Extractive Industry

The world’s 3rd largest exporter of crude, yet millions of Nigerians live in poverty. How does that really happen, where are the loopholes in the system, where exactly do Nigerians miss out on the oil bounty? Green Deal Nigeria author and insider expert of the Nigerian oil and gas industry, Lois Laraba Machunga-Disu lists the weaknesses of the industry and makes practical suggestions how to fix Nigeria’s oil problems. - Oil & Gas, Green Deal Nigeria study For deeper insights, more technical information and analysis, consult the Technical Background Paper by Lois Laraba Machunga-Disu  

 What needs to be done for Nigerians to reap the benefits of their wealth in oil and gas? 3 action points:                          Federal Government of Nigeria: Stop gas flaring now, and open the gas market to commercial ownership of exploration, pipeline transmission and distribution.                   Civil Society: Demand the creation of a new governance for the energy sector, integrating regulations for oil, gas and renewable energies in a Federal Energy Commission. You: Attend public hearings on the Petroleum Industry Bill and demand clarity on the proposed management system of the gas sector. Host communities should receive royalties from the gas explored on their lands and government should receive income from taxing the commercial gas operators. We do not need derivation arrangements. (more details in Green Deal Nigeria study).

Millions of trees are fired and wasted under Nigerian cooking pots as many women still cook on three-stone fires. Cooking with fire wood has destroyed large sways of Nigerian forest cover, which is under threat of extinction today. Mallam Adamu Mbar Yelwa is a 78 year old citizen of Taraba state. He remembers the days when clouds were hanging low over Yelwa forests, providing the people of the area with fresh air and lots of animals. Watch Video

Local communities in Nigeria’s oil-rich Niger Delta have complained about lack of development projects in their area says a report commissioned by the Heinrich Boell Stiftung (HBS) in Nigeria. “DESOPADEC has not done anything to improve our lives” says a resident of Iwhrekan community in Delta State. The HBS report critically assessed the extent to which Oil and Gas Development Commissions in the Niger Delta have been able to contribute to poverty reduction, livelihood improvement, and economic development in the region.

..a country where conflict has reduced because oil is no longer the main source of wealth- for- a- few, but where young people can access economic growth in different sectors such as renewable energy, agriculture, manufacturing and transport. Marrying a farmer is fashionable as it provides security for a small family.

This study looks at the Oil Commissions in some Niger Delta states, which were set up 10 years ago in order to ensure that the oil wealth trickles down to the communities living in oil producing areas. How is the Commissions’ work impacting on the lives of these communities? Do they work in a transparent manner? What is their self-perception? Uwafiokun Idemudia is Assistant Professor of Development Studies and Director of the African Studies Programme at the York University in Toronto, Canada. He visited the states of Delta, Edo and Ondo in 2011 for this study.