CHAPTER FOUR

DATA ANALYSIS, RESULTS AND DISCUSSION OF FINDINGS

4.0. INTRODUCTION
This chapter presented different sections which were directed to quantitatively report the
findings of the study using descriptive and inferential statistics in order to answer the research
questions and test the hypothesis raised for the study. A total of three hundred and forty five
(345) copies of the questionnaire were distributed, while three hundred and thirty eight (338)
valid copies were retrieved and used for the analysis. The response or return rate of the
instrument was therefore 98 percent. Apart from the quantitative analysis, the chapter also
reported the results of the indepth interviews held with representatives of the oil producing
company.

4.1. PRESENTATION OF RESULTS

Table 4.1 present data relating to demographic characteristics of the study respondents and
the data are hereby complemented by Figures 4.1 and 4.2.
4.1.1 Respondents’ Demographic Characteristics
Table 4.1: Respondents’ Demographic Details
Frequency Percentage (%)
Gender
Male 233 68.9
Female 105 31.1
Total 338 100.0
Marital Status
Married 221 65.4
Single 117 34.6
Total 338 100.0
Educational Qualification
SSCE/WASC/GCE, A and O’Levels 152 45.0
Diplomas, OND, HND, HNC 73 21.6
B.Sc, B.A., B.Ed 113 33.4
Total 338 100.0
Occupational Status
Government employee 33 9.8
Private sector employee 45 13.3
Unemployed 260 76.9
Total 338 100.0
Age
25-34 113 33.4
35-44 143 42.3
45-54 45 13.3
55-64 37 10.9
Total 338 100.0
Source: Field Study, 2017
Table 4.1 indicates that majority of the respondents were males (n=233, 68.9%),
while females constituted the minority (n=105, 31.1%) of the study participants. This
suggests that out of about 10 respondents, seven were males while three were females; hence
this study was male dominated. Majority of the respondents were married (n=221, 65.4%),
while the rest were single (n=117, 34.6%). This indicates that majority of the study
participants were married. In addition, the most common educational qualifications among
respondents were SSCE/WASC/GCE A and O’Levels(n=152, 45%), followed by those with
BSc, BA and B. Ed. qualifications, while those with Diplomas, OND, HND, and HNC were
the least among the study participants. This shows that 55 percent (n=186) of the respondents
had more than O’Level or its equivalent qualification, while the rest had O’Levels or its
equivalents qualification. This implies that majority of the study participants could read and
write having attained the basic literacy level of education. Table 4.1.1 also indicates that 76.9
percent (n=260) of the respondents were unemployed, while 13.3 percent (n=45) were private
sector employees and 9.8 percent (n=33) were government employees. This suggests that
majority of the participants of this study were not gainfully employed. Finally, the most
common age category among the study participants was between 35 years and 44 years
(n=143, 42.3%), followed by those between 25 years and 34 years (n=113, 33.4%). This
indicates that majority, 75.7 percent, of the study participants were between the ages of 25
years and 44 years, while 42.3 (n=143) were in their middle adulthood. This age distribution
places the respondents in the right position to comment on issues of social responsibility,
having attained the age of maturity.

Figure 4.1: Length of Service for Respondents working in Oil Producing or Service
Company
Source: Field Study, 2017
Figure 4.1 indicates that out of the respondents who were working in oil producing
companies, 23.1 percent (n=78) had spent less than two years, while 9.8 percent (n=33) had
spent between 9-11 years.
50.0% 46.4%
45.0%
40.0%
35.0%
30.0%
25.0% 23.1%
20.7%
20.0%
15.0%
9.8%
10.0%
5.0%
0.0%
Employee Community resident Community leader Safety officer

Figure 4.2: Groups to which Respondents Belong

Source: Field Study, 2017
From Figure 4.2, almost half of the study participants (n=157, 46.4%) were community
residents, while employees were 23.1 percent (n=78) and community leaders were 20.7
percent (n=70) while safety officers were 9.8 percent (n=33). This shows that the study
sample comprised mostly residents, who were in positions to explain how they benefited
from the oil companies’ social responsibility programmes. Also, one out of five respondents
were community leaders, while almost a quarter are employees.

4.1.2. ANALYSIS OF RESEARCH QUESTIONS

Responses to the questionnaire items developed to test various variables relating to the
subject matter of this study are analyzed in this sub-section. The analysis is carried out in line
with the research questions earlier set in this study so that such questions could be answered
with the findings of the study.
Research Question One: What is the degree of cordiality of the relationship between the oil
companies and the oil producing communities?

