Unpacking the Conflict – Investment Nexus: A Systemic Enquiry of Militancy and Foreign Direct Investment by Oil Multinationals in the Niger-Delta

Author: Olorunsemi A. Akindoyo

Affiliation: Department of International Relations, Faculty of Arts, Management and Social Sciences, Aletheia University, Ago-Iwoye, Ogun State, Nigeria

Article Type: Original Research Article

Publication: West African Journal of Industrial and Academic Research 27(3), pp. 101-115

Research Design: Mixed-Methods Study

Evidence Type: Primary Empirical Research

Keywords: Niger Delta, Militancy, Foreign Direct Investment, Oil Multinationals, Petroleum Industry Act, Conflict-Investment Nexus, Systems Thinking, Environmental Justice

Abstract:This study explores the systemic interplay between militancy and foreign direct investment (FDI) by oil multinationals in Nigeria’s Niger Delta. Drawing on systems theory and the greed-versus-grievance framework, it investigates how environmental degradation, socio-political exclusion, and community discontent have catalyzed cycles of violence and strategic corporate responses. Using a mixed-methods approach, including policy review, statistical regression, and stakeholder perceptions, the study uncovers a complex feedback loop wherein militancy deters investment, while divestment and inadequate remediation fuel new grievances. Findings reveal that oil companies adapt by shifting operations offshore, outsourcing security, or exiting entirely, while recent reforms such as the Petroleum Industry Act (2021) and Host Community Development Trusts offer only partial remediation due to weak enforcement and limited community ownership. The study concludes that breaking this conflict-investment cycle requires an integrated governance framework that combines environmental justice, youth empowerment, corporate accountability, and robust policy implementation. It recommends enforcing post-divestment obligations, improving community participation, and institutionalizing conflict-sensitive investment models to ensure sustainable peace and investor confidence in the region.

Suggested Citation:
Akindoyo, O. A. (2026). Unpacking the Conflict – Investment Nexus: A Systemic Enquiry of Militancy and Foreign Direct Investment by Oil Multinationals in the Niger-Delta. West African Journal of Industrial and Academic Research. 27(3)101-115.