Oil Firms And Niger Delta Dev

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