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Oil Firms And Niger Delta Dev

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Of all the stakeholders in the Niger Delta region, the multi-national oil companies should take the greater blame for the environmental devastation resulting from several decades of oil exploration and exploitation. In their search for the black gold, they have combed the swamps and ravaged the mangroves; polluted the rivers and rlvulcts; scorched the farmlands and left the people gasping for breath just like the fish 111 the region, which have been suffocated by oil spills.
With this unflattering track record, one would expect the oil companies to throw their full weight behind efforts to revive and regenerate the environment for a people that have been so unjustly treated. Given the enormous impact of their activities on the environment. they arc expected to be at the forefront in the critical task of urgently developing the oil basin that has suffered so much neglect in the past. It is. In fact, in their interest to develop the region where they operate in order to guarantee peace, which is very necessary for them to continue with their work.
Rather than lead the assault on underdevelopment and injustice, some of the oil companies are busy throwing spanners in the works. For fifty-one years, they have planted more Christmas trees (capped oil wells) than those that would yield economic benefits. It is, indeed baffling to learn that the oil companies are defaulting in the discharge of their statutory obligations to government agencies charged with the responsibility of developing the Niger Delta. The recent disclosure that oil firms owe the Niger Delta Development Commission. NDDC, a whooping N7.55 billion came to many as a rude shock.
According to the Managing Director of the commission, Mr. Chibuzor Ugwoha, the Foreign oil companies operating in the Niger Delta have accumulated $50 million in unpaid royalties to the NDDC This, he said, is besides other statutory return, payable in naira, which the oil firms have also not remitted to the commission. Ugwoha, said the 200 audit report of the Nigeria Extractive Industry ‘Transparency Initiative (NEITI) show that some of the oil firms did not remit the funds. Which represented part of the three per cent of their total budget which they arc legally obliged to pay to the NDDC every year.
He said: “We are equally aware that a certain amount of money due to the commission from the government is yet to be paid and that makes development difficult because we need a lot of money to be able to develop the region. Those who know the terrain of the region will agree with me that where it is possible to construct one kilometer of road in some please with less challenges, it takes far more to build roads in the liger Delta because of the terrain”.
He stated that the commission was committed to a comprehensive development and transformation of the region, which he believes would ultimately curb the activities of militants. He said: “President Umaru Yar’ Adua had on August 6 during the inauguration of the new Board of the NDDC charged us that the region should be transformed and that we should focus specifically onll1aJor projects that would impact on the lives of the people so that problems that had lingered in the region will be
Things of the past. However, these cannot be achieved without adequate funding as part of the funds due to the NDDC is yet to be remitted from the contributions on the part of oil companies and industries that operate in the Niger Delta”.
Certainly the NDDC needs to be adequately funded to enable it confront the challenges of developing the region that gives Nigeria its oil wealth. All the key stakeholders, which include the three tiers of government and the oil companies. have a responsibility to support the NDDC as the agency driving the implementation of the Niger Delta Regional Devc1opment Master Plan. Records show that the commission has only received 30 per cent of its expected revenue since inception in 2001. The statutory allocations to the commission have consistent been withheld for inexplicable reasons.
The NDDC Act states c1earl) how the commission shall be funded. Section 14 (2) provides that “there shall be paid and credited to the fund established pursuant to subsection II of this section: (a ) of from the Federal Government the equivalent or 15 per cent of the total monthly allocation due to the member states of the commission from the federation account, this being the contribution of the Federal Government to the commission: (b) three per cent of the total annual budget of any oil-producing company operating onshore and offshore in the Niger Delta area. Including gas processing companies: (c) 50 per cent of monies due to member states of’ the commission from the ecological fund … ‘“ and other sources such as grants and loans.
Contrary to the provisions of’ the Act, some of’ the oil companies have not been paying the three per cent of their annual budget as required by law. The records show, that they deduct first charges bc1c.m; calculating the three per cent from the balance. It is more like cutting the nose to spite the face, given that what they spend for the development of” the Niger Delta is for their own good at the end of” the day.
The oil companies tell anyone that cares to listen that they are doing their best to be good corporate citizens and that they arc socially responsible of’ course, they know that it is in their best interest to have a peaceful relationship with their host communities. J However, despite this realization, many of them arc not doing enough to show that they are truly committed to the development of their host communities. Building a bloc of classroom here and another clinic there can at hest be descried as no more than sheer tokenism.
Apart from statutory requirements, the oil companies also have moral and .social responsibilities to fulfill. The oil workers arc the ones sharing the same neighborhood with the villagers. They cannot in good conscience he enjoying potable water while the villagers around them arc drinking polluted water or enjoying uninterrupted supply of electricity while their hosts arc in perpetual darkness or for them to live in mansions while the indigenous neighbours live in hovels
“It is even wrong for the oil companies to think that they arc doing their host communities a 1~I\’our h) allowing them to share their facilities with them. In fact such pecks arc not enough compensation for the despoliation of’ their environment. In addition to hand-outs. the oil companies have moral obligations to replenish the lands they arc destroying.
The truth is that oil companies no longer operate freely in the Niger Delta. The NDDC on the other hand does not suffer from this encumbrance, apparently because of its track record of working hands in gloves with the people at the grassroots. Obviously. The commission is well positioned to assist the oil companies to win the hearts and minds of the oil-bearing communities where they operate.
As Mr. Agwoha rightly said, it is not only the oil companies that have faded in meeting the statutory obligations to the commission. According to him, the Federal Government is equally culpable, as the interventionist agency was getting only 10 per cent from it instead of 15 per cent during the Obasanjo administration. This resulted in the much-talked about N326 billion debt that it owed the commission.
President Musa Yar’ Adua. known for his avowed respect for the rule of law, should promptly pay up the outstanding debt. This would strengthen the hands of the new board to actualize his vision for the rapid development of the Niger Delta.
Mr Agbu writes from Port Harcourt.

