Following the commencement of the evaluation of divestment processes of onshore assets by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Human and Environmental Development Agenda (HEDA Resource Centre) has emphasized the importance of strict compliance with divestment conditions by divesting parties. These conditions encompass legal requirements, safety standards, environmental considerations, proof of financial means, and host community welfare, among other indicators evaluated by the Commission.
In a statement issued by HEDA’s Chairman, Olanrewaju Suraju, the civil society group underscored the significance of addressing the evolving divestment by oil companies in Nigeria, particularly its impact on the Niger-Delta region and climate change. Suraju emphasized, “Environmental issues associated with decommissioning and abandonment must be remediated in accordance with international best practices, ensuring respect for human rights, compensation, climate change exacerbation, SLCP emissions, and addressing social and economic risks such as oil theft and pipeline vandalism.”
It is worth noting that HEDA, in collaboration with the National Human Rights Commission (NHRC), recently convened its 35th Anti-corruption Situation Room (ACSR) conference in Port Harcourt. The conference focused on “Enhancing Citizens’ Rights to Sustainable Environment, Economic Development, and Justice through Regulatory Efficiency in Oil and Gas Producing Areas: Proposed Divestment by IOCs in Perspective.” Stakeholders at the conference unanimously agreed that transparency and inclusivity are essential throughout the divestment process, from conception to implementation, particularly concerning affected communities.
“Furthermore, there is a pressing need for shared responsibilities and a strengthened network for collective action to promote integrity in the oil and gas sector. It is imperative that divestment initiatives in the oil and gas sector prioritize the free, prior, and informed consent of indigenous oil-producing communities. These communities must be well-versed in the checklist of guidelines to ensure their involvement and empowerment throughout the process.”
HEDA also called upon both federal and state governments, as well as local communities, to collaborate in jointly addressing the challenges of corruption in oil-related activities. These challenges range from inadequacies in legal frameworks enforcement and community engagement to inefficient regulation and corporate responsibilities.
“By working together, governments, regulatory bodies, NGOSs, and communities can effectively tackle corruption and promote sustainable development in Nigeria’s oil and gas sector.” Suraju maintained.