Rentier capitalism and multinational oil corporations’ response to conflict in the Niger Delta Region of Nigeria

Abstract

• Study is focused on Rentier capitalism and multinational oil corporation’s response to conflict in the Niger Delta region of Nigeria. The objectives of study are to examine the political economy of rentier capitalism in Nigeria and its impact on the Niger Delta for the past 70 years of oil extraction; to investigate the driver of local resistance and violent conflict in the region, including the lack of resource control and environment degradation; to analyze the recent shift by Oil Multinational Corporation (Shell, Chervon Mobil) divesture to offshore operations as a strategic move to avoid conflict; and to propose policy recommendations for reforming rentier capitalist system to ensure more equitable distribution of oil wealth, environment protection, and conflict resolution in the Niger Delta region. The researchers adopted descriptive qualitative analysis (content analysis) of a database of the Nigeria Extractive Industry Transparency Initiative, journal articles, and reports on the oil industry to investigate the dynamic relationship between the political economy of rentier capitalism and conflict resolution. The findings underscore the detrimental impact of rentier capitalism in Nigeria, where the alliance between the state and the multinational oil corporations has led to the exploitation of resources at the expense of oil host communities. The study recommended the promotion of sustainable practice, enforcing environmental regulations, and empowering host communities in resource control and resource governance mechanisms that will foster a more equitable distribution of oil wealth.