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CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Oil exploration activities commenced in the Deltaic region of Nigeria in
the early 1900s by a Germany entity referred to as the “Nigeria Bitumen
Corporation” which started her exploratory activities in the Araromi
area of the then Western Nigeria but their activities were truncated by
the outbreak of the World War I in 1914 . Oil exploration activities
thereafter started with the Shell D’Arcy (the forerunner of Shell
Petroleum Development Company, SPDC of Nigeria) in 1937 when Shell was
awarded the sole concessionary rights covering the whole territory of
Nigeria. Their activities were also interrupted by the World War II but
they resumed in 1947 and with concerted efforts, after several years and
investment of over N30 million, the first commercial oil well was
discovered in 1956 at Oloibiri
in present Ogbia Local Government of Bayelsa State in the Niger Delta
region. This discovery opened up the oil industry in 1961 in Nigeria,
bringing more oil firms like the Agip, Mobil, Safrap (now Elf), Texaco
and Cheveron to petroleum prospecting both in on shore/offshore areas of
Nigeria (Nigeria National Petroleum Corporation, NNPC; 2005:1-2).
From then, “oil production rose from initial figures of 5,100 barrels
per day (bpd) from the first well in Oloibiri to today’s production of
over 25 million bpd, even though our OPEC quota specification is based
on 2.15 million bpd”. Between 1956 and 1958, more oil fields were
discovered at Afam, Bonu, Ebubu and Later Ugheli and Kokori and the
production capacity steadily rised. By this period, oil has become so
prominent that the search for more of it had intensified in various
communities in the region.
Ironically, this was the genesis of the series of problems which have bedeviled the region in recent times. According to Premo :
World attention shifted to the Niger Delta as oil rigs, wells and
exploration activities eroded the territory, the initial excitement that
greeted the discovery of oil in commercial quantity in the modest
community of Oloibiri, soon died down. Exploration came with
exploitation and like early colonialists into Africa; the western oil
companies noticed the euphoria of the rural populace. For a little
carrot of a ferry terminal or jetty, millions of dollars worth of oil
was taken from their land. And then one day, the people woke-up to the
reality that rather than peace and joy, the black gold had brought
sorrows and tears to their land……….. Their dreams died in their strides.
There could be more poor people in the region than there are in the
remotest part of Koma, a primitive society in Adamawa State.
The emergence of oil industry did not only undermine the Agricultural
sector which was the mainstay of the local economy and create serious
environmental hazards for the people through exploration, exploitation
and transportation of oil and gas; it equally created serious value
problem as the hitherto cherished traditional value – system were
weakened by the emergence of the petro-dollar related behaviour.
The Niger Delta region of Nigeria richly endowed with both renewable and
non-renewable natural resources. It contains 20 billion of Africa’s
proven 66 billion barrels of oil reserves and more than 3 trillion cubic
meters of gas reserves. Oil and gas resources account for over 85% of
Nigeria’s gross domestic product (GDP), over 95% of the national budget
and over 80% of the nation’s wealth. Paradoxically, the Niger Delta
remains the poorest region as earlier stated, due to the ecologically
unfriendly exploitation of oil and gas and state policies that
expropriate the indigenous people of the Niger Delta, of their rights to
these natural resources.
Ecological devastation, which is occasioned by the activities of
multinational oil companies (MNOCs) have rendered useless farming and
fishing, which was previously the mainstay of the Niger Delta rural
populace. The Niger Delta environment is not developed to further
sustain the people after the destruction of the ecosystem that had kept
the people together. The height of it is that the environmental
degradation continuously occur through oil exploration activities such
as gas flaring, oil spills, canalization to oil fields, seismic
explosives detonation etc. thereby creating artificial challenges to
development but the region is not considered for holistic development,
rather the concepts of wider, national and internal power struggle to
control meager funds for the development of the Niger Delta are always
been politicized.
Hence, the areas remain in dire need for development.
It is the dynamics of this interconnectedness and probable solutions to
the problems causing the challenges of development despite the huge oil
revenue from the area; that we intend to explore in the course of this
research.
However, for practical purposes, the Niger Delta area is defined as an
embodiment of the area enveloped by the natural Delta of the River Niger
and the areas to the East and West that also produce oil. The natural
boundaries of the region can be defined by it hydrology and geology. Its
approximate Northern limits are located close to the divide into two of
the River Niger at Aboh, while the West and Eastern bounds are located
at the Benin River and Imo River .
In terms of component states, there is always a polemic in which states
actually constitute the deltaic region referred to as the Niger Delta.
As a result, reference is made of periphery and core states. A trace of
the region thoroughly obviously indicate that states along the deltaic
region are Bayelsa, Delta and Rivers State, hence, these three
constitute the core Niger Delta states while considering the
introduction of certain political and administrative motives in the
definition of Niger Delta, has culminated to the inclusion of six (6)
more states namely; Abia, Akwa Ibom, Cross-River, Edo, Imo and Ondo
States.
Looking at the map of Niger Delta, following its definition
encompassment of the nine (9) states structure, it appears like a jigsaw
shown the nine (9) states situated in the Southern part of Nigeria with
a boundary to the south by the Atlantic Ocean and to the east by
Cameroon. The region covers a land mass of about 75, 000 square
kilometers and it accommodates about 30 million Nigerians belonging to
about 40 different ethnic groups with almost 250 languages and dialects.
The ecology of the Niger Delta tolerates myriad species of terrestrial
and aquatic plants and animals and human beings. The region posses a
division of four (4) ecological zones viz: Costal inland zone, Mangrove
swamp zone, Fresh water zone and Low level rain forest zone. It is
considered the most tremendous wet land in the African continent and
among the three (3) largest in the world. The Niger Delta region is
consist of rivers, creeks, estuaries or seas and the area accumulatively
measures up to 2, 370 square kilometers, while stagnant swamps covers
up to 8, 600 square kilometers.
As a matter of facts, this research will be focused on the real
“deltaic” zones of the Niger Delta where the real challenges of
protection are prominent in order to properly assess and harness “oil
exploitation and challenges of protection in the Niger Delta.
