By Abiola Olawale
Following the decision of some International Oil Companies (IOCs) to divest their assets to local oil companies, an advocacy organization, the Environmental Rights Action/ Friends of the Earth Nigeria (ERA/FoEN), has raised alarm over the lack of plans by the oil companies to address the negative impact and the environmental damage done to the Niger Delta region.
The group called on the multinational oil companies to take responsibility for the damage caused and take steps to mitigate the negative impact on the environment and the people living in the Niger Delta region, before going on with their plans to sell off their assets.
The Executive Director of ERA/FoEN, Barrister Chima Williams made this known during a virtual press briefing, alleging that the decision of the International Oil Company to divest their companies was not in good faith and interest of Nigerians.
He alleged that the oil companies are trying to evade their commitment to environmental stewardship and social responsibility.
According to him, multinational corporations are now aware of the growing discontent among Nigerians towards their operations, making some of these companies turn towards divestment programs in a bid to avoid legal scrutiny. He alleged that while this is the plan of the oil companies their true intention is to shift their focus from onshore to offshore exploration so they can operate covertly and avoid being monitored by Nigerian authorities.
Williams referred to several cases where ERA and other concerned Nigerians got court judgments against International Oil Companies like Shell.
It would be recalled that a Dutch Appeal Court had unequivocally ruled that the Shell Petroleum Development Company of Nigeria LTD (SPDC), is liable to pay compensation to four Nigerian farmers for the two oil spills that occurred in the Goi Community of River States and Oruma Community of Bayelsa State.
The four farmers alongside Friends of the Earth Netherlands (Milieudefensie), had filed a suit against the parent company of SPDC, the Royal Dutch Shell, and other subsidiaries over the two oil spills in Rivers and Bayelsa State.
According to Williams, instances like this have made multinational oil companies realize that Nigerians have begun to fight back against the negative impact of oil exploration in the Niger Delta Region.
Williams made it clear that for the successful implementation of the divestment plan, the multinational oil companies “need to return the Niger Delta to the status quo. Restore our environment, our source of livelihood, remove the problems in the environment, compensate our citizens for all the problems they caused throughout the years, and also pay the Federal Government all the backlog profits. The multinational oil companies have been evading some payments to the Federal Government. The Gas flair penalty that is imposed by the constitution mandates oil companies to pay a certain amount of money, but they have been short-changing Nigerians. They evade taxes or when they pay, they don’t pay in full.”
He continued that the International Oil Company’s plan to sell its assets to local oil companies is not an entirely beneficial move, as some might believe. He passionately argued that if the divestment plan is implemented without taking concrete steps to address the environmental degradation in the Niger Delta Region, Nigeria will undoubtedly suffer dire consequences.
He questioned how the local oil companies planned to execute their activities without causing even more damage to the already devastated Niger Delta communities. He emphasized that even multinational companies, with all their financial prowess, have failed to tackle the problem. According to him, some of the local oil companies lack the necessary technical know-how to manage issues like oil spillage.
“Multinationals with all their wealth are not able to tackle the problems of the Niger Delta, how then will the local corporations take care of the problems that will happen and the ones that are already there? To the best of my knowledge, they don’t have the technology power and the know-how to handle issues of oil fallout in the Niger Delta. Domestic Operators cannot stop the spill and other problems that even multinationals couldn’t stop. Nigeria would be the worst off in this divestment issue,” he added.
The group also demanded that the multinational oil companies collaborate with local oil companies to develop a sustainable development plan that encompasses environmental protection, social justice, and economic growth for the people of the Niger Delta region.
Speaking also during the virtual press briefing, the Executive Director of the Socio-Economic Research and Development Center (SERDC), Mr. Tijani Abdulkareem, cautioned against oil exploration in the North without the implementation of proper structures to address the social and environmental hazards associated with such ventures.
Abdulkareem warned that the recent discovery of oil in Bauchi state, Northeast Nigeria, might become a curse if necessary structures are not put in place.
He pointed out that the state had been plagued by insecurity and banditry prior to the discovery of oil, warning that the negative impact of oil exploration could escalate the crisis in the state as well as the region.
He said: “It is sad that the perception of people in Bauchi communities is that the oil boom is a blessing rather than a problem which causes social degradation and other bad vices.
“The oil discovery is capable of adding to the tension in Bauchi and in the North. The social impact of oil exploration has already been showing some people in the community that it is not really a blessing.
“The same issues in the Niger Delta region are also prevalent in Bauchi. Issues like agricultural activities being grounded are being experienced in the communities. Beyond the environmental hazards, their lands are being taken by some of these multinational oil companies without proper compensation and a crisis is already building up.”
