The Communiqué of the 2008 Isaac Boro Day Commemoration in London on the 15 &16 August 2008 organised by the Ijaw People’s Association of Great Britain and Ireland
Preamble
As part of the commemoration of the 2008 Isaac Boro Day activities in the United Kingdom organised by the Ijaw People’s Association of Great Britain and Ireland opinion leaders and people of the Niger Delta deliberated on the state of the Niger Delta and its implication for the security, development and economy of Nigeria and Africa. Representations were from Nigeria , the United States of America and Europe , and included youths, elders, traditional rulers, students and professionals.
State of the Niger Delta
Conference observes that the Niger Delta is a part and parcel, and in fact a microcosm of the Nigerian state. Whatever happens to the Niger Delta affects the rest of Nigeria economically and politically. Hence Conference is alarmed at the happenings in the Niger Delta region, its lingering crises and their impact on the rest of Nigeria and Nigerians. Conference notes that the following has exacerbated the Niger Delta crises:
* The continuous underdevelopment of the Niger Delta area by subsequent federal and regional governments despite the abundance of and exploitation of natural resources from the territory.
* The non-Implementation of various recommendations of several committees, commissions and panels’ set-up by the Federal Government to tackle the Niger Delta Crises, the under-funding of such commissions and the withholding of funds designated for the development of the area.
* The activities of the multinational oil companies that destroy the environment and impinge on the livelihood, health and survival of the people such as the continuous flaring of gas and crude oil spills.
* The deliberate ostracizing of the people of the Niger Delta people from the oil and gas industry despite its negative impact on the environment, livelihood and survival of the people.
* Insecurity of lives and property caused by the militarisation of the area. Top government functionaries and security forces engage in oil theft, oil bunkering, illegal taxation, invasion of communities, killing and maiming of the people especially the youths, etc. There is a direct link between the JTF, Oil bunkering and insecurity in the Niger Delta. The presence of the JTF is exacerbating insecurity and criminal activity in the Niger Delta as persons connected officially to the NPPC, Oil companies and private business are responsible for the large percentage of oil theft in the Niger Delta. It is in their interest that insecurity reigns in the Niger Delta, as it affords them the necessary cover to continue their stealing. Therefore the JTF has now transformed itself into an obstacle of peace attainment, as it no longer has any desire to bring about actual peace and stability in the Niger Delta.
* The deliberate imposition of political leaders on the people. Such politicians lack foresight and interest in the welfare of the people but are collaborators with the oppressors in the looting of the people’s resources. Conference is strongly offended by these political elite, and their habit of imposing unscrupulous politicians on the people of the Niger Delta as leaders. We observe that failed leadership is one of the problems associated with the lingering Niger Delta crises.
* The seemingly biased and lopsided implementation of the Anti-Corruption efforts as many indicted political leaders such as former governors are being shielded from prosecution by the state. This will continue to have negative consequences for social stability and security in Nigeria , as other persons will be emboldened to also steal from the public purse, and the cycle of corruption will continue especially in the Niger Delta area. A strong anti-corruption effort is essential for resolving the lingering crises in the Niger Delta and for the overall economic health and political stability of Nigeria . It is either a peaceful revolution through a sincere anti-corruption drive or bloody upheaval caused by mass discontent. The choice is in the hands of the managers of state at Abuja .
* The continuous existence of obnoxious laws that deprive the people of their dignity, land and livelihood. These laws include the Land Use Decree, the Petroleum Decree, and the Inland Waterways Decree etc.
Resolutions
Conference resolves as follows:
* The Niger Delta problem is a problem for all of Nigeria and, therefore, should be treated with the highest level of seriousness and sincerity by the Federal Government and the international community.
* We identify with the President Umaru Yar’adua’s Seven Point agenda which has the Niger Delta a priority. We call upon the President to bring to the front burner the Niger Delta problem and resolve once and for all, all the contentious issues that are prolonging the crises..
* We call on the managers of state at the Federal level [at Abuja ] to stop the imposition of political leaders on the Niger Delta people. They should desist from such actions if they are sincere in resolving the Niger Delta crises.
* The Federal Government must as a matter of priority make the anti-corruption war more effective. The people of Nigeria demand tangible and measurable results, such as successful convictions and recovery of stolen public resources.
* The Federal Government should take immediate steps to engage, involve and include the Niger Delta people in the oil and gas industry at all levels. Conference recommends that an affirmative action programme be implemented to address this problem. In addition, the Federal Government to empower the local oil bearing communities within the framework of ownership of resources as this will ensure the security of oil/gas industry infrastructure in the area.
* We demand a time frame for the disbandment of the JTF and their replacement by a well equipped and community oriented police mobile squadron to avoid further exacerbation of the crises in the Niger Delta.
* We condemn the recent invasion and destruction of lives and property of the Agge community of Bayelsa State by the JTF.
* We call upon the Federal Government to genuinely empower the Nigeria Navy to blockade the territorial waters of Nigeria and arrest all illegal shipments of oil and not use the navy to intimidate and oppress the people of the Niger Delta.
* The Federal Government should collate and immediately implement all past recommendations & reports on the development of the Niger Delta area. This should be in conjunction with the release of all withheld funds designed for the development of the area. The government should show further commitment to the development of the Niger Delta by increasing the funding of development of the Niger Delta through the NDDC. We demand that the Security vote of over four hundred billion naira for the Niger Delta in the 2008 budget be given to the NDDC to embark on infrastructure development in the Niger Delta.
* That despite the proposed constitution review we insist that the best forum for achieving lasting peace and stability in Nigeria is through the convening of a Sovereign National conference. We resolve to use all means at our disposal to bring the convening of the Sovereign National Conference as the best forum for creating peace and stability in Nigeria .