1.2 Statement Of Problem
Oil exploitation and exploration which has its root in the Niger Delta
was celebrated February, 2008 as fifty (50) years of oil exploitation in
Nigeria. In spite of wealth generation by oil exploration and
exploitation, opinions of observers on the performance of the oil
production sector especially its developmental relation with oil host
region/communities has not been impressive. Nigeria’s former two times
petroleum minister and former president of OPEC, Rilwan Lukman describes
oil production in Nigeria as “a blessing and curse . Similarly
Shamudeem Usman, Nigeria’s former minister of finance observed that
Nigeria remains poor in spite of being rich with oil .
Actually, some persons and companies have benefited enormously from the
proceeds of the Nigerian oil while some communities and millions of
people from the source of oil “The Niger Delta” have been
underdeveloped, long neglected and impoverished. The people of the Niger
Delta are faced with problems as a result of the oil exploitation. The
region in expectation of positive societal benefits, ironically seems to
be the least developed despite the fact that the nation depends solely
on its wealth. The Niger Delta oil exploitation story is clearly
synonymous to the aphorism that goes thus:
The hen lays the golden eggs but not fed allowed to be in hunger perpetually.
The people of Niger Delta while facing the challenges of protection and
development on their environment are simultaneously taking into
cognizance the impact of oil exploration on the environmental
degradation of the land and the economy as well as socio-political
well-being of the people of the host communities; hence the situation
has caused the inhabitants of oil areas physical, emotional,
psychological and counter value frustrations as a result of the Federal
government’s deliberate policies and structure that causes human
suffering, death, harm, deprivation, exclusion and oppression; a
situation that leads to the extermination of the people’s cultural norms
and practices that creates discrimination, injustice and human
suffering. This systematic alienation of the federal government and
Multi-National Oil Companies (MNOCs) finally culminated to
frustration-worries-Anger and to violence.
As a result of the negativity recorded in human, capital and
infrastructural development of the Niger-Delta and particularly oil host
communities in the region, the inhabitants of the Niger Delta seeing
the wealth from their area being extracted without benefits have
resorted to taking matters into their hands; kidnapping oil workers,
pipe-line vandalisation, militancy/insurgency, inter/intra communities
civil strife among other deviant social vices have become the order of
the day.
It is in the light of the above intricacies that the researcher intends to focus attention on the following research questions:
1. Is there any link between oil exploitation in the Niger Delta Region
and growing poverty level in the oil bearing communities?
2. Has oil prospecting improve infrastructural facilities in the Niger Delta Region?
3. Has the crises situation in the Niger Delta Region reduced the oil producing capacity of Nigeria?
1.3 Objectives Of The Study
The broad objective of this research is to investigate oil exploitation and challenges of protection in the Niger Delta region.
However the specific objectives are twofold.
1. To systematically investigate if there is any relationship between
crude oil exploration and the poverty level of oil bearing communities.
2. To critically examine whether oil proceeds had not improved
infrastructural needs of the Niger Delta and the effects of crises on
oil production in Nigeria.
1.4 Significance Of The Study
We firmly believe that the findings of this study shall be of
immeasurable value to the oil host communities, the Niger Delta region,
oil companies, state governments in the Niger Delta and the Federal
government.
The study shall expose certain shortcomings in our approach as
students/researchers to tackle the Niger Delta question in the Nigerian
Federation. Multi-national oil companies (MNOCs) and government shall
through the result of this research rededicate their efforts to the
morality issues of why the Niger Delta region requires aggressive
development.
Equally significant is that subsequent researchers will find results of
the project useful particularly in the fields of social sciences and
crises management oriented topics.
The research will equally serve the task of filling a gap in existing
literature and ultimately add to knowledge because the work is not
devoid of the academic tradition of knowledge built on existing
knowledge. Therefore, researchers/scholars in this era of western
capitalist economy with its major tenets of globalization, market forces
and liberalization of trade, the MNCs are on the offensive in both the
extractive and manufacturing sectors all over the world. The agents and
the states propagating these ideas refer to it as social relations.
This research work will reveal the hidden character which is causing
instability in a region which is poverty stricken in the midst of
plenty, the Niger Delta Region of Nigeria, an environment responsible
for the economic boom which the Nigerian government has enjoyed for
decades but nothing to show in the region.
Finally, for practicality, the research will serve as a means to
understanding the intrigues in oil production that metamorphosed to
underdevelopment and crises in the Niger Delta Region. Hence, the tasks
of solving the crises and possible enhancement of socio-economic
development and unity of the Niger Delta and Nigeria as a whole is
achievable via application of moral standard to oil exploitation as
cited in this study.
1.5 Literature Review
The core variables of the research which are oil exploitation and
challenges of protection and development in the Niger Delta region will
be the basis for our literature review.
The issue of oil exploitation and challenges of development in the Niger
Delta region of Nigeria has created a lot of devastating effect on the
oil bearing communities otherwise referred to as the (HOST COMMUNITIES).
The socio-economic malady has no doubt attracted the attention of many
scholars and social workers. However, the two major variables of the
research which are: Oil exploitation and Challenges of development in
the Niger Delta will be explored then a thorough review of literature
will follow.
Oil Exploration And Exploitation
The oil prospecting and exploitation in the Niger Delta has not only
altered people’s livelihoods, but continues to disrupt the natural
balance of the region’s earth crust. George recognizes the methods of
oil exploration, namely: Analysis of existing geological and other
information; seismic surveys; and exploration drilling; He mentioned
that of particular destructive impact of the earth’s make-up is the use
of seismic survey.
This method involves the gathering of information through sound waves
into the earth’s crust to measure the depth of the rock layers and the
use of dynamites and other explosives. The explosives are either
detonated in the bowels of the earth through water bodies or dry land.
In addition to its direct impact on the aquatic stocks in the area, the
after effects or shocks are known to sometimes cover as much a radius of
10 kilometers . The implication of this is that, the more oil is
explored in the Niger Delta region using this method, the more the
region’s natural environment witness shocks and rifts in its crust.
Protection And Development
Development means different thing to different people, depending on
their intellectual, ideological beliefs and the issues in question.
Thus, it is seen as the process by which people, based on their choices
and value create and recreates themselves and their life circumstances
to realize higher levels of civilization. It also means reduction in the
level of poverty, unemployment and inequality. Another definition of
development is that: it is the liquidation of poverty, employment
generation and satisfaction of basic needs.
