PWYP Nigeria 2021 Annual General Meeting (AGM)

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REPORT OF PUBLISH WHAT YOU PAY (PWYP), NIGERIA 2021 ANNUAL GENERAL MEETING

 

THEME: REPOSITIONING PWYP COALITION FOR VISION 2025 AND CONTEMPORARY ISSUES IN THE EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE (EITI) PROCESS

 

DATE: 4TH TO 6TH OF AUGUST, 2021

 

VENUE: VICHI GATES HOTEL AND SUITES, KADO, ABUJA.

 

INTRODUCTION

Publish What You Pay (PWYP), Nigeria held a two day Annual General Meeting (AGM) with the theme titled: Repositioning PWYP coalition for vision 2025 and contemporary issues in the Extractive Industries Transparency Initiative (EITI) process. The AGM addressed germane issues to reposition the coalition, strategize on the 2025 PWYP Vision, critical interventions necessary on Nigeria’s low level commitment to transparency and accountability in the extractive industries. It also conducted its general elections.

 

ATTENDANCE

  • All 37 state coordinators
  • All 6 zonal coordinators (steering committee members)
  • 6 BOT members
  • Member organizations (in Abuja and outside Abuja)

 

WELCOME ADDRESS

The BOT chairman, Ibrahim Abdullahi Shunni in his welcome remark commended the efforts invested to organise the AGM and encouraged viable participation as it will help chart the end results of the two (2) day meeting. He assured the coalition of the BOT’s commitment in positioning PWYP as one of the strongest network in Nigeria.

 

ADOPTION OF AGM AGENDA

Manuga Dudu observed that the AGM agenda had no heading/title and called for it to be corrected. Thereafter, Aisha Abdullahi (PWYP coordinator – Niger state) moved for the adoption of the Agenda and Dr. Yusuf Arrigasiyyu of Kaduna state seconded the motion.

WELCOME ADDRESS

Mr. Patrick Chiekwe (Acting National Coordinator) in his welcome address noted that the AGM is timely as it will deliberate in resolving issues such as the leadership gap which the coalition is confronted with and enjoin delegates and participants to participate fully.

GOODWILL MESSAGES

The Registrar-General of Corporate Affairs Commission (CAC) represented by Terver Ayua-Jor in his goodwill messages congratulated PWYP on the milestone of its AGM; for championing transparency and accountability in the extractive sector through scrutiny of revenue payments and receipts, tracking and accessibility to such records and publicity and for collaborating and supporting CAC on beneficiary ownership particularly as it relates to registered entities that are in the (or in the process of joining the) extracting natural resources in our environment and other related matters.

Representative of the OGP secretariat in his goodwill message congratulated PWYP on its AGM. He also assured the coalition that the doors of the OGP secretariat are always open for discussions on effective deliveries on the coalition’s mandate.

Rev. David Ugolor, the pioneer national coordinator of PWYP, Nigeria; noted that PWYP Nigeria is a dynamic coalition and showed optimism that the AGM will come up with great achievements and a successful election process.

Demba Seydi, representative of for Anglophone West Africa on the African Steering committee on the Global Council; and the team at the PWYP Secretariat. Demba in a virtual solidarity message, congratulated the Nigerian coalition for the AGM and encouraged all to make valuable contributions towards a successful meeting.

Prior to when she proceeded on her leave, the Director of Members Engagement, PWYP International Secretariat- Stephanie Rochford in an email message, had wished the coalition a successful AGM; and expressed the support of the International Secretariat on the outcome of the AGM.

LECTURE:

THE NEXUS BETWEEN CONTRACT TRANSPARENCY AND THE QUALITY OF LIFE IN NIGERIA – MICHAEL UZOIGWE (EITI COUNTRY MANAGER, ANGLOPHONE AFRICA)

Highlights of this lecture include the following:

  • The lecturer gave a background on data disclosed under the EITI and these include contracts and licenses, revenue collection and allocation, social and economic spending.
  • The value of extractive data includes the fact that it minimizes corruption, promote debate, strengthens tax collection and monitor revenue allocation.
  • Contract transparency involves public disclosure of all the terms and conditions of a contract to the general public such that everyone is able to understand the substance and essence of the contract and monitor the performance of the contract by the contracting parties based on the terms and conditions of the contract.
  • Types of contract agreement include licenses, concessions, production sharing contracts, service contracts and joint ventures.
  • Requirements under the 2019 EITI standard include the fact that contracts and licenses be disclosed regardless of whether they are granted, entered into or amended commencing from January, 2021 and that government policies on disclosure of contracts and licenses that govern exploration and exploitation of oil, gas and other products be documented.
  • Challenges faced in contract transparency include lack of capacity, political commitment.
  • The role of civil society is critical to ensuring that:
  • effective contract transparency is achieved
  • Contract transparency leads to improvement in the quality of life of citizens.

