CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction
This chapter gives a brief discussion of research
methodology and the theoretical concepts of the analytical tools used. This
chapter is divided into five sections for easy understanding.
3.1 Selection of Data
We obtained data from two major sources, primary and
secondary sources. For the primary data; we had to rely on the questionnaire
and oral interviews. The necessary secondary sources used in this study
comprise books related to the study, periodicals, economic reports, official
documents, daily newspapers and other library sources.
3.2 Questionnaire Design
The questionnaire is designed in such a way that it
will be filled by the respondents. We adopted the method to obtain the
necessary information from respondents of diverse social strata; to encourage
different views.
3.3 Data Collection Method
The collection of data for this research was
multi-dimensional involving a wide spectrum of research instruments such as
questionnaire, interviews and library (desk) research.
Fifty questionnaires were distributed to different
sectors of the economy to enable us obtain their independent views about the
standard of living of the people and the infrastructural development in Nigeria
vis-Ã -vis oil sector contribution.
Random sampling method is used to ensure the accuracy
of the investigation, hence reduce bias. The idea of sampling which is to
obtain part of the information of the entire population, can be inferred.
Besides, the researcher made use of various libraries both private and public
in Scouting for relevant books, economic reports, periodicals, newspapers and
other relevant mater These documents contributed tremendously in the review of
‘related literature and in the formulation of statement of problem.
3.4 Analysis
of Data
It is pertinent to remember that the specific
objective of this research is to ascertain the effects of oil production on
infrastructural development of the country and the standard of living of
Nigerians. Therefore, for the purpose of this study, the analysis of data will
be based on statistical method and simple percentages.
The choice of these analytical tools among other tools
is to exploit the ability inherent in this tool in testing the relationship
existing between the variables involved in this research.
Z - test is used in the testing of the formulated
hypothesis, bearing in mind the sample size. With Z-test, we will be able to
establish the validity of our hypothesis and the extent to which the
relationship exist between the variables.
3.5 Theoretical
Concept of Analysis
We
employed normal (Z-test) in order to statistically test the formulated
hypothesis in the research study. It is necessary to use this z -test since the
sample size is greater than thirty. It is depicted thus:
Z = P-P = P-P
P SP
Where SP = P-P = Sample standard error
n
Where:
P = proportion
found in the sample
P = the population proportion
n = Number of
people interviewed
This is the most appropriate test for testing
proportion as this gives a good approximation to binomial distribution for a
large sample size
(N).
Assumption
It is assumed that if the population is indifferent to
the effects of oil production vis-a-vis infrastructural development in Nigeria
and the standard of living of Nigerians, then the probability of the
respondents answering yes or No should be equal, that is
P = q = 0.5
Where q = 1-P and P = Pr of agreeing that oil sector
has positive effects on infrastructural development and standard of living of
Nigerians.
Decision Rule
If the calculated Z is greater than the tabulated or
theoretical Z, we reject the null hypothesis, otherwise we accept it if the
calculated Z is less.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.0 Introduction
This chapter deals with the analysis of data collected
through questionnaire administered to respondents. For clarity of purpose,
tables are used in order to classify and tabulate the raw data collected. The
simple percentage is used to analyze response from the sample population, while
Z test is used to test the formulated hypotheses.
4.1 Social
Strata of Respondents
From table 1 below, it will be seen that out of the forty
eight(48) responses, seventeen (17) or 35.4% are of lower class. Twenty (20) or
41.6% are of the middle class, while eleven (11) or 23% are of the upper class.
Table I Responses on the Social Strata
of the respondents
|
Options
|
No
of Responses
|
Responses(%)
|
|
(a)
Upper class
|
17
|
35.4%
|
|
(b) Middle class
|
20
|
41.6%
|
|
(c) Lower class
|
11
|
23.0%
|
|
Total
|
48
|
100%
|
Source:
Nweke’s Field Survey, 2013
Table I
From
the above analysis, It is clear that majority of the population is of middle
class.
4.1.2 The Standard of Living of Average
Nigerian
The
table II shows that thirty one (31) or 64.6% out of the forty eight (48)
responses said that the standard of living of Nigerians is low. While seventeen
(17) or 35.4% said that the standard of living of Nigerians is average and none
said it is high.