Table 4.2: CSR Programmes and Improvement of Cordial Relationship

Statement SA A D SD Mean
4 3 2 1

CSR justifies host communities welfare 35 66 155 82 2.16

benefits over profits (10.4) (19.5) (45.9) (24.3)

CSR protects oil producing firm's 68 66 37 167 2.10

reputation in the host community (20.1) (19.5) (10.9) (49.4)

CSR helps oil producing companies to 33 - 227 78 1.96

manage risks in business (9.8) (67.2) (23.1)

CSR promotes harmony between oil 33 33 155 117 1.95

producing firms and host communities (9.8) (9.8) (45.9) (34.6)

CSR integrates stakeholders into oil 33 - 148 157 1.73

producing firms' strategies (9.8) (43.8) (46.4)

Total Scale Average Weighted Mean 1.98 100

KEY: SA=Strongly Agree, A=Agree, D=Disagree, SD=Strongly Disagree *** Decision

Rule if mean is ≤ 1.49 =Strongly Disagree; 1.5 to 2.49 = Disagree; 2.5 to 3.49 =Agree; 3.5
to 4 = strongly Agree
Source: Field Study, 2017
The data in Table 4.2 shows that generally, respondents averagely disagreed that CSR
programmes had improved the relationship between the oil companies and the oil producing
communities (Average Weighted Mean= 1.98; SD=0.94). In details, Table 4.2 depicts that
respondents averagely disagreed with all the scale items. They disagreed with the following
that: CSR justifies host communities welfare benefits over profits (Mean=2.16, SD=0.91),
CSR protects oil producing firm's reputation in the host community (Mean=2.10, SD=1.22),
CSR helps oil producing companies to manage risks in business (Mean=1.96, SD=0.79), CSR
promotes harmony between oil producing firms and host communities (Mean=1.95,
SD=0.91) and that CSR integrates stakeholders into oil producing firms' strategies
(Mean=1.73, SD=0.89). This implies that members of oil producing communities had a
negative perception towards CSR projects and activities carried out by oil producing
communities. In other words, the purpose of CSR programmes carried out by oil producing
companies, which are geared towards ultimately enhancing cordial relationship with host
communities might not have been achieved because of the negative perception towards such
programmes or activities.

Research Question Two: What are the specific CRS programmes carried out in the oil
producing communities by the oil producing companies in Kaduna State Refinery?
Statement VT T F VF Mean SD
4 3 2 1
Legal services to support 66 33 239 - 2.49 0.80
communities (19.5) (9.8) (70.7)
Healthcare facilities for members of - 66 272 - 2.20 0.40
the communities (19.5) (80.5)
Economic empowerment of members 66 33 119 120 2.13 1.10
of the communities (19.5) (9.8) (35.2) (35.5)
Educational policies of children and 33 33 197 75 2.07 0.84
youth (9.8) (9.8) (58.3) (22.2)
Environmental support programmes - 66 199 73 1.98 0.64
to enhance living (19.5) (58.9) (21.6)
- 33 194 111 1.77 0.61
Welfare and support to the aged and
(9.8) (57.4) (32.8)
the poor
2.11
0.73
Average Weighted Mean

Table 4.3: CSR Programmes Provided in Communities by Oil Producing Companies

KEY: VT=Very True, T=True, F=False, VF=Very False*** Decision Rule if mean is ≤
1.49 = Very False; 1.5 to 2.49 = False; 2.5 to 3.49 =True; 3.5 to 4 = Very True
Source: Field Study, 2017
Table 4.3 presents data that show that generally, study participants indicated that the fact that
CSR programmes were provided in communities was false (Average Weighted Mean=2.11,
SD=0.73). Results also suggest that it was false according to the respondents that CSR
activities such as provision of legal services (Mean=2.49), SD= 0.80 healthcare facilities
(Mean=2.20), SD= 0.40 economic empowerment (Mean=2.13), SD= 1.10 educational
policies (Mean=2.07), SD= 0.64 environmental support programmes (Mean=1.98) and
welfare programmes (Mean=1.77) were provided in oil producing communities by oil
companies. The implication of these is that the oil producing companies did not provide the
programmes in the estimation of community members.

Research Question 3: What are the conflict management strategies adopted by IOCs to
the host Communities to mitigate conflicts?

Table 1 Mean ratings of respondents on the conflict management strategies adopted by

IOCs to mitigate between oil companies and host Communities

S/N Items (X) SD Decision

1 Regular consultation 2.78 0.89 A
2 Carrying out developmental projects 2.64 0.87 A
3 Giving incentives to Chiefs and opinion leaders 2.50 0.87 A
4 Participation in decision making by host communities on 2.54 0.76 A
community related issues
5 Provision of social amenities 2.55 0.88 A
Grand Mean 2.60 0.85 A

Dec=Decision;
A=Agree

Table 1 showed the mean ratings of respondents on the conflict management strategies
adopted by IOCs to mitigate conflicts between oil companies and host Communities in
South-South of Nigeria. Findings from the table showed a grand mean and standard
deviation scores of 2.60 and .85 implies that respondents agree that the conflict
management strategies adopted by IOCs to mitigate conflicts between oil companies and
host Communities in South-South of Nigeria are: regular consultation, carrying out
developmental projects, giving incentives to Chiefs and opinion leaders, participation in
decision making by host communities, and provision of social amenities.
 50.0% 46.4%
40.0% 34.0%
30.0% 28.0%
19.5%
20.0%
10.0%
0.0% 0.0%
0.0%

Figure 4.4: Causes of Conflict between Oil Companies and Host Communities
Source: Field Study, 2017
Figure 4.4 shows that the main causes of conflict between oil companies and their host
communities were lack of compensation to the community (n= 157, 46.6%), neglect of the
community by oil companies (n=115, 34%), environmental degradation in the community
(n=95, 28%) and lack of community participation in decision making about issues that affect
them. These suggest that the issue that mostly account for conflict between oil firms and host
communities was lack of compensation, while lack of community participation in decision
making ranked lowest among the issues identified. This implies that members of the oil
producing communities of Kaduna State Refinery mostly expected compensation from the oil
producing companies for the damages caused in the area through oil exploration activities.