Ifeatu Agbu

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Opinion

Nigeria And Echoes Of Socrates On Democracy 

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Socrates (469-399BC), the Greek philosopher and political sage of Athenian descent, was critical of the ways in which his fellow Athenians operated under the then novel  concept, ‘democracy’. Though Socrates was not  necessarily critical of democracy itself, he was worried about its likely outcomes in the future. His criticism indicated that he wanted this mode of decision making and governance to be operated with utmost care. Addressing his audience on the then novel concept, Socrates said thus inter alia: “Thieves and fraudsters will want important government functions, and democracy will give it to them, when thieves and fraudsters finally democratically take authority because criminals and evil doers want power, there will be worse dictatorship than in the time of any monarchy or oligarchy”.
The above brief deposition on democracy is segmented into four parts that yield to critical analysis. The segments are (1) “Thieves and fraudsters will want important government functions”; (2) “democracy will give it to them”. (3) “When they finally democratically take authority because criminals and evil doers want power”; (4) “There will be worse dictatorship than in the time of any monarchy and oligarchy”.   This piece interrogates contemporary Nigeria with special reference to  the essence of democracy and power politics from the prism of these segments of Socrates’ perception of democracy. It is with trepidation that one reflects on the above centuries’ old saying vis-a-vis the reality of contemporary Nigeria with special reference to the Fourth Republic. With the prophetic exactitude of the averment for Nigeria, one could have sworn that Socrates looked into a giant celestial crystal ball for the then non-existent most populous nation in negrodom, perched on the coast of the Gulf of Guinea.
Five months into office as President of the Senate of the Federal Republic of Nigeria, Evan Enwerem was removed from office as a result of duplicity of names, fraudulent educational records, concealment of criminal records, etc. It was also during the same period that “Toronto” entered the lexicon of Nigerian politics, not as the name of a major city in a country in North America but as euphemism for certificate forgery. Incidentally and interestingly, the political head of Salisu Buhari rolled in that episode. He was later pardoned and reintegrated into the political fold through a political appointment. Today, public office holders who can, with every sense of responsibility, be justifiably referred to as “thieves and fraudsters” have finally taken authority. How else do we describe those with forged educational and birth certificates other than “thieves”?
Or how else do we describe those who deliberately manipulated the democratic process by hacking into voting machines and altering voting figures other than “fraudsters”? And how do you describe those who brazenly and audaciously grabbed, snatched and ran away with ballot papers and boxes into the “bush” other than “criminals and evil doers”?   Socrates’ crystal ball certainly zeroed in on the futuristic Nigeria and we are all living in that future because all of the above have happened in Nigeria during the 25 years of the Fourth Republic. Hitherto esteemed eggheads have tainted the Ivory Tower by their inordinate quest for ignominious pecks;  the judge’s gavel has morphed into auctioneer’s hammer thereby enfeebling the justice delivery system, the last bastion of hope of the citizen against the Leviathan. The moral fabric of the nation has been swept under the carpet and stench of technicalities.
Sprouting at the heels of the Hobbesian state of nature, when “life was nasty, brutish and short”, monarchies and oligarchies were  characterised with unbridled use of power that degenerated into dictatorship. It is, therefore, very worrisome to note that Socrates envisaged that  “there will be worse dictatorship than in the time of any monarchy or oligarchy”. This is where the Socrates’ averment under reference becomes ominous.   The trending phrase of defiance “Go to court”, is reflective of a compromised judiciary and the hopelessness of the concept of rule of law in the Nigerian social milieu. How this will pan out regarding social order vis-a-vis lawlessness remains a subject of serious concern for social critiques. Given the proliferation of assault rifles in every nook and cranny of Nigeria, what is very likely in the not-too-distant future is that when the seed of disregard for law and order, which we have sown, germinates, government will depart from the democratic ideals of governance.
They will, inevitably, degenerate into dictatorship that may be worse than what obtained during the immediate post-Hobbesian monarchies and oligarchies; this will be necessitated by the need for government to use sufficient force to contain the lawlessness in the land and the resultant threat to peace. Political Science 101 teaches that “Power corrupts and absolute power corrupts absolutely”.  At this point, there will be justification for the utilisation of extreme force to deal with the dire realities of the extreme situation. There and then, there will be absolute power that will birth dictatorship worse than what obtained “in the time of any monarchy or oligarchy”. No wonder it is said that since Socrates, no one has said anything new.  At the point of the groundswell crises implied above and with powers reminiscent of the absolute powers associated with post-Hobbesian monarchies and oligarchies, Nigerian political leaders are acting like drunken captains of a sinking ship.
With the judicial delivery system sweeping the moral fabric of the nation under the filthy and nauseating carpets of technicalities, Nigeria is consistently and insidiously slipping down a slippery economic slope; and will speedily slide down the precipice of disintegration, if care is not taken. Socrates was right: democracy has given “thieves and fraudsters important government functions” in Nigeria because “criminals and evil doers” adorned in tainted wigs and gowns “want (financial) power”; and now, “dictatorship worse than in the time of any monarchy or oligarchy” is afoot. The tragedy is that, dazed in the hoodwink of religious bigotry, regionalism and ethnocentrism, Nigerians are stupefied and confused; and they are watching helplessly while morally stinking and sticky-fingered scoundrels in every sector of the economy  are sinking the ship of the state. God help us all.

Jason Osai
Prof. Osai is of Rivers State University, Port Harcourt.

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Opinion

On The Downward Spiral?

