Efficacy of Nigerian Energy Industry's CSI Initiatives on Sustainable Development Goals (SDGs) Optimization in Niger Delta Communities: A PLS-SEM Analysis

Abstract

Nigeria ranked 146 out of 166 on the 2023 SDG index, scoring 54.3/100, despite a GDP per capita of $5,408. The research investigates the effectiveness of Nigerian energy companies' CSI initiatives in the Niger Delta and their impact on achieving Nigeria's SDGs by 2030. Using an exploratory design, an online survey collected responses from 460 members (representing 92% sample rate) of Niger Delta host communities, analysed using the PLS-SEM model. The results show that CSI initiatives (economic, legal, ethical, and philanthropic) are well-practiced among oil and gas firms and correlated with a 68.9% increase in sustainable development indicators in the region. By being backed up by Cronbach’s Alpha (over 0.70) and Composite reliability (over 0.75), the findings criticize the conventional notion that profit-maximization is the sole focus of businesses, particularly in socially and environmentally vulnerable areas. The research suggests implementing a CSI reporting framework, enhancing government oversight, and fostering positive interactions between oil companies and local communities.