Development also refers to the efforts and results of transforming the
physical and social environments within which human beings operate for
the purpose of enhancing their standard of living. Another definitions
says development means an increase in percapital income, reduction of
absolute poverty and equal distribution of income.
Development efforts are connected and it includes those directed at
deliberately eliminating obstacles that militate against the desire of
individuals and corporate groups to free themselves from all natural and
artificial obstacles. They also include the advancement of human
capacity to exploit, annex, and utilize the historical, cultural and
environmental based resources in order for man to achieve a more
fulfilling life. However, resources and capabilities for development are
usually not only complex but also in short supply. A high degree of
collaboration is always needed. Thus, development partnership is a
mechanism for ensuring that the comparative advantages of different
actors, share and stakeholders are harmonized in a mutually supportive
manner for the benefit of all.
It is an obvious fact that the concept of development is a man – centred
process that leads to qualitative improvements in the standard of
living. The measurement of development include, advanced
infrastructures, enhanced education, training and greater employment
opportunities, affordable cost of living, probity and accountability in
governance, greater self-reliance especially, stability, affordable
food, production, development of technology, improved productivity,
sustained political stability, and a healthy population .
Therefore, there is no doubt that development addresses a number of
objective factors that include conflicts and insecurity. Poverty,
unemployment, uneven distribution of income and resources and political
instability etc. which are causal factors of conflict, but with
development these are tackled.
The Nigerian State And Curse Of Oil Production
Yakubu Gowon former Head of State of Nigeria (July 29th 1966 – July 29th
1970) delivered a key note address at the opening session of the
international conference of the Nigeria state, oil industry and the
Niger Delta on the 11th March, 2008 in his words:
Specific regulations were not put in place to remedy the Niger Delta and
such regulations were to be reviewed from time to time. Efforts were
made to develop the oil producing areas.
Both Federal and state governments consider such efforts and plans in their government development plans.
Niger Delta is overdue for development. The plans earlier put in place
during my administration which would have addressed the problems were
not only implemented but totally abandoned to the detriment of the
region and nation.
Nigeria is the largest exporter of oil in the Sub-Saharan Africa with a
production figure of 2.3 million barrels per day (bpd) hence, Nigeria is
ranked behind the world’s oil giants: Saudi Arabia, Venezuela, Iran,
and the United Arab Emirates. Nigeria’s petroleum revenue averagely
accounts for over 85% of the Federal Government’s income and more than
95% of export earning. However, Nigeria at large in the midst of this
wealth records an overwhelming high level poverty (with 70% living on
less than one dollar a day), 40% lack sanitation and safe water, 82%
lack access to regular power supply and 46% predominant infant mortality
rate .
Oil exploitation and exploration which recorded its boom in the early
1970s in Nigeria’s Niger Delta Region which was a rare opportunity to
develop the Niger Delta and Nigeria at large turned to a breeding ground
for official squandemenia. For instance, Nigeria hosted the FESTAC 77
so lavishly that Nigeria’s bid to host the next edition declined the
offer. This was because the degree of profligacy and portrayed acts of
corruption and was after many years ranked amongst the most corrupt four
nations of the world .
Presently, infrastructure decay is experienced in all sectors of the
Nigerian nation – state, education, health, energy, water, road, sports,
transport, housing etc. Okaba states that it is in the midst of this
general deterioration of living conditions is the prevalence of a
complex circle of state oppression, repression and militarization within
and around the oil industry as oil spills and other forms of human
environmental abuses result in further accentuation of mass poverty and
general insecurity in the Niger Delta Region. It suffices to state that
the revolutionary struggles in the Niger Delta region against state led
economic exploitation, social exclusion and political marginalization of
the Niger Delta which span over five centuries spreading from the era
of pre-colonialism.
The Niger Delta region is the lowest ranking region compared to her
counterparts in other oil producing regions in the world. Recent
analysis of poverty and Human Development Index (HDI), a standard
measure of well being encompassing the longevity age, knowledge and
decent standard of living qualified in terms of access safe and clean
drinking water, quality health and educational services, electricity,
roads, gainful employment, political participation etc, painted a very
sordid picture of the Niger Delta as the area’s HDI is as low as 0.564
this ranking compared to oil and gas producing regions in Saudi Arabia
(0.800), United Arab Emirate (0.846),
Kuwait (0.844), Libya (0.67), Venezuela (0.772), and Indonesia (0.670)
In the same line of argument, Okowa stated that the long years of oil
exploration in the Niger Delta region resulted to long years of resource
conflicts, poor local service delivery, economic exploration, social
marginalization, infrastructural neglect and worst of all, environmental
degradation have transformed the Niger Delta into a zone of frustrated
expectations, dashed ambitions and unprecedented restiveness.
In fact, oil exploitation in the Niger Delta is an emergent phenomenon
of environmental refugesm resulting from land degradation and decreasing
agricultural profitability, oil induced inter/intra communal crisis has
driven 60% of youths from the comfort of their traditional homes into
the hell of urban shanty settlements in Warri, Port-Harcourt, Yanagoa,
Calabar, Eket, etc. leading to unwanted rural – urban migration thereby
creating crisis of population explosion in the Urban centres making it
unsafe for both the rich and poor.
Destructive and ravaging changes evaded the agrarian lands of the Niger
Delta as a result of the oil and gas exploitation activities.
Particularly the natural resources base crucial to sustaining
independent indigenous livelihood. In most parts of the Niger Delta,
lands that were very fertile are no longer productive. The peasants have
lost the fertility of their lands to oil exploration. The resultant
alienation of the people from their home lands local substance base has
intensified effective and inequitable land use practices . As a matter
of fact, various attempts by the local people to avenge this economic
disarticulation perpetrated by the state and oil companies have always
compounded their environmental crisis leading to more devastating
pollution and frequent los of valuable lives and property.
Similarly, Alowei stated that, the economic tragedies of these local oil
bearing communities in the Niger Delta are heightened by the non
diversification of the rural economy which was predominated by oil,
subsistence farming been destroyed by oil exploitation then the local
people are also excluded from the oil business or the benefits of the
oil business; such as contracts awareness, employment, inadequate or no
compensation.
