‘IOCs’ Onshore Divestment, Double Jeopardy For Nigeria’

The ongoing divestment from onshore to deep offshore by oil multinationals is a double jeopardy for Nigeria and the nation’s economy, the Environmental Rights Action (ERA)/Friends of the Earth Nigeria has said.
ERA said the divestment by oil multinationals already was affecting the nation’s economy, saying that the processes are improperly done, as the economy, jobs, and even host communities are not given consideration
Executive Director of ERA, Barr. Chima Williams, expressed regrets that the divestment was done ‘upside down’, and hence was already creating problems to the economy, citing the incessant cases of well blowout from some of these divested assets, which are now being operated by incapable firms.
Williams, who is the 2022 Goldman Environmental Prize Winner, said indigenous firms buying the divested assets from multinationals must have the resources, manpower, technical know-how to handle the problems that are associated with the assets that they are inheriting.
Speaking in Port Harcourt, the ERA boss tasked the government and its agencies to thoroughly interrogate the processes of divestment, to ensure that the right thing is done and the citizens and not shortchanged.
He emphasised on the need for environmental remediation bond as well as recognition of the host communities in the design, development and implementation of the divestment.
“It will affect the Nigerian economy adversely. The divestment process itself has already started creating problems, and those problems that are associated with the divestment process is currently ongoing and it impacts on the economy of Nigeria.