* We call on all Ijaws and other Niger Delta ethnic nationalities to resolve all their differences and unite behind all legitimate representative organisations and political leaders; and stop all internal bickering.
We commend all genuine struggles of the Niger Delta people and extend our solidarity to all ethnic nationalities in Nigeria . Together, we shall build a better Nigeria where fairness, equity and justice will reign supreme.
Signed on behalf of Conference
Mr Benaebi Benatari (Conference Secretary) ………………..
Ms Annkio Briggs (Participant) ………………..
Dr Felix Tuodolo (Chairman INC Europe ) ………………..
Mr Rowland Ekperi (President IPA) ………………..
HRM King Ayemi Botu ………………..
(Pere of Seimbiri – Ijaw and Chair of Conference)
UK Parliament
All-Party Parliamentary Group on the Niger Delta
Delegation to the Niger Delta:
December 2005
CONTENTS
page
1. Introduction 3
2. Energy and Environment 5
3. Security and Governance 9
4. Human Development 14
5. Conclusion 18
1. Introduction
The All-Party Parliamentary Group on the Niger Delta consists of over thirty MPs and Peers from across all the main parties. The impetus for its formation came in July 2004 when Bill Tynan secured a debate in Westminster Hall on the subject of the Niger Delta and he was subsequently approached by several organisations working in the region. The APPG was established in February 2005 under the chairmanship of Mr Tynan. The current chairman is John Robertson MP.
The Group held several meetings in London, and we decided it was necessary to visit the Niger Delta to see first-hand the difficulties facing the people of the area. We are particularly interested in the impact of the oil industry on the population and the environment of the Niger Delta. We also want to investigate ways in which Her Majesty’s Government (HMG), the Federal Government of Nigeria, companies operating in Nigeria (including the oil majors) and relevant non-governmental organisations (NGOs) could help in bringing development to the region.
On 3rd August 2005 a delegation consisting of John Robertson MP, Bob Blizzard MP, Anne Moffat MP, Jim Sheridan MP, Bill Tynan (formerly MP for Hamilton South) and Stuart Hudson (secretary) travelled to Nigeria for a week of meetings and community visits. Shell International Ltd paid for our travel and accommodation. We are grateful to Shell for their financial support but also for their willingness to meet us and discuss our concerns. We would welcome the opportunity to meet the other oil companies operating in the region. We would like to thank Brian Shaad, a representative of a consortium of NGOs, for planning our itinerary, making advance arrangements and dealing with innumerable requests for information. In addition, we would like to thank the staff of the British High Commission in Abuja – in particular Martin Shearman and Graeme Bannatyne – who provided us with invaluable logistical support. Brian and Graeme remained with us throughout the visit and without their assistance we would not have seen and experienced all that we did.
In Nigeria we met with dozens of individuals and representatives of organisations, including among others: the community of Akala-olu, the community of Imiringi, the community of Eastern Obolo, the community of Umuechen, the Movement for the Survival of the Ogoni People (MOSOP), Environmental Rights Action (ERA), the Centre for Corporate Social Responsibility (CCSR), Niger Delta Women for Justice, the Niger Delta Project for Environment Human Rights and Development, the Institute of Human Rights and Humanitarian Law, the Centre for Advanced Social Science (CASS), the Community Rights Initiative (CORI), the Ijaw Youth Council (IYC), the Publish What You Pay Coalition, the Niger Delta Wetlands Centre, Pro-Natura International (PNI), the Shell Petroleum Development Company of Nigeria (SPDC), the Speaker and other members of the Nigerian Federal Assembly, the Niger Delta Development Commission (NDDC), the Economic and Financial Crimes Commission (EFCC), the British High Commission, the UK Department for International Development (DFID) and the Embassy of the United States of America. Photographs taken on our visit are obtainable on request.
This report is not intended as a comprehensive survey of the situation in the Niger Delta. As first-time visitors to the region, it would be impossible for us to provide such an analysis. We would like, however, to make some observations based on the impressions we gained during our short visit and to offer what we hope are constructive recommendations to the relevant authorities and stakeholders.
Finally, we very much hope that our first visit will be the start of a lasting relationship with the people of the Niger Delta and Nigeria as a whole. We are determined that the APPG will remain actively involved and work with all stakeholders to help alleviate the long-standing problems of poverty and conflict in the Delta. In that spirit, we welcome any comments you may have on our report.
2. Energy and Environment
The Niger Delta is on the Atlantic coast of Nigeria where the Niger River divides into numerous tributaries. The region extends along the coast from the Benin River on the west to the Imo River on the East.
It is a wetland containing four broad ecological zones: coastal inland/sandy barrier ridge zone, brackish or saline mangroves, freshwater permanent and seasonal swamp forests, and lowland rain forests. Over time, the rainforests have been cultivated, leaving only the seasonal and permanent swamps as original vegetation.
Subsistence farming and fishing has been and continues to be the main economic activity for people in the region. The area is inhabited by more than 3,000 long-settled communities and comprising a number of linguistic and cultural groups: the Andoni, Edo, Ibibio, Igbo, Ijaw, Ikwere, Itsekiri, Ogoni and Uruhobo being the largest. The Ijaws, which are the largest, have numerous clans each of which has linguistic and cultural distinctiveness. They occupy the whole of Bayelsa State and are found in Rivers, Delta, Edo and Ondo. Population density is high and the competition for resources, especially land, has been tense. The competition has led to inter-ethnic conflict which has been accentuated by the discovery of oil.