The era of oil exploitation in the Niger Delta has turned the region
into reckless human and environment rights abuses and other forms of
social injustice and atrocities chiefly perpetuated by the state and oil
companies. In addition to the development of armed troops and the use
of uncivilized conflicts resolution techniques by those agencies,
municipal environmental protection laws and statutes particularly those
concerning compensations, reparation and remediation principles are not
respected in the Niger Delta.
Rather the Petroleum Act and Land use Act, inland water ways Act and
other obnoxious legislations have turned the region into a virtual
imperial chiefdom only good enough for plunders.
Okaba equally stipulated some social resultant effects of the oil evils
to include the emergency of war lords and myriad of armed youth groups,
pirates and cult fraternity encouraged by the divide and rule tactics of
the oil companies and sustained by the need to gain local control and
privilege from the oil companies.
Issues of developmental challenges that culminate to underdevelopment in
the Niger Delta also had inputs by key stakeholders selfish pursuits
over the years. The key stakeholders in the region have propelled and
pursued selfish and almost parallel economic development and social
goals. These pursuits are characterized by mutual dispute and disrespect
for one another. The emergent rancour and acrimony between the states,
trans-National oil companies and oil Host communities have brought
negative repercussions to all the parties. Rather than design and
implement a mutually profitable and unanimous development plan or
agenda, they have by their actions, demonstrated envy and precipitated
violent conflicts within themselves.
These situations, benefits the state and the oil companies including the
chief stakeholders but the oil bearing rural communities are the most
venerable victims as every action or inaction taken by the other parties
involved in oil exploitation impact negatively on their lives and
habitat .
Okaba and Alowei both splendidly articulated why oil production in
Nigeria is a mirage; however, they failed to identify or profer valuable
remedy to the ugly situation. Not realizing that oil production is core
to the oil Host communities and the oil companies operate with the
policy of sectionalization of the Host communities. Hence, an holistic
inclusion of the Host communities in the oil business would breed a more
positive development oriented ideas harnessing of the people of the
Niger Delta oil Host communities and the region at large.
Therefore, Host communities participation in oil companies especially
forming part of the decision making channel will alleviate the
developmental challenges of the Niger Delta people cum address the
social maladies that always leads to crippling of the oil production
capacity of the Nation.
The above proffered gap entails that oil Host communities which are key
to oil exploitation should be considered first amongst equals in the oil
exploitation business since our land tenure system for now does not
allow proper principle of derivation which would have curbed a lot of
the issue of underdevelopment and forestalling of oil production and
insurgency in the Niger Delta region of Nigeria.
The wrong notion surrendering the Niger delta oil Production in Nigeria
Agbosei opined that Nigerian State has demonstrated over the decades
that the people and environment of the Niger Delta Region is relevant to
the nation as a viable economic reservoir, as she pays lip services to
the frequent ecological disasters threatening the people on a seasonal
basis. Successive governments in Nigeria termed the Niger Delta region
“Difficult terrain” for development as a result of its “Deltaic” nature.
This difficult terrain clamour by the Nigerian government encouraged
successive leaders to create the challenges of development in the Niger
Delta. Imagine, social infrastructures in this region are near absent.
In fact, the East/West road that links the three major oil producing
states (Bayelsa, Delta and Rivers) is still in a mess. The Nigerian
states gets agitated only when oil production is threatened. When cases
such as oil blow-out, Hostage taking of foreign oil expatriates,
vandalization of pipe lines etc. are reassuredly resolved, then anything
else can happen to the people God blessed with the resources but
oppressed.
The Trans-National oil and gas prospecting conglomerate have over the
years as part of their social responsibility embarked on several
programmes of social and economic development in their host communities.
This efforts too, have never in reality gone beyond addressing the
immediate demands expressed in the people’s agitation for the employment
of their youths in the company, provision of pipe-borne water,
electricity generation, renovation of schools, hospitals, post office
and bridges etc the oil companies justify their below average
performance in transforming the fortunes of their host communities by
referring to the insincerity of the state that gets the lion share of
the oil proceeds. The oil multinationals take advantage of the naivety,
lack of political will and corruption of the Nigerian State to breach
with impunity most memoranda of understanding (MOU) signed with oil
bearing communities. They also violate municipal and international
environmental protection laws. Over 82% of crisis between the oil
companies and host communities between the years 2003-2005, are
traceable to disrespect for MOU by the oil company officials .
The story of developmental challenges in the Niger Delta region within
have been heard of the Nigerian State is not only interested in
social-economic formation and control of State power. Given the obvious
and wide social and economic inequality that prevails, “Section II No,
17(1) of the 1999 Constitution which states that, “The State social
order is founded on ideals of freedom, equality and justice, and 17(2)
which provides that “The independence, impartiality and integrity of
courts of law, and easy accessibility, thereto shall be secured and
maintained” are noble but essentially not practicable. They are mere
constitutional fictions. Hence, developmental challenges in the Niger
Delta region had not been addressed with a moral question considering
its input to the development of the Nigeria nation.
It is in the light of the above acts of the Nigerian leaders and the
MNOCs toward the Niger Delta that Ake vehemently demonstrated the manner
in which control rather than ownership has become a significant
variable in a peripheral capital State such as Nigeria. Following a
critical performance evaluation of the Nigerian State, particularly
after the oil boom (Efemini ; Okaba ) all described the situation as
exploitative, and irresponsible.
The Nigerian State is fundamentally a feudal system. It is true that the
British introduced capitalism and liberal democracy in the course of
their imperialism. However, the fundamental values remain feudal, social
orientation remain feudal and liberal democratic values yet to develop
fully.
The institution of liberal democracy is therefore, to the extent that it
appears to exist, no more than a fraudulent pretence and a defensive
front. This is the crux of the matter .
Off course, in a feudal system, the feudal lords own “everything”. The
oil wealth of the Niger Delta belongs to the feudal lords. This is why
Nigerian leaders have the impetuous to loot our resources for their
private use. The looting starts at the National level and percolates to
the State, Local government and communities. Therefore, in a political
system impregnated with feudal orientation, it is normal for our leaders
to personalize “everything”, power is personalized and societal
resources are also personalized. Those who criticize the personalization
of the commonwealth are seen as criminals and deviants. That is why the
security agents most harass, not the looters but those who criticize
the looting for the latter are obviously social deviants. It is vital to
understand the fundamentally feudal orientation of our people in order
to appreciate the difficulties involved in the challenges of development
in the oil rich Niger Delta region of Nigeria.