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The removal of fuel subsidy by the President of Nigeria, Bola Ahmed Tinubu no sooner he was sworn into office as President of the Federal Republic of Nigeria, on May 29, 2023, was a bad omen for Nigerians.
President Tinubu had pleaded with Nigerians to bear with his administration on the removal of the subsidy and lulled gullible Nigerians into believing that with his decision to remove subsidy from fuel, Nigeria was on the speed lane to economic recovery from the stranglehold of “saboteurs” who he said are ripping off the country through fuel subsidy payment.
In a 25-page-paragraph ‘Democracy Day broadcast’ aired on television and radio stations, Tinubu said, “I admit that the decision to remove fuel subsidy will impose extra burden on the masses of our people. I feel your pain. This is one decision we must bear to save our country from going under and take our resources away from the stranglehold of a few unpatriotic elements.
“Painfully, I have asked you my compatriots to sacrifice a little more for the survival of our country. For your trust and belief, your sacrifice shall not be in vain.
“The Government I lead will repay through massive investment in transportation, infrastructure, education, regular power supply, healthcare and other public utilities that will improve the quality of lives…”
Unfortunately, 10 months after President Tinubu’s bogus and mouth-watering promises, nothing has happened to ameliorate the excruciating pains of fuel subsidy removal. Nigeria and Nigerians are worse than when the present administration came in. Resources have been removed from the stranglehold of few unpatriotic enemy elements and given to friendly-looters. What Nigerians have gained so far in return for fuel subsidy removal sacrifice, is compound  suffering and hardship. The economy today is worse than when President Tinubu took over. The inflation rate, according to the National Bureau of Statistics, is above 29 percent. The exchange rate of dollar to Naira currency of Nigeria is one Dollar to about N1,600. Nigeria is going through hyperinflation: a bag of rice that was N48,000 when the present administration came in, is today about N80,000; a basin of garri is between N10,000 and N12,000 against N4,800, pump price of premium motor spirit is over N700 in some dispensing stations as against N180 when Tinubu came to power. A bag of cement is between N10,000 and N12,000, pushing up the cost of rent to an unbearable point, transportation has increased astronomically,  negatively affecting economic activities. School fees have been increased like a phoenix, even in government-owned schools,  unemployment is astronomically high and poverty and corruption are the second nature of the country. Yet, workers salaries are the same. Pensioners are like guinea pigs. Nigerians are dying, they need a respite.
Recently, there were protests in some States of Northern Nigeria to express displeasure over worsening economic situation in Nigeria.
The two central labour bodies in Nigeria- the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) last week gave the Federal Government under President Tinubu a 14 – day ultimatum to implement the agreement reached in October last year or face a total shut down of the wheel of industry and economy.
In fact, the world’s monetary organisation, the International Monetary Fund (IMF) has revealed that the stalled per capita growth, poverty and high food insecurity in Nigeria have worsened the ongoing cost-of-living crisis in Nigeria. This is as a  result of rising inflation, exchange crisis, weak economic growth and business closures that have bedeviled the country’s economy. According to the International Monetary Fund, headline inflation reached 27 percent year-on-year in October, flood inflation 32 percent, reflecting the effect of fuel subsidy removal, exchange rate depreciation and poor agricultural production in Nigeria.

