The main objective of this study which was achieved at the end of this project work are.
This research work was implemented by using data collection from the staff members of ELF oil company by the use of questionnaires and use of secondary data and by oral interview.
Research methodology used as mentioned above especially the use of questionnaire was presented and analyze using chi-square (x2 square).
At the end of the research work was able to achieve my objective of delving into it. And recommendation was given by the staff of the ELF oil company.
PROPOSAL
An investigation into the impact of multinational of companies towards the Nigeria public revenue is just a project topic proposed to carry out in order to ascertain the role or influence of one of these multinational oil companies (ELF) on the economic life of our country (Nigeria).
The main obejcttives of this study are:
Nevertheless for more than three decades oil has contributed more than two third (2/3) of Nigerian’s public revenue and as a matter of face this oil in Nigeria is exploited mainly by the multinational companies apart from some contribution of Nigeria national petroleum corporation (NNPC).
It is important to carry out a study into the activities of one of these multinational oil companies especially ELF to see their impact towards the Nigeria public revenue.
Moreover in carrying out this research:
It is proposed to visit the multinational oil company in order to collect analyze and interpret data relating to their contribution towards the Nigeria public revenue. And their contribution towards the Nigeria public revenue. And as well proposed to visit the manager of ELF petroleum, residents of some of the communities where some multinational oil companies are operational and also collect analyze and interpret data form ministry of finance and central bank of Nigerian which will enable me to achieve my purpose of this study.
Questionnaire for staffs of multination oil company is proposed to be prepared way carrying out the research work so as to know what will be their responses.
Constraint that may be encountered why carrying out the research study are:
Finally in all these constraint above believing God the impact of the multinational oil company towards the Nigeria public revenue will be established at the end of my research work.
TABLE OF CONTENT
Cover page
Title page
Approval page
Dedication
Acknowledgement
Table of content
CHAPTER ONE
References
CHAPTER TWO
Literature review
CHAPTER THREE
3.0 Research design
3.1 Area of study
3.2 Population of the study
3.3 Samples size determination
3.4 Types of data used
3.5 Location of data
3.6 Instrument of data collection
3.7 Method of data collection
3.8 Method of data presentation
3.9 Method of data analysis
CHAPTER FOUR
Presentation and analysis of data
CHAPTER FIVE
5.0 Findings conclusion and recommendations
Bibliography
Questionnaires for state of multinational oil company.
CHAPTER ONE
As a matter of fact the search for petroleum in the country started as early as 1908 when a German company the Nigeria Bitumen Corporation (limited) exploration in the Araromi area of western Nigeria. Their pioneering effort was interrupted by the out break of the first world war in 1914.
However in 1937 oil prospecting resumed in the country with shell D Arcy (the former of present awarded the side concessionary right covering the territory of Nigeria. Their activities were again affected by the second world war bit resumed in 1947. meanwhile, it was in 1956 that oil was discovered in commercial quantities of Olobiri in the Niger Delta after several years of oil prospecting and investing of over N30billion with this development shell started oil production and expiration from its Olobiri field in 1958.
Following the discovering of oil in the country other companies such as Mobil Agip Sc Frap (now ELF) Tennco and Amoseas (which we know today as Texaco/ Chevron) by 1961 began exploration right which has been formally granted to shell alone was extended to the new comers in line with the government policy of increasing the pace of oil exploration in the country Okigbo (1993).
So oil production and export from Olobirir field was first started in 1958 by shell at a production rate of 5, 000 barrels of crude oil per day. The quantity doubled the following year and crude oil exports form the country rose to 2.0miliom barrels per day in 1971.
In fact in 1972, 631,000,000 barrels were exported yielding more than N600 million in tax and royalties. As production continued, Nigeria attained the status of a major oil producer being presently ranked the 6th oil producer in the world and second in African after Libya.
Furthermore initially government interest was only limited to collection of royalties and other due (taxes) offered it from the oil companies and rudimental laws to regulate the activities of the oil companies and industry. This was due to fact that oil revenue was very insignificant in the economy before the late ninety sixties and also relative lack of trained personnel and expertise.
However immediately after the Nigeria civil war oil had become very important to our economy. So to strengthen and establish government control in the industry. The Nigeria oil corporation (INNOC) was established by decree in May, 1971 as an integrated oil company designated with powers to engage in all phases of oil production from expiration to marketing. Later in 1997 the corporation was amalgamated with he ministry of petroleum company (NNPX) Arthur A Nwankwo (1980).
Besides before October 1965, the country’s crude oil was refined overseas and all its processed oil need were thus imported. Consequently to reduce the money spent in such venture the country built its first refinery by October 1965 at Eleme Port Harcourt and as demand for more petroleum production increased more refineries were built as Warri and Kaduna including other petro- chemical complex as well as the Bonney liquefied national head project.
As a result of these development government decide on intensive participation in the oil industry activities. It is believed that if government had more say or involvement in the day to day activities of these companies. It could achieve its goal of rapid industries and commercial development of the country as well as better public revenue background.
Today the government has increased its participating interest in the oil producing companies to stand at 60% in shell Mobil ELE Agip Texaco and Panocean. Therefore having the right to about 70% of the total oil produced in the country.
In other words the joint venture activities between government owned Nigeria national petroleum company and the oil company here now shifted form mere monitoring of operations as practiced in the past to a more positive involvement in the day- to-day activities of these multi- national oil companies. David west Tom (1985)
By multi-national oil companies we simply refer to certain specific business outfit which have their parent headquarters located in the developed countries and then their subsidiaries operating in a number of countries. They can equally be termed transnational contextual framework.
As a matter of fact the parent company assumes greater control of the subsidiary not with standing some certain influences by the home government where the subsidiaries are located in fact the multi national oil companies control most of the meaningful economic activities in t he developing countries.
This control gives them very wide jurisdiction in the manipulation of the economic policies and circumstances of their country. Meanwhile our emphasis in this case is much on the multinational that participates on Nigeria oil industry among these companies are:
Initially when companies started their operation were in the country they were granted income tax relief (industrial development ordinance 1950). There were equally several amendment and laws which were put in place to encourage these companies towards a favourable operation and investment in Nigeria. With these opportunities, which were not obtainable in their home countries. So many multinational companies found Nigeria with her teeming population and abundant natural resources, a very fertile ground for operations.
Hence the scramble for oil prospecting which followed the discovery of oil granted to these companies was magnifying their profit. Assuming the reverse is the case their tax would have been divested as such expanding the economy and at the same time accruing much public revenue. Schwarzenberge (1957).
PUBLIC REVENUE
Revenue or funds is the live wire of any successful undertaking not only for the private sector but much also for the public sector.
The function which government must perform can only be discharged with resources in the from of money. This must be collected and used to serve the entire citizenry.
Financial regulations, financial legislations and the constitutions of the federal republic of Nigeria from the bedrock for revenue mobilization and expenditure.
Section 80 (1) of 1999 Nigeria constitution provides that “All revenue or other Monies raised or received by the federation (not being revenues or other money payable under this constitution or any other act of the national assembly into any other public fund of the federal established for a special purpose) shall be paid into and from one consolidated revenue fund of the federation.
Financial regulation 301 stipulates that “public fund shall include cash fixed fee receipt, tax tickets stamped promissory notes money collected by tax collectors.
The authorizing documents for various tax levies are the finance legislation and acts approved and issued from time to time.
In order to comprehend what public revenue is all about, brief explanation is done below.
When we are talking about public revenue we are just referring or emphasizing on government revenue that is
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