Oil ordinarily should be a blessing to Nigeria in general and the Niger
Delta in particular. However, the fundamentally feudal character of the
Nigerian State and systemic corruption have ensured that the oil wealth
derived largely from the Niger Delta has become a mixed blessing to the
country as a whole but an outright curse to the region.
The oil industry had indeed destroyed the fundamental bases for the
development of the Niger Delta region. Systemic corruption which is
largely funded by oil has damaged the culture of hard work and in
general the work ethics of many of the people in the region coupled with
the devastated environment.
Governance has more or less lost focus as the key development
institution and is now largely seen as an instrument for primitive
accumulation by the privileged few.
Nigeria is regarded as a rentier State. One major fall – out of the
State rentierism has been that the nation has earned and earns huge oil
revenues without production, control and responsibility. Since there has
been no relationship between revenues and expenditures on one hand and
citizens based taxes, the State has not been liable or responsible to
the citizen and has been absolved from the citizenry. Oil has created a
large system of patronage, clientelism and corruption. The consequence
has been enormous oil based leakages and frittering, which with over
N400 billion earned, has kept the nation tottering as one of the most
endowed, one of the most corrupt and one of the poorest countries of the
world.
The exploitation of oil resources in the Niger Delta by the
multinational oil companies (MNOCs) supposed to maintain an equitable
relation, sustainable environmental management, respect for human
rights, responsive and corporate responsibilities, local participation
and promotion of good governance should have ordinarily been the
underline trans-national corporate objectives.
Multinational oil companies and host communities relations should also
be that of mutual collaboration and support but available literature all
points to the constraints; hence making the situation unfriendly and
hazardous for host inhabitants.
The scholars Agbose and Okowa did not bring to the fore the force of the
contemporary liberal democratic practices which are inevitable;
especially today in the Nigerian setting. The liberal democratic
practice in line with International Human Rights and parts also cited in
our constitution guarantee some inalienable rights to the Nigerian oil
Host region to agitate for fair treatment of the oil proceeds in other
to develop the region.
Therefore, the era of man attached to the concept of feudalism (as
Nigeria in the oil case) is no longer practicable hence, the opt for
moral consideration of the oil rich region with special analysis to the
oil Host communities who supposed to be the primary focal population in
terms of developmental strides with the oil money but denied should be
inevitably corrected.
Also significant to note is the fact that oil Host communities lack the
basic indices of development such as Roads, water, light, health
facilities, employment, educational infrastructures etc. The absence of
the aforestated facilities in Host communities contributes enormously to
the disruption of oil exploitation activities in the Niger Delta region
and when corrected, it will earn the Nigerian State increased
productivity in her oil earnings. Obi stated that thorough examination
of power relations between MNOCs with their host communities and State
reveals a heavy slope in favour of the MNOCs. The huge technological and
economic resources of the MNOCs is reinforced by political power
situated in the joint or syndicate businesses with States that are
heavily reliant on resources exploitation and rents. The MNOCs are so
asymmetrically powerful and superior that even host States and
particularly African oil producing States have been profoundly incapable
of effectively regulating and domesticating them.
The power relation of the MNOCs and their host States (Countries) is
said to be sophisticated, ruthless, hegemonical, secretive, violent,
corrupt, unorthodox, criminalized, opportunistic, greedy, treacherous
and exploitative (Watts ; Obi ). Kodjo 1981 also stated that the MNOCs
are said to be less altruistic and humanitarian, egocentric and self
interested.
Similarly, Akinsanya 1984, reiterated that the MNOCs in their
exploitative activities, are insensitive and poorly responsive to local
and regional dimensions of environmental issues. The MNOCs are said to
be hostile to civil society .
In extreme cases, MNOCs have sometimes forged partnerships with
dictorial regimes, compromise State officials and institutions,
reinforced and sometimes funded State repression and short-changed
States .
Relations at the level of the indigenous people or local host, MNOCs are
claimed to people or local hosts, MNOCs are claimed to sometimes erect a
dislocate, represses, factionalizes, subverts, and orchestrates
tensions protests and conflicts (Robinson, 1997; Rights Watch ;). Obi ,
claims that MNOCs relations with host communities (HC) is underlined by
corruption, divisiveness, co-optation, exploitation, betrayal and
subversion which is the case of the Niger Delta, fuel tensions,
conflicts and crisis.
Talking about power relations of oil multinationals and Host
communities, all the authors attempted to unveil the evil and
uncompromising policies of the MNOCs towards the communities and the
region at large. But the issue here is that the oil companies feel that
the evil syndicate of the MNOCs and the state apparatus as the only
partners of the oil business is making them succeed leaving the oil Host
region/communities out.
This situation is rather barbaric and it has been one of the reasons why
Nigeria could not get to the zenith of oil production because the non
inclusion of the Host people rather holistically has caused a lot of
uproars, rancour, upheavals, acrimony and destruction of oil
installations; thereby cutting short the Nigerian oil production
capacity; meaning the lost is been shared by all. That is the MNOCs, the
Nigerian states and the Host communities/Niger Delta region. This is
because when moral consideration of developing the Niger Delta region
and oil Host communities is taking as priority, it will create a mutual
co-existence and the propensity for the MNOCs to harness more oil
exploration will be guaranteed, then gathering of more profit will be
for all that is the MNOCs and Nigeria at large.
Oil exploitation and the antagonistic force of the Multinational oil companies
Gidado stated that MNOCs while carrying out the oil exploitation
activities, undermine development and real economic growth and cause
socio-cultural disarticulation. The MNOCs invest capital, for instance,
it is associated with huge out flow of capital through expropriation of
profit and is operated in such ways as the creation of enclaves,
un-integration into the economy, pillage of natural resources and
exploitation of labour that is “antithetical to the host country’s
development. The MNOCs have exploited the cheap labour, unequal
agreements on resources and cheap raw materials to realize huge profits
from developing countries. Hence, the rates of return to multinational
company’s investment in the third world are said to be higher (US
Department of Commerce, 1981: 27). In this respect, the MNOCs are
regarded as “antagonistic or ambivalent force”.