[full lecture available on demand]

 

 RESPONSES FROM PRESENTATION

  • There is a synonym between political will and what we achieve. So, we need to make them understand we can only achieve success if we work together.
  • PWYP needs to build capacity on contract transparency so that we are able to track our achievements because until we have adequate information, we are unable to engage on the issues
  • The issue of contract transparency is not known by communities, we need to have communities on the driver’s seat to engage with IOC’s and the government on contract transparency.
  • Giving the Freedom of information (FOI) Act and Public Procurement Act, companies ought to be proactive in providing information publicly for us to interrogate.
  • The PIB is not clear on the roles of CSO’s and communities in the processes.
  • How do communities and CSOs engage stakeholders and demand accountability on proactive disclosure of contract procurement and terms in their communities.
  • What role is the FOI Act playing in advancing the progress of transparency in extractive sector?
  • What are the processes and networks to reposition PWYP in the extractive sector?
  • Whatever we have to do now, should be done while we await a bigger opportunity to further engage.
  • CSOs should critically analyse existing frameworks, understand the provisions so that we are able to engage adequately and more informatively.

 

 PRESENTATION OF RESEARCH REPORT BY SPACES 4 CHANGE

 Theme: Benefit-sharing Negotiations between Host Communities and Extractive Companies: A Case Study of ANOH Gas Development Project

SETTING THE AGENDA ON PWYP GOVERNANCE

 After much deliberation, it was resolved by the AGM that coalition members individually write and submit their contributions on the agenda setting for PWYP to the rapporteur who will in turn compile and submit same on Day 2 of the AGM.

Mr. Ayodeji Alabi (Kwara state) moved for the adjournment of the meeting and Olabisi Omolona (Ondo state) seconded the motion. With this, day one of the AGM came to a successful close.

 

DAY 2

SETTING THE AGENDA ON PWYP GOVERNANCE

The AGM commenced with a review of the agenda setting as submitted by members and compiled by the secretariat as agreed on the previous day. At the end of the exercise, some items on the agenda were agreed on, some were merged, some were reconstructed and some were set aside for a later time when a constitution committee will be set up to for a draft Constitution.  

READING OF THE LAST AGM MINUTES

The National Secretariat represented by Paul Ogwu noted that for logistics challenges, the minutes of last AGM (2016) was unavailable.

On the above excuse, the AGM resolved that matters arising from the previous AGM which held in Owerri, be carried over to the next AGM.

With that, Oronsaye Harrison (Edo State) moved the motion for the adoption of the above resolution and Godson Jim-Dorgu (Bayelsa State) seconded the motion.

 

ELECTION

Before the election of a new National Coordinator (NC) began, the AGM dissolved the exiting office of the Acting National Coordinator (ANC). Sam Legborsi Pyagbara (Member BOT) moved the motion and Saviour Akpan, Esq. (Akwa Ibom) seconded it.

The contestants for the position of National Coordinator were Dr. Danladi Erisa and Comrade Taiwo Otitolaye.

Election guidelines as read out by the electoral committee and the following resolution were reached by the AGM:

  • Electoral committee members were not allowed to vote and as a result of this, Abba Bello was nominated to vote as a replacement for Hajia Fatima Umar (Kano state) who could not vote because she is a member of the electoral committee.
  • The two contestants were given 10mins each to address the electorates on their manifesto.
  • A mini accreditation was conducted where names of those nominated to vote from each zone was called up and confirmed by their zonal members before they proceeded to cast their votes.
  • North central had eight (8) delegates; North East – seven (7) delegates; North West – eight (8) delegates; South East – six (6) delegates; South South – seven (7) delegates and South West – seven (7) delegates. A total of 43 eligible votes
  • Godson Jim-Dorgu moved a motion for the AGM to adopt the runner up from the election exercise as the deputy coordinator since the contestants are only two and the AGM agreed.

 

The election process was conducted transparently, there were no void votes as all the voter voted in line with the guidelines provided.

At the end of the voting exercise, a total number of forty-three (43) votes was counted.

Comrade Taiwo received twenty – nine (29) votes while Dr. Erisa received fourteen (14) votes.

Comrade Taiwo was declared the winner/National Coordinator, PWYP Nigeria and Dr. Erisa emerged as the Deputy National Coordinator, PWYP Nigeria.

The new national coordinator proceeded to give his acceptance speech and the promise to work together with members and stakeholders.

Ayodeji Alabi (Kwara state) thanked the electoral committee for a job well done. He also moved a motion for the dissolution of the electoral committee and Barr. Kingsley  Anudiobu (Enugu state) seconded the motion.

The Chairman, BOT thanked the dissolved electoral committee for a great job. He also congratulated the National Coordinator elect and the deputy coordinator on the attainment of their new offices and tasks.

 

CORDAID PROJECT

Tony Ayoka gave a breakdown of funds and activities implemented in the project, locations where activities were implemented and the successes recorded and the challenges encountered particularly with the project funder.

A committee was set up by the AGM to work with the past National coordinator on the issues raised and to revert to the house in one Month’s time. A motion was moved to this effect by Saro Legborsi Pyagbara and seconded by Aisha Abdullahi (Niger state).

