Performance Evaluation of NNPC (1999-2015) Using Regression Analysis Techniques Chapter One Objectives of the study The following are the aims and objectives of the study To evaluate the contribution of NNPC in Nigeria economic development.

Performance Evaluation of NNPC (1999-2015) Using Regression Analysis Techniques

Chapter One

Objectives of the study

The following are the aims and objectives of the study

To evaluate the contribution of NNPC in Nigeria economic development.

To know if there is a relationship between NNPC’s performance and the economic development of Nigeria .

To point out the negative roles of NNPC and the oil industry.

CHAPTER TWO  

REVIEW OF RELATED LITERATURE

 ECONOMIC DEVELOPMENT

Economic development is the process in which a nation is being improved in the sector of the economic, political, and social well-being of its people. The University of Lowa’s center for International Finance and Development states that: ‘’the term has been used frequently by economists, politicians, and others in the 20th and 21st centuries. The concept, however, has been in existence in the West for centuries. Modernization, westernization and especially industrialization are other terms often used while discussing economic development. Economic development has a direct relationship with the environment and environmental issues’’. Economic development is very often confused with industrial development, even in some academic sources. Whereas economic development is a policy intervention endeavor with aims of improving the economic and social well-being of the people, economic growth is a phenomenon of market productivity and rise in GDP. Consequently, as economist AmartyaSen points out ‘’economic growth is one aspect of the process of economic development’

NNPC Significant Achievements in Nigerian’s Economic Development

• NNPC oversaw the country’s first equity stake in oil production with the Agip Oil Company in the mid-60s to better exploit resources for national development.
• It spearheaded oil exploration to confirm Nigeria’s position as the top crude exporter in Africa in the 1970s, boosting oil revenue from N200 million to N10 billion through the decade.
• In 2004, the NNPC unveiled plans to launch the ambitious West African Gas Pipeline to supply Nigerian natural gas to several neighboring countries.
• Nigeria emerged as an important exporter of natural gas with the establishment of the liquefied natural gas plant in Bonny in 2005 as part of efforts to end gas flaring by the end of this year.
• NNPC entered into a $ 1billion dollars jointventure in the offshore Agbami fields to increase national crude production capacity by a further 250,000 barrels per day.
• Through its recent Okapi Power Plant, the NNPC will generate the first carbon credit in compliance with the Kyoto Protocol and related UN resolutions (Building C, n.d).

Under the reviewed period, NNPC worked aggressively in revamping the oil and gas industry into an engine for job creation, poverty alleviation and rapid national growth which were and still some of the fundamental objectives/roles of the NNPC. Such objectives/roles are as follows:

• Enhancing access to capital and technology and promoting independent control of jointventure investments.
• Multiplying gas production and improving transmission to both domestic and regional gas markets.
• Achieving production efficiency and selective growth to improve capacity in jointventure operations.
• Establishing strategic partnerships with global gas companies to secure presence in international markets.
• Rationalizing the NNPC portfolio to ensure focus on high-growth potential assets.
• Implementing further reforms in the oil and gas sector to improve transparency and boost investor confidence.
• Reducing operational constraints and production suspensions resulting out of vandalism and violence. · Extending refineries and gas-based industries to help turn Nigeria into a regional hub for petroleum products (Building C, n.d).

CHALLENGES OF NNPC TOWARDS ECONOMIC DEVELOPMENT

Economic development is the process by which a nation improves the economic, politics, and social well-being of its human. The term has been used frequently by economists, politicians and others in the 20th and 21st centuries. The concept, however, has been in existence in the West for centuries (Wikipedia, n.d). In the study, the Nigerian National Petroleum Corporation (NNPC) listed the challenges confronting the corporation towards economic development to include assets integrity issues, crude oil and product theft; sub-commercial contracts; low capacity utilization of refineries; issues of subsidy management and inefficient busi

Order Now