70.0%
63.6%
60.0%

50.0%

40.0%

30.0%

20.0%
9.8%
10.0%
0.0% 0.0%
0.0%
Before confliict started After the conflict started On request Before request

Figure 4.5: Period CSR Projects were Provided by Oil Companies in Host Communities
Source: Field Study, 2017
Figure 4.5 illustrates that majority of the study respondents said CSR projects were provided
by oil companies after conflict had started in the oil producing area (n=215, 63.6%) while the
minority observed that CSR projects were executed on request (n=33, 9.8%). This indicates
that CSR projects in the oil companies’ host communities were not provided before conflict
started and before request. This implies that oil companies operating in oil producing
communities were not proactive in providing CSR projects, neither were they responsive to
the requests of host communities. Rather, CSR projects were provided when conflict has
started, which suggests that CSR was taken by the oil companies as a retroactive strategy in
response to situations of conflict in the host communities.

4.2 TEST OF HYPOTHESIS

Decision Rule
The pre-set level of significance for this study is 0.05. The null hypothesis assumes that no
relationship or effect exists between the variables under consideration. On the other hand, the
alternative hypothesis assumes that a significant relationship or effect exists between the
variables under consideration. On the whole, if the P-value (that is, the significance or the
probability value) exceeds the pre-set level of significance (which is 0.05), the null
hypothesis will be accepted and the alternative hypothesis will be rejected; but if the P-value
is less than or equal to 0.05, this means that the null hypothesis will be rejected and the
alternative hypothesis accepted.

Null hypothesis One: Corporate Social Responsibility (CSR) has no significant effect on
conflict management in oil producing communities in Kaduna State refinery.

Table 4.9a: Model Summary for the Effect of Corporate Social Responsibility on
Conflict Management.

Model R R Square Adjusted R Square Std. Error of the

Estimate
1 0.744a 0.554 0.553 0.94336
a. Predictors: (Constant), Corporate Social Responsibility
Source: Field Study, 2017

Table 4.9b: Simple Linear Regression Showing the Effect of Corporate Social
Responsibility on Conflict Management.
 Model Unstandardized Standardized T Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) -1.167 0.199 -5.856 0.000
1 Corporate Social 0.358 0.018 0.744 20.432 0.000
Responsibility
a. Dependent Variable: Conflict Management
Source: Field Study, 2017
Table 4.9b depicts that Corporate Social Responsibility (CSR) has a significant effect on
conflict management in oil producing communities in Kaduna State Refinery (p<0.05).
Furthermore, the table indicates a strong positive correlation coefficient (β=0.744) and
positive slope (B=0.358) which are statistically significant (p<0.05) as assessed by a t-test
(T=20432). This suggests that an increase in CSR will lead to a proportional increase in
conflict management in oil producing communities, while a decrease in CSR will lead to a
proportional reduction in conflict management in oil producing communities. This implies
that a strategic means of managing conflict in oil producing communities is to increase CSR
activities and projects and as long as this increases, there is likelihood that it would positively
affect conflict management in the area. Table 4.9a shows that CSR could explain 55.4 percent
(R2=0.554) variation of conflict management in oil producing communities. The model
accounts for a significant amount of conflict management variance (F (1,336) =417.456,
p<0.05). Hence, the null hypothesis which states that Corporate Social Responsibility (CSR)
has no significant effect on conflict management in oil producing communities in Kaduna
State Refinery is hereby rejected.

4.3. REPORT OF INDEPTH INTERVIEWS

Indepth interviews conducted in the qualitative aspect of data gathering of this study are
reported in this sub-section of this study.
4.3.1 An Interview with a representative of the Chikun Community Development
Committee (CDC) (02/03/24) -Respondent I
On the degree of cordiality between the community and the oil companies operating in the
area, the representative said the relationship was not cordial at all. This was as a result of the
fact that the oil companies have failed to keep their promises of providing Corporate Social
Responsibilities (CSR) projects, despite the signing of several Memoranda of Understanding
(MOU) between the oil companies and the community. On the day of the interview
(02/03/24) coincidentally there was a meeting between a representative of the Chikun Local
Government Area Commissioner of Police and the community as a result of a petition written
by the community to the Commissioner because of an Memoranda Of Understanding
between the community and Sterling Oil Exploration and Energy Production Company
Limited (SEPCO) which the company has failed to honour and fulfill five years after.
On the specific programmes provided by the oil companies for the community, the
representative said that Nigerian Agip Oil Company Limited (NAOC) has provided
electricity which runs for 24 hours free to all members of the community. They also
provided a bus and employment for some members of the community, but not at management
and senior levels, despite the fact that there were qualified members of the community for
such jobs. Bursary awards were also paid yearly to students from the community who were
in institutions of higher learning. These however were said not to be enough as the
community wanted the companies to provide scholarships to cover the total expenses of the
students.
The specific projects the community wanted the companies to provide included a bridge
linking Maraban Rido West and Kachia East Local Government areas. They also wanted a
modern market to be built and pipe borne water provided. More importantly, they wanted
proper youth empowerment and soft loans for market women. They however agreed that the
community members were consulted before some CSR programmes were provided but said
that such programmes took a very long time before they materialized.
The Respondent said that CSR programmes were very significant and useful as conflict
management strategies only when such projects were implemented on time to the
specifications requested by the community. The CSR programmes currently carried out by
the companies, were said not to be adequate and they could only be effective as conflict
management strategies if they were consistently carried out. CRS programmes were said to
be capable of promoting better relationship with the host community if they were well
implemented after consultation with the community.

