CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Capacity building has continued to be viewed as one important program of intervention by

most organizations especially in rural society to promote socioeconomic changes. It has been

particularly popular among oil companies, non-governmental organizations, donor agencies,

and many national governments around the world. In most developing and transition

countries there is a lack of organizational intervention to address educational issues in an

adequate and sustainable way. Many organizational projects have been established to respond

to these problems. However, responding to these problems is not simple. This is partly due to

the complex nature of the various societies involved, and partly due to the lack of emphasis

on strategies of intervention by organizations on capacity building towards developing

sustainable institutional infrastructures (Capel, Leask & Turner, 2013).

One of the major factors that can bring about capacity building and sustainable development

of any nation is a constant organizational intervention. Building a student’s capacity involves

education and training designed to provide the individuals with knowledge, skills and

attitudes related to occupations in various sectors of economic and social life for sustainable

development. Sustainable development is concerned with the exploitation of human and

material resources, the direction of involvement, the orientation of technological development

and institutional change that are in harmony with, and enhance, both current and future

potentials to meet human needs and aspirations (Eze, 2011) in the 21st century world.

However, all organizations including oil and gas companies have a corporate identity, which

defines all the activities of the organization in public relation administration. It is however

1
worth noting that many firms are conscious of the need to voluntarily integrate both social

and environmental upliftment in their business philosophy and operations (Otubanjo, 2013).

Whereas some companies have found a need that the environment in which they operate

should be provided for because they have a direct impact on the attainment of the corporate

goals, objectives and mission statement, others do not. These companies usually responds to

the societal needs of the people by providing them with good drinking water, electricity,

clinics, roads, places of convenience, national institutions and others. They provide

employment in various forms to citizens in the surrounding communities which in the long

run bring development in the community.

Capacity building and development is one of the major ways organization invests in an

individual or community for greater return today and even in the foreseeable future

(Williams, 2007). Student’s capacity building is an integral part of development assistance. It

seeks to build the understanding, skills and knowledge base of individuals and institutions.

The organizational involvement provides formal and informal training for students, schools,

lecturers/teachers and staff of schools. These investments in capacity building are made

because of the conviction that building the capacity of individuals, and consequently adding

to the local stock of knowledge, is an essential element in improving the productivity of

agriculture in the partner countries.

According to Linnell, (2003); Building the capacity of the individual makes possible

improvement to the capacity of the community. Strengthening students individually enhances

the ability of all students in that community to work collectively for the greater good. Finally,

individuals working through stronger capacity building contribute to an improved community

and to better lives for citizens. In this sense, capacity, capacity building, and both community

effectiveness are separate but also very related to each other (Linnell, 2003)

2
Therefore capacity building must aim at improving skills for carrying out key functions,

solving problems, defining and achieving objectives and focusing on building the individual’s

knowledge base, skills, attitudes, competencies, abilities while at the same expanding and

strengthening network of individuals and institutions by creating a pool of talents which will

potentially and significantly improve sustainable development practices (Capel, et al., 2013).

While capacity-building programs are judged as essential, there is little hard evidence to

demonstrate how important these programs are. Evaluation of capacity-building generally

stops at assessing the capacity built (such as skills gained), and only occasionally goes on to

measure capacity utilised. While measurement of the impact of capacity building is important

for justifying the investment, it is more important for assessing how much to invest in ‘human

capital’ relative to other investments in development assistance (Roberts, 2002).

Capacity building encompasses training and all other forms of learning that enhance the

knowledge, understanding and competencies (skills) of students. Felix and Osu (2012)

examines the pathways from which capital building have been of benefit. These are through

improved: labour productivity of the individuals undertaking program, and the flow-on

effects of the program to other individuals capital productivity arising from the

complementarily between human capital and physical capital as more-capable individuals can

better adapt to and utilise equipment, machinery and the latest technology. These higher

returns to capital building also encourage greater investment in capital by organizations and

enable inward technology transfers total factor productivity arising from better management,

intra and inter-firm synergies and, over time, higher rates of innovation and improvements in

the enabling environment.

Strategies for organizational involvement in capacity building are not new. It has been

practiced in many different ways using divers means for many years not only with students

3
but more broadly within social practices and development. However, a number of relatively

recent strategies for organizational involvement have been influential in putting community

participation high on the political and public agendas for local authorities, governments and

other agencies (Marais & Meier, 2004).

Organizational involvement entails the provision of infrastructural facilities and capacity

building programs to the people. The provision of these social amenities can be attained

through a number of ways and/or organizations which includes, the government, community

development associations, Non-Governmental Organisations. Non-Governmental

Organisations (NGOs), oil and gas companies, non profit making and self governing

organizations etc. always set out to ameliorate the plight of the people in dare need of life

sustaining facilities in the society.

1.2 Statement of the Problem

Building the capacity of individuals through organizations intervention, partnerships and

collaborations is complex work. As a process, it typically involves various strategies in a

wide variety of areas. Some companies have found a need that the environment in which they

operate should be provided for because they have a direct impact on the attainment of the

corporate goals, objectives and mission statement, but till now, most companies in Onelga

Local Government Area of rivers State do not focus on building the capacity of students.