It is estimated that, since 1958, over $350 billion has been earned in Nigeria from this valuable resource. The Nigerian economy is driven by oil production, with oil accounting for 95% of the country’s exports and over 80% of government revenue. The US government estimates that Nigeria provides about 7-9% of overall US oil imports and ranks as the fifth-largest source for US imported oil. The allocation of oil income is included within a Memorandum of Understanding between the oil companies and the Nigerian government. According to SPDC, $4 per barrel is attributed to technical costs, a maximum of $1.87 per barrel provides the industry margin, and the remainder goes to the government in equity and taxes. On these figures, at a price of $30 per barrel, the government would take $24.13 or 80 per cent of the total; at a price of $50 per barrel, the government would take $44.13 or 88 per cent of the total. However, a lack of transparency means it is impossible to be certain how much the Nigerian government actually receives and where the money is spent.
The Niger Delta Region is the bedrock of Nigeria’s crude oil production; Bayelsa, Delta and River States alone account for 75% of oil production and over 50% of gross Government revenue. This heavy dependence on crude oil has exposed the economy to the boom-and-bust cycles of development and a concomitant unstable revenue profile. Critics have commented that the level of development recorded in Nigeria is not commensurate with the huge earnings from crude oil exports.
In the eyes of many local people, the principal impact of the oil industry has been on their own environment. The pollution of land and rivers tends to increase with oil production leading to a loss of resources and thus income-earning opportunities for the population. As part of our inquiry we visited the Akala-olu community on the border of Rivers and Bayelsa states. At our meeting the scale of their poverty was clear, but in particular they used this opportunity to inform us of their suffering from the impact of a gas flare less than 100 metres from the village. While visiting the community we stopped to observe this flare, seeing first hand the black smoke emissions and feeling the intense heat. We were not in a position to assess the long-term physical or environmental impacts of the flaring, but we strongly sympathised with the people forced to live close by. One of our delegation subsequently made representations to the company responsible, the Eni Group, who stated that new equipment would be installed later this year aimed at significantly reducing the problem. We recommend the commissioning of an environmental impact assessment to look at the physical and environmental impacts of flaring on communities and the land.
It is right that the oil companies are criticised for the continuous flaring of gas over many decades. In that context, SPDC's ‘Flares Out’ programme is to be welcomed even if it is a belated response. However, the Nigerian government also has a responsibility to impose appropriate environmental standards and to ensure they are met. We recognise the major investment required to collect and put to economic use the gas previously flared from 73 Shell flow stations and we welcome the decision by SPDC not to develop any new oil fields without a clear plan for the utilisation of the associated gas from oil production. The Nigerian Liquefied Natural Gas (LNG) project which we visited was commissioned in 1999 and provides a solution to gas flaring. SPDC also indicated the closure of some oil producing wells with high gas-to-oil ratios which in their view contributed to a further substantial reduction in flaring. The programme entails work in progress, including the installation of gas gathering facilities that will ensure another 59 fields will be able to collect the gas instead of the current method of flaring. Unfortunately, major construction work is required to enable this to happen and the indications from SPDC are that this construction work will not be completed till 2009, when they expect to cover 95 per cent of all associated gas produced. We urge all oil companies and the Nigerian government to redouble their efforts to ensure the construction work is completed as soon as possible. We recommend that HMG and the Nigerian government monitor this situation to ensure the revised target of ending flaring by 2009 is met.
Further work is necessary to set appropriate environmental standards. For example, we understand that SPDC are involved with the Department of Petroleum Resources (DPR) through the Oil Producers Trade Section (OPTS) to arrive at agreement on setting achievable standards and limits. In addition, the OPTS Environmental Sensitivity Index (ESI) mapping protocol will be the basis for the ESI mapping in the country and is undergoing approval by the DPR. It is important that these discussions do not reduce the standards required to reduce the negative impacts of oil exploration and production.
Regulations on gaseous emission standards also require companies to install low NOx burners at all emission point sources and, hence be in a position to calculate the levels of NOx emissions from such sources. For new facilities this will not be an issue since the requirement will be designed into the facilities however this will mean major re-engineering at existing facilities. It is important that the Nigerian government sets clear environmental standards and that oil companies demonstrate their willingness to make the necessary investment to meet them.
Another issue is the question of pipe line maintenance. We understand SPDC has developed a Pipeline Integrity Management System for the 3000 km of pipeline designed to manage the asset, assure the asset integrity, fulfil health, safety and environment HSE requirements and deliver optimum life cycle performance. We would like to know what efforts other companies are making in this regard, and we suggest they consider introducing a similar maintenance system. We believe it is necessary to have a means of enforcing agreed environmental standards and that there should be penalties for non-compliance, including suspension or removal of a company’s licence to operate.
It is important to recognise that the oil companies themselves face significant local problems. A major issue is the practice of bunkering, the theft of oil from the massive pipeline system covering the Niger Delta. It is estimated that the organised theft of oil could be anywhere between 100,000 barrels to 200,000 barrels a day, costing Nigeria up to £2.5bn per year in oil revenues, but these figures are difficult to substantiate.
It is clear for this level of oil theft to continue at its current rate that it is highly organised. Many Nigerians believe that senior political and military personnel are involved, as well as neighbouring countries. It has been suggested to us that the tankers which collect and transfer the crude oil are able to do so with impunity and are free to trade in international markets. We heard complaints that no serious attempt has been made by the Nigerian government to prevent this oil theft being transferred from land to sea. The organised criminal nature of this illegal activity means it cannot be accepted or excused.
The lead role in stopping bunkering must be taken by the Federal Government of Nigeria. According to SPDC, government action has resulted in the capture of 32 barges and six ships involved in the trade of illegally bunkered oil. However, this does not mean that the oil itself is always found or that the individuals responsible are apprehended. Serious concerted action by the Nigerian government is necessary to ensure that bunkering is tackled and that the judicial process for trying suspects is swift, just and transparent.
