1.8 RESEARCH DESIGN 28 1.9 METHOD OF DATA COLLECTION 29 1.10 METHOD OF DATA ANALYSIS 29 CHAPTER TWO HISTORY OF GAS PRODUCTION IN NIGERIA 2.1 Introduction 2.2 Periodizing Natural Gas Production in Nigeria 2.3 The Nigerian Gas Master Plan 2.4 Gas Utilisation in Nigeria CHAPTER THREE 31 31 31 36 38 vii GOVERNMENT POLICIES AND ENVIRONMENTAL SUSTAINABILITY 44 3.0 Introduction 44 3.1 Gas Production Policy Framework in Nigeria 46 3.2 Environmental Externalities of Gas Flaring in the Niger Delta 49 3.3 Anti-Gas Flare Legislations in Nigeria 52 3.4 Gas Production and Human Rights Concerns 56 3.5 Global Approach to Clean Environment 59 CHAPTER FOUR NIGERIAN STATE AND THE IMPLEMENTATION OF ENVIRONMENTAL POLICIES 62 4.0 4.1 Introduction Nigeria’s Natural Gas Endowment 62 65 4.2 The Emerging Global Gas Market 66 4.3 Importance of Natural Gas in the World Economy 67 4.4 The Nigerian Gas Market 68 4.5 Multinational Oil Companies and Gas Production in Nigeria and Western Economies 69 CHAPTER FIVE SUMMARY, CONCLUSION AND RECOMMENDATIONS 72 5.1 SUMMARY 72 5.2 CONCLUSION 74 viii 5.3 RECOMMENDATIONS BIBLIOGRAPHY 78 ABBREVIATIONS/LIST OF ACRONYMS AG 75 Associated Gas BCM Billion Cubit Metre CAC Corporate Affairs Commission DGA Downstream Gas Act DGSO domestic gas sector obligation DPR Directorate of Petroleum Resources E&P Exploration & Production ix EGASPIN Environmental Guidelines and Standards for the Petroleum Industry in Nigeria EGTL Escravos Gas to Liquid EIA Energy Information Administration EIA Environmental Impact Assessment Act ERA Environmental Right Action FEPA Federal Environmental Protection Agency FMEnv Federal Ministry of Environment FRN Federal Republic of Nigeria GDP Gross Domestic Product GECF Gas Exporting Countries’ Forum GGF Gas Gathering Facilities GW Gigawatts IEA International Energy Agency IFIs International Financial Institutions JINN Justice In Nigeria Now JV Joint Venture LFN Laws of the Federation of Nigeria LNG Liquefied Natural Gas MCF Million Cubit Feet MDGs Millennium Development Goals MENDMovement for the Emancipation of the Niger Delta MNOCs/ MNCs Multinational Oil Corporations MPR - Ministry of Petroleum Resources NAFCON National Fertilizer Company of Nigeria NAG Non Associated Gas NAGFRA Natural Gas Fiscal Reform Act NBC Nigerian Bitumen Company NDDC Niger Delta Development Commission NDES Niger Delta Environmental Survey NDVF Niger Delta Volunteer Force x NEITI Non Extractive Industry Transparency Initiative NESREA 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Master project presented to the Department of Political Science, University of Nigeria, Nsukka CONFERENCE PAPERS Aaron, K.K (2008) “The Failure of Corporate Social Responsibility in the Niger Delta: Toward a Re-Interpretation” in International Conference on the Nigeria State, Oil Industry and the Niger Delta (Conference proceeding) Yenagoa: Department of Political Science, Niger Delta University March 11-13 Adebanji, A (2010) “Environmental and resource conflicts in the Niger Delta: an impediment to Nigeria’s transition to the green economy” in 'IAIA 10th Conference Proceedings' The Role of Impact Assessment in Transitioning to the Green Economy 30th Annual Meeting of the International Association for Impact Assessment International Conference Centre Geneva - Switzerland (www.iaia.org) Accessed 16/04/2013 Anyanwu, C U (2012) “The oil industry and the Nigerian environment.” in 'IAIA12 Conference Proceedings' Energy Future The Role of Impact Assessment 32nd Annual Meeting of the International Association for Impact Assessment Porto: Centro de Congresso da Alfândega, 27 May-1 June (www.iaia.org) Bassey, N (2008) “Gas flaring: assaulting communities jeopardizing the world.” A paper presented at the National Environmental consultation hosted by the Environmental Rights Action in conjunction with the Federal Ministry of Environment at Reiz Hotel, Abuja Gilbert, L D (2009) “Youth militancy, amnesty and security in the Niger Delta region of Nigeria” A Paper presented at the Joint Africa Institute of South Africa/South African Association of Political Studies (AISA/SAAPS) Colloquium, Burgers Park Hotel, Pretoria, South Africa 15th-16th October 88 Haugland, T & Christophersen, Ø (2010) “Gas flaring.” Phuket: Carbon Limits June 29th Idoro, G (2011) “The Nigerian oil and gas development content law: optimizing opportunities for the professional quantity surveyors.” A Paper presented at the Nigerian Institute of Quantity Surveyors’ Seminar on Nigerian Content Law: 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23/08/2013 Vanguard (2013) Natural gas: Importance and Uses www.vanguardngr.com/2013/07/natural-gas-importance-and-uses.html 01/09/2013 July 01 Accessed: 89 OTHERS (INAUGURAL LECTURES, PRESS RELEASE, ETC.) Anikpo,M; Ibaba, S.I; Peterside, S; Onyido, O; Nyulaku, P; Ekiye, J & Kpodo, S (2013) The Nigerian State and Gas Flaring in the Niger Delta Port Harcourt: National Coalition on Gas Flaring and Oil Spill in the Niger Delta (NACGOND Research Project) Fagbohun (2012) Mournful remedies, endless conflicts and inconsistencies in Nigeria’s quest for environmental governance: Rethinking the legal possibilities for sustainability Lagos: Nigerian Institute of Advanced Legal Studies September Ibeanu, O (2008) “Affluence and Affliction: The Niger Delta as a Critique of Political Science in Nigeria” An Inaugural Lecture of the University of Nigeria, Nsukka, Delivered on February 20 Onyekonwu, M (2007) “Nigeria gas issues” PTDF Gas Research Group University of Port Harcourt Justice Development & Peace Commission/Caritas, (2011) “2012 Lenten Campaign.” Nsukka: Justice Development & Peace Commission/Caritas Justice In Nigeria Now (JINN), (2010) “Gas Flaring in Nigeria: An Overview” April www.justiceinnigerianow.org Accessed 24/09/2013 Niger Delta Environmental Survey (NDES) (1996, 1997, 2000 & 2001) Niger Delta Environmental Survey Phase I Report Volume I: Environmental and Socio-Economic Characteristics Lagos: Niger Delta Environmental Survey ... entitled The Nigerian State, Politics of Natural Gas Production and Environmental Sustainability in the Niger Delta Region, 1999- 2012 and meets the regulations governing the award of the degree of. .. Delta? 1.3 OBJECTIVES OF THE STUDY The broad objective of this study is to examine the Nigerian state, politics of natural gas production and environmental sustainability in the Niger Delta region,. .. study, therefore, focuses on the Nigerian state, politics of natural gas production and its implications for environmental sustainability in the Niger Delta region of Nigeria 1.2 STATEMENT OF THE