Background of the Study
Illegal bunkering in Okrika Local Government Area, Rivers State, has emerged as a controversial activity with profound economic implications for local communities. This practice, involving the unauthorized extraction and sale of crude oil, often operates outside legal frameworks, creating both short-term financial gains and long-term economic instability (Abdulrahman, 2023). While illegal bunkering may generate immediate income for some, it undermines legitimate economic activities, fuels corruption, and disrupts environmental sustainability (Ibrahim, 2024). Local economies suffer from the erosion of tax revenues and reduced investments in public infrastructure as a result of these clandestine operations. Recent research has highlighted the dual-edged impact of illegal bunkering, where short-term economic benefits are outweighed by broader socio-economic and environmental costs (Owolabi, 2025). This study explores the complex relationship between illegal bunkering and local economic development, assessing both the immediate financial benefits and the longer-term detrimental effects on sustainable economic growth in Okrika.
Statement of the Problem
Illegal bunkering in Okrika Local Government Area has led to significant economic disruptions. While some individuals gain short-term profits, the broader community suffers from reduced public revenue, environmental degradation, and diminished investor confidence (Udo, 2024). The clandestine nature of these activities further complicates governance and accountability, undermining sustainable local development. This study aims to investigate the full spectrum of economic impacts caused by illegal bunkering and to identify policy measures that could mitigate its adverse effects on the local economy.
Objectives of the Study:
• To evaluate the economic impact of illegal bunkering on local economies.
• To analyze the environmental and governance challenges arising from bunkering activities.
• To propose policy interventions to curb illegal bunkering and promote sustainable development.
Research Questions:
• What are the economic consequences of illegal bunkering in Okrika?
• How does illegal bunkering affect public revenue and investor confidence?
• What policy measures can mitigate the negative impacts of illegal bunkering?
Research Hypotheses:
• H1: Illegal bunkering activities significantly disrupt local economic stability.
• H2: Environmental degradation from bunkering negatively impacts community development.
• H3: Effective policy enforcement reduces the prevalence of illegal bunkering and its economic consequences.
Significance of the Study
This study is critical for understanding the economic ramifications of illegal bunkering on local economies in Okrika. Its findings will guide policymakers in developing strategies to mitigate adverse impacts, promote legal economic activities, and restore investor confidence (Bello, 2023; Mohammed, 2025). The research contributes to sustainable local development by providing a basis for targeted interventions in affected communities.
Scope and Limitations of the Study:
This study is limited to assessing the economic impacts of illegal bunkering in Okrika Local Government Area, Rivers State. It focuses on local economic disruptions, environmental degradation, and governance challenges, excluding national-level analysis. Data are drawn exclusively from sources pertinent to illegal bunkering activities in the specified area.
Definitions of Terms:
• Illegal Bunkering: Unauthorized extraction and sale of crude oil.
• Local Economy: The economic activities and financial health of a specific community.
• Sustainable Development: Development that meets present needs without compromising future generations.
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