4.3.2 An Interview with another representative of Chikun Community in South Local

Government Area of Kaduna State refinery (2/3/2024) - Respondent II
The respondent a well respected in the community said that the community was very unhappy
with the oil companies because they have “exploited our community for many years without
the community having anything to show for it”. He added that the friction between the
community and the oil companies was “because they have been operating in my community
for a very long time now and the community is still not developed. They are just after their
projects and transporting our crude oil outside the country”. According to him, several
Memoranda of Understanding(s) (MOUs) signed with the community have not been
implemented and that CSR could only be a good conflict management strategy if the
companies met their obligations to the community. He also wanted the oil companies to
employ indigenes in senior and management positions, provide more infrastructures and
development programmes for the community. He concluded that the relationship between
the community and the companies was not cordial at all, and that there would have been a lot
of conflicts if not for the fact that the community was peace loving.

4.3.3. Interview with a representative of Sterling Oil Exploration and Energy

Production Company Limited (SEPCO), Chikun - Respondent III
On whether the company has provided CSR projects for the community, the respondent said
that his company has tried within the available resources and budget to carry out its
Corporate Social Responsibilities. He however agreed that the relationship between his
company and the community was not cordial and that the company was doing everything
possible to honour and implements the outstanding Memoranda of Understanding signed by
them a few years ago. This is in tandem with the opinions of the community leaders who
asserted that the relationship between the oil companies and the communities were not
cordial. The respondent said Corporate Social Responsibility was an adequate and effective
strategy in managing conflicts but that “this would only be possible if it is well planned,
managed and implemented”. He appealed to the community to be patient and show more
understanding with the oil companies. The officials at the Nigeria AGIP Oil Company
(NAOC) in Chikun Local Government refused to grant an interview but referred the
researcher to the Divisional Manager, Stakeholders Management and Community
Development Division, Nigerian AGIP Oil Company, Port Harcourt. He could not however
be reached as he refused to pick his calls.

