Page 1 of 18
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 5
May 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 55
ExxonMobil and Community Development
1Inyang Mbom-Abasi Udofia ,
2Erumere Christiana Ovie
(Ecowas Research Scholar),
Department of Geography and Planning, University of Lagos, Akoka, Nigeria.
Department Of Geography, University of Ibadan, Oyo State, Nigeria.
Corresponding Email: mbomabasi@gmail.com,
ABSTRACT
Businesses, especially large-scale industrial
firms, have a responsibility to contribute to
community development as the host
communities are the direct bearers of the
impact of their business activities. The study
adopted the random sampling technique to
select 400 respondents from ten communities
in Ibeno LGA. A structured questionnaire was
used to collect primary data from the host
communities. Data collected were analysed
using the student t-test, Pearson Product
Moment Correlation and Nearest Neighbour
Analysis. Findings from the study revealed that
there was no significant difference between the
villages in respect to the number of
ExxonMobil development projects. The
correlation coefficient between the number of
ExxonMobil projects and distance from the
location of her operational facility was -0.741.
This indicated a negative relationship and that
the greater the distance of a community from
the oil facility, the fewer the number of
projects sited in it. Nearest neighbour
analysis yielded a value of 0.86, indicating
that the pattern of distribution of ExxonMobil
projects tends to cluster around communities
that are closer to the facility. It was therefore
recommended that ExxonMobil should extend
her community development to areas that are
outside the enclave of her operational facility,
especially the micro- credit and skill
acquisition programme, which has the
potential of reducing poverty level in the area.
Key Words: community development, corporate
social responsibility, host community, oil
multinationals, poverty.
INTRODUCTION
Nigeria is the second largest oil
producer in Africa, the eleventh largest
producer of crude oil in the world, and
currently exports about 2.7 million barrels
of high quality crude oil per day to the
international market. Nigeria had 36.2
billion barrels of proven oil reserves as of
January 2007 and an estimate of 182
trillion cubic feet of proven natural gas
reserves which makes her the seventh
largest natural gas reserves holder in the
world and the largest in Africa (Oil and
Gas Journal, 2007). The juxtaposition
between record level earnings in oil
revenue in the last few years for Nigeria
and the continued massive environmental
Page 2 of 18
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 5
May 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 56
degradation and abject poverty of
individuals and families in the oil
producing areas should be a major source
of concern to all (Akukwe, 2006).
At the core of the restiveness and
violence in the oil producing communities,
is the role of major oil producing
companies and their responsibilities to the
indigenes and community of their
operational areas. Commentators like
Frynas (2005) and Akpan (2006) continue
to argue that oil transnational corporation
efforts at community development are
abysmal. In contrast, Eweje (2000) and Ite
(2003) share an opposing view and instead
argue that oil transnational corporation is
making considerable contributions to host
community development. However, for the
indigenes and community of the oil
producing areas, the oil company is the
government they can see and experience.
The oil companies are not only the major
employers of labour but they are also the
fulcrum of community and social
activities.
Besides, from a community
perspective, oil companies are seen as
members of the host community, that
should like other members of the
community, instinctively take into
consideration community issues as priority
issues without community pressure to do
so. In contrast, the world view of oil
transnational companies is shaped by
neoliberalism and the pure market logic
driven by profitability and the assumption
that everyone would benefit from oil
exploration activities (Jenkens, 2004). Oil
multinationals, therefore, see government
as largely responsible for community
development and the redistribution of the
wealth generated from oil exploration.
This clash in worldviews and expectations
between communities and oil transnational
cooperation’s invariably foster the
violation of the psychological contract that
exists between local communities and oil
companies from the perspective of the
communities (Idemudia, 2007).
Ideally, oil companies and their
host community should enjoy harmonious
relationship. When oil is flowing and oil
companies make profits, the various levels
of government receive financial returns
from oil exploration activities and the
needs of the indigenous population are met
in a timely fashion. Sustainable
community development should be
imperative to oil companies in oil
producing areas because government at
local, state and federal levels in Nigeria’s
forty eight years political history have
never lived up to expectations regarding
funding and completion of developmental
projects at community levels.
Another reason is that the scope of
oil industry investment in oil and gas
exploration onshore and offshore in the
Niger Delta is monumental. According to
the US Energy Information Agency
(2007), Shell Petroleum’s Bonga Field
deep water field began production in 2005.
Shell Petroleum planned to invest 9 billion
dollars in the span of 2004 – 2009. Exxon
Mobil planned to invest 11 billion dollars
between 2003 and 2011 in Nigeria’s oil
industry. The point is that oil producing
companies are investing significant sums
Page 3 of 18
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 5
May 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 57
of money for their exploration activities.
The quality of life of host communities
should be an important barometer of
successful investments, especially for long
term investment. Against this background,
this study critically examines the
contribution of Exxon Mobil to specific
aspect of community development like
health, education and basic social
infrastructure and their possible effects on
poverty reduction within the host
community.
THE STUDY AREA
Akwa Ibom State is located in the
south eastern part of Nigeria, between
latitude 40 321
and 531
north and
longitudes 70 251
and 80 251
east. It is
bounded in the north by Cross river and
Abia States. It again shares boundary with
Cross River State in the east. This study
focuses on Ibeno local government area in
Akwa Ibom State. Ibeno Local
Government was created out of the defunct
Uquo – Ibeno Local Government Area on
December 4, 1996 by the Federal
government instrument. Before the
creation of Uquo-Ibeno Local Government
Area, the people of Ibeno were in Eket
Local Government Area – Ibeno Edoh,
Uquo Ibeno respectively. Ibeno is now a
distinct and separate local government area
with headquarters at Ukpenekang. It is
one of the thirty one local government
areas in Akwa Ibom State. Ibeno Local
Government Area is located at the South
end of Akwa Ibom State, occupying a vast
coastal area of over 1,200 sq. km. It
stretches from Okposo I at the eastern
flank, bordering Mbo Local Government
Area and Bakassi Pennisula to Atabrikang
village on its western flank. It is bounded
in the South by the Atlantic Ocean and
shares border with Eket, Esit Eket, Onna
and Eastern Obolo local government
areas. Ibeno occupies the largest Atlantic
coastline of more than 129 kilometer in
Akwa Ibom State.
Located in the mangrove swamp
forest of the Niger Delta region of Nigeria,
the area has rain throughout the year with
the peak between May and
September. The climatic condition in
Ibeno is favourable all year round for
fishing and farming. The environment of
Ibeno is estuarine and deltaic. The Ibeno
people are traditionally fishing people and
they are basically of the Obolo/Andoni
origin. The common dialect of Ibeno
people is Ibeno/Obolo language
prominently spoken by Ibeno and Eastern
Obolo people in Akwa Ibom State. Along
the sandy coastline, locals can be seen
carrying loads of neatly – stacked dried
fish as well as fresh fish which they trade
with Eket and the Ibibio mainland. Ibeno
is the site of what is today known as the
Qua Iboe Terminal (QIT) owned and
operated by ExxonMobil. The landscape
surrounding Ibeno is dominated by oil
operations of various sorts (including
seismic work and exploration activities)
which have brought large numbers of
migrant workers, both of Nigerian origin
and expatriates, into the Ibeno land.