Igbiki Benibo

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Opinion

Repeal Contributory Pension In Rivers

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To say the Contributory Pension Scheme (CPS) leaves much to be desired by public servants in Rivers State, is a mild expression of an exceedingly ugly situation. Retirees under the Contributory Pension Act are suffering because they are denied several years of benefits following non contribution of counterpart fund by employers for the period preceding the implementation of the amended 2014 Act. In 2004, retirees were compulsorily asked to join Annuity operated by Insurance company or programmed withdrawal under the Contributory Pension Scheme operated by Pension Fund Administrators under the control of PENCOM. By virtue of 2014 amended Act, the ugly narrative of retirees has not changed.
The obnoxious Contributory Pension Scheme denies retirees having greater share of lump sum after retirement and dispenses a paltry monthly pension to retirees across  board under this scheme. Mr. John Paago (not his real names) served the Federal Government of Nigeria from July 15, 1981 and retired on July 15, 2016 on salary Grade Level 14, having worked for a mandatory period of 35 years and attained the maximum age of 60 years. For all the years he put in, the total balance standing to his credit was N6,745,823.34. Of this amount,  he was paid a meagre 25 per cent which amounted to N1,686,455.84 while the balance of 75 per cent was retained by his Pension Fund Administrators for their  investment in capital market and other large institutions with high returns which is never added to retirees’ paltry monthly pension payment while still alive.  Paago receives N26,703.15 every month as Pension since 2016 till now, despite the huge profits declared every year under Contributory Pension Scheme. No doubt, the monthly pension given to Mr. Paago  cannot buy a loaf of bread at the price of N1,000 currently per day for 30 days.
Unfortunately, every day prices of goods and services are on the increase unprecedentedly, while workers and retirees under the old scheme – Defined Benefit Scheme had their salaries and pension increased across all levels, the Contributory Pension Scheme retirees are abandoned to their fate. It is pertinent to say that retirees under the Contributory Pension Scheme face the same adverse socio-economic challenges like their counterparts under the Defined Benefit Scheme  (DBS).  Though the contributory pension scheme was designed to remedy the alleged deficiencies and inadequate funding of the DBS by pooling funds from employers and employees’ contributions to Pension Funds Custodians, retirees under the scheme, have not fared better than those who retired under the DBS. Conversely, the implementation of the contributory pension is a far cry from what its proponents lulled employees to believe. Complaints ranging from under payment of retirees under the scheme, despite several years of service (some of whom served for 35 mandatory years), corruption, non-compliance of State governments and other employers to provisions of the  Reform Act, 2014, characterise implementation of the Scheme, which Labour leaders in the country describe as anti-workers and retirees welfare.
Dissatisfied with the scheme, the Association of Senior Civil Servants of Nigeria appealed to the Federal Government to scrap the scheme, describing it as a “huge fraud”.”The Present contributory pension policy of the federal government should be scrapped. We discovered lately that the pension  policy is a fraud on workers”, posited Yusuf Emmanuel, Chairman-General Ministry of Defence Unit 2, Lagos Outstations. In the same vein, the Rivers State Chairman of Nigeria’s Mother Labour Unions – Nigerian Civil Service Union, also appealed to the Rivers State Governor, Sir Simirilayi Fubara to “outrightly repeal” the contributory pension scheme in Rivers State, because “It is not in the interest of civil servants”. Comrade Chuks Osummah, the Rivers State Chairman of the Nigeria Civil Service Union, who made the appeal at the event to mark the Union’s 111 years of existence in Nigeria, expressed worry over the fate of workers who will retire under the contributory pension scheme.