4.3.4. An Interview with a representative of Kaduna State Refinery Kachia road

community (15/03/24) - Respondent IV
The respondent said that the relationship between the various oil companies that operated in
the community had been gradually improving over the years and could be said to be cordial
to some extent at present. This notwithstanding, he said “the community still expects some
improvement on the present CSR model being operated”. According to him, Shell Petroleum
Development Company Limited (SPDC) started operating the Kaduna State Refinery Kachia
road Oil field since 1958 and the flow stations were built between 1961 to 1962, with over 40
oil wells. SPDC disinvested in 2013 and sold their interest in the field to another company
Nigeria Petroleum Development Company (NPDC) a subsidiary of Nigerian National
Petroleum Corporation (NNPC). However, by April 2017 the field would be handed over to
another company, Heritage Petroleum Company Limited, which would now take over its
operation.
He said that over the period, different models of CSR have been operated depending on the
company operating the field. According to him, during the period of SPDC there was a
budget allocated for CSR, but it was not well managed. The strategy was that projects were
only carried out when there were agitations by the community. Managers of the oil company
were promoted and rewarded for saving money from their CSR budget. Money negotiated in
those days was very small. It was just like an obligation, not CSR. Early in 1990, SPDC
gave community assistance and to be qualified for such a scheme, the community had to set
up a Community Development Committee (CDC). The various villages that make up
Kaduna State Refinery Kachia road therefore made their requests through the CDCs and got
assistance through them. Kaduna State Refinery Kachia road field consists of villages there
which one is the Gbaygi and Nissi Villa. More than 20 villages were said to be involved in
the scheme. He said “during this period the villages got a town hall and some small projects
such as micro credits, some scholarship awards for secondary and university students”.
There was also the General Hospital Sabon Tasha and others with paid doctors and drugs
provided.
There were already agitations for a change and improvement before Nigerian National
Petroleum Corporation (NPDC) took over in 2013. At the time, most of the fields were not
working and negotiations had to be carried out for the OML 30 to function. A different and
more acceptable CSR model was then adopted. In this model, “the company signed a
Memoranda of Understanding to set aside N700 million annually as CSR budget for
community development”, the interviewee asserted. Under the arrangement, a certain
amount was paid into the account of each of the communities as Corporate Social
Responsibilities budget for development. In other words, each community was assured of a
project no matter how small every year. The Memoranda of Understanding would be
operational till 2025. The respondent noted that “in this arrangement, three percent (3%) of
the amount is kept aside for the traditional rulers in the OML areas of operation. So, all the
traditional rulers benefited according to their status or grade. Money is also set aside for
administrative cost and projects. The important thing is that all communities must benefit”.
The interesting aspect of the Memoranda of Understanding, according to the interviewee was
that there was an arbitration clause and a penalty for failure or delay to implement it. The
community could petition the Ministry of Justice for delay and interest would be paid on the
money delayed for the period. He recalled that there were conflicts in 2011 and 2016 that led
to blockade and disruption of operations before they were resolved through dialogue and the
adoption of the new model operated by NPDC.
Presently, New Grid Petroleum Company is said to be prospecting OPL 283 and the need
assessment of all communities are being carried out. “There is an understanding and all
parties know their responsibilities. Giving back to the communities is now a debt because
there is an understanding”. He said that the Federal Government on its part was not doing
enough to assist the communities. Oil exploration is a partnership and joint venture. The
Federal government owns 60 percent shares, while the oil companies operating the field only
own 40 percent. The community leader observed that 13 percent derivation fund paid to
States which in most cases was not spent on the oil producing areas and advised the Federal
government to intervene directly and develop the areas. He concluded that if CSR is well
articulated and managed, “it is good in the promotion of peace and cordial relationship
between oil producing companies and host communities”.
4.3.5 Interview with a representative Sabon Tasha Development Community
(13/03/24) - Respondent V
The respondent said the relationship between his community and the oil company operating
in the area, specifically, Nigeria Petroleum Development Company (NPDC) and Nigeria Gas
Company (NGC) - a subsidiary of the National Petroleum Corporation (NNPC) - was not at
all cordial. “This is as a result of the fact that the oil companies operating in the areas are not
giving back enough to the community where they operate”. He said the community was not
giving enough employment opportunities and where they were provided, it was only in the
lower cadre.
He observed that “the community is very strategic in the sense that it hosts the Nigerian Gas
Company (NGC), Niger Delta 4 (Delta Power Station) to Kaduna State Refinery gas stations
and that any disruption of the company’s operations will affect the whole country’.
According to him, they still paid electricity bills despite hosting the power station and the gas
company unlike other oil producing communities to which electricity was supplied free. He
said that the community vigilante groups had been very helpful in the provision of security
and the only visible projects to show was one toilet facility built in the market in 2011 and
some other small projects. He said that two months ago, the community wrote letters to
NPDC and NGC warning that it was going to shut down the company’s operations but the
managers came to plead with the community to show some understanding. Although the
action was suspended, “the community is running out of patience”, he added.
On the specific assistance the community wanted from the oil companies, he said that they
required the employment of qualified indigenes into management and senior staff cadres.
They also wanted the construction of some strategic roads in the community, the construction
of a modern community hall, not the renovation that they have done. They wanted the
hospital earlier built by Shell Petroleum Development Company (SPDC) to be upgraded with
modern facilities and qualified personnel. In addition, they wanted the establishment of a
higher institution of learning, youth empowerment and scholarship for their indigenes.
Finally, “the community wants to be consulted before projects are carried out in the
community”, he observed.
The respondent agreed that “CSR is a very vital and effective strategy for the management of
conflict between oil producing companies and host communities if it is sincerely conceived,
managed and implemented”. He however said that CSR was inadequate in the community
for now and that for it to be effective the oil companies had to show more commitment and
sincerity.
4.3.6. An Interview with a representative of Nigerian Gas Company (NGC) Western
Region (Niger-Delta Region) (13/03/24) - Respondent VI
The respondent said that since he resumed in the area in 2013 the relationship between the
community and the company had not been very cordial but that there have not been any
major conflict because he had been in constant touch and dialogue with the communities
under the area of the company’s operations. Ekakpamre community members have had
series of meetings with him in which he asked them to articulate their requests in form of a
document. This he said they had done and he had forwarded such to the Headquarters Public
Affairs Department and it is being handled. The community members were also said to be
aware of the fact that their requests were receiving attention. However, the community
members were said to have been offered assistance from time to time. He agreed that “CSR is
an effective strategy for conflict management and that the company is committed to meeting
this for the benefit of both parties”. He said to be good corporate citizens, all responsible
companies have to pursue and implement CSR programmes.
By implication, both parties – the oil producing companies and their host communities –
agreed to the facts that there has been lack of cordial relationship between the two parties;
and CSR programmes have been inadequate in the communities, a situation that has caused
conflicts in the area. Also, both parties recognize the need for CSR in the area, observing that
it is an effective strategy for conflict management, which is to the benefits of both parties.

4.4. DISCUSSION OF FINDINGS

This study examined Corporate Social Responsibility (CSR) as a Conflict Management
Strategy in Selected Oil Producing Communities in Kaduna State, Nigeria. In view of this,
the researcher purposively selected some of the oil producing communities under Chikun
Local Government Area of Kaduna State. To proffer answers to the questions raised in this
study, the survey research design was adopted while the quantitative and qualitative research
methods were utilized. Three hundred and forty five (345) copies of the questionnaire were
administered to respondents in Kaduna State refinery. However, only three hundred and
thirty eight (338) copies were retrieved and validated for analysis, representing 98 percent
return rate.

