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Economic Implications of Marine Oil Spill to Nigeria: A Case for Improvement in Coastal Pipeline Management and Surveillance Practices

Received: 10 April 2017    Accepted: 26 April 2017    Published: 14 July 2017
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Abstract

Article 56 section 1 sub-section b(iii) of the United Nations Convention on Laws of the sea (UNCLOS), among other things identifies protection and preservation of the marine environment as a key role which coastal states must perform. While UNCLOS gave sovereign rights of ownership of certain zones in the oceans to coastal states, to fulfill their socio-political and economic interests in the use of the oceans and its resources, it also provides that it is the undisputable duty of coastal states to manage their claimed portions of the ocean/marine environment and more importantly, protect the environment from pollution, particularly, pollution from oil and gas (O&G) resources. The total quality management approach to safety management views safety progammes and policy implementations as investments, and emphasizes that such investments must be able to yield economic returns among others. The aim of the study therefore is to determine the economic implications of coastal oil spill induced losses to the Nigerian economy in order to estimate the economic impacts that coastal management programmes of agencies has had. The study adopted the natural resources damage assessment model, using data collected from the Nigerian National Petroleum Corporation (NNPC), the Organization of Petroleum Exporting Country (OPEC) and National Bureau for Statistics (NBS), to determine the oil spill induced revenue losses to Nigeria from 1984 to 2012. It was found among other things that within the period covered in the study, 1984 – 2012, the Nigerian economy lost estimated 3,928,260,196 naira revenue due to oil spill. This amount is not inclusive of remediation cost, third party costs and impact on the environment. Proactive use of technology for coastal oil pipeline and drilling platform surveillance was recommended.

Published in International Journal of Economy, Energy and Environment (Volume 2, Issue 3)
DOI 10.11648/j.ijeee.20170203.12
Page(s) 40-47
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Implications, Marine-Oil-Spill, Coastal-Pipeline, Management-Practices