We believe that environmental issues should not be seen as an additional, secondary problem facing the oil companies – in fact, they are central. Shell’s continued operation in Nigeria requires them to be accepted and seen as a partner by local communities. Shell’s recent reforms on transparency and accountability (which we consider later in this report) are extremely important but their results are not immediately obvious to the people of the Delta. Likewise, their plans for Sustainable Community Development will not immediately reverse the legacy of decades of tension. SPDC must take action that demonstrates their good faith to the communities amongst which they operate – including practical verifiable steps on both social and environmental issues.
3. Security & Governance
Evidence of conflict is never far from the surface when one travels throughout the Niger Delta. Our delegation found worrying signs that the rule of law does not exist in the Delta in any meaningful sense and that the Federal and State governments are unable or unwilling to provide security for their citizens. Instead, the police are tainted by corruption and armed militias wield frightening power in many areas. It is our assessment that the roots of the instability are deep and complex, but that the inequitable distribution of oil revenues is a major driver of conflict. No solution can be found easily, but the active engagement of HMG and other international partners is necessary.
First of all, we recognise the efforts being made at federal level to combat these problems. President Obasanjo has made efforts to tackle corruption and introducing greater transparency. HMG is promoting transparency of oil revenues through the Extractive Industries Transparency Initiative (EITI). In addition, we appreciate the wider institutional difficulties facing the President in taking on such a challenging programme. The Nigerian constitution places a limit on what can be achieved at federal level and our comments should therefore be read in light of this factor.
It is clear that significant tensions exist between oil companies and the communities in which they operate. The legacy of past incidents and disputes over compensation remain – for example, in Umuechen, which we visited. In order to reduce tensions between SPDC and others, this is one of a catalogue of issues which should be resolved. However, on the ground we were first struck by the conflict within the villages themselves. In all cases we sought agreement for our visit, and we were welcomed by a chief or elders who usually showed us around the village - often accompanied by the local youths. (It should be noted that youths include all men under the age of around fifty years.) It became clear that in many villages the relationship between the elders and the youths is tense. The awarding of contracts often leads to tension, and some youths suspect the elders of collaborating with the oil companies to the detriment of the village. In one case we were surrounded by hostile youths who refused to let us move because they were angry with their chief who was with us. What threatened to become a rather frightening incident was defused only by the negotiating skills of the NGO representatives who arranged our visit. It suggests that traditional forms of authority are breaking down and they risk being replaced by more volatile and arbitrary forms of control, often by people with access to arms.
We were in no position to judge whether the anger of that particular group of youths was justified. However, we did hear reports elsewhere of chiefs and youth leaders taking goodwill money from oil companies but using it for themselves rather than their people’s benefit. These reports are corroborated elsewhere and we understand they have been acknowledged by the oil companies, for example in the WAC report produced on behalf of Shell. The Economist quotes one oil executive as saying, ‘We’d give a village a boat to set up a ferry business, and the chief would just grab it and use it as his personal transport.’ In such circumstances it is not surprising that village leaders can be the objects of suspicion. It is an example of the disquiet arising from the knowledge that oil brings great wealth to Nigeria but that too few of its people are benefiting. The oil companies must take responsibility for what happens with their payments to individuals and communities.
The disquiet manifests itself in other ways too. Individuals and groups can seek power by posing as champions of the people, demanding a greater share of oil wealth for their homelands. However, they do not necessarily seek to attain power through peaceful and democratic means but through intimidation and the use of violence. Last year Mujahid Dobuko Asari, leader of the Niger Delta People’s Volunteer Force (NDPVF), threatened war on the Nigerian state if the people of the Niger Delta did not receive a greater share of the oil wealth. His groups and others are actively engaged in oil bunkering. Mr Asari has a militia which has been involved in fighting with a rival group, the Niger Delta Vigilante (NDV), costing hundreds of lives and causing tens of thousands of people to flee their homes since September 2003. Although President Obasanjo brokered an agreement between the leaders of the two rival militias in October 2004, the resulting fall in attacks appears to be temporary. We saw Mr Asari dining in a smart Port Harcourt restaurant but only a month later, after our departure, he was under arrest and remanded in custody by a judge in Abuja on charges of treason. The NDPVF has threatened ‘grave mayhem’ if Mr Asari is not released, warned all oil company staff to leave the Delta region, and hundreds of his supporters have demonstrated carrying machetes.
There are plenty of disgruntled youths whose anger can be exploited by men such as Mr Asari. We met with a group called the Ijaw Youth Council (IYC), the aims and activities of which were unclear. However, one of their members told us that we were free from danger in the surrounding area because they had decided to grant us safety. We agreed to meet with them and they used the opportunity to express their grievances and condemn the oil companies and politicians for the suffering of the Ijaw people.
The men associated with groups such as Mr Asari’s have access to arms which are crucial for the maintenance of their power. The illegal trade in small arms throughout West Africa perpetuates conflict and puts a brake on the development of democracy, by allowing influence to be achieved through non-peaceful means and irrespective of popular support. The Campaign Against the Arms Trade (CAAT) have lobbied the APPG about arms coming from the UK. We welcome the role played by HMG in promoting an international Arms Trade Treaty (ATT). We note, however, that the proliferation of small arms in the Niger Delta appears to be worsening and we urge HMG to make this issue a priority. The Chairman of the APPG has written to Ministers in the Foreign Office and the Ministry of Defence. We urge them to redouble their efforts and to ensure that British companies do not contribute to the problem.
International co-operation is necessary because neither the Nigerian government nor the respective state governors appear to have the means and the political will to take on the militias. The events following the arrest of Mr Asari show that attempts to clamp down on them can result in further disorder. Our anecdotal evidence of the firepower available to the militias compared with that of the police is corroborated by other observers.