Findings indicated that male respondents were more represented in the study (68.9%) than
female, while the majority of the respondents were married (65.4%). In addition, respondents
having a minimum of SSCE/WASC/GCE, A and O’Levels were more represented (45.0%) in
the study while majority of the study participants were unemployed (76.9%). For the
respondents working with the oil companies, majority have not been there for up to two years
(23.1%) while only 9.8 percent have been there for less than six years. As earlier planned,
indepth interviews were also carried out with representatives of the oil producing companies
operating in the area and the representatives of the communities namely: Kachia, Sabo and
Kamazou. Findings of this study are hereby discussed in line with the objectives earlier set in
the study.

4.4.1. Level of Cordiality between the oil companies and the oil producing communities.
From the general point of view, findings of this study showed that the CSR programmes
employed by oil companies in Kaduna State refinery, Nigeria have not been able to foster
cordial relationship between these companies and the oil producing communities. This result
is in tandem with the report of Fynas (2005) which stated that though the oil companies have
expended well over US$500 million in order to address some community issues, the outcome
of these activities still leave a lot to be questioned because the anticipated results have not
been realized. The author asserts that there is a gap between the oil companies’ intention and
the real outcome of such initiatives. The implication of this is that the planning and execution
of the CSR programmes by oil companies might not have taken the needs of the oil producing
communities into cognizance, which eventually affected the outcome of such initiatives. The
inadequacy of the CSR projects, coupled with the irresponsive attitudes of the managements
of the oil companies may account for the low level of cordiality between the two parties as
observed in this study.
Graafland and vandeVen (2006) asserted that for CSR activities to yield expected results,
such as creation of mutually positive relationship between, the Host community and the Oil
companies, profit making should not be the focus of such activity, stating that all CSR focus
should be diverted to everything but profit making. This observation relates to the result of
the study, which focused on the CSR initiatives of the Dutch companies, in which the
respondents had a positive perception of these activities employed by the Dutch companies;
the positive perception of the respondents was ascribed to the strategic usage of the initiatives
to develop positive relationship and not a profit making venture. The result of Graafland and
vandeVen (2006) negates the finding of this study as well as the outcome of Fynas (2005)
study, which showed negative perception of members of the oil companies’ host communities
about the CSR programmes of the oil companies.
Olajide (2014) succinctly explains that for any CSR initiative to be successful, organizations
should properly understand stakeholders’ interests if their efforts are to be properly
appreciated. In the case of this study, the stakeholders are the oil producing communities who
should be critically involved in the selection and planning of the CSR activities in order to
build cordial relationship between the communities and the companies. Olajide (2014) adds
that to improve the cordiality level between the companies and the oil producing
communities, it is expedient to identify relevant stakeholders and integrate their interests into
organizational strategic planning of the oil companies.
On the average, the respondents in this study asserted that the CSR initiatives of these oil
companies did not in any way recognize host communities’ welfare benefits. Rather, the
focus was solely on profits, which was a minus on the part of these oil companies as shown
on the first item on Table 4.2. In addition, the study participants noted that the oil companies’
CSR activities were not geared towards management of risks or crisis in business neither was
it designed to foster harmonious relationship between the parties involved.
In line with the propositions of the stakeholders theory, the oil companies in the oil producing
communities have not adequately taken the presence, interests, needs and aspirations of the
host communities into play hence, the surging conflicts. It is essential to realise that the
stakeholders play a key role in the sustenance or destruction of organizations. Should their
needs be ignored or there be lack of communication, there will be no cordial relationship in
any way. In line with this, oil producing companies should map out ways of meeting their
obligations to the shareholders in the business by carrying out strategic Corporate Social
Responsibility (CSR) activities to touch the lives of members of their host communities, who
bear the damages arising from their oil exploration activities. In other words, they should
engage in Corporate Social Responsibility (CSR), which is a strategy to give back to the host
communities who are their benefactors. If they meet their corporate social responsibilities
there is likelihood that conflicts will be mitigated to the barest minimum and should in case
they occur, they can be more easily and effectively handled and managed.
Findings from the survey also agreed with the result of the indepth interview.
Representatives of all the oil producing communities were in agreement that the relationship
between their communities and the oil producing companies was not very cordial. However,
the respondent from Kachia Chikun LGA community, where an improved model of CSR was
being implemented by the Nigerian Petroleum Development Company (NPDC), a subsidiary
of NNPC, observed that the relationship was gradually improving because each party now
knew their responsibilities. Even the representatives of the oil companies interviewed also
agreed that the relationship was not very cordial between the two parties.

4.4.2. Specific CSR Programmes Carried Out in the Oil Producing Communities by the
Oil Companies in Kaduna State Refinery.
As against the assertions of the oil companies on the CSR initiatives embarked upon, this
study reveals that members of the oil producing communities did not agree with the
existence of some of the CSR initiatives of these companies such as legal services to support
communities, Healthcare facilities for members of the communities, economic empowerment
of members of the communities, educational policies of children and youth, environmental
support programmes to enhance living and welfare and support to the aged and the poor.
According to the members of these communities, the oil companies did not embark on any of
these, while it may be possible that the oil companies are doing this, the level of awareness
and involvement of the communities may account for the oil producing communities’ denial
of the existence of these initiatives.