Nominations for the CORDAID Committees were representatives from each of the six geopolitical zones. Members of the committee are:

  • Elder Ogazi Emeka (South East)
  • Kingsley Ozegbe (South South)
  • Amid Oyegbade  (South West)
  • Bachamma Yusuf  (North East)
  • Ayodeji Alabi (North Central)
  • Dr. Ahmed Hashim (North West)

Chairperson of the committee – Dudu Manuga (BOT North East/ Gombe State)

 

PWYP CONSTITUTION MATTERS

  • It was noted that PWYP was registered with the name “Publish What You Pay International Initiative” as against its generally accepted name “Publish What You Pay Nigeria”.
  • A constitution which was not known and owned by the coalition was presented as part of the requirement in the registration of the contentious name of the coalition at the Corporate Affairs Commission (CAC).
  • Members of the coalition argued strongly that they were yet to see the disputed constitution. As such, it was unanimously rejected. That the said constitution is unacceptable.
  • Sequel to this, the AGM set up a committee to produce a new constitution for PWYP CAMPIGN in Nigeria.
  • The constitution committee is to report in one (1) month beginning from the 6th of August, 2021.

 

Members of the Constitution Committee set up by the AGM are:

  1. Innocent Adjenughure (South South)-Chairperson
  2. Comrade Segun Fatoki (South West)
  3. Comrade Aisha Abdullahi (North Central)
  4. Mallam Shetima (North East)
  5. Kingsley Anidiobu (South East)
  6. Yusuf Arigassiyu (Noth West)
  7. Comrade Bertha Ogbimi (FCT)

 

CLOSING

After a two day in-depth deliberation, the AGM came to a successful end. The meeting was adjourned by Hope Doreen Peter (Benue state) and seconded by Effiom Duke (Cross River state). Dudu Manuga gave a vote of thanks on behalf of the BOT, she thanked participants for their valuable contributions and wished everyone journey mercies back to their respective destinations.

PWYP NATIONAL SECRETARIAT

The Coalition needs a befitting Secretariat for the task ahead.

The new steering committee has no secretariat to work for now. A befitting secretariat is highly necessary for the enormous tasks ahead in the campaign. The secretariat is a contact point and clearing house to engage coalition members, partners and key stakeholders.

PWYP, Nigeria needs to be positioned to play leading role in key issues in the extractive going on in Nigeria and globally.

 

SUCCESS STORY

Despite these challenges, the 2021 PWYP AGM is on record as one of the most successful in the history of the Campaign in Nigeria.

Decisions on preparation, mobilization and participation were anchored by an AGM COMMITTEE whose membership cut across all Nigeria’s six (6) geo political zones under the guidance of the steering committee.

The state and zonal structures, old members, David Ugolor, the pioneer national coordinator were mobilized, CSOs partners, relevant government agencies, EITI Regional representatives, Michael Uzoigwe (PhD) and the media adequately participated.

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Voices from the Mines: The Mining Activities of Ebonyi State, Nigeria

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By

Okezie, Kelechukwu J
Neighbourhood Environment Watch (NEW) Foundation
Abakaliki, Ebonyi state.

Email: okeziekelly@gmail.com

 

Geography: Ebonyi state is one of the states in the southeast of Nigeria. It lies between 703 N longitude, 50 4 E with a landmass approximated at 5.932 Sq.Km. The population of the state by the 2006 census is put at 3 million inhabitants. The state has boundaries in the North with Benue state, in the east with the Cross River, south with Abia state and west with Enugu state.

Mineral Deposits: The state is blessed with rich mineral resources such as Lead, Limestone, Zinc, Marble, Gypsum, granite Quarrying reserves, lignite, coal, salt, copper, kaolin, false gold phosphates etc.
Granite mining / quarrying and lead/zinc are two major solid minerals that are widely mined. Deposits are found in large quantities at Ishiagu in Ivo LGA, Ngbo in Ohaukwu LGA, Ezzainyimagu in izzi LGA, Nkaliki Unuhu and Enyigba in Abakaliki LGA, Umuogharu in Ezza North, Ameka in Ezza South LGA; Agalegu Ameri in Ikwo LGA, Amike Abba in Ebonyi LGA, Akpoha in Afikpo North LGA and Nkalagu in Ishielu LGA. Most of the extractive activities are carried out by mining companies such as Crush Rock industries in Ishiagu, First patriot (Royal Salt) Julius Berger and many others. Artisanal miners compliment the mining sector and counts for over 70% of the extractive activities in the state.

Extraction Process: A prospective site is cleared of vegetation (overburden) and later a hole is drilled deep into the rock and wired with dynamites (in the granite extraction). The dynamites are detonated and the huge granites are broken into manageable lumps, which are thereafter, lifted to vehicles that convey them to the quarrying machines, that further reduces them to sizes needed for road, and other construction purposes. In the case of lead and zinc mining, the investor prospects for the minerals and if located, sends in the machines needed for their extraction. The artisanal miner relies on luck and fortune teller to move in his/her excavator and begin to excavate in the hope of getting the lead and zinc. Family and communal agricultural lands are exploited and degraded in the cause of these extraction activities. Lives are lost, water sources contaminated, air polluted and conflicts promoted to secure authority over a prospective resource rich lands. These extractive activities in most of the communities are uncoordinated with no supervision or requirement for environmental impact assessment. Often times, there are no free, prior and informed consent (FPIC) and provisions of the Community Development Agreement (CDA), where such exists are never respected nor implemented. The resultant effects are degraded and unfertile agricultural lands, communal crises, water, air and land pollution, occupational hazards, deaths, poverty, adverse climatic changes and exotic diseases.

