Nigeria should adopt Indonesian model for oil firms

AGAINST the backdrop of threats by some oil-producing communities in Ughelli South Local Council of Delta State to block the sale of 15 Oil Mineral License (OML) 34 by Shell Petroleum Development Company (SPDC), an association, Niger Delta Advocacy Group has advised that the Indonesian model should be adopted as it provides for mandatory Community Social Responsibility (CSR) for all companies involved in the extractive industry.A statement by the President of the group, Mrs. Grace Aghogovbia; the General Secretary, Mr. Raymond Astiangbe; and the Legal Adviser, Mr. Ejiro Nomuoja, said that Article 74 (4) of Law on Limited Liability Companies ( 40/2007) issued on April 4, 2012 covering regulation on the social and environmental responsibilities of limited liability companies(47/2012) (the regulation) states the guidelines.They reiterated the group's unflinching support to the Urhobo host communities in their dispute with the Anglo-Dutch oil giant over its alleged sale and divestment of oil facilities in the oil-producing communities without consulting them and taking their interests into consideration.They advised the communities not to relent in their efforts to know exactly which companies are coming to take up the vast liabilities, which include poor environmental standards and gross unethical practices of SPDC in their host communities.The trio resolved to work with other global and local environmental activist groups to bring about improved developments in healthcare, education, roads and other facilities to the neglected host communities.They said: 'Article 2 of the regulation provides that every company has social and environmental responsibilities.Article 3 (1) goes further in stating that such responsibilities constitute an obligation for companies that are engaged in the naturalresources sector or a related industry.'Article 3 defines companies that are engaged in the business field of natural resources as companies whose business activities are managing and exploiting natural resources, whereas companies whose business activities are related to natural resources are companies that do not manage or exploit natural resources, but whose business activities have an impact on natural resources and environmental sustainability.'According to Aghogovbia, Astiangbe and Nomuoja, there is a need for the proper implementation of the provisions of Nigerian Oil and Gas Industry Content Development Act 2010, which made certain provisions for the inclusion of host communities in some of the activities of both indigenous and multinational oil companies operating within the host communities.
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