Thursday, 9 October 2008

RECOMMENDATIONS To the Nigerian Federal Government


1. Engage in negotiations with a broad-based delegation of Niger Deltans from the region’s ethnic councils, religious groups and other civil society organisations. The terms of reference for the talks should focus on expanded local resource control as called for by the Special Committee on Oil Producing Areas in 2002; further, the venue for negotiations should be a location within the Niger Delta to allow for greater transparency and local participation, and if talks need to break off into smaller groups to address problems of individual communities, efforts should be taken to keep the process transparent.
2. Institute, while this dialogue is proceeding, a derivation formula of between 25 and 50 per cent of mineral resources, including oil and gas, to all Nigerian states, and phase this in over five years in order to avoid budgetary shock to non-oil producing states and to encourage exploration and production of other mineral resources throughout Nigeria.
3. In the short to medium term, until state and local governments are demonstrably representative of and answerable to Niger Delta communities, allocate any additional monetary resources beyond current statutory state and local government payments directly to locally-controlled foundations willing to accept the assistance and oversight of qualified, independent, international development professionals.
4. Repeal or reform legislation such as the Petroleum Act and the Land Use Act that effectively deprive local residents of an ownership stake in land and resources.
5. Consider a constitutional provision to abolish criminal immunity for the president and state governors, and encourage law enforcement bodies such as the Economic and Financial Crimes Commission (EFCC) to prosecute cases of local and state government corruption.
To Nigeria’s Senate and House of Representatives:
6. Pass the proposed Nigerian Extractive Industries Transparency Initiative (NEITI) bill to entrench recent oil and other mineral industry reforms.
To the State Governments of the Niger Delta:
7. Implement economic reforms and ensure that state government allocations are spent on projects that focus on health services and safe drinking water, education, job training and transportation.
8. Where state and local government development capacity is lacking, partner with reputable development professionals who have a demonstrated commitment to community participation in planning and implementation.
To the UN, International Community and Donor Governments:
9. Provide resources for and support an independent environmental impact assessment (EIA) of the Niger Delta as well as a credible, independent judicial mechanism to adjudicate compensation claims, taking steps to ensure that the credibility of such an environmental assessment is not damaged by funding from or association with government and energy companies, and that compensation is distributed transparently in a manner that benefits communities rather than “benefit captors” such as politicians and militant and traditional leaders.
10. Press the Nigerian government to reform legislation such as the Petroleum Act and the Land Use Act that effectively deny local control of resources.
11. Discourage heavy-handed military operations and and encourage negotiations between the federal government and Niger Delta groups.
12. Make budget and expenditure transparency a condition for aid to federal, state and local governments and end relationships with local and state administrations that have failed to address corruption.
13. Offer the good offices of a neutral country without oil interests in Nigeria to mediate between the federal and state governments and Niger Delta parties, based on the proposal already accepted in principle by several Delta activist and militant groups.
To the Energy Companies:
14. Make individual company project environmental impact assessment (EIA) studies more transparent and accessible to community groups. Obtain community assent before proceeding with infrastructure and other developments.
15. Abide by the rulings of independent arbitration and court decisions looking into environmental claims. Both the federal government and companies should ensure that they pay their share of pollution compensation awards.
16. Encourage corporate transparency by releasing detailed, public reports of expenditures, including costs of development and payments to governments, community groups and contractors.
17. End illicit and semi-illicit payments to both militants and paramilitary security forces deployed to protect oil installations.
18. Abolish the host-community system of payments to communities in favour of a system that deals with communities more holistically through ethnic and regional councils.
19. Refashion joint venture partnerships to include local participation and ownership and, to this end, enter into talks with government and local groups.
To the Energy Companies’ Home Countries:
20. Legislate to require companies with overseas operations to publicly disclose all payments to foreign governments. This initiative should be synchronised through the Group of Eight to provide additional credibility to extractive transparency efforts in developing nations.

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