Table II. Responses on the Question of
Standard of Living of Average Nigerian
|
Options
|
No
of Responses
|
Responses(%)
|
|
(a)
Low
|
31
|
64.6%
|
|
(b)Average
|
17
|
35.4%
|
|
(c)High
|
-
|
0%
|
|
Total
|
48
|
100%
|
Source: Nweke’s Field Survey, 2013
Table
ii:
The above table therefore is a clear evidence that the standard of living
of average Nigerian is low.
4.1.3 The Condition of Nigeria Growth
From table 111 below, it can be seen that out of forty
eight (48) responses, 28 or 58. 3%, said that our economic growth is
increasing. Nine (9) or 18.8% said that it is decreasing while Eleven (11) or
22.9% said that it is constant.
Responses on the Condition Economic
Growth
|
Options
|
No of Responses
|
Responses (%)
|
|
(a.)
increasing
|
28
|
58.3%
|
|
(b.)
decreasing
|
90
|
18.
8%
|
|
(c.)
constant
|
11
|
22. 9%
|
|
Total
|
48
|
100%
|
Source:
Nweke’s Field Survey, 2013
Table iii
Based on this, one could conclude that the Nigeria
economic growth is increasing.
4.1.4 The
Contribution of Oil Sector to the Overall
Economic
Growth of Nigeria
From table iv below, it can be observed that out of
the total number of forty-eight respondents, eighteen (18) or 37.5% of them
were of the view that the contribution of oil sector to the overall economic
growth of Nigeria is low, ten (10) or 20.8% said that it is high while twenty
(20) or 41.7% said that it is on average.
Responses on the Contribution of Oil
Sector to the Overall Economic Growth of Nigeria
|
Options
|
No of Responses
|
Responses (%)
|
|
(a.)
low
|
18
|
37.5%
|
|
(b.)
high
|
10
|
20.8%
|
|
(c.)
average
|
20
|
41.7%
|
|
TOTAL
|
48
|
100%.
|
Source:
Nweke’s Field Survey, 2013 Table iv
It is therefore discernible that the contribution of
oil sector to the overall economic growth of Nigeria is average.
4.1.5 Level of Infrastructural
Development in Nigeria vis-Ã vis Oil Sector Contribution to Overall Economic
Growth
Based on table v below, it could be seen that of the
total respondents of forty eight (48), twenty two (22) or 45 are of the view
that the level of infrastructural developments in Nigeria vis-a-vis oil sector.
contribution to overall economic growth is low. Twenty six (26) or 54. 2% said
that it is average and none said it is high.
Responses to the Growth of
Infrastructural Development of Nigeria vis-a-vis Oil Sector
|
Options
|
No of Responses
|
Responses (%)
|
|
(a.)
low
|
22
|
45. 8%
|
|
(b.)
average
|
26
|
54
.2%
|
|
(c.)
high.
|
|
|
|
TOTAL
|
48
|
100%
|
Source:
Nweke’s Field Survey, 2013 Table v
From this, it could be concluded that the level of
infrastructural development in Nigeria vis-a-vis oil sector contribution to
overall economic growth is average.
4.1.6 Impact of Oil Sector Contribution
on the Standard of
Living of
Nigerians.
The table iv below shows the number of responses from
the question on the impact of oil sector contribution on the. standard of
living of Nigerians. It could be seen that twenty three (23) or 48% of the
forty eight (48) respondents are of the view that the impact of
sector
contribution on the standard of living of Nigerians is positive. Twenty five
(25) or 52% said that it is negative, while none are neutral.
Responses on the Impact of Oil Sector
Contribution to the Standard of Living of Nigerians
|
Options
|
No of
Responses
|
Responses(%)
|
|
(a)
Positive
|
23
|
48%
|
|
(b)
Negative
|
25
|
52%
|
|
(c)Neutral
|
-
|
-
|
|
TOTAL
|
48
|
100%
|
Source:
Nweke’s Field Survey, 2013 Table vi
From this table, it could be concluded that the impact
of oil
sector
contribution on standard of living of Nigerians is undecided.
4.1.7 Other
Sectors that Contributes to the Standard of
Living of
Nigerians
In table vii below, we observed that out of the forty
eight (48) respondents, fifteen (15) or 3L3% are of the view that education
sector
contributes to the standard of living of Nigerians. Six (6) or 12.5% said it is
mining sector, twenty (20) or 41. 5% said that it is agricultural sector while
two (2) or 4. 1% said that it is manufacturing sector.