Globally, the concept of organizational involvement in capacity building has been studied by

many scholars. However, there has been lack of consensus on the strategies and measures of

organizational involvement in capacity building both in research and practice.

4
Most importantly, the strategies available for involving oil companies in Onelga is often used

in a very narrow way such as focusing on community development through formal education

to meet the deficit of students in the short term without focusing much on the capacity of

students. Moreso, most of the intervention programs offered by oil companies in Onelga

Local Government Area focus less on training programs for students.

In addition, the increasing challenge facing Onelga Local Government Area of Rivers State

today (such kidnapping, violence, cultism etc.), there has been an increase in the number of

oil and gas companies seeking to provide solutions to the challenges with inefficient methods

of intervention. For these organisations to successfully attain and sustain their missions there

is need for an increasing in methods of involving them for capacity building of students.

In view of this, this study shall investigate strategies for involving oil companies in the

capacity building of students from Onelga Local Government Area of Rivers State.

1.3 Purpose of the Study

The purpose of the study was to investigate the strategies for involving oil companies in the

capacity building of students from Onelga Local Government Area of Rivers State.

Specifically the study is aimed to:

1. To examine the current situation of oil and gas companies’ involvement in capacity

building of students from Onelga Local Government Area of Rivers State

2. Identify the various strategies for involving oil and gas companies in capacity

building of students from Onelga Local Government Area of Rivers State.

3. Ascertain the problems militating against the involvement of oil and gas companies in

capacity building of students from Onelga Local Government Area of Rivers State.

5
 4. Proffer solutions to the problems militating against the involvement of oil and gas

companies in capacity building of students from Onelga Local Government Area of

Rivers State.

1.4 Research Questions

To guide the study, the following research questions were raised:

1. What is the current situation of oil and gas companies’ involvement in capacity

building of students from Onelga Local Government Area of Rivers State?

2. What are the various strategies for involving oil and gas companies in capacity

building of students from Onelga Local Government Area of Rivers State?

3. What are the problems militating against the involvement of oil and gas companies in

capacity building of students from Onelga Local Government Area of Rivers State?

4. What are the solutions to the problems militating against the involvement of oil and

gas companies in capacity building of students from Onelga Local Government Area

of Rivers State?

1.5 Research Hypotheses

HO1: There is no significance difference in response on the current situation of oil and gas

companies’ involvement in capacity building of students from Onelga Local Government

Area of Rivers State

HO2: There is no significance difference in response on the various strategies for involving

oil and gas companies in capacity building of students from Onelga Local Government Area

of Rivers State.

6
HO3: There is no significance difference in response on the problems militating against the

involvement of oil and gas companies in capacity building of students from Onelga Local

Government Area of Rivers State.

HO4: There is no significance difference in response on solutions to the problems militating

against the involvement of oil and gas companies in capacity building of students from

Onelga Local Government Area of Rivers State.

1.5 Significance of the Study

The study will be beneficial to communities, schools especially the students of areas where oi

and gas companies are located. It will serve as guide to them on how to involve oil and gas

companies for capacity building of students and youth. It is expected that this study will

expose to the general public on issues hindering the involvement of oil companies for

capacity building and this study shall contribute immensely to poverty alleviation of students

and graduate since the involvement of oil and gas companies will boost their capacity for

future survival.

This research is very useful as the findings will enable stakeholders appreciate the need

of creating the enabling strategies for attracting oil and gas companies intervention in

their community. The findings of this research will enable the government, schools and

head of institutions and other organizations who own oil companies in their community, to

see the need of increasing capacity development programs on students. The findings of this

research are also beneficial to teachers and students as it will enable them appreciate the

available provisions such as facilities and resources for capacity building of students. This

will led to improvement in the standard of graduate in the local government and state.

7
Finally, this study shall serve as reference guide to future and current researchers who will

undergo similar research works.

1.6 Scope of the Study

The content scope of the study entails strategies for involving oil companies in the capacity

building of students the geographical scope is Rivers State. The unit of analysis covers

community secondary schools in Onelga Local Government Area of rivers State.

1.7 Operational definition of Terms

Strategy: this shall be referred to as plan or method of achieving goal

Corporate Social Responsibility: Corporate Social Responsibility as the continuing

commitment by a business organization to behave ethically and contribute to economic

development while improving the quality of life of the workforce and their families as well as

that of the local community and society at large.

Oil and Gas Company: This shall be referred to as companies that deal on crude oil mining,

mining and drilling and gas plants.

Students: This shall be referred to as youth that are involved in various formal schools of

learning.

Capacity Building: Capacity building is the process by which individuals obtain, improve,

and retain the skills, knowledge, tools, equipment and other resources needed to do survive

competently or to a greater capacity. Capacity building and capacity development will be

often used interchangeably.