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A Study of Privatisation and Environmental Governance in the Nigerian Cement Industry in Ogun State, Southwest Nigeria

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A Study of Privatisation and Environmental Governance in the Nigerian Cement Industry in Ogun State, Southwest Nigeria MAKING SENSE OF NEOLIBERAL GOVERNANCE THROUGH NATURE: A STUDY OF PRIVATISATION AND ENVIRONMENTAL GOVERNANCE IN THE NIGERIAN CEMENT INDUSTRY IN OGUN STATE, SOUTHWEST NIGERIA BY BAKARE HAKEEM OLADIMEJI A thesis submitted to the University of Birmingham for the Degree of DOCTOR OF PHILOSOPHY School of Geography, Earth and Environmental Sciences, The University of Birmingham September 2017. University of Birmingham Research Archive e-theses repository This unpublished thesis/dissertation is copyright of the author and/or third parties. The intellectual property rights of the author or third parties in respect of this work are as defined by The Copyright Designs and Patents Act 1988 or as modified by any successor legislation. Any use made of information contained in this thesis/dissertation must be in accordance with that legislation and must be properly acknowledged. Further distribution or reproduction in any format is prohibited without the permission of the copyright holder. Abstract This study investigates the impacts of neoliberal and environmental regulation policies introduced recently to improve sustainable development challenges in the growing Nigerian cement industry. It argues that as the extractive industries have become a new Frontier for foreign and private investment in developing countries, the devolution of economic responsibilities and the rising poverty despite their resource wealth present a research gap. This gap I argue requires a multilevel environmental governance perspective to understand and explain the process at play. The application of multilevel governance framework is novel in this case because of its emphasis on a panoply of systems of coordination and negotiation among formal and informal institutions. I have applied the framework to identify and analyse the roles and relations of state and non-state actors in the new Nigerian cement industry. Based on in-depth, qualitative research, the study examines the ways the privatisation of the Nigerian cement industry and environmental policy reforms affect the roles of central and subnational governments in the governance of the sector. It also articulates the new governance actors’ roles and relations in the devolved sector as well as the interactions between these groups of actors due to these changes. Semi-structured interviews were conducted among government, business and society stakeholders grouped into two - state and non-state actors. Findings reveal that the institutional and political relationships governing the interactions between state and non-state actors in the extractive sector historically indicate a multiscalar governance approach with persistent dysfunctional institutional arrangement. As evident from the Nigerian cement industry case study, changes in economic development and environmental policies over time reflect attempts to include subnational government and civil society organisations, aside from private sector actors, in the management of the sector. It is argued that the changes fail to improve structures for actors’ participation in the governance of the sector to avoid fragmentation of actions. The study has also shown that legitimate power still resides with the central government in the development of mineral resources in Nigeria. While the subnational governments have actively been involved in environmental regulation, the relationships of the state actors lack coordination and coherence because of the absence of a legitimate structure to integrate their actions. Although, actors in the industry transcend national governments, the political lessons of neoliberal governance as experienced in this study have shown that many issues are still left unresolved with the government continuing to act as the arbiter of legitimate power. The political will to decentralise and devolve political roles to subnational government actors in particular and civil society organisations has hindered governance for sustainable development in the new Nigerian cement industry. While the role of central government as the ‘gate keeper’ remains important in any development process, the Nigerian government has not learned from its past development planning and environmental history to adequately address sustainable resource governance policies. The application of multilevel governance framework in this study has illuminated the complex interrelation of actors in neoliberal resource governance and the need for inclusive resource development strategies in developing economies like Nigeria. Evidence also revealed the growing relationship between community-based organisations and corporate actors