These findings in this regard can be summed up in what Ndu and Agbonitoh (2014)
described as lack of citizenry involvement in the planning and execution of the CSR
activities being done by the oil companies in this region. Marchant (2014) gave an apt
explanation of what is responsible for the synergy of voice between these oil companies and
the oil producing communities that “some of the problems found within the communities
exists independently of any of the company’s activity. Yet by ignoring the structural causes
of these issues and the role of the corporation therein, the CSR projects can have no more
than a superficial impact at best and may, in some cases, exacerbate the problems faced by
local communities”( p. 1). This implies that the oil producing communities may not be aware
of the initiatives such as eradication of poverty, welfare of the aged, education not because
the initiatives did not exist, rather because their interest, needs have not been targeted for
instance, a community in need of pipe borne water and the CSR initiative focuses on beauty
pageant, definitely, the outcome of such action may not yield any positive reward.

As espoused by the games theory, communication is essential in the management of conflicts

especially between organizations and stakeholders because CSR programmes may not be
properly felt if the beneficiaries are not carried along in the decision making process,
therefore, the oil companies and the oil producing companies should actively involve the
communities. The indepth interviews however revealed that some projects have been
executed in the communities as CSR. For instance the representative of the Chukun Local
Government Area Community Development Committee (CDC) said that AGIP has provided
electricity for the community which runs for 24 hours uninterrupted at no cost to members of
the community and this has been on for years. Students are also awarded bursary and there
are a few job opportunities although in the lower cadre. In the same vein, the representative
of Chikun also confirmed the provision of a cottage hospital and other projects on yearly
basis in their new CSR model operated by NPDC. In line with this, the representative also
agreed that some projects have been executed in the community. However, all the
communities representatives were in agreement that the oil companies have done just a little
compared to what they are benefiting from the communities. They urged the oil companies
to do more to justify their operations in the communities.
4.4.3. Adequacy and Effectiveness of Oil Companies’ CSR Programmes in the Oil
Producing Communities as Conflict Management Strategy in Kaduna State Refinery
On the efficacy of the CSR programmes carried out by the oil companies, members of the
selected oil producing communities have an impression that the programmes have not been
adequate as shown on Table 4.1.4. Furthermore, Ndu and Agbonitoh (2014) explained that in
line with other studies in this research area, the CSR strategies employed by these oil
producing companies are not good enough in helping in the prevention and resolution of
conflicts in these communities. This may indicate that the focus of the CSR programmes
carried out by these oil producing companies may not truly be to tackle conflicts, it may have
some undertone that may be in favour of the companies as against the interest of the
communities. The result of Amodu’s (2012) study which also focused on the CSR
programmes of the oil producing companies shows that there is a big gap between the
projected outcomes and the real adequacy of such programmes.

Amodu (2012) explains that on the level of adequacy of the CSR programmes as a conflict
management strategy, there was a lacuna between the strategies the oil companies believed
host communities preferred for conflict resolution and the ones actually preferred by those
communities. This shows a breakdown in communication between the oil producing
companies and the oil producing communities. If there was a proper communication system
between the parties involved, the right CSR programmes that will mitigate conflicts between
them would have been identified and executed, and the result of such decisions would have
yielded a positive result that this study would have uncovered.

Ikiriko (2012) attempts to provide a reason for the inadequacy of the CSR programmes for
managing conflict by affirming that the activities of oil exploration by SPDC in Rivers State
is a far cry from what CSR practice should be and that the operating environment from these
multinational oil corporations was one of mistrust between the companies and the
communities in which these companies operate. This leaves an issue at hand because from
the premise that Ikiriko (2012) posited, it suggests that these oil companies may not even
have an idea of what a proper CSR programme should address and how it should be used as a
conflict resolution strategy. On a general scale, the major conflict management CSR activity
as shown on Figure 4.3 that the members of the oil producing communities are aware of is
that Oil companies give incentives to community chiefs and opinion leaders as a means of
managing conflict in oil producing areas. This on its own accounts for the inadequacy of
these CSR programmes as a conflict management tool because as monetary incentives are
provided to the community heads and opinion leaders, these individuals share the money
amongst themselves thereby ignoring the major problem necessitating the provision of
incentives and this will further escalate into a bigger conflict which may be almost impossible
to address.

Conflicts should be proactively tackled and not handled with levity as the aftermath may not
be easily wished away even if the most adequate of stringent measures is applied. In addition,
adequate information and compensation is not provided to these oil producing communities
rather, to a selected few such as community and opinion leaders which is not beneficial to
both parties. Regular consultation, as well as implementation of development projects, seems
not to have a place in the management of conflicts which on its own is a problem.

Results from the indepth interviews held with representatives of these communities showed
that the CSR strategies adopted by the oil companies are not adequate. According to them the
approach is only to try to engage them with a few projects once there are protests and go back
to their old ways once there is peace. The strategy they said is inadequate because it only
brings temporary peace which is not good for mutual coexistence. The findings here are in
total agreement with those got from the quantitative method through administering
questionnaires and some past findings by other researchers, earlier mentioned.

