CRUDE OIL SPILLAGE AND ILLEGAL BUNKERING IN TAYLOR CREEK:

IMPLICATIONS FOR SUSTAINABLE BLUE ECONOMY DEVELOPMENT IN THE NIGER DELTA

Abstract

Crude oil spillage and illegal bunkering pose significant threats to the sustainable development of the Blue Economy in the Niger Delta, particularly in Taylor Creek. This study examines the key environmental, economic, social, and governance factors influencing marine-based economic  activities (fishing, aquaculture, and tourism), assesses the direct and indirect impact of oil pollution using Structural Equation Modeling (SEM), and evaluates the economic decline’s effect on public health and livelihoods. Data were collected through structured surveys and analyzed using SEM to identify latent relationships among key variables. Findings reveal that environmental degradation (oil spills, water pollution), weak governance (poor enforcement of regulations), and economic decline (loss of fishing income, reduced tourism) significantly affect the Blue Economy’s productivity. SEM results show that oil spillage has a direct negative effect on marine productivity (-0.72, p<0.05), while illegal bunkering indirectly contributes to economic decline and livelihood deterioration. The study highlights the urgent need for policy interventions, stricter environmental regulations, and investment in marine ecosystem restoration to mitigate the adverse effects of crude oil pollution. Addressing governance failures and promoting sustainable economic alternatives are critical for preserving the Blue Economy and ensuring the well-being of affected communities.