“We are calling on the Executive Governor of Rivers State to abolish the contributory pension act as it is not in the interest of Rivers State civil servants”, a worried Osummah said. The fears of public/civil servants are not unfounded because though over 25 States of the Federation have adopted the scheme in principle by enacting relevant legislation, only six States of the Federation and the Federal Capital Territory — Abuja, have fully complied with the provisions of the extant laws on the pension reform act. Full compliance and implementation of the scheme has remained an uphill task denting the integrity of the scheme and its purported benefits for workers in the public, private and informal sectors the scheme was designed to cover. It is also evident that while some State governments deduct and remit workers’ contribution, the states have failed to contribute their counterpart fund to the scheme; This violates provision of contributors’ right as enshrined in section 4(1) the Pension Reform Act 2014. The section provides that as an employee’s right, the employer shall contribute a minimum of 10 percent of the employee’s monthly emolument to his/her pension fund administrator. The employer will also deduct at source a minimum of eight percent of the worker’s emoluments and pay to their fund administrator.
By the deficiency of State governments and other employers to make their counterpart contributions, the scheme can not guarantee security for the welfare of the workers on retirement. The fate of employees, especially those working before the enactment and implementation, seems to hang on the balance; an aura and premonition of uncertainty on the seamless disbursement of what is legitimately their entitlement remains a puzzle, since they are likely to lose financial benefits for all the years they have served before the implementation of the Act in the State. The Scheme is intended to enable employees “Seamlessly transfer their accumulated funds when changing jobs, ensuring continuous growth and uninterrupted savings accumulator.” This mobility is aimed at empowering workers to “Pursue new opportunities without sacrificing their retirement security”.
The CPS covers: Public Servants working for the Federal Government of Nigeria,  the Federal Capital Territory (FCT), each of the 36 States of the Federation,  all the local government councils in Nigeria, employees in Private sector organisations where there are three or more employees, and those in the informal sector which covers any economic activity or source of income that is not fully regulated by the government and other public authorities. But the CPS which is supposed to improve on the old defined benefit scheme is fraught with several hydra-headed and multi-dimensional problems that negate the welfare of workers and retirees. It is sound to argue that since the Pension Reforms Act was enacted in 2014, it should have excluded workers already employed in the public sector before 2014, when the law was enacted.
The effective date should not have been retrospective, or backdated because the effective date of implementation can shortchange workers employed before 2014. Workers still in active service should rise  against the retrogressive scheme’s servitude . The Rivers State Government under the humane, compassionate and empathetic Governor Siminalayi Fubara should abrogate the contributory pension act as applicable in Rivers State or defer the effective date of implementation to affect only workers who were employed  into the Public Service after 2014. Those employed before 2014 should remain under the defined benefit scheme. If the contributory pension scheme was not without flaws, Former President Muhammadu Buhari would not have assented to National Assembly Workers Pension Scheme few days before he left office, thus removing National Assembly Workers from the contributory pension scheme. Governor Fubara can do same for public servants in Rivers State.

Igbiki Benibo

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