47388 Anthony Onwuzor and Maekae, Job/ Elixir Social Studies 107 (2017) 47388-47392 Available online at www.elixirpublishers.com (Elixir International Journal) Social Studies Elixir Social Studies 107 (2017) 47388-47392 The Oil Industry and Urbanization in the Niger Delta: Rivers State Experience from 1967-2015 Anthony Onwuzor and Maekae, Job Department of History and Diplomatic Studies, Ignatius Ajuru University of Education, Rumuolumeni, Port Harcourt. ARTICLE INFO ABSTRACT Article history: The paper examines the role of Oil Industry in the growth of urbanization in Rivers State. Received: 1 March 2017; Concentration of oil industry in the Niger Delta with emphasis on Rivers State is as a Received in revised form: result of its natural endowment in Oil and gas which leads to the influx of people into the 16 June 2017; area. Modernization theory as applied in the work explains the linkage between Accepted: 28 June 2017; urbanization and oil industry. Despite the adverse effects of oil industry, the paper argues that its influence creates wealth through employment opportunities. Through Keywords urbanization, there is increase in crime rate, high cost of living, poor living condition, Oil industry, high unemployment rate and neglect of the traditional economy. To achieve the desired Urbanization and Rivers State. result in this work, primary and secondary sources were adopted. In view of the problems associated with oil industry and urbanization, the paper recommends that forty percent (40%) of the work force should come from the host communities. To decongest Port Harcourt city and its environs, the government and the management of oil industry operating in the state should endeavour to develop satellite towns in the local government areas. There should also be an enabling law to control high cost of living ravaging the state. © 2017 Elixir All rights reserved. Introduction Theoretical Framework The Niger Delta region which comprises the six states in There are several theories used in the study of Urban the South-South Geo-political zone of Nigeria is richly areas. They include modernization theory, dependency endowed with marine resources such as sea foods from the theory, urban based theory and bright light theory of coastal water, oil and gas. These abundant resources of the urbanisation. Among these theories, the most suitable to be environment have facilitated oil exploration in the region applied in this work is the modernization theory because of since 1956 that resulted to the establishment of oil industry. its linkage to industrialization. With the creation of Rivers State from the former Eastern Modernization theory which was developed in the 20th Region on 27th May, 1967 with the acronym Treasure Base of century explains that modernization is a term used for the Nation several oil firms came into the state. But from national transition from the traditional (agrarian) society to 1999 following the rebirth of democracy in Nigeria urban modern (industrial) society2. The theory is also of the view growth in the area became rapid as a result of more that by introducing modern methods of production such as international economic players in the oil firms. Similarly, the use of advanced technology in industry, the backward World Bank describes Niger Delta as a region blessed with areas will experience a boost in their economies that will abundance of physical and human resources, including the eventually lead to development3. majority of Nigeria’s oil and gas deposits, good agricultural According to modernization theory, urbanization is land, extensive forest, excellent fisheries, as well as a always a product of industrialization4. An application of this developed industrial base, a strong banking system, a large to Rivers State implies that as long as the state is flocked labour force and a vibrant private sector1. with oil industry, agriculture is abandoned in the rural areas Discussion on this paper is a little deviation from the and this makes it release more labour for oil industries view of most scholars that oil industry in Rivers State only operating in the urban centers. This, however, agrees with the promotes environmental degradation and destruction of idea that rural inhabitants are pulled to urban areas in the aquatic lives. Rather, it argues that they contribute to the state by the high petrol-naira. Consequent upon this, it growth of urbanization in the state through the proliferation becomes clear that oil industry remains an important sector of multinational oil companies. However, it is evident that, that facilitates urbanization. The theory is further supported the high concentration of people in Rivers State is as a result by the fact that people from all parts of Nigeria continue to of the presence of the multi-national oil companies whereby migrate to the richly oil endowed states as long as their inhabitants from other states in Nigeria see them as avenues expected oil wage exceeds their agricultural rural wages. for meaningful