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The extractive industry in Nigeria has played a strategic role in the nation’s development. Its sphere of influence spreads across energy and revenue generation, community and social investment, employment generation, and more. The oil and gas sector alone accounts for over 90% of the country’s foreign exchange earnings and 20% of the country’s Gross Domestic Product. Besides the oil and gas sector, Nigeria has a thriving mining sector as it is blessed with large deposits of 44 different minerals including gold, limestone, tin, marble, coal and clay spread across the country and contributing its quota to economic growth.
Despite its immeasurable contribution to socio-economic advancement, the extractive industries in Nigeria is bedevilled with myriad challenges. The oil and gas sector for instance has been faced with adverse security challenges owing to the activities of militants in the oil rich Niger Delta region. Oil exploration activities and its attendant hazards such as air and water pollution has led to the indigenous people in affected communities demanding compensation and control of the oil wealth and activists in the form of militants confronting the multinational oil companies and the Federal Government.
According to reports, over 2,000 pipelines have been destroyed by militants resulting in devastating impact on the economy. At some point, Nigeria was losing as much as 1 million barrels a day, leading to the loss of its place as Africa’s largest producer of oil. Security challenges has also geometrically increased the cost of running the oil and gas sector. Oil and gas producers stated that they spend five times more on security than their global peers, with over $500 million spent on security services such as escort vessels, convoys and guards.
The mineral extraction industry is not left out as several of the mineral rich communities in the Northern region of Nigeria have become occupied by the terrorist group, Boko Haram, grinding mining activities to a halt. Furthermore, several communal and religious conflicts occur intermittently in the mid-belt region of Nigeria, which is known to be rich in minerals and metals, slowing down extractive activities in these sectors.
In 2009, to stem the tide of insecurity in the country, the Federal Government of Nigeria proposed an amnesty programme which saw large numbers of militants surrendering their arms in exchange for training and compensation by the government. Briefly, peace was restored to the Niger Delta region. However, it was short-lived as new and more violent militant groups emerged.
Despite recurrent failures, and in order to show its commitment to ending the crisis and ensuring the development of the area, the Federal Government put in place other mechanisms such as the Task Force on Pipeline Vandalisation (April 2000) operated by the Nigeria Police Force in collaboration with the NDDC (Niger Delta Development Commission, 2001). Similar task forces were also set up by the navy, army and State Security Service (SSS) in various states of the Niger Delta. Other efforts include the convening of the first Niger Delta peace conference in Abuja in 2007, a Joint Task Force (JTF) in 2008, and a Technical Committee made up of stakeholders and the Niger Delta Ministry in 2008 were also employed.
These efforts without doubt have yielded immeasurable success, though to a large extent, a lot still needs to be done as security challenges in the extractive sector remains volatile and has continued to result in cost premium for the oil and gas sector, affecting both operational and project costs.
Scholars have thus recommended a collective non-violent approach to conflict management in the extractive sector. Analysis is that the failure of the various strategies earlier employed by the government was due to the primary fact that they lacked sufficient elements of democracy, accountability, equity and active public participation of all key stakeholders.
This approach entails involving a team of negotiators, mediator(s) and parties in a dispute; all working together to find a lasting solution. It combines the elements of non-violence such as dialogue, negotiation and mediation in resolving conflict, building trust and seeking a ‘win-win’ solution. It rejects the use of violence as a conflict resolution mechanism.
The Collective Conflict Management Approach is usually undertaken by an ad-hoc arrangement or coalition that deals with specific security challenges and immediate conflict management needs in the situation concerned. It is a democratic problem-solving approach that gives parties to a conflict equal opportunity for participation through dialogue and negotiation.
For this approach to be effective, it requires a supportive environment as parties to the dispute must agree to the process and cooperate with the team, as it would otherwise not succeed. A mutually agreed neutral location, negotiators who possess the right skills and resources to engender success, as well as enlightenment and indepth knowledge of conflict management in the extractive industries, are key factors for effectively engaging aggrieved parties.
Besides the Collective Conflict Management Approach, The Global Oil and Gas Industry Association for Environmental and Social Issues posits that achieving sustainable economic and social development is a key factor in resolving conflicts and improving lives of the people in the Oil Producing region. In adopting this approach, Oil companies need to define their role in development more clearly and seek ways to strengthen the capability of government and civil society to take responsibility for economic development. They should also re-examine the way in which relationships with communities are structured, to manage expectations and avoid actions which may inadvertently lead to conflict.
To manage conflict, oil companies should prioritize and set realistic goals for their operations. In this context, they should take steps to: fulfil their duty to protect staff and assets; manage the issues of working with state security; minimize local impacts on people and the environment; and support the efforts of government and civil society to assume their responsibility for promoting economic development.
As I researched this subject, I came upon an impending conference on sustainability in the extractive industries being organised by a Nigerian non-profit. It was pleasantly surprising to see that the target audience of the conference included business, government and communities. The Sustainability in the Extractive Industries Conference, an annual event convened by CSR-in-Action, is held in partnership with the Nigeria Extractive Industries Transparency Initiative (NEITI).
Shola Awojobi
Shola Awojobi is an Ibadan-based social advocate.