without non-governmental organisations. The framework has contributed to the body of knowledge on the importance of society-centred resource governance in low and medium income countries (LMICs). i To the Glory of Almighty GOD for the gift of firm faith, supportive family and friends Which, then, of the favours of your Lord will you twain deny? Blessed is the name of thy Lord, Master of Glory and Honour. Quran 55: 78-79 ii ACKNOWLEDGEMENT I am deeply grateful to my supervisors, Doctors Julian Clark and Steven Emery for their guidance and support to complete this study. Your words of encouragement kept me strong. I am also thankful to Dr Rosie Day and Mrs Gretchel Coldicott for their selfless services all the time especially during my sickness. My dream would have been stalled without you at the other end responding as at when needed. I am grateful to the management of Tai Solarin University of Education, Ijebu-Ode and Tertiary Education Trust Fund for the sponsorship. I acknowledge the solid support of ASUU, colleagues in the department of Geography and Environmental Management and College of Social and Management sciences, TASUED. My journey through this study has been very rough and tough. If I have to mention names of people who stood by me morally, spiritually and materially, I am sure I cannot remember all. I will therefore say a big thank you and pray that may the Lord continue to strengthen everyone. My special thanks to: my parents, my siblings and my in-laws for their support. I am also indebted to my big uncles Mr. Olabode Bakare and Senator ‘Lekan Mustapha. I am very grateful for your financial and moral support throughout my education and career. I am forever indebted to my wife, (Agbeke mi) for her patience and her walking with me on this rough road, my children- Faridah, Faiz-Rahman and Farhan-Ahmad for their sacrifice, interesting and extra ordinary distractions. Balqis, I would not have been able to weather the storm that almost took my life without you, I love you and wish you the best always. I once again give thanks to the Finisher of faith for the gift of supportive family and friends. Holy is Thy name! iii CONTENTS Abstract I Dedication II Acknowledgements III CHAPTER ONE: INTRODUCTION 1.1 Introduction and background to the study 1 1.2 Research relevance and context 5 1.3 Aim and objectives 8 1.4 Structure of the thesis 10 CHAPTER TWO: CONCEPTUAL FRAMEWORK AND LITERATURE REVIEW 2.1 Introduction 15 2.2 Governance: Meaning, History and Features 16 2.3 Theoretical arguments of Governance 28 2.4 Governance mainstreaming in geographic research: Environmental Governance 34 2.5 Studies on Multilevel Environmental Governance (MLEG) 38 2.6 Framing the application of MLEG to the neoliberal Nigerian cement industry 44 2.7 Conclusion 56 CHAPTER THREE: THE DYNAMICS OF NIGERIA’S NON-OIL EXTRACTIVE SECTOR DEVELOPMENT: A WINDOW ON THE CEMENT SECTOR 3.1 Introduction 59 3.2 Nigeria’s Development Planning experience 60 3.3 History of non-oil mineral resources development in Nigeria 67 3.4 A brief discussion of the Nigerian Cement Industry 80 iv 3.5 Legal and constitutional framework for environmental regulation in Nigeria’s cement industry 91 3.6 Conclusion 97 CHAPTER FOUR: METHODOLOGY 4.1 Introduction 99 4.2 Summary of Literature review and the Research Questions 100 4.3 Nigerian environment and case study description 106 4.4 Research Design 113 4.5 Research Methods 116 4.5.1 Selection of Key Informants 116 4.5.2 Data Collection: Interview, Observation and Documents review 121 4.5.3 Data Analysis 127 4.6 Positionality 129 4.7 Ethical considerations and confidentiality 131 4.8 Conclusion 132 CHAPTER FIVE: THE CHANGING ROLES AND RELATIONS OF STATE ACTORS IN THE ENVIRONMENTAL GOVERNANCE OF THE NIGERIAN CEMENT INDUSTRY 5.1 Introduction 134 5.2 Evolution in legal and institutional instruments for environmental standard regulation in Nigeria 135 5.2.1 Phases of systematic evolution of holistic environmental regulation institutions in Nigeria 137 5.3 The role of FMENV and NESREA in environmental regulation in Nigeria’s cement sector 144 5.3.1 Stakeholders and Stages of EIA process in the cement sector 150 5.4 The role of subnational governments in environmental regulation v in the Nigerian cement sector 159 5.5 Characterising the state actors’ roles evident in the Nigerian cement industry 163 5.6 Complications and implications of environmental regulations in the Nigerian cement industry 170 5.7 Conclusion 175 CHAPTER SIX: ASSESSING THE NEW GOVERNANCE ACTORS’ ROLES IN THE NEW NIGERIAN CEMENT INDUSTRY 6.1 Introduction 180 6.2 Delineating New Governance Actors and Stakeholders in the Nigerian cement industry 183 6.3 Nature and roles of Private For-Profit Actors (PPA) in the new Nigerian cement industry 186 6.4 Implications of Corporate Actors socio-environmental responsibility beyond state regulations in the Nigerian cement industry 211 6.5 CSOs intervention
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