employment opportunities. Explication of Urbanization Urbanization is simply the increase in the percentage of a country’s population in cities. Tele: E-mail address: [email protected] © 2017 Elixir All rights reserved 47389 Anthony Onwuzor and Maekae, Job/ Elixir Social Studies 107 (2017) 47388-47392 It is also a development process of civilization in which that the principal officers of such companies must be British the rural behavior prevalent in a town is eliminated. Against subjects. Between 1938 and 1941. Shell BP undertook this, Wirth argued that population of any given area could not preliminary geological reconnaissance. After five years be a yardstick for a place to be regarded as urban, but the interruption by the Second World War, it intensified and influence the urban areas exert on the social life of the followed up the activities with geophysical surveys between people5. He further explains that population density would be 1946-1951. In 1951, Shell BP drilled the first widest well at meaningless in defining urban area. Under this condition, Iho in the present day Imo State. In 1956, it made the first population of city centre is low at night and may not properly commercial discovery at Oloibiri, and in Bayelsa State11. define an area said to be urban. Similarly, United Nations Historically, as Shell BP exported her first oil Cargo defines urbanization as the proportion of total population from Oloibiri in 1958, Shell transferred her headquarters to living in urban areas. In other words, it is the increased Port Harcourt. EIF started operation in Rivers State in 1963 concentration of people in cities rather than the rural areas6. as Obagi field and Ubata gas field were discovered. In 1965, Also, an urbanized place could be described as a Agip found its first oil at Ebocha in the present day Ogba- heterogeneous area with various races, people and culture Egbema Ndoni local government area. where individual differences are accepted. The relationship in S/N NAME LOCATION the urban city remains formal since urban dwellers know 1 Runagate project service 14 Udom Street Port Harcourt little about the people with whom they interact. This implies limited (established in 1990 that urbanized area consist of people committed to and get 2 Process supplies and 170 Aba Road Port Harcourt involved in an urban way of life7. Accessories (established in Another consideration of an urban area is her financial 1968 8 3 Domio Oil and Technical 394 Ikwerre Road, relevance to the inhabitants . Apart from population size, the Service Ltd. (established Rumuokwuta Port Harcourt. activities in a given area can differentiate an urban area from 1989) a rural area. These activities can be economic, political or 4 Nigeria LNG Limited Intels Aba Road Estate Port both. Economically, the activities in the urban cities include (established in 1989) Harcourt – Aba Expressway, manufacturing, services and development activities. Also Port Harcourt important here is employment where over fifty percent of the 5 Newview Engineering Plot 3, 5th Avenue Agip employed population is outside the agricultural sector. While Limited (established 1989) Housing Estate Rumueme, Port in the political sense, urban areas function as administrative Harcourt. centres. But the major economic activities of the rural areas 6 Ohenmerge Company Ltd. 40 Ojoto Street Mile 2 Port are primary activities, of which part of them are concerned Harcourt with extraction of raw materials for the industries. 7 Soafu Technical Resources 28 Forces Avenue Old GRA Port Harcourt Historical Origin of Oil Exploration in the Niger Delta 8 Nigeria Wilbros Oil Choba –Port Harcourt The search for “black gold” also known as crude oil Company (established actually began in Nigeria in 1908 when a German firm called 1971) Nigeria Bitumen Company took the business of oil 9 Orwell International Oil and Plot 53 Trans-Amadi Industrial exploration in the coastal areas of Okitipupa in the present Gas Ltd. Layout Port Harcourt. day Ondo State. This endeavour did not make a huge success 10 Delsigna Petroleum Plot 218 Trans-Amadi Port as the company stopped its operation at the outbreak of the Company Ltd. Harcourt First World War in 19149. 11 Je international limited Plot 7 Eastern Bye Pass Way But after the great depression of the 1920s, Shell B.P in (established in 2001 Port Harcourt. 1937 initiated another move to search for oil in Nigeria. By 12 Cobs Engineering No. 6 Chief Nwuke Street, then, it was pioneened by Shell D’ Archy which later became technology Ltd. Cobbs Trans- Amadi Layout Port Harcourt Shell Petroleum Development Company with headquarters at 13 Bikline International Ltd. 97 Odani Road, Elelenwo Port Warri assumed the responsibility of oil exploration with the 10 Harcourt right to prospect for oil throughout the country . And in 14 Weam and Company Ltd. Plot 42C, Road 22 Federal 1941, Shell B.P temporarily suspended her exploration (established in 1985) Housing Estate (Agip) activities due to the outbreak of the Second World War.