Impact of Oil Spillage and Gas Flaring on Economic Growth in Nigeria

Abstract

This study assessed the impact of oil spillage and gas flaring on economic growth in Nigeria. The data used for this study are secondary
obtained from several issues of Department of Petroleum Resources’ Oil and Gas Annual Report, World Bank and CIED Reports. The
statistical analysis used is the multivariate nonlinear regression model approach. Using SPSS 20.0, we consider two economic indicators
and compute basic statistics to model the consequences of oil spillage, gas flaring responses on the two Nigeria’s economic indicators.
From the analysis, it was found that both oil spillage and gas flaring have depressing consequences on gross domestic product and per
capital income of Nigeria and by extension economic growth and development of Nigeria; though government seems to enjoy some
revenue from gas flaring due to the huge compensation enjoyed by the Nigeria Federal Government but at the detriment of the already
impoverished coastal region where oil and gas activities are carried out. The study recommends that the use of biological remediation
should be implemented in areas of the delta to detoxify and restore ecosystems damaged by oil spills and gas flares. Also, there should
be multi-stakeholder platforms and environmental monitoring teams supported by Nigeria Stability and Reconciliation Programme
(NSRP) on issues involving oil spills and gas flares in the delta region of Nigeria.