Workforce: Women account for over 80% of the labour force, providing cheap labour and sexually exploited. Widows, pregnant women, children of school age, and out-of-school youths are a common sight in most of extracting and quarrying sites. The men own the sites and have the resources to purchase the materials and equipments needed in the extractive business. Women are most engaged in carrying the lumps sometimes from depths of over 50meters deep and 10 hectares wide to the surface and into the vehicles. Work at the sites start as early as 7.30 am and could last till 6.pm. Dust particulates consisting of silicates and other cancerous minerals are inhaled by these workers and children that accompany them to the sites.

Earnings, Livelihood and Hazards: These groups of workers earn between Four Hundred (400) and Five Hundred Naira (N500) daily, and from this sum, they are expected to fend for their families and meet their health challenges. Most of the women that work at these sites are from polygamous homes where the women are left to fend for themselves and their children. Pregnant mothers and nursing mothers also work at these locations further exposing the health of their unborn child and the under-five olds to skin, lung, and pneumonia infection. They are exposed to such risks as industrial accidents from the pulley machines they operate, drowning from abandoned burrows, noise, dust, and water pollution. They also complain of severe body pains, cough, and constrictions. They aggravate their condition by taking snuff (Tobacco and potash) which they claim helps them to clear the nostrils, chests, and lungs.

Through interviews conducted by N.E.W at the various sites it is obvious that the casual labourers working in these sites do so out of frustrations and lack of meaningful engagements or employment. They are aware of the hazards of their work and could count colleagues who had died from work but do not have viable alternatives due to illiteracy, lack of skill acquisition, and family demands. Owners of the land where the granites are extracted could sell an acre of land for such pittance as N200, 000. There is no policy or institutional protection for these casual workers who suffer and are abandoned to their fate by the government. The few environmental Non-Governmental Organisations working in the state lack the funds and capacity for persistent advocacy for inclusion of this vulnerable group into government programs or to train the workers in skill acquisition enterprises.

Environmental Impacts of the Mining: After the minerals are extracted, there is no fill back or any remediation to restore the lands to previous positions. Trees cut are never replanted. The burrows serve as artificial lakes that drown children, livestock, and the unwary. Many homes suffer from collapsed buildings occasioned by cracks on the walls and on their foundation. In a reported case at Umuogharu, it took the villagers six tedious days to recover a body that got drowned, resulting from unexpected flooding that trapped the workers down the gorge.
At Agelegu Enyum community in Ikwo Local Government Area of the state, it is a tale of woes, of environmental degradation, land grabbing, intimidation, harassment and sexual abuse by a mining company, First Patriot company, formerly known as Royal Salt company. The company continue to pile their overburdens on family and community lands unhindered. The community feels helpless at the emasculation by the company whom they quoted the management of the company as saying that the “weight of their envelop is stronger than the voices of the community members”, which means that they can use their money to drown any voice agitating for their rights.

Poverty: Ebonyi state has a poverty index of over 64% (NBS 2019), the highest in the whole of the southeast. The predominant occupation of the people is subsistent farming. With the coming of civilian democracy, politics offers the next alternatives, and lives are lost in a competitive bid to be in a political position. The rate of poverty remains high in the various communities as the lands are no more fertile for agriculture. The chemicals used in the rock blasting and the particulates of sulfur and silica are carried into the artificial ponds that serve both domestic and livestock use resulting in gastroenteritis diseases.

Lack of Government Presence: Most of the communities, where these extractive activities occur, lack government presence. Water remains a dire need of the people. Boreholes commonly called ‘hernia pump’ serve as the major source of water, yet many of these communities lack these provision or other sources of potable water. Even where the boreholes are provided, the quality is poor that the people revert to the contaminated ponds for use as the mineral deposits underground affect the water quality. Agalegu, Umuogharu, Ezzainyimagu, Ngbo, Ishiagu, Ameka communities to mention a few where these minerals are extracted lack access roads, and health facilities are nonexistent and where they exist, lack basic services. Only tippers, trailers, and project vehicles of strong quality could access some of these areas. Unfulfilled government promises, tax drives and harsh task forces set up by the government are evidence of government existence in these communities. Sometimes, the communities resort to self help resulting in even harsher treatment and reclassifying the youths as members of the proscribed indigenous peoples of Biafra (IPOB) or the Eastern security network (ESN). They are haunted, arrested, killed or disappeared. At Agelegu community, the youths interviewed stated that they do not sleep in their homes anymore for fear of arrest or elimination by the security agents in the state.