In addition, the police are clearly lacking in moral authority because of their corruption and human rights violations. There is a culture of impunity which means that such violations often go uninvestigated and the perpetrators unpunished. In February 2005, Human Rights Watch published a report about the situation in Rivers State. They also have serious concerns about military killings in other States – notably in Odi, Bayelsa State, in November 1999 and in Odioma, also in Bayelsa State, in February 2005. Abuses are allowed to continue because of a wider culture of impunity in which excessive use of force, rape, arbitrary arrest and extrajudicial executions go unpunished.
On a less severe level, but still of concern, we observed on a daily basis armed police officers stopping cars in order to demand bribes. We understand that the money obtained through such bribes is then distributed upwards through the police force, with each person in the chain taking a cut at their level. We also understand that the wages for policemen are very low and that bribery is seen, therefore, as an acceptable way to top up a salary on which it is not possible to live. The Chairman of the APPG criticised this situation publicly to members of the Nigerian National Assembly. Without urgent action, the rule of the law will not take hold in the Niger Delta.
The rule of law must also operate in a strong democratic framework. Sadly, the signs are not promising. We made a point of asking ordinary people whom we met on our travels whether they had met their elected representatives. None had done so. The flaws were most obvious at the level of State governors. We saw ostentatious displays of wealth that contrasted greatly with the poverty in which most of their people live. There is no transparency at State government level and no sign of progress, despite the increasing sums of money allocated to the States in the Niger Delta region.
The inadequacy of representatives and governors is understandable when one considers the way in which they were elected. International monitoring demonstrated that the 2003 elections in the Niger Delta were significantly flawed. The Commonwealth Observer Group described the election in Rivers State as having been marred by ‘widespread and serious irregularities and vote-rigging’. If politicians are able to win power on the basis of intimidation and can then act without reference to their constituents, ordinary people are left with no way of influencing their government. It is understandable, therefore, that they turn to militias and demagogues instead.
The flaws in the democratic process are, however, symptoms of a wider issue. When the state controls so much of the country’s wealth, and when the distribution of that wealth is not transparent, political power becomes the easiest way to get rich. The consequences of this situation are several. First, politicians have a big incentive to seek personal gain rather than the good of the population. Second, they are likely to guard their power jealously against political rivals. Third, revenue from taxes becomes less important and so the citizenry are unable to make political demands of their leaders. Nigeria currently suffers from all these troubles. Throughout its history the country’s leaders have been accused of stealing tens of billions of dollars for their private use. Today, many politicians at state and federal level have reputations for having seized and kept power through unfair means. And, meanwhile, the views of the majority of the population, mired in poverty, can be ignored.
A priority must therefore be to ensure that the 2007 elections, and the primaries in 2006, are free and fair. This will require intensive international monitoring, and not just in the weeks leading up to the elections themselves. We were led to believe that some politicians are providing money and arms to youths in particular villages, in order that they should be able to deliver the votes of local people when the elections come. Voters and opposition politicians, therefore, are at risk of intimidation and violence. The Federal Government must permit the presence of independent international observers; HMG and other international partners must then make sure that their description of the conduct of the elections is accurate.
In addition, there must be a sufficient countervailing force to ensure that politicians who are elected cannot subsequently operate in a corrupt manner. The Nigerian Economic and Financial Crimes Commission (EFCC) has done genuinely heroic work in this area. Progress is being made from a starting point at which 80% of the country’s oil revenues were estimated to have been lost through corruption. Now, some charges have been brought and some assets seized. However, in this climate of intimidation the Commission needs greater support, both from the Federal Government and from the international community, in particular HMG. For example, Scotland Yard are already co-operating with the EFCC but we should consider whether further UK legislation is necessary to give the Metropolitan Police extra powers to search for and seize the London-based assets of Nigerian politicians.
However, the current approach is not without problems. An example is the case of Governor Diepreye Alamieyeseigha, who was arrested in London on money laundering charges. First, although this was widely welcomed and has had significant impact in Nigeria, the fact of his arrest was seen by some as politically motivated. Second, Governor Alamieyeseigha was able to escape from London whilst on bail and return to Nigeria where he has immunity from prosecution. We recommend that HMG investigates the escape as a matter of urgency. We also recommend that President Obasanjo gives full support to the work of the Economic and Financial Crimes Commission, and that the prosecution of politicians suspected of corruption must extend beyond those seen as enemies of the President. Otherwise the independence and integrity of the anti-corruption drive risks being seriously undermined.
We left the Niger Delta with a strong impression that the simmering tensions are likely to explode unless steps are taken to rectify the deep-seated causes of conflict. The people of the Delta know that oil generates huge wealth of which they see virtually nothing. Most of the profits are siphoned off at the levels of Federal and State government, creating a cycle of corruption and demonstrating – dangerously – that politics can be a route not just to power but to enormous wealth too. This combination is not conducive to good government. It also generates resentment against the oil companies that generate the wealth and community leaders who are seen to be in collusion with them. Consequently, unscrupulous characters exploit the resentment and carry out actions that damage the very source of that wealth. The ones who suffer are the people of the Niger Delta and ultimately Nigeria as a whole.
4. Human Development
The Niger Delta is notionally one of the richest regions in one of the richest countries in Africa – but the observations we made in our visit point to a far more complex situation than that bald statement would imply. The area is undoubtedly resource-rich but its wealth is distributed inequitably, and alongside great wealth there exists considerable poverty. The prospects for growth and development are hampered by the lack of infrastructure, education and other services normally provided by the state. The gap has been plugged to some extent by oil companies but they have neither the capability nor the willingness to act as a substitute for the state.