Responses to other Sector that
Contributes to the’ Standard of Living of Nigerians
|
Options
|
No of Responses
|
Responses(%)
|
|
(a)
Education
|
15
|
31.3%
|
|
(b)
Mining
|
6
|
12.5%
|
|
(C)
Agriculture
|
20
|
41.7%
|
|
(d)
Health
|
5
|
10.4%
|
|
(e)
Manufacturing
|
2
|
4J%
|
|
TABLE
|
48
|
100%
|
Source:
Nwe ke’s Reid Survey, 2013 Table vii
Hence, it is reasonable to accept that apart from oil,
sector, agricultural sector also contributes to the standard’ of living of Nigerians
which is said to employ about 65% Nigerians
4.1.8 Impact of Oil Subsidy Investment
in the Standard of Living of Nigerians
From table viii below, it could be seen that out of
the total number of forty eight (48) respondents, eighteen (18) or 37.6% are of
the view that oil subsidy investment have a positive impact on the standard of
living of Nigerians. Twenty three (23) or 47.9% said that it is negative while
seven (7) or 14.5% are undecided.
Responses of the Oil Subsidy Investment
in the Standard of Living of Nigerians
|
Options
|
No
of Responses
|
Responses(%)
|
|
(a)
positive
|
18
|
37.6%
|
|
(b)
negative
|
23
|
47.9%
|
|
(c)neutral
|
7
|
14.5%
|
|
TABLE
|
48
|
100%
|
Source:
Nweke’s Field Survey, 2013 Table viii
It then follows that oil subsidy investment has a
negative impact in the standard of living of Nigerians.
4.1.9 Further Subsidy Withdrawal for
Investment
From the table ix below, we observe that twenty four
(24) or 50% of the total respondents support further withdrawal of oil subsidy
investment. Fifteen (15) or 31%’said no to further subsidy withdrawal for
investment and three (3) or 19% are indifferent.
Responses of Further Subsidy Withdrawal
for Investment
|
Options
|
No of Responses
|
Responses(%)
|
|
(a)
Yes
|
24
|
50%
|
|
(b)
No
|
15
|
31%
|
|
(c)None
|
9
|
19%
|
|
TABLE
|
48
|
100%
|
Source:
Nweke’s Field Survey, 2013
Table
ix
This
fact revealed that majority support the further subsidy withdrawal for
investment.
4.1.10 Areas that Government should
invest more of the Oil
Subsidy
Withdrawal
The
evidence from table x below shows that twenty (20) or 41% of the should invest
more of the oil subsidy withdrawal on education. Eighteen (18)or 38% said that
it is agriculture and ten (10) or 21% said that if is Health.
Responses on the areas that Government
should invest more of the Oil Subsidy Withdrawal
|
Options
|
No
of Responses
|
Responses(%)
|
|
(a)
Education
|
24
|
50%
|
|
(b)
Agriculture
|
15
|
31%
|
|
(c)
Health
|
9
|
19%
|
|
TABLE
|
48
|
100%
|
Source:
Nweke’s Field Survey, 2013
Table
x
It could therefore be concluded by saying that a
greater percentage of the people are of the view that government should invest
more of the oil subsidy withdrawal in education sector.
4.1.11 Does Oil Production in Nigeria
cause any damage to the citizens of Nigeria
Table xi below shows that out of the total respondents
of forty eight(48), forty (40) or 83% respondents said yes that oil production
in Nigeria cause damage to the citizens of Nigeria. Two (2) or 17% are
indifference and non said No.
Responses on the damage of Oil
Production to the citizens of Nigerians
|
OPTIONS
|
NO OF RESPONSES
|
RESPONSES%
|
|
(a)
Yes
|
40
|
83%
|
|
(b)No
|
-
|
-
|
|
(c)None
|
8
|
17%
|
|
TABLE
|
48
|
1000%
|
Source:
Nweke’s Field Survey,2013
Table
xi
We could therefore conclude that oil production in
Nigeria cause a great damage to the citizens of Nigeria.
4.1.12 Does Oil Production in Nigeria
Provide Employment Opportunities to its Citizens
From table xii below, we had evidence that twenty four
or 50% of the total respondents are of the view that oil production in Nigeria
provide employment opportunities to its citizens. Nineteen (19) or 40% of the
people are of the view that oil production in Nigeria does not provide
employment opportunities to its citizens and one (1) or 10% are in different.
