EFFECT OF NIGER DELTA DEVELOPMENT COMMISSION (NDDC) INTERVENTION PROJECTS ON THE GROWTH OF THE OIL PRODUCING COMMUNITIES OF ABIA STATE (2001 – 2017)

Abstract

This research work investigated the effects of the Niger Delta Development
Commission (NDDC) intervention projects on the growth of the oil producing communities of Abia state for the period 2001 to 2017. The NDDC is the fifth interventionist agency in the Niger Delta established to implement a programme for sustainable prosperity and peace in the region. Despite the commission.s intervention projects, various researches have shown that the oil
producing communities appear to be economically under-developed. The NDDC.s intervention expenditures in the areas of education and health, energy and water, roads and bridges and agricultural entrepreneurial development were sourced from the NDDC Abia State Budget office and used as the independent variables while the Gross State Domestic Product (GSDP) for Abia
State was used as the dependent variable. The Unit root test showed that the data were integrated at order one i.e., I(1) while the long run relationship amongst the variables was confirmed using the Johansen cointegration test. Estimates of the Error Correction Model showed that the NDDC intervention projects on Education and health (EDH), Energy and Water (EWS) and
Agric/fisheries (AFGEDS) have positive relationship with economic growth of the oil producing communities of Abia state with only intervention in education and health having significant impact on growth of the communities. The NDDC.s intervention in Roads and Bridges construction was found to be negative and this is significantly felt in the communities. The joint test of significance revealed that the NDDC intervention projects have joint impact on the economic growth of the oil producing communities. Based on the findings, we concluded that the NDDC has contributed to the improvement and enhancement of education and health infrastructures in the local communities; even though the Commission.s interventions in energy (electricity), water supply and agric development have contributed positively to the development
of the communities, it still has not significantly affected the generality of the people in terms of economic growth and development. We therefore recommended that the NDDC must, as an interventionist agency, engage more in the construction of rural roads, water supply, employment creation and attraction of international support in the oil producing communities.