We fully accept that, on most socio-economic indicators, the Delta is performing better than most other parts of Nigeria. The incidence of income poverty in the Niger Delta is below the national average and well below the averages across the north of Nigeria. In terms of primary school attendance for boys and girls, households with access to clean water, female literacy, use of contraception, child mortality, women receiving antenatal care and children receiving all vaccinations, the Niger Delta does better than the national average and far better than the North-West zone.
However, the fact that the Delta is doing better than elsewhere in Nigeria is not an argument for ignoring it. Many people reading this report will be seasoned observers of developing countries, but most members of our delegation are not. As newcomers we were shocked by much of what we saw. The sight of women and children walking for miles to carry polluted water back to their homes for drinking, of hospitals lying empty of equipment whilst the ill are suffering outside, and of schools full of children bursting with enthusiasm but lacking the resources to help them learn, all had a profound impact on us. We know there is much to do and we in the APPG must take up these issues whilst ensuring our moral and emotional commitment does not diminish with time.
The factors hampering development are manifold and not always easy for outsiders to tackle. From a climate that creates conditions ideal for malaria, to cultural norms that restrict contraception and other ways of empowering women, we know that development does not just come down to a redistribution of wealth alone. Nevertheless, there are several problems that are identifiable and can be addressed.
The Nigerian government has historically failed to provide sufficiently for the health and education of the population. It has also failed to invest sufficiently in infrastructure. Even in the areas where there is an electricity supply, it is frequently interrupted. Major construction projects are begun but not completed, and many of these were in evidence during our visit, suggesting serious problems in the tendering process. In part, this is due to the factors to which we referred in the previous chapter: Nigeria is a textbook case of a resource-rich non-transparent country where public funds have been squandered. As a result, many of the needs of the population are unmet.
The oil companies have sometimes tried to step in and for three main reasons. First, to most people in the Delta, the oil companies are a more obvious visible representation of authority than the state itself, and so grievances are readily directed towards them. Second, in order to maintain their ‘social licence to operate’, oil companies require some degree of consent from the host community and so it is in their own interest to be seen as helping those communities. Third, oil companies have markets in the west where many consumers take a strong interest in environmental or human rights issues and so, once again, companies have an interest in being seen to act positively on these matters.
Shell’s management freely admit that their efforts in the past on development were flawed. They learned hard lessons – and continue to do so. Payments or gifts to community leaders could be misused, breeding resentment instead of gratitude. Support to individual host communities could lead to conflict with their neighbours. This was exacerbated by a lack of conflict resolution structures, and Human Rights Watch have shown how oil can therefore create tensions which are settled violently rather than through peaceful means. Where Shell did invest in tangible good causes, like schools or hospital buildings, they frequently fell into disrepair and had neither the equipment nor the staff for them to be useful in the long term. Not enough attention, therefore, was paid to the sustainability of the projects.
Shell assured us that they have learned from these mistakes and that they have introduced an approach of Sustainable Community Development. However, as Shell management also admit, this alone will not remove the legacy of decades of tension. We recommend that SPDC work with NGOs and communities as part of a wider, pan-Delta approach to development. We note that other oil majors have made practical moves in this direction. We were particularly impressed with the multi-stakeholder approach of Pro-Natura International, involving the international community, government and oil majors in efforts to create projects with greater potential for sustainability. In their presentation to us, PNI emphasised the importance of a ‘whole community’ rather than ‘host community’ approach. We share their sentiments and we recommend that oil companies get involved in similar ventures.
The state, however, must bear primary responsibility for the welfare of its citizens. President Obasanjo is to be commended for his efforts in this area. If successful, the Nigerian Export Industries Transparency Initiative (NEITI) and the anti-corruption drive of Nuhu Ribadu could help progress towards the transparent political climate that is vital to ensure funds are directed appropriately. In addition, the approach to development must itself be sound. The creation of the Niger Delta Development Commission (NDDC) shows the Federal government’s good intentions. However, we had serious concerns after watching a presentation given by the NDDC on our visit to the National Assembly. The NDDC appears too focused on big capital projects with little regard to sustainability. This is a criticism that has been levelled at the development agencies of many countries in the past, including Britain, and we urge the NDDC to reconsider their approach.
The Federal government should also work to create a business climate that is conducive to investment. Although the security situation is unlikely to improve anytime in the near future, government can act in areas like regulation to improve the incentives to invest in Nigeria. For example, we were in Port Harcourt on ‘sanitation day’ – the first Saturday of every month, when nobody is allowed to leave their homes before 11am, and if caught will go to jail. However, when we eventually were permitted to go outside, there seemed to be no improvement in cleanliness or sign of public works taking place. We recommend that measures like sanitation days, which impede movement while appearing to provide no tangible benefit, be reconsidered with a view to their abolition.
HMG and other governments have a role to play in helping the people of the Niger Delta. Our argument for DFID’s engagement rests not on the relative socio-economic position of the Niger Delta, but on the importance of a stable Delta for the rest of Nigeria. It is not our assessment that DFID and other aid agencies should be diverting substantial amounts of money away from poorer parts of Nigeria or other developing countries. However, DFID should take an holistic approach and recognise that greater instability in the Niger Delta could put at risk the achievements of DFID elsewhere in the country. We understand that DFID is considering what activities it should take in the region and we welcome that review.
HMG and other governments should consider greater use of conditionality when offering aid and debt relief packages. In Britain, many NGOs are reluctant for the giving of aid to be conditional. We understand their concerns. Conditions can be seen as an infringement of the sovereignty of the recipient, and might risk turning aid into an instrument of the donor’s foreign policy. Furthermore, when the conditions relate to human rights and good governance, the charge of hypocrisy is sometimes made. For example, Kofi Annan’s Special Advisor on development, Jeffrey Sachs, wrote in his recent book, The End of Poverty, ‘When it comes to charges of bad governance, the West should be a bit more circumspect. Little surpasses the western world in the cruelty and depredations that it has long imposed on Africa.’ We accept the second sentence of Dr Sachs’s comments, but we query the extent to which past actions should prevent future engagement – especially if conditionality could help us stop abuses being committed against Africans today.