However these communities would appreciate any genuine efforts to improve their living standards, provide them with basic social amenities and connect them to government programs.
We conducted interviews with some of the workers at the various sites such as Umuogharu and Agalegu Ikwo and below are the responses as translated by me, Okezie, kelechukwu at the Umuogharu quarry village. That of Agalegu Ikwo will be reported in the next edition.

 

Annex A: Interviews
Interview 1
My name is Precious Igwe. I am 25yrs old. I am a school certificate holder (SS3), working as a labourer at this mining site. I am doing this job because my parents can’t afford to train me further. I can do business if I am given money or if the government can give me employment. This work is tedious and I use to feel pains at the waist, chest, and all over my body. Sometimes I feel cough.

Interview 2
My name is Blessing Alieze. I don’t know my age. I am from Enyim Ukwunbosi village. I have been working here for the past 3yrs. I started this work at 8 am and close by 5.30 pm. I have six children. I cater for them, since the death of my husband. I earn an average of four hundred Naira at the end of the work- assuming there is ‘market’. I always have ‘pepperish’ pains all over my body. To treat myself I visit the Chemist and ask the chemist to mix drugs for me. I have never gone to the hospital for medical attention due to lack of money. I am requesting for assistance. Even in my village, we have no boreholes and so travel long distances to fetch watch from neighbouring community or drink from stagnant ponds call ‘okpuru’.

Interview 3
My name is Chijioke Nwafor. I am 25years. I have worked here for the past 8 years. I dropped out of school due to lack of money from my parents to train me. I dropped in JSS2. We are eight (8) in my family and I am the firstborn. I earn between 400 to 500 naira daily and I use the money to fend for myself alone. I am not doing this work because I want to do it but because I have no other alternative. This is not a work you can use to cater for your family or make a meaningful living. The risks are many. After the work, I feel as if someone is using a hammer on my body. I feel body weakness daily from this work.

Interview 4
My name is Theresa Nwakpa . I am a widow with four children. I am from Ediaji Village. My husband died four years ago. I earn about four hundred Naira daily from this work. My four children are in public school and I train them. One of my children is sick for the past two weeks and I am doing this work to see if I can raise money for her hospital bill. I suffer from heart and chest pains.

Interview 5
My name is Sunday Nwogwu. I carry the stones from the holes to the top and I receive about 500 Naira. I am from Enyim village. We have this solid minerals and it is from this village that major lumps are taken to the sites, yet we do not have even a borehole, a road, or a health facility. We do this work both in the dry and rainy seasons. During the rains, we use an electric motor engine to drain the holes so we can go down and carry out the lasted lumps to the surface and to load them in a waiting tipper. We appeal for assistance to improve our living; we suffer so much from this work.

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OIL AND GAS AND THE QUALITY OF LIFE IN NIGERIA

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BY

COMRADE TAIWO OTITOLAYE
Executive Director,
The Community Outreach for Development and Welfare Advocacy (CODWA)

 

Several researches attest to the fact that Nigeria has the second-largest amount of proved crude oil reserves in Africa, the eight largest among OPEC countries, and the 10th largest in the world. She also has the 8th largest gas reserves in the world. According to the (World Bank, 2019), Nigeria, with a population of about 203 million persons is the largest oil producer in Africa and is one of the world’s top five exporters of Liquefied Natural Gas (LNG). Proved Reserves of Natural Gas in Nigeria was estimated to be 180 Trillion Cubic Feet (TCF) as at 2018

For over six decades, oil and gas has taken the centre state of Nigeria’s economy, relegating to the background agriculture which was the main stay under the Regional government of the 1963 Republican Constituted regions. As at today, the Nigeria’s population is estimated to be 203 million, with one of the largest economies in Africa. But this economy is still vastly reliant on crude oil. oil accounts for over 80% of foreign exchange earnings , and up to 66% of government revenue. However, it contributes less than 10% to Gross Domestic Products (GDP).

The Community Outreach for Development and Welfare Advocacy (CODWA) carried out a dissemination and sensitization campaign in Lagos and Kwara states; situating it within her transparency and accountability program in the extractive sector with diverse groups. These clusters included, professional associations, academia, NGOs, CBOs, FBOs, CAGs, CDAs, political parties, labour centres, women groups, persons with disability, social movements, media, research institutions, government ministries, departments and agencies and student bodies. In all, over seventy organizations participated.

The top question of several decades that has become a recurring enigma is whether oil is a blessing or a curse to Nigeria?

To address this question, CODWA deduction was juxtaposition of several factors premised from the research report, the two interactive sessions held in Lagos and Ilorin and the quality of life in Nigeria. The researchers of the oil and gas and the quality of life in Nigeria highlighted some major manifestations compared with global indicators.

The baseline material for CODWA’s education, promotion and mobilization of key groups and the critical mass in Nigeria to support reforms and transformation in the sector is the result of a study done by two eminent scholars Professor Adeola Adenikinju of the department of Economics, and Centre for Petroleum, Energy and Economic Law of University of Ibadan and his counterpart; Professor Aderoju Oyefusi of the department of Economis, University of Benin..

