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By Godwin Chukwumaechi
The Environmental Rights Action has faulted the ongoing divestment by oil multinationals, warning that it would adversely affect the nation’s economy.
Speaking to journalists in Port Harcourt, Chima Williams, executive director of the pro-environment group picked holes in the process, describing it as improperly done without consideration for the economy, jobs and even host communities.
He regretted that the divestment process was done lopsided and was already creating problems for the economy.
Williams noted investors buying the divested assets from multinationals lacked the resources, the manpower and technical know-how to handle the problems that are associated with assets that they are inheriting.
Citing the incessant cases of well blowout from some of these divested assets, ERA tasked the government and its agencies to thoroughly interrogate the processes of divestment to ensure that the right thing was done and Nigerian citizens were not shortchanged
He emphasised 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 are currently ongoing and impact negatively on the economy of Nigeria.
“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 entitled 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 for it.
“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 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.
“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.
“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.
“Nigeria is our only country; we don’t have any other place to call our own, so we cannot sit back and watch people in the name of oil exploration business destroy our people and our environment. It is our collective responsibility to protect, preserve and defend our country,” he said.