At one round table discussion, a representative of a Nigerian NGO argued for the recent Paris Club debt relief package to be made conditional on the Federal Government improving human rights and clamping down on corruption. We suspected his viewpoint must be a minority one, and so we asked all the other people present if they agreed. They were unanimous and vigorous in affirming their support for their colleague.
Perhaps there is some disagreement between British-based NGOs and their Nigerian partners on this point. Our position as potential donors gives us some potential for leverage over the Nigerian government. It is our recommendation to HMG that we should use it to demand further action on human rights, corruption and democracy.
Finally, we should keep in perspective the potential for oil to provide wealth and opportunities for the mass of the population. Oil is not a labour intensive industry – it employs only around 100,000 people – and so it will not eradicate unemployment in the Delta. In addition, oil can harm other traditional alternative occupations, such as farming and fishing, because of the impact of oil spills and gas flaring. Therefore, plans for development in the Delta must be based on employment opportunities outside the oil industry.
We welcome the recent comments by Finance Minister Ngozi Okonjo-Iweala in which she stated her intention to use the Paris Club debt package to reduce Nigeria’s dependence on oil. The Finance Minister accepted that reliance on oil had led to endemic corruption, and argued that the money saved through the Paris Club package – which wipes out approximately 60 per cent of the country’s sovereign debt – should be used to build the infrastructure that is necessary to help the economy diversify. We agree with the Finance Minister. There are more labour opportunities in sectors like agriculture, and more wealth and jobs could be created if the infrastructure was present to attract foreign investors. We support the approach being taken by Finance Minister Ngozi and we urge President Obasanjo to give her all possible support.
5. Conclusion
This report is not intended as a comprehensive survey of the situation in the Niger Delta. However, we have made observations based on the impressions we gained during our short visit. We would like to offer what we hope are constructive recommendations to the relevant authorities and stakeholders.
Federal Government of Nigeria
The primary responsibility for guaranteeing the security and welfare of the Nigerian people lies with their government. We acknowledge the difficulties facing President Obasanjo since the end of military rule in 1999 and we commend his efforts. President Obasanjo has made efforts to tackle corruption and introducing greater transparency. HMG is promoting transparency of oil revenues through the Extractive Industries Transparency Initiative (EITI). In addition, we appreciate the wider institutional difficulties facing the President in taking on such a challenging programme. The Nigerian constitution places a limit on what can be achieved at federal level and our comments should therefore be read in light of this factor.
Our delegation is united in believing that progress on governance is the most crucial issue. In particular, measures are required to improve transparency and tackle corruption. There is no transparency at State government level and no sign of progress, despite the increasing sums of money allocated to the States in the Niger Delta region. We recommend that President Obasanjo gives full support to the work of the Economic and Financial Crimes Commission, and that the prosecution of politicians suspected of corruption must extend beyond those seen as enemies of the President. Otherwise the independence and integrity of the anti-corruption drive risks being seriously undermined.
The fight against corruption must take place in the context of wider moves to entrench democracy. The Federal Government must permit the presence of independent international election observers; this should happen well before the 2007 elections, and starting with the primaries in 2006.
The Federal Government should take the lead in regulating the impact of oil companies on their environment. It is important that the Nigerian government sets clear environmental standards and that oil companies demonstrate their willingness to make the necessary investment to meet them. We recommend the commissioning of an environmental impact assessment to look at the physical and environmental impacts of gas flaring on communities and the land. We also recommend that HMG and the Nigerian government monitor this situation to ensure the revised target of ending flaring by 2009 is met.
We also believe it is necessary to have a means of enforcing agreed environmental standards and that there should be penalties for non-compliance, including suspension or removal of a company’s licence to operate. The Federal Government should also play the lead role in stopping the illegal bunkering of oil. Serious concerted action by the Nigerian government is necessary to ensure that bunkering is tackled and that the judicial process for trying suspects if swift, just and transparent.
On development, we welcome the attention being paid by the Federal Government, including the creation of the Niger Delta Development Commission. However, we had serious concerns after watching a presentation given by the NDDC on our visit to the National Assembly. The NDDC appears too focused on big capital projects with little regard to sustainability. This is a criticism that has been levelled at the development agencies of many countries in the past, including Britain, and we urge the NDDC to reconsider their approach.
The Federal government should also work to create a business climate that is conducive to investment. Although the security situation is unlikely to improve swiftly, government can act in areas like regulation to improve the incentives to invest in Nigeria. We recommend that measures like sanitation days, which impede movement while appearing to provide no tangible benefit, be reconsidered with a view to their abolition. This should be part of a wider approach, recognising that employment is key to prosperity, that the oil industry will never provide employment for most of the people in the Delta, and that diversification beyond oil is crucial for development.
We should keep in perspective the potential for oil to provide wealth and opportunities for the mass of the population. Oil is not a labour intensive industry – it employs only around 100,000 people – and so it will not eradicate unemployment in the Delta. We welcome the recent comments by Finance Minister Ngozi Okonjo-Iweala in which she stated her intention to use the Paris Club debt package to reduce Nigeria’s dependence on oil. There are more labour opportunities in sectors like agriculture, and more wealth and jobs could be created if the infrastructure was present to attract foreign investors. We support the approach being taken by Finance Minister Ngozi and we urge President Obasanjo to give her all possible support.