The report opined that despite sixty years of oil exploration and production and massive inflow of rents occasioned by multiple periods of oil boom, Nigeria remains at the bottom in terms of development. Recent performance rankings place her among countries with low human development with HDI score that is lower than the averages for oil-exporting countries and Sub-Saharan Africa. In spite, of the huge revenues earned from oil exports, estimated at over USD1.5 trillion between 1960 and 2017, Nigeria is ranked the sixth most miserable country on the 2018 Hanke’s Misery Index, behind two other troubled and natural resource rich countries, Venezuela and Zimbabwe.
According to the research report, specific exemplar resultant failures is comparing Nigeria’s global ranking in the table.

This unexplainable misery in the midst of huge revenue from oil and gas can be located in the massive stealing and looting in the sector.  To illustrate, a report by the NNRC states that Nigeria lost about N3.8 trillion to oil theft in 2016 and 2017 and in comparison, the combined allocation for health and education in the two years was N189.4 billion. This translates to a mere 8.4% of the estimated value of losses from oil theft in the two years. Fuel subsidy is a know scam in the public domain in Nigeria. The daily loses is put at N2 billion daily.

While other major oil rich countries are diversifying, Nigeria is losing her earnings to official and unofficial theft. From the 2016 and 2017 example above, more looting continue under the President Muhammadu Buhari government.  Even worrisome is that Nigeria continues to lag behind in energy transition while smaller African countries have joined the Energy transition global trend. She is still entangled in the euphoria of fossil fuels that is fast becoming obsolete and climate change risks.

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Enugu based NGO Trains Artisans on Impact of Oil and Gas in their Businesses

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The Entrepreneurship Initiative for African Youth (member of PWYP Nigeria) organized a one day workshop with support from the Facility for Oil Sector Transformation (FOSTER), for Artisans across South-eastern Nigeria. The meeting which was held at Oakland Hotel, Enugu had 45 participants in attendance. The objective of the meeting was to improve the understanding of the artisans on oil and gas issues and galvanize the voices of artisans across the region to demand for reforms.

The informal sector, comprising of mostly artisans, has shown to be a major employer of labour and also contribute highly to the nation’s GDP. The workshop became pertinent because reports have shown that over reliance of the Nigerian economy on the petroleum sector makes it susceptible to the fluctuations of the international crude oil market.

The workshop was also organized to build a network of Artisans, sensitize and improve their awareness of artisans on how changes in the crude prices are transmitted to their livelihoods. At the workshop three presentations were made; understanding the Nigerian oil and gas sector, the use of public media in building a resilient artisan community and changing the perception of citizens on their involvement in the Nigerian oil and gas sector. These insightful presentations were followed up by a breakout session where the participants were divided into three groups and requested to develop advocacy strategies for engagement with the Federal, State and local governments respectively.

At the end of the workshop, a communiqué was developed and adopted by all the participants. There were also commitments by all the participants and organizers to move the outcomes of the workshop beyond the hotel. In conclusion, all the participants appreciated the organizers and acknowledged that the event had been very enlightening and informative.

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Multi-Stakeholders Meeting On Environmental, Social And Human Rights Impact Assessment Of Nigeria

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REPORT ON

MULTI-STAKEHOLDERS MEETING ON ENVIRONMENTAL, SOCIAL AND HUMAN RIGHTS IMPACT ASSESSMENT OF NIGERIA

_______________________________________________________
ORGANIZED BY

PUBLISH WHAT YOU PAY NIGERIA

______________________________________
SUPPORTED BY CORDAID

ABUJA, NIGERIA
_______________________
APRIL 10, 2019

1. INTRODUCTION

1.1. Theme
Multi-stakeholders meeting on Environmental Social Human Rights Impact Assessment of Nigeria

1.2. Date
April 10th 2019

1.3. Location and Venue
Nigeria Police Officers Mess and Suites, Plot 55, Samuel Ladoke Akintola Boulevard, Garki 11, Abuja.

1.4. Rationale
This is to promote and support a participatory framework for Environmental, Social and Human Rights Impact assessment in Nigeria to help achieve an EIA Policy and Legislative reforms that will promote, protect and remedy Human Rights breaches occurring during extractive operations in Nigeria.

1.5. Objectives
This Consultative meeting had the following objectives.
a. To contribute to efforts of PWYP in advocating for enshrining Environmental Social and Human Rights Impact Assessment in EIA Policies in Nigeria.
b. To engage the relevant stakeholders responsible for enshrining Environmental, Social and Human Rights Impact assessment in EIA Policies in Nigeria and heighten their interest in the inclusion of same in EIA Policies in Nigeria.
c. To elicit commitments and support from relevant stakeholders.

1.6. Methodology
On the basis of the objectives of the Consultative Forum, relevant stakeholders involved in Environment, Social and Human Rights, Petroleum Industry, government and various media houses were invited to dialogue and proffer solutions on enshrining Environmental, Social, and Human Rights on EIA Policies and legal framework in Nigeria.

1.7. Participation
A total of 35 participants were in attendance. This included government agencies like Ministry of Environment, Ministry of Petroleum Resources, Department of Petroleum Resourcing (DPR), NOSDRA, National Human Rights Commission and NNPC. The media, Civil Society Organisations, CORDAID, PWYP Coordinators and staff were also present.