References
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[2] The United Nations Convention on Law of the Seas (UNCLOS, 1982). United Nations, London.
[3] Adati, A. K. (2012) Oil exploration and spillage in the Niger Delta of Nigeria. Journal of Civil and Environmental Research Vol. 2(3):38-52.
[4] Adelana, S. O., Adeosun, T. A., Adesina, A. O. and Ojuronye, M. O. (2011) Environmental pollution and remediation: Challenges and Management of Oil Spill in Nigeria Coastal Areas. American Journal of Science and Industrial Research 10.5251(836)834-845.
[5] Nwokedi, T. C., okoroji, L. I., Nze, I. C. and Ndukwu, I. P. (2014) Oil exploration and production waste management practices: comparative analysis for reduction in hazardous E&P waste generation in offshore oil platforms in Nigeria. Journal of Environmental and Earth Science Vol. 5 (4): 101 – 107.
[6] Nigeria National Petroleum Corporation (NNPC, 2013) Annual Statistical Report. Available at www.nnpc.org.ng/ retrieved on 25/07/2016.
[7] International Maritime Organization (IMO, 2011) International shipping facts and figures, information resources on trade, safety, security, environment. Maritime Knowledge Center, London.
[8] Ufia P. (2011) Marine environmental protection and safety. A seminar material at the Nautical Institute for Technology, Rivers State University of Science and Technology, Onne Campus.
[9] Nwokejiegbe, C. E. (2014) An assessment of the impacts of marine pollution by oil spill in Nigeria. B. Tech. Thesis in the Department of Maritime Management Technology, Federal University of Technology, Owerri.
[10] Nigeria National Petroleum Corporation (NNPC, 2011) Annual Statistical Report. Available at www.nnpc.org.ng/ retrieved on 25/07/2016.
[11] Tatyana, P. S. (2004) Beyond economic growth: An introduction to sustainable development. International Bank for Reconciliation (World Bank), Washington.
[12] Emeonyeonu, U. M. (2014) An impact assessment of oil pollution in the Niger Delta Region: A Pygovian tax approach. M.Sc. Thesis in the Department of Maritime Management Technology, Federal University of Technology, Owerri.
[13] Badejo, O. T. and Nwilo, P. C. (2004) Management of oil spill disposal along the Nigeria coastal areas. ISPRS Congress 2004, Istabul, Turkey.
[14] Onuoha, F. C. (2008) Oil pipelines sabotage in Nigeria: Dimensions, actors and implications for national security. African Security Review, Institute for Security Studies 17(3)42-50.
[15] Anifowoze, I. (2008) Health Implications of oil spill in the Niger Delta of Nigeria. A seminar material in the Department of Administration, Nautical Institute for Technology, Onne campus, UST, Port-harcourt, Nigeria.
[16] Elei, G. I. (2014) Illegal oil trading in Nigerian maritime industry and its impacts on the economy. A Ph. D. Dissertation in the Department of Maritime Management Technology, Federal University of Technology, Owerri.
[17] Uyigue, E., Agho, M. (2007) Copping with climate change and environmental degradation in the Niger Delta of Southern Nigeria. Community Research Development Center, Nigeria (CREDC).
[18] Micheal, F. and Hui, W. (2015) Compensating victims of a European deepwater horizon accident: OPOL revisited. Marine policy 62:25 – 36.
[19] Ando, A. W., Madhu, K., Amy, W., Suzanne, V. (2004). Natural resources damage assessment methods and cases. WMRC’s Research Report Series. Available at http//:wrurc.uivc.edu/retrieved:26/05/2016.
[20] Grey, D., Rob, F. (1997) The economic impact of accident on the marine industry. Prepared for the U.S. coast guard, standards evaluation and development division, Washington.
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    Nwokedi Theophilus Chinonyerem, Moses Ntor-Ue, Ibe Callistus Chukwudi, Onyemechi Chinedum. (2017). Economic Implications of Marine Oil Spill to Nigeria: A Case for Improvement in Coastal Pipeline Management and Surveillance Practices. International Journal of Economy, Energy and Environment, 2(3), 40-47. https://doi.org/10.11648/j.ijeee.20170203.12

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    ACS Style

    Nwokedi Theophilus Chinonyerem; Moses Ntor-Ue; Ibe Callistus Chukwudi; Onyemechi Chinedum. Economic Implications of Marine Oil Spill to Nigeria: A Case for Improvement in Coastal Pipeline Management and Surveillance Practices. Int. J. Econ. Energy Environ. 2017, 2(3), 40-47. doi: 10.11648/j.ijeee.20170203.12

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    AMA Style

    Nwokedi Theophilus Chinonyerem, Moses Ntor-Ue, Ibe Callistus Chukwudi, Onyemechi Chinedum. Economic Implications of Marine Oil Spill to Nigeria: A Case for Improvement in Coastal Pipeline Management and Surveillance Practices. Int J Econ Energy Environ. 2017;2(3):40-47. doi: 10.11648/j.ijeee.20170203.12

