Research and Sustainable Development By Agip And Shell In Nigeria: Overcoming Exclusion, Strengthening Inclusion

Abstract

Guided by Utilitarian Theory of Ethics, Social Environment Theory as well as one objective, the

Study investigated the activities of AGIP and SHELL in Nigeria with respect to discharging their corporate social responsibilities in their host communities and by extension enhancing sustainable development. The research design chosen is a combination of the use secondary data, case study and model formulation.  Specifically, the dynamic distributed lag model was adopted in the study. The dependent variable is Sustainable Development (SD) intervention proxies by the level of socio-economic expenditure in period t. The independent variables are lagged values of annual oil production, estimated profit, trend of community incidence or crisis, crude oil deferment trend due to community problems and annual volume of oil spilled. Crude oil production in the Niger Delta has resulted in extensive environmental degradation and impoverishment of the local host communities. On the other hand, the multinationals cart away the profits without addressing the negative externalities created by them. Thus, this paper focuses on the behavioural determinants Nigerian Agip Oil Company (NAOC) and theoretical determinants of SHELL in their attempt to reduce the divergence between private costs and social costs following widespread agitations, youth restiveness and militancy in oil producing areas of Nigeria. The findings of this study reveal that crude oil production represents the primary reason for the involvement of the NAOC and SHELL in community development. However, the degree of involvement is questionable. Among others, this study shows that the profit streams generated by the international oil firm have no significant impact on its level of community development activities in the Niger Delta.

Keywords: Research, Sustainable Development, Multinational, Degradation.