The Political Economy of Transnational Oil Corporations and Local Development in the Niger Delta

Abstract

The study examines the political economy of transnational oil companies (TNOCs) and local development in the Niger Delta, with a focus on the ways that structural power dynamics, rent allocation, and elite capture shape development outcomes among oil-producing communities. Taking a critical political economy approach, the research examines how corporate social responsibility (CSR) strategies by TNOCs intersect with local governance systems, state institutions, and community dynamics. The study employed a qualitative approach and purposeful sampling to select 25 respondents from three historically significant oil-producing communities, that is, Oloibiri, Ogoni (Bori axis), and Gbaramatu. Semi-structured interviews were conducted with youths, women leaders, and traditional leaders to examine CSR implementation challenges, community participation, distributive justice, and socio-economic impacts of oil production. Findings show that CSR interventions are mainly instruments for securing operational stability rather than transforming conditions within communities. Resources were channeled through chiefs, government, and selected opinion leaders, sustaining hierarchal governance systems and disconnecting grassroot agents, especially women and youth. This resulted in grievances, protests, and intermittent sabotage, testifying that failure in CSR results in cycles of resistance rather than peace. The study establishes that TNOC-community relations are mediated by power imbalances perpetuating underdevelopment in the context of decades of resource wealth. The article recommends democratizing decision-making to provide broad participation, and establishing transparency and accountability through people-driven monitoring of CSR funds. Such a structural transformation would make CSR more than symbolic gestures but a redemptive mechanism capable of achieving inclusive, sustainable development, and reducing conflict in the Niger Delta.