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  • @article{10.11648/j.ijeee.20170203.12,
      author = {Nwokedi Theophilus Chinonyerem and Moses Ntor-Ue and Ibe Callistus Chukwudi and Onyemechi Chinedum},
      title = {Economic Implications of Marine Oil Spill to Nigeria: A Case for Improvement in Coastal Pipeline Management and Surveillance Practices},
      journal = {International Journal of Economy, Energy and Environment},
      volume = {2},
      number = {3},
      pages = {40-47},
      doi = {10.11648/j.ijeee.20170203.12},
      url = {https://doi.org/10.11648/j.ijeee.20170203.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijeee.20170203.12},
      abstract = {Article 56 section 1 sub-section b(iii) of the United Nations Convention on Laws of the sea (UNCLOS), among other things identifies protection and preservation of the marine environment as a key role which coastal states must perform. While UNCLOS gave sovereign rights of ownership of certain zones in the oceans to coastal states, to fulfill their socio-political and economic interests in the use of the oceans and its resources, it also provides that it is the undisputable duty of coastal states to manage their claimed portions of the ocean/marine environment and more importantly, protect the environment from pollution, particularly, pollution from oil and gas (O&G) resources. The total quality management approach to safety management views safety progammes and policy implementations as investments, and emphasizes that such investments must be able to yield economic returns among others. The aim of the study therefore is to determine the economic implications of coastal oil spill induced losses to the Nigerian economy in order to estimate the economic impacts that coastal management programmes of agencies has had. The study adopted the natural resources damage assessment model, using data collected from the Nigerian National Petroleum Corporation (NNPC), the Organization of Petroleum Exporting Country (OPEC) and National Bureau for Statistics (NBS), to determine the oil spill induced revenue losses to Nigeria from 1984 to 2012. It was found among other things that within the period covered in the study, 1984 – 2012, the Nigerian economy lost estimated 3,928,260,196 naira revenue due to oil spill. This amount is not inclusive of remediation cost, third party costs and impact on the environment. Proactive use of technology for coastal oil pipeline and drilling platform surveillance was recommended.},
     year = {2017}
    }
    

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  • TY  - JOUR
    T1  - Economic Implications of Marine Oil Spill to Nigeria: A Case for Improvement in Coastal Pipeline Management and Surveillance Practices
    AU  - Nwokedi Theophilus Chinonyerem
    AU  - Moses Ntor-Ue
    AU  - Ibe Callistus Chukwudi
    AU  - Onyemechi Chinedum
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    PY  - 2017
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    DO  - 10.11648/j.ijeee.20170203.12
    T2  - International Journal of Economy, Energy and Environment
    JF  - International Journal of Economy, Energy and Environment
    JO  - International Journal of Economy, Energy and Environment
    SP  - 40
    EP  - 47
    PB  - Science Publishing Group
    SN  - 2575-5021
    UR  - https://doi.org/10.11648/j.ijeee.20170203.12
    AB  - Article 56 section 1 sub-section b(iii) of the United Nations Convention on Laws of the sea (UNCLOS), among other things identifies protection and preservation of the marine environment as a key role which coastal states must perform. While UNCLOS gave sovereign rights of ownership of certain zones in the oceans to coastal states, to fulfill their socio-political and economic interests in the use of the oceans and its resources, it also provides that it is the undisputable duty of coastal states to manage their claimed portions of the ocean/marine environment and more importantly, protect the environment from pollution, particularly, pollution from oil and gas (O&G) resources. The total quality management approach to safety management views safety progammes and policy implementations as investments, and emphasizes that such investments must be able to yield economic returns among others. The aim of the study therefore is to determine the economic implications of coastal oil spill induced losses to the Nigerian economy in order to estimate the economic impacts that coastal management programmes of agencies has had. The study adopted the natural resources damage assessment model, using data collected from the Nigerian National Petroleum Corporation (NNPC), the Organization of Petroleum Exporting Country (OPEC) and National Bureau for Statistics (NBS), to determine the oil spill induced revenue losses to Nigeria from 1984 to 2012. It was found among other things that within the period covered in the study, 1984 – 2012, the Nigerian economy lost estimated 3,928,260,196 naira revenue due to oil spill. This amount is not inclusive of remediation cost, third party costs and impact on the environment. Proactive use of technology for coastal oil pipeline and drilling platform surveillance was recommended.
    VL  - 2
    IS  - 3
    ER  - 

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Author Information
  • Department of Maritime Management Technology, Federal University of Technology, Owerri, Nigeria

  • Department of Civil Engineering, Rivers State Polytechnic, Bori, Nigeria

  • Department of Transport Management Technology, Federal University of Technology, Owerri, Nigeria

  • Department of Maritime Management Technology, Federal University of Technology, Owerri, Nigeria

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