Gas Flaring Environmental Degradation and Economic Growth in Nigeria

This study examined “Gas flaring, environmental degradation and economic growth in Nigeria”. The research was guided by the following objectives: To investigate any relationship between gas flaring and environmental degradation in Nigeria, to evaluate the impact of gas flaring on economic growth in Nigeria, and to examine the impact of gas flaring on sustainable livelihoods in the Niger Delta. The data was obtained mainly from secondary sources including the Central Bank of Nigeria Statistical Bulletin where data on values of output (real GDP) and capital stock (K) measured by gross capital formation will be obtained, the National Bureau of Statistics, where the data on labor stock (L) measured in terms of population and gas production (GP) as well as gas flared (GF) will be obtained from Nigerian National Petroleum Commission technical records. From the research findings, the following were made: Practically in the Nigerian economy, the autonomous component of the model represents other factors that influence economic rate in Nigeria such as population growth, inflation, foreign direct investment (FDI), interest rates, exports as well as private and public investment which are not gas flaring and environmental degradation. The OLS result from this research work (GDP = 91600.77 – 5.635213 – 6.37E-05 X2) showed that the autonomous part of the model (91600.77) related positively with economic growth. The t-statistic value for the co-efficient of autonomous component 91600.77 was statistically significant at 5% level of significance while the two independent variables (-5.635213 α -6.37E-05) were statistically insignificant at 5% level of significance. Time F-Statistic value 158.6975 was significant at 5% level of significance which implied that the overall model is suitable for this research work. In conclusion, Gas flaring and environmental degradation are two concepts that cannot do without each other. Enhancing economic growth and development is the prime responsibility of the state. Also, Gas flaring and environmental degradation crisis has affected various sectors of the Nigerian economy and has left the economy in a bedridden state. the study therefore recommends the following so as to accelerate economic growth in Nigeria: Formation and implementation of policies and programmes that are oil and gas oriented and seeks to improve productivity in the oil and gas sector, provision of adequate social and basic amenities for gas flaring operatives in rural and urban areas to enable them carry out their duties optimally and more resources should be provided to adequately channel flared gas and there should be regular review of gas flaring and environmental degradation activities and operatives.