MNOCs are focussedly concerned with the control, certainty, stability
and profit from their investment rather than the local economic welfare
and interest; Host communities development or national objective. MNOCs
are interested in the monopoly of the lucrative sectors of any economy
through huge capital investments and exclusive production agreements.
Through this type of investment, indigenous production and control are
sole buyers and determine prices of commodities, dominate marketing and
determine prices of finished goods across the globe.
The behaviour of multinational companies is notorious and are accused of
“overcharging for specific services, inputing un-needed services and
personnel into joint venture and production sharing agreements. This
type of situation will help to deny the Host communities, region and
country the opportunity for developmental strides with social amenities
via the production of such multinationals. This is exactly the case with
oil exploitation in the Niger Delta.
Multinationals are associated with flouting Host communities, regions
and states rules and policies, tax evasion, illicit payments,
over-invoicing, abuse transfer pricing, poor records of receipts and
exports and expatriate quota abuses. In Chad for example, the government
in August 2006, asked Cheveron/Texaco (USA) and Patronas (Malaysia) to
quit the country, while also sacking three ministers over allegations of
tax defaults and improper tax exemptions . The MNCs, oil companies
inclusive, operations and behaviour is said to be predacious, plundering
and self-seeking. The attitude of operation and conducts undermine and
negate environmental sustainability, health, structural development and
nutrition of Hosts states. Their sustainable business practices are
poor. That is why oil companies in the Niger Delta region undermine
their contributions to sustainable development and socially equitable
growth.
Oil companies have played a significant and dominant roles in shaping
and reshaping the landscape, economy, politics and socio-cultural life
of the oil Host (OH) communities of the Niger Delta . He also believes
that Trans-national companies have pose security threats to Host local
populations and indigenous and minority people in Nigeria, Peru and
Colombia. The Trans-Nationals have being involved creating and
exacerbating violence against local populations through fundings,
supporting and inviting repressive security agencies and operating
behind security shields in the face of local resistance. More
specifically, in Nigeria Pegg asserts that the multi-national oil
companies are “instruments to the Nigerian states violent response to
peaceful protests” while their actions have catalytic effects in
bringing local populations into confrontation with state security
agencies. Beside they, the oil companies have shown “a distinct lack of
concern over the violence directed at the oil producing communities. The
Niger Delta region after witnessing all these flares of harassments
from the MNOCs and Nigerian government, coupled with the embedded
developmental challenges, an increasing number of oil Host communities
(HC) began to clamour for their rights often through violence (Olukoya,
1995:9). This was as a result of the insensitive and alienating state
and the devastation of the environment with no development.
The result has been the large scale disruptions; violence and insurrection in the region since the 1990s.
Lack Of Corporate Governance And Ethical Public/Community Relations In MNOCS And Oil Exploration
Oil exploitation in the Niger Delta suppose to undergo the actual tenets
of corporate governance because oil companies are corporate outfits.
Corporate governance here refers to the ways and means by which a
company relates to its staffs, shareholders and stakeholders. It denotes
the guiding principles, policies and actual behaviour and practices
that underpin the relations within and between the company, its
stakeholders and environment. It essentially consist of stakeholders of
two capacities. The first group is shareholders, management staff,
customers and contractors. The second group is external stakeholders
made up of the economic operators, Host communities, other communities
and society at large.
The attributes that associate with good corporate governance which the
oil companies in the Niger Delta region lack are: growth and development
of individuals and groups; observance and compliance with professional
standard, rules and regulations; observance of the rule of law; right to
sustainable livelihood; undermines national and international
conventions; undermines legal and constitutional frameworks, no
maintenance of standards and expectations in relation with environment,
Host communities and citizens. Further, good corporate governance seeks
to institute and further corporate responsibility to the legal,
regulatory and ethical frameworks, the economy, environment,
stakeholders and the larger society.
Iyayi has placed the nature of MNOCs relations and strategies as
dependent on the nature of the state framework if rules and regulations,
the beliefs and assumptions of the MNOCs, the forms of exploitation
utilized by the MNOCs and the nature of response by the Host communities
(HC). Iyayi stipulates that the corrupt and weak Nigerian state
facilitates the compromise and ineffectiveness of legal and regulatory
frameworks in the oil industry. The corporate beliefs and assumptions of
the MNOCs emphasize profit through efficient production of hydrocarbons
and cost reduction. More so, the MNOCs emphasize government at all
times and not the people.
Thus, agreement and deals are made with government and once obtained; it
becomes a legitimate cover for all sorts of actions and behaviours. In
essence, the local people in the Host communities (HCs) interest,
livelihood, environment and needs are regarded immaterial and their
thoughts and decisions are rendered null and void thereby making them
turn frustrated in every endeavour to succeed in the pursuit of their
part of the oil wealth located in their backyards. Consequently, MNOCs
actions and behaviours are often antagonistic to Host communities (HCs)
interests. For instance, the form of MNOC oil exploitation in Nigeria
has tended to emphasize extraction and profit rather than environmental
protection and minimum damage of the ecosystem.
Iyayi depicted strategies of community relations applied by the MNOCs in
the Niger Delta that are always crisis driven. These strategies of
community relation includes: denial, divide and rule, payment of money
to selected few community leaders, silence to requests from HCs,
defiance, blaming the victims, promotion of fictitious consciousness and
violence, involvement in community projects etc. He also asserts that
every form of Host community’s (HCs) response has envoked strategic
community relations designed to suit all deceitful targets of the MNOCs
at the expense of their Host.
In the modus-operandi of the MNOCs, petitions attract silence, financial
gratifications and co-operation. More active community protest evoked
defiance, divide and rule and violence. These are deceitful strategies
employed by the oil multinational giants to always ferment trouble in
the Niger Delta oil Host communities.
Silence was chosen as the dominant strategy in the early days of oil
exploration and exploitation. It means ignoring community complaints,
pretending there is no problem, hiding the issues, creating a picture of
normalcy to the outside world and trying to create the impression that
the expressed problems were imaginary creations of their detractors.
Denial became a strategy as local, national and international awareness
and concern and community agitation escalated since in the 1990s which
together put considerable pressures on the corporate governance systems
of the MNOCs.