 

2. PROCEEDINGS
 Arrival and Registration of Participants
The Consultative meeting commenced at about 10am with registration of participants.

Introduction of Participants
At the commencement of the Consultative meeting, Mr. Paul Ogwu the Programs Manager, PWYP Nigeria welcomed all in attendance as he introduced Barrister Chima Williams as the moderator of the meeting. Barr Chima Williams called for participants to introduce themselves for all participants to know each other’s name and the organization they represented.

Opening Speech
Mr. Peter Egbule, the National Coordinator of PWYP Nigeria gave the opening speech. In his opening speech, he thanked everyone for coming and encouraged all participants to speak up sincerely during the meeting in the interest of Nigeria. He also noted that having a holistic Impact Assessment policy and framework for Nigeria is necessary towards building a more habitable society.

3. GOODWILL MESSAGES
Mr. Hussaini Ali, the General Manager, Group Health, Safety, Environment and Quality Department of the NNPC gave his goodwill message on behalf of the NNPC. In his goodwill message, he said that this consultative meeting was apt and a welcome development for all participants to look into the aspects of human rights as it affects the activities and projects undertaken in the Oil and Gas industry. He noted that the issue of environmental, social and health impact assessments, which the oil and gas industry routinely uses to evaluate projects and activities basically provides an introduction to human rights and their relevance to the activities of the oil and gas industry, and briefly describes why it is important for the oil and gas industry to consider the impact that its projects and activities have on human rights. He also noted that just recently, during the House of Representatives public hearing on the amendment of Environmental Impact Assessment Bill, NNPC raised some key concerns concerning the amendments. The concerns ranged from the nomenclature of the bill as it concerns DPR and Federal Ministry of Environment and their overlapping functions (multiple regulations and certification), issues of report formats, technical review documentation and non-inclusion of construction of mega stations (land/floating) and retail outlets. All these considerations significantly affect humans and there is need for total consideration of such issues that affects humans in the bill. He concluded his goodwill message by assuring participants that NNPC will support any action towards the protection of human life and preservation of the environment as enshrined in its HSE Policy.

There was also a Goodwill message from Mr. Tolase Olatinwo of CORDAID, as he gave a brief background of the project, CORDAID collaboration with PWYP and he wished all participants a fruitful deliberation.

There were no more goodwill messages as participants from other MDAs declined to give goodwill messages on the grounds that they had no directives from their Ministries.

4. DELIBERATIONS
There were intensive deliberations on Social Human Rights Impact Assessment in the EIA Policy and legal framework in Nigeria. All the major stakeholders represented at the meeting appreciated the opportunity that PWYP provided for a robust discussion with open minds on the challenges faced in the EIA process and what can be done to have a more encompassing EIA process that is in tune with present realities and that is implementation friendly. The following were points noted from the discussions:

4.1 There was an agreement that the ongoing amendment of the EIA act by the NASS presents a very unique opportunity that should be utilized to achieve this objective.
4.2 It was pointed out that collaborative synergies among the key stakeholders will be very essential in this regard, as the various agencies can bring in their individual strengths to bear on the process to achieve desired results.
4.3 Stakeholders agreed that inter agency rivalry is one of the key constraints to an effective EIA process and implementation, and that we should strive for a single EIA process with inputs from all the concerned MDA’s in which their fears are placed on the table, discussed and agreed on to arrive at a win-win situation where no agency feels short-changed or left behind.
4.4 It was also agreed by participants that a situation where implementation of the EIA is dependent on the proponent corporate entity for logistics and funds is not healthy to achieving desired objective. A process must be found in which the process will be driven independent of funds from the proponent entity.
4.5 Participants were of the opinion that the EIA Department of Federal ministry of Environment should be funded and given a budget to facilitate the EIA process in Nigeria rather than the proponent facilitating.
4.6 Participants were also of the opinion that there should be an MoU between the Federal Ministry of Environment and the Department of Petroleum Resources (DPR) in implementation of EIA process just as there is with the Ministry of Mines and Steel Development.
4.7 The need for the Federal Ministry of Environment to review the strategy for the public review of the EIA report, e.g. the use of animations/3-D videos instead of bulky reports, was presented.
4.8 There was an expressed need to engage independent bodies to jointly review the EIA.
4.9 Another suggestion was the idea that the community should be given part-ownership of any project sited in their community. About 5% ownership of the project was muted.
4.10 The addition of Climate Change issues into the advocacy for Social, Human Rights Assessment for sustainability of project and its benefits to the community was also considered.
4.11 There was also the deliberation on how to ensure that projects have sustained EIA, provide jobs, create food security and become all inclusive, in accordance with the Paris agreement of UNFCCC.

 

5. OBSERVATIONS AND RECOMMENDATIONS

The following are observations and recommendations proffered at the end of the meeting:

5.1. Persons with disabilities are excluded in the EIA Process including employment and mitigation. The new EIA Act under review should address this gap and also deal with gender issues.