4.4.4. Significance of Corporate Social Responsibility (CSR) as Conflict Management

Strategy by Oil Producing Communities in Kaduna State Refinery.
The respondents in the oil producing communities described CSR as a moderately significant
conflict management strategy being employed by the oil companies as depicted in Table 4.5.
Furthermore, in the handling of conflicts by the oil companies, there seemed to be a moderate
level of effort being put in by the companies. The implication is that there is more to be done
to improve on the management of conflicts between these oil companies and the oil
producing communities. Blowfield and Googins (2006) emphasize that though the oil
companies want to address societal issues because they are important to their companies and
business as a whole, yet, they are hesitant to take it too far because of the reactions that may
come from investor’s analyst and board members thus giving a false view of what they intend
to achieve and the achieved goals ultimately. Fynas (2005) stresses that while the oil
companies unduly sensitize the communities on the programmes to be carried out, their
inability to meet these expectations yield further crises which makes the CSR programmes
ineffective. Hartman, Rubbis and Dhanda (2007) justifies CSR as a necessary conflict
management strategy which may make or mar a company’s image therefore, it is necessary to
strategically plan and design the CSR programmes that will help to solve whatever conflict
that the company is faced with as soon as possible.
Findings from the field indepth interviews to a large extent agree with those got from the
survey because those interviewed from the communities all agreed that the oil companies
operating in their areas have provided some CSR projects, but they are not just enough. In
other words, they can only be rated as moderate. That is to say their efforts are just
moderately significant and effective as conflict management strategies as shown in Tables 4.5
and 4.6 of the quantitative results. The conclusion therefore is that the oil companies have
not done enough of CSR, hence they should do more for the communities from which they
are getting so much.
4.4.5. Extent to which CSR programmes of Oil producing companies have promoted
better relationship with the host communities in Kaduna State Refinery, Nigeria
The findings of this study showed that the oil companies’ CSR programmes have not been
able to sufficiently promote better relationship between the oil producing communities and
the oil companies in Kaduna State , Nigeria. In addition, the causes of the conflicts which led
to the reduction of mutually beneficial relationship between these parties are hinged on lack
of compensation to the host community. This result is supported by Olajide (2014) who
reported that compensating community and opinion leaders at the expense of the looming
crises would only extend the escalation of crisis between parties. Rather than paying these
leaders, the goal should be to identify the crises and then use CSR programmes to adequately
address such issues. In most cases, the leaders of the community only seek ways of enriching
their personal purses and not seeking the interest of the community, therefore, compensating
leaders should not be encouraged.
Furthermore, the members of the selected communities identified neglect as another cause of
conflict between both parties because as the oil companies are benefiting from the
communities, it is essential to give back to the communities in terms of scholarship,
motorable roads, electricity, healthcare facilities, welfare packages for the aged, widows,
orphans and individuals with disabilities depending on the needs of the community.
Neglecting the host communities will not affect these communities alone, rather the oil
companies will not benefit from the ripple effect of such neglect.
Additionally, environmental degradation was another major cause of conflict between the oil
companies and the oil producing communities. This is not a good one because the oil
companies have gainfully utilized the ambience of these communities to the extent that what
is left of it is environmental degradation such as polluted water, degraded and oil polluted
lands that cannot be farmed on leaving a lot of needs on the part of the oil producing
communities. According to Adekola and Uzoagu, (2012) and Wosu(2013) conflicts may not
come to an end in these oil producing states and communities until these oil companies
universally agree on finding ways of compensating these communities and not a selected few
so that the compensation can make up for the high level of environmental degradation.
Also, a germane issue that affects the fostering of positive relations between the companies
and the communities is the issue of lack of involvement in the decision and planning of
development programmes being carried out by the oil companies. This challenge is also
identified by Frynas (2005) to be a major reason for the inefficiency of the CSR programmes
done by these oil companies. Since this is the case, it is essential to harvest all the needs of
the community and tactically identify the ones that are of utmost priority to the community
and address them urgently. It is essential for these oil companies to realize that the easiest and
most cost-efficient time to address an issue is before it becomes full blown because several
factors such as time, resources, manpower, and technical know-how will be required to now
solve such when it escalates like what is happening in the oil producing regions.
As depicted on Figure 4.5, the oil companies only used CSR programmes after the conflicts
have commenced in most cases and in few cases, they do so on request. The implication is
that this may suggest to the communities that these oil companies are not after the interest of
the community rather, for their own image and enrichment. All the representatives of the
communities including those of the oil producing companies agreed that CSR programmes
carried out by the oil producing companies were good avenues of providing better
relationship between them and the host communities. This however has not been the case
because the oil producing companies have not done enough to promote lasting good
relationship with the communities. They therefore urged the oil producing companies to do
more of the really desired long lasting cordial relationship with their host communities.
In all, it can be summed up that Corporate Social Responsibility (CSR) has a positive effect
on conflict management in oil producing communities in Kaduna State Refinery, Nigeria. By
implication, this suggests that an increase in the implementation of appropriate CSR
programmes will lead to an increase in conflict management in the oil producing
communities therefore, for oil companies to manage conflicts between themselves and their
hosts, it is essential to integrate CSR into their overall strategy.
Findings from the indepth interviews with representatives of the three communities
represented and the oil companies confirmed that CSR if well planned, managed and
implemented can lead to improved relationship between the Oil Producing Companies and
the Host Communities