Defiance here connotes a situation of flaunting its powers, influence
and importance and as a consequence becoming flagrantly unyielding to
community pressures, protests and other actions. Co-optation involves
selected payment of cash, gifts, contracts, employment, sponsorship of
holiday trips, scholarships to identified persons and payment of medical
bills in other to buy their support. The aim is to compromise them and
use them as agents of pacification and division in the Host communities
(HCs). This selection usually favours the strongest at a particular
time. That is, the group or individual that wields more power, influence
and control in the community is always more favoured especially when
such group, groups or individual is interested in the dealings of the
oil companies. These type of condition makes conflict, violence and
rivalry among the people inevitable; hence the crisis become the
conditions of “who gets what, how and when” is glaring here.
Blaming the victim is a strategy that was resorted to against the
backdrop of pervasive community restiveness and conflicts and growing
national and international concern. It involves holding the Host
communities (HCs) responsible.
Frynas identified public relation as a strategy of MNOCs whose purpose
is to counter community protest and to improve on their image. This
process of image laundering is undertaken through public relations,
advertisement, sponsored radio and television productions and
consultancy, which disputes, claims by protesters combat adverse
publicity and pain the MNOCs as socially responsible and reputable
corporate organizations whereas the reverse is the case in the Niger
Delta region via the experience in the oil exploration and exploitation
business of the MNOCs. The MNOCs most a times claims to be deaf and dumb
is endemic Host communities predicaments. They prefer a complain to
result to crisis before pretending to be aware of what is going on in
Host communities.
However, Fleshman stipulates that the strategy for community development
adopted by MNOCs is to project a high sense of corporate social
responsibility. It is claimed that for most of the MNOCs, actual
community development expenditures represents only a fraction of a cent
for every dollar they extract from Nigeria. According to (Iyayi
2000:164-165), violence represent by far the most important community
relations strategy and also Human Rights Watch stipulates that
encounters with the mobile police, regular police, army, Navy and now
the joint task force (JTF) and the accompanying beating, arrests,
detentions and worse of all, killings and destruction have been
experienced by virtually all oil Host communities in the Niger Delta
region, particularly those community whose groupings have protested
peacefully of otherwise against the oil multinationals.
The MNOCs operated without restraints in relation to the environment for
almost 30 years without serious concern about the environmental effects
of their operations. The MNOCs did not pay serious or no attention to
environmental degradation and health hazards attendant to their
operation until these concerns became challenged largely in the early
1990s. The MNOCs disregarded existing environment regulations and laws
and capitalized on their weak and ineffective enforcement and
implementation of the environmental laws.
Oil exploration and exploitation in the Niger Delta region is evidently
creating numerous trends to conflicts generation and conflicts are
endemic and pervasive and recurring especially in the Host communities;
hence making the region rancorous and not convenient for peaceable
developmental strides thereby creating the challenges of development in
the Niger Delta region.
As a matter of facts, conflicts situations are so pervasive, that it is
quite difficult to see a oil Host community that have been permanently
peaceful and devoid of rancour. Even if such Host communities (HCs) were
found, there may have been low intensity conflict which did not rise to
the level of violence and production disruption.
There are sources of conflicts generation between MNOCs and HCs ranging
from violation of MOUs, unemployment, lack of social amenities etc but
the most targeted source of conflict generation in the HCs is the issue
of oil spillage over the environment. The dimensions that usually led to
a conflict includes
(1) Often times, MNOCs attributes spillages to sabotage and HCs usually resist this claim of sabotage by the oil companies.
(2) The extent to which the oil spillage devastates and cause damages in the environment leads to conflicts.
(3) The problem of clean-up of the spilled oils.
(4) The fourth thing that generates conflicts and tension between HCs
and MNOCs, is the issue of determination of the rate and size of
compensation and the payment of the compensation. Actually, conflicts
over sustained environmental degradation of land and water by
communities have also increased since the 1990s, starting from Ogoni
land.
Compensation stories in MNOCs is another pathetic side of oil
exploration and exploitation. The Host communities are always in a weak
position in the entire compensation process and oftentimes are compelled
to accept what is no often. Therefore, the people do not receive
compensation to “the value of the benefit lost” .
Just to sight a few instances, SHELL was sued by four communities viz:
Obatoba, Sekebolou, Ofongbere and Ekeaomo – Zion on issues of pollution
of their land and water by SPDC oil spill. The legal battle lasted for
14 years.
In 1997, the High court in Ugheli found Shell guilty and awarded the
communities a mere N30, 298, 681 (about 318.9 USD), Shell refused to pay
the fine and instead chose to appeal (Peredeke, 1999). Another, in
Ejamah –Ebutu village in Rivers state, a Shell pipe-line burst in the
1960s and polluted their land and waters. After protracted unsuccessful
efforts at compensation, the community took shell to court in 1983 but
shell chose to settle out of court but as at 1992, there was still no
settlement. The community went back to court. By 1991, there was yet no
compensation or remediation of the land (Strudsholm, 1999:37-39).
The scholars Gidado, Iyayi, Frynas and Fleshmen after stipulating lack
of corporate responsibility and public and community relations as
indices that culminate to crisis and conflict situations among MNOCs and
oil host communities in the course of oil exploitation, thereby
creating underdevelopment of the oil Host communities, however, did not
put it straight that corporate social responsibility once employed will
also embrace good social public relation. That is to say the tenets of
moral social and public relations of humanity will come to play and
without been said or agitated for, the developmental requirements of the
oil Host communities/region will form part of the operational plans of
the MNOCs. This is because before an oil company as a corporate body
come to operate, the negative environmental effects on the inhabitants
are already envisaged and Environmental Impact Assessment (EIA) are
always considered and enshrined in operational plans of corporate bodies
but the situation is different in the relation of MNOCs oil
exploitation activities and Host communities in the Niger Delta region.
This situation in antiquity, created the sour relationship between the
parties in the Nigerian oil industry and the quest for mutuality in the
oil exploration activities is still in a situation of dilemma whereby
the MNOCs are seen as the victors and the oil Host communities as the
vanquish.
