ABSTRACT

The study evaluated Shell Petroleum Development Company social investment outreach and enterprise sustainability in Bayelsa State, Nigeria. The specific objectives were to described the socio-economic characteristics of clients of SPDC social investment outreach, ascertain the level of social investment outreach by SPDC in Bayelsa State, assess the benefits of social investment outreach to clients and clusters, determine the level of enterprise development and effect of social investment intervention on enterprise development among clients, determine the factors influencing the level of social investment intervention received among the clients and clusters, ascertain the sustainability of enterprises under the social investment programme among the clients (agricultural and non-agricultural), determine the perception of stakeholders on the strengths and weaknesses of GMoU strategy of development. Purposive sampling technique was used in selecting 150 clients (90 social investment beneficiaries and 60 cluster members). For in-depth study, primary and secondary source data were used in this study. The primary data were collected through a well-structured questionnaire and personal interview schedule. Data were analyzed using frequencies counts, percentages, means, enterprise percentage change, outreach level and coverage, OLS regression analysis, enterprise performance indicators, Outstanding Balance Method (OBM), t and z statistics. The study showed that majority of the respondents studied were male (60%), married (53%), educated (74%) and young people who are mostly agitating for socio-cultural, economic, and environmental concerns in their various communities. The outreach coverage for training intervention in the State and clusters was 0.00151% and 0.0036% while for both training and financial intervention in the State and clusters was 0.00084% and 0.00205%. The outreach coverage for the State and clusters were low relative to the target population. Moreso, there was 38% and 43% increase in revenue and 50% and 70% increase in assets for both enterprises respectively at the exit point with SPDC signifying a positive effect of SPDC on enterprise development. Furthermore, majority of the clients (76%) and clusters (94%) adopted highly sustainable measures to have self-reliant enterprises after intervention from SPDC. Agricultural enterprises had gross margin (N 6,886,000) and profitability (N 3,985,000) while non-agricultural enterprises had gross margin (N 7,379,000) and profitability (N 3,713,000) indicating that both enterprises were viable and financially sustainable. There was a mean sustainability stance of 30.3% for the clusters in the second phase of GMoU implementation indicating that the clusters are eligible for another round of SPDC’s social interventions. Marital status, level of education, years of experience, NGO visit, values of sale and age were variables influencing social investment intervention for agricultural and non-agricultural enterprise clients while freedom to operate, involvement of government agencies, engagement with SPDC by the community, absence of pipeline vandalism were factors influencing sustainability of social investment outreach to clusters. The study therefore recommended that SPDC social investment programme should continue and spread their outreach net to reach more people. This measure would enhance social harmony, peace and prosperity in the state. Moreso, government should play more active role in funding and ensure transparency in the implementation of the GMoU development strategy.