Investigation of Pipeline Vandalism and Its Implications on Business Activities in Nigeria

Abstract

The recent pipeline vandalism by the Niger Delta Avengers and other militants groups have attracted both national and international condemnations due to its implication on not only business activities in Nigeria but the Nigerian economy as a whole.  The consequences of their actions had affected most businesses which paralyzed business activities as a result of power failure and rising cost of production through the provision of alternative power source which have significant impact on both the organizations and the country’s economy in general. It is for this reason that the study was conducted with the main objective of investigating pipeline vandalism and its implications on business activities in Nigeria. The study employs the use of both primary and secondary sources of data from managers and customers of business organizations in the Nigeria’s power sector. A Simple Linear Regression was used to analyze the data obtained from the formulated hypotheses. Findings based on the analysis reveals that, pipeline vandalism in Nigeria significantly affects business activities in Nigeria as it’s resulted to destruction of critical pipeline installations and constant power failure which affects the smooth operations of business organizations and subsequently, retard economic development. The study recommended that Federal Government of Nigeria should through the NNPC collaborate with the nation’s military and other security agencies to ensure adequate policing and protection of critical pipeline infrastructure throughout the country so as to checkmate the activities of pipeline vandals which is having a devastating effects on the economy. The study concludes that the actions of the militant groups is a serious economic sabotage which if allowed to go unchecked will continue to be having a devastating effect on the country’s economy.

Keywords: Business Activities, Pipeline Vandalism, Power Generation, Revenue Generation