1.6 Theoretical Framework
The theoretical frame work for this research adopts “Dialectical
Materialism” approach. The paradigm, dialectical materialism derives its
theoretical foundation from the Marxian Analysis which deals with a
wide range of social phenomena ranging from past, present and the
future. Dialectical materialism, according to Borisov and Libman
(1985:10) is the theoretical sum up by Marx and Engels of the
achievements of all previous philosophies of natural science of their
time whereby they effectively combined the materialistic doctrine with
the dialectical method (a method scientific cognition that regards
reality in its development and contradictions) to create an absolutely
new philosophy that reveals the universal laws of the development of
nature, society and human thought.
The Marxian dialectics sees history as a cumulative activity of human
beings, the complex producer of the deliberate effort of individuals to
satisfy their needs; the consequences of such activities is otherwise
the pursuit of man’s economic necessity (Orugbani Opcit).
The theory, furthermore postulates that the conflict between classes
which is essential dependent on the economic structure of society is the
driving force of history and development/underdevelopment because of
the dialectical transformation it heralds (Anikpo , Ake ).
Marxist analysis starts with a distinction of sub and the super
structures. He stipulates that the economic structure of society which
is referred as the super structure and the base is responsible for
creating and transforming its social economic, political, legal,
religion and moral structures which represents the super structure. Marx
dialects explicitly analyze the forgoing central idea in Marxian
analysis which is the root of our theoretical framework of analysis,
dialectical materialism in his preface to a contribution to the critique
of political economy (1859) as here under:
In the social production of their life, men enter into definite
relations that are indispensable and independent of their will,
relations of production which correspond to a definite stage of
development of their material production constitute the economic
structure of society, the real foundation, on which rises a legal and
political superstructure and to which correspond definite forms of
social consciousness. This model of production of material life
conditions the social, political and intellectual life process in
general.
Analysis of the economic structure of society, historical stages of its
development and the corresponding class structure prevailing at each of
these stages (which are reflected in ‘relations of production’) are
central in Marxian analysis, in other to understand the character of the
political system.
Marxist’s analysis also contends that since the end of primitive
communalism society has been divided into two antagonistic class’s viz.
the ‘Dominant class’ (owners of the means of production, private
property owing class) and the ‘Dominated class’ (those non owners of the
means of production living solely on the sale of their labour on the
terms dictated by the former).
Marx and Engels observed that political power, is merely the organized
power of one class for oppressing another. Guaba (2003:102), also
remarked that since politics arises from class struggles, it is
historically a transient phenomenon. Further he said, as long as the
major means of production continue to be privately owned the division of
society can never cease. He concludes that politics must always be
traced back to its “Hidden Basis” in the class struggle.
Precisely, Marxism saw five stages of historical development as shown in
table I
Table 1.1: Historical Stages of Development
(culled from Gauba, 2003:102: An introduction to political theory)
Some exponents of Marxian dialectical theory include, Marx himself, Engels, Lenin, Gramsci, Mao, Ake etc.
Thus, the characteristics of “dialectical materialism identified by
Claude Ake in his work “political economy of Africa” directly informed
our choice of dialectical materialism as the theoretical framework for
this work.
Ake identified three major characteristics as the contours or outlines of dialectic materialism, viz:
i. The primacy of material conditions
ii. The dynamic character of reality, and
iii. The relatedness of different elements of society.
Ake refers to the theory as “method which gives primacy to material
conditions, particularly economic factors, in the explanation of social
life.
He further explains that economic need is man’s most fundamental need,
and unless man is able to meet this need. He cannot exist in the first
place. He argued that man must eat before he can do anything else such
as worship, pursue culture or become an economist etc. He contends that
it is by man’s productivity that he is able to obtain the economic means
which he needs to sustain life.
In his words Ake stipulated:
Once we understand what the material assets and constraints of a society
are, how the society produces goods to meet its material needs, how the
goods are distributed and what type of social relations arise from the
organization of production, we have come a long way to understanding the
culture of that society, it laws, its religious system, its political
system and even its mode of thought.
The second characteristic of the dialectic materialism as identified by
Claude Ake , is the ‘dynamic character of reality’. This portray the
theory’s refusal to look at aspects of the world as simple identities,
or discrete elements, or as been static. According to Ake (1981:3), this
approach encourages us to think of the world in terms of continuity and
relatedness as well as with keen awareness that this continuity is
essentially very complex and also problematic. The theory treats the
world as something which is full of movement and dynamism, the movement
and dynamism being provided by the contradictions which pervade
existence.
The paradigm also assumes that the world cannot be understood by
thinking in terms of simple harmonies and irreconcilable contrasts. Ake
(1981:3), further argues that the construct of dialectical materialism
encourages us to recognize that the seemingly united and harmonies
relations are more to contradictions, that there is a striving for unity
or at least synthesis among the diverse.
The third feature of dialectic materialism approach is the cognizance of
the interactions of the different elements of social life, especially
economic structure, social structure, political structure and the belief
system. The theory assumes that the relationship between all these
social structures must be taken into account systematically before a
better explanation of society can be made.
Ake , argues that dialectic materialism is an implicit theory of the
relationship of these and of aspects of social life. The theory contends
that the economic factor which is the decision of all these elements of
society and which largely determines the character of the others.
Ake (1981: 4) concludes that the connectedness of the economic
structure, social structures, life system and political system demands
an interdisciplinary approach to the study of society.
Thus, he posits that the dialectical method and our attention to
material conditions allow us to move in an orderly manner between the
elements of the social system, to delineate the relations between them
and the logic of their metamorphosis.
The foregoing highpoints of the theory of dialectical materialism with
reference to material conditions best explains the Niger Delta
conditions of under-development of social amenities and human
development as Forlov, (1981:4) opined, that dialectical materialism is
considered the most appropriate theoretical approach for an objective
study of the dynamics of oil exploitation, challenges of development the
petro-dollars, dependency, internal contradictions of the capitalist
state formation and the agitations against under-development in the
Niger Delta region despite the huge oil revenue from the area.
This theoretical framework therefore underpins the different stages of
development and corresponding modes of production that prevailed in the
Niger Delta region and the attendant class struggles between the
antagonistic classes – the Dominant class and the Dominated class, which
graduated from mere agitations/protest and demonstrations to
kidnapping/hostage taking, to oil installations vandalism/sabotage and
finally to militancy/insurgency.
Thes
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