Her Majesty’s Government
It is our view that HMG should focus on helping the Nigerian government in promoting democracy, tackling corruption, and controlling the spread of arms.
A priority must be to ensure that the 2007 elections, and the primaries in 2006, are free and fair. This will require intensive international monitoring, and not just in the weeks leading up to the elections themselves. HMG should send observers, and they must then make sure that their description of the conduct of the elections is accurate.
The Chairman of the EFCC has expressed his gratitude to HMG for the assistance they, and the Metropolitan Police, have provided to track and recover the assets of state governors that are held in London. We urge the Home Office to consider whether any further UK legislation is necessary to give the Metropolitan Police extra powers to search for and seize the London-based assets of Nigerian politicians. In addition, we recommend that HMG investigates the escape of Governor Alamieyeseigha as a matter of urgency.
We welcome the role played by HMG in promoting an international Arms Trade Treaty (ATT). We note, however, that the proliferation of small arms in the Niger Delta appears to be worsening and we urge HMG to make this issue a priority. The Chairman of the APPG has written to Ministers in the Foreign Office and the Ministry of Defence. We urge them to redouble their efforts and to ensure that British companies do not contribute to the problem.
HMG and other governments have a role to play in helping the people of the Niger Delta. Our argument for DFID’s engagement rests not on the relative socio-economic position of the Niger Delta, but on the importance of a stable Delta in order for the rest of Nigeria to be able to grow in a sustainable and equitable way. It is not our assessment that DFID and other aid agencies should be diverting substantial amounts of money away from poorer parts of Nigeria or other developing countries. However, DFID should take an holistic approach and recognise that greater instability in the Niger Delta could put at risk the achievements of DFID elsewhere in the country. We understand that DFID is considering what activities it should take in the region and we welcome that review. HMG and other governments should consider greater use of conditionality when offering aid and debt relief packages. Our position as potential donors gives us some potential for leverage over the Nigerian government. It is our recommendation to HMG that we should use it to demand further action on human rights, corruption and democracy.
Shell (and other oil companies operating in the region)
Shell have an enormous challenge if they are to overcome the legacy of anger and mistrust felt towards them by the people of the Niger Delta. Some of that anger is justified – and we have already outlined some of their past mistakes – but Shell’s presence in the Delta as a visible representation of authority makes them an easy target for criticisms that are more properly levelled at government. The question we asked ourselves is this: how come Shell assure us they have genuinely changed but so many people in the Delta assert that they have not?
In our view, Shell’s recent reforms on transparency and accountability are extremely important but their results are not immediately obvious to the people of the Delta. Likewise, their plans for Sustainable Community Development will not remove the legacy of decades of tension. Shell must take action that demonstrates their good faith to the communities amongst which they operate – for example, practical verifiable steps on environmental issues. It is right that the oil companies are criticised for the continuous flaring of gas over many decades. SPDC's ‘Flares Out’ programme is to be welcomed, but the slippage of target dates has added to the level of mistrust. SPDC must work hard to ensure their pledges are kept. In addition, the legacy of past incidents and disputes over compensation remain – for example, in Umuechen, which we visited. In order to reduce tensions between SPDC and others, this is one of a catalogue of issues which should be resolved. The oil companies must also take responsibility for what happens with their payments to individuals and communities.
We recommend that SPDC work with NGOs and communities as part of a wider, pan-Delta approach to development. We note that other oil majors have made practical moves in this direction. We were particularly impressed with the multi-stakeholder approach of Pro-Natura International, involving the international community, government and oil majors in efforts to create projects with greater potential for sustainability. In their presentation to us, PNI emphasised the importance of a ‘whole community’ rather than ‘host community’ approach. We share their sentiments and we recommend that oil companies get involved in similar ventures.
Non-Governmental Organisations
We have been privileged to meet so many people from so many groups – in both Nigeria and the UK – who are actively working to help the communities of the Niger Delta. On health, education, democracy, human rights and many other issues, civil society groups act as a force for good. Their efforts can bring tangible benefits to the people of that region, but they also serve a wider purpose. They can hold governments to account – sometimes at considerable personal risk to themselves – and focus the attention of the international community. A thriving civil society is a prerequisite for a healthy democracy, and Nigerians have shown they have the ideas, the determination and the bravery to make a difference.
We urge NGOs against taking a simplistic view whereby the oil companies are cast as the sole villains of the piece. The companies must, of course, act responsibly in their business. However, the primary responsibility for maintaining good governance, human rights, health, education and other services in the Delta and the country as a whole, lies with the Nigerian government.
The Future of the APPG
We welcome comments on this report and suggestions for issues the APPG could investigate in future. In particular, we would be grateful for comments on the suggestion made to us that the APPG should widen its geographical scope and become the APPG on Nigeria.
If you would like to respond to this report, please write to John Robertson MP, House of Commons, London, SW1A 0AA by 16th January 2006.
Printed and published by the All-Party Parliamentary Group on the Niger Delta
Office of John Robertson MP, House of Commons, London. SW1A 0AA
Basil Omiyi, ‘Overview of SPDC Operations in the Niger Delta’. Presentation to the APPG on the Niger Delta, Port Harcourt: 8 Aug 2005
Shell Petroleum Development Corporation, ‘2004 People and the Environment: Annual Report’. Nigeria: 2005, p.2
The Economist, 13 Jan 2000, ‘Oil alone doesn’t makes you happy’
Commonwealth Observers Group, ‘The National Assembly and Presidential Elections in Nigeria, 12 and 19 April 2003: Report of the Commonwealth Observers Group’. London: 2003, p. 44
see Nigeria Demographic and Health Survey, 1990 and 2003
Jeffrey Sachs, ‘The End of Poverty: How We Can Make It Happen in Our Lifetime’. London: Penguin, 2005, p.189
