The Environmental Rights Action has said that the ongoing divestment by oil multinationals will adversely affect the nation’s economy, saying that the process was improperly done, as the economy, jobs and even host communities are not given consideration. ERA boss, Chima Williams regretted that the ongoing divestment process was done upside down, hence was already creating problems to the economy.
Williams said investors who are buying the divested assets from multinationals must have the resources, the manpower, technical know-how to handle the problems that are associated with assets that they are inheriting.
Citing the incessant cases of well blowouts from some of these divested assets, ERA said legacy spills devastate the environment.
He tasked the government and its agencies to thoroughly interrogate the processes of divestment to ensure that the right thing is done and the Nigerian citizens are not shortchanged
He emphasized on the need for environmental remediation bond as well as recognition of the host communities in the design, development and implementation of the divestment.
“It will affect the Nigerian economy adversely. The divestment process itself has already started creating problems and those problems that are associated with the divestment process is currently ongoing and it impacts on the economy of Nigeria.
Prof Sofiri Peterside (right) and Akinbode (left)
“When this divestment happens there will be loss of job opportunities and when people lose their jobs the economy is impacted and revenue that will get to the government even from the operations of these companies will definitely reduce.
“The investing entities who do not have the resources, the manpower, technical know-how to handle the problems that are associated with entities that they are inheriting, will they be able to create new jobs opportunities, will they be able to remediate the environment, will they be able to even pay all that the government is entitle to. These are questions that will impact on the economy.
“Whatever happens, there is destruction of citizens livelihoods. There is destabilization of community cohesion through crisis. When pollution occurs citizens become sick, the rate of sickness become higher and in that Government is expected to provide health facility that will take care of citizens that are suffering from ill health and somebody that is sick definitely will not pay tax. In all of this, the economy suffers.
“This is why there should be a greater interrogation of the processes and relevant authorities should put their feet down and ensure that the right things are done in the first place.
“One of the things we are asking for is that before you divest, put down what we have termed environmental remediation bond, based on an amount that will be discussed and agreed by relevant ministries, departments and agencies working together with selected Civil Society, community leaders and both the divesting and investing entities because environmental bond should be provided by both the divesting and investing entities.
“In the process, we must recognize the community of which feet under which these resources are extracted as stakeholders that will be involved in the design, development and implementation of the divestment process.
“These are the keys among many things that can protect both the divesting and investing entities, protect Nigeria citizens and protect Nigerian economy.
“Divestment is a double jeopardy for Nigeria because these divesting entities are divesting onshore where we can see them to go deep offshore where it is difficult for us to monitor their activities. And so our government is still giving them incentives to develop their facilities and activities deep offshore, that should not happen again because it is double jeopardy for Nigeria and Nigerians.
“We must collaborate to achieve a greater result, already NNPC has stopped Mobil from divesting and the court has stopped SHELL from divesting some of its assets.