Responses of Oil Production in Nigeria
Provision of Employment Opportunities to its Citizens
|
Options
|
No
of responses
|
Responses(9/o)
|
|
(a)
Yes
|
24
|
50%
|
|
(b)
No
|
19
|
40’Yo
|
|
(c)
None
|
5
|
10%
|
|
TABLE
|
48
|
100%
|
Source:
Nweke’s Field Survey, 2013 Table xii
From the above analysis, it is clear that oil
production in Nigeria provide employment opportunities to its citizens
4.1.13 Does
Federal Government Effectively Allocate the
Benefits that
accrue from Oil Production to Nigerians
The table xiii below shows that thirty three (33) or
68.75% are the view that government effectively allocate the benefits that
accrue from oil production in Nigeria, eight (8) or 16.67% are not of the view
and seven (7) or 4. 58% are indifferent.
Responses on the Allocation of Benefits
that accrue from Oil Production to Nigerians
|
Options
|
No
of Responses
|
Responses(°Io)
|
|
(a)
Yes
|
33
|
68%
|
|
(b)No
|
8
|
16%
|
|
(c)
None
|
7
|
14%
|
|
TABLE
|
48
|
100%
|
Source: Nweke’s Field Survey, 2013
Table xiii
From the above analysis, it is evidenced that
government effectively allocate the
benefits that accrue from oil production to Nigerians.
4.2 Analysis of Hypotheses
In this section we shall compute and interpret
statistically the various hypothesis stated in chapter I. This will be based on
the theoretical concept of statistical analysis discussed in chapter 3.
4 Hypothesis I
Ho: Oil production in Nigeria over the years has not
positively impacted significantly on the infrastructural development of the
country; (i.e Ho; P 0.5)
H1: Oil production in Nigeria over
the years has positively impacted
significantly on the infrastructural development of the country. (i.e Ho; P =
0.5).
Responses to the Development of
Infrastructural Development in Nigeria vis-Ã -vis Oil Sector Contribution to Overall
Economic Growth.
|
Options
|
No
of Responses
|
Proportion
(%)
|
|
Low
|
22
|
0.46
|
|
Average
|
26
|
0.54
|
|
High
|
-
|
-
|
|
Total
|
48
|
100
|
Table
V
Calculations
P = 0.46;q = 0.54; N=48
Ho; P = 0.5
Using
Z- test
Z = P-P
SP
Where
SP = Square root PP/n
:.Z = Square
root PP = (0.46)(0.54)
n
– P 48
Z = P
– P
0.071937
Z =
0.04
0.071937
= 0.556042
Z
- calculated = 0.556042
We
know that the value of z at 5% level of significance from
statistical
table is 645 which is called z - theoretical (ZT)
DECISION RULE
If
Zc > ZT we reflect H0; otherwise we accept it.
Here;
Zc = 0.556042
ZT
= 1.645
Since
1.645>0.556042; we accept Hi; alter hypothesis at 5% level of
significance while we reflect Ho; null hypothesis. Oil production in
Nigeria over the years has positively impacted significantly on the
infrastructural development of the country.
4.2.2 HYPOTHESIS
II
Ho;
there is no significant causal relationship between oil production in Nigeria
and the standard of living of Nigerians. (Ho;P=0.5) Hi;
there is significant causal relationship between oil production in Nigeria and
the standard of living of Nigerians. (Hi;p<0.5).
Responses on the impact of Oil Sector
Contribution to the Standard of Living of Nigerians
|
OPTIONS
|
NO OF RESPONSES
|
RESPONSES%
|
|
(a)
Positive
|
23
|
0.48%
|
|
(b)
Negative
|
25
|
0.52%
|
|
Table
|
48
|
100%
|
Table
vi
Calculation
P = 0.48;
q = 0.52; n=48
Using
z-test
Z = P-P
SP
Where SP Z = P-P
n
SP = SQUARE ROOT 0.48(052)
48
SP
= 0.072111025
Therefore
Z* = 0.5-0.48
0.072111025
= Z* = 0.02
0.7211125
Z* = 0.02773501
From the statistical
table it was discovered that the theoretical z (ZT) at 5% level of significance
is 1.645. Therefore, since the modulus of calculated z is less than the
theoretical z we reject H1; and accept Ho, the null
hypothesis.
This means that there is no significant causal
relationship between oil production in Nigeria and the standard of living of
Nigerians.
TOPIC
APPRAISAL
OF THE NIGERIA OIL SECTOR: ISSUES AND CHALLENGES (2008-2012)
A CASE
STUDY OF SELECTED OIL COMPANIES
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