5.2. It was suggested that a copy of the summarized version of the EIA Reports should be made available to communities where it is conducted. In essence, EIA reports should be sent to the affected communities to get their feedback since it affects them.

5.3. It was agreed that a working group where all the key Ministries, Departments, Agencies, Publish What You Pay (PWYP) and other key stakeholders be put in place to drive the EIA Amendments process and to equally resolve other grey areas of inter MDA collaborations.

5.4. The stakeholders meeting agreed that human rights should be integrated into impact assessment to reduce conflicts with communities and other interests.

5.5. It was established that the National Human Rights Commission should be carried along by relevant stakeholders on issues that are centered on human rights.

6. PERCEPTION SURVEY BY CORDAID

Mr. Tolase Olatinwo of CORDAID conducted a perception survey on the issue. This was an online polling system where participants logged into an online platform where a live survey was taken on issues related to enshrining Environmental Social Human Rights issues into Nigerian EIA Policies and Legal Framework. The online poll gave instant graphical representation of responses from the participants to the survey questions.

7. CONCLUSION

The Multi-stakeholders meeting on Environmental Social Human Rights Impact Assessment in Nigeria came to a conclusion on a very good note as all stakeholders in attendance unanimously agreed that there was a serious need to advocate for enshrining Environmental Social Human Rights issues in the EIA policies and legal framework in Nigeria with each stakeholder agreeing that they will do their best within their organizations to advocate and promote Human Rights issues in their various capacities.

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Optimizing of the Mining value chain through the establishment of Mineral buying Centers in Nigeria

The mining sector is one strategic sector in Nigeria for revenue generation, employment creation and diversification of the economy. The establishment of mining buying centers has the potential of not only reviving the solid mineral sector but also establishing Nigeria as an important Mining destination and mining contribution to the overall sustainability of the Nigeria economy. Buying centers will   also ensure minerals are properly priced and sold. It is said that without effective buying   centers, underground sales had robbed both the local miners and the country of expected financial gains through non-payment of taxes, royalties and other beneficiation from the mining sector in the country.

Nigeria is endowed with abundant mineral resources occurring in over 500 locations spread across the 36 states of the federation and the federal capital territory, Abuja. In Nigeria, the high prospective minerals /metals include the following: metallic which include gold, iron ore, cassiterite, columbite, tantalite, lead-zinc and copper ores, Industrial minerals like Limestone, brayte, Kaolin, dolomite, silica and bentonite & other clays, feldspar, Marble; energy minerals like coal, bitumen, exotic gemstones like sapphire, emerald, Tourmaline, Aquamarine, Garnet, Topaz, Zircon, Amethyst Citrine and Smoky quartz and dimension stones. And also the categorization of some minerals with high economic potentials for further development which includes barytes, lead, Zinc and gold.

The government mining buying centre and the private mining buying centres should be strengthened and all the necessary policy and institutional framework towards the operation and maximization of the benefit of this important value addition process encouraged to ensure optimization of benefit of the sector to all the stakeholders.

Nigeria have more than 93 certified Private mineral buying centers and more than 10 prototype Minerals Buying Centers created by the federal government across the country but these has been largely ineffective and underutilized. With these centers the country would be able to achieve the following; the maximization of profit from the artisanal miners and other stakeholders including the government, control of illegal mining dues, improved profit maximization, provision of the necessary infrastructure and regulatory framework across the value chain, enforcing compliance by mining operators on payment of royalties and mineral revenue.

The buying centers are to serve as standardization centers to enable artisanal and small miners’ cooperatives and operators receive fair premiums for their labour as they concentrate on production. The centers will indirectly ensure the enforcing of compliance by mining operators on payment of royalties, taxes and others on minerals.

The absence of solid mineral buying centers and lapidaries has enabled the flourishing of cartels who engage in illegal sale of minerals and illegal mining of the country’s minerals, with resultant loss of mineral revenue from taxes and royalties. One of the biggest problems we have in mineral exploitation in the country is smuggling. Some of these solid mineral resources were exported and sold back to the country at exorbitant rates and without the government and other stakeholders deriving the needed benefits. It is not good for us to take gold out of Nigeria and get it registered as gold from Niger, Togo or Ghana. The establishment of various mineral buying centers and lapidaries across the relevant zones in the country would be a good one as such step will encourage the artisanal miners to sell minerals in-country and production can be monitored for taxes and royalty collection.

Buying centers should be standardized to reflect the kind of KC process. The Kimberley process was set up in 2003 as a certification scheme to clean up the diamond supply chain and make sure that the diamond trade does not finance armed conflict. The ‘KP’, as the process is known, requires member states to set up an import and export control system for rough diamonds. The buying centres should explore the ideas of the Kimberley process.

To achieve the optimization from the buying center the government needs to do the following; Engagement and communication with all the stakeholders on the benefit of utilizing the buying centers, the establishment and deliberate policy of the government to promote the use of buying centers and thirdly the government should establish a viable policy, infrastructure and regulatory framework that will support the buying centres.

A well-managed and regulated buying Centre will help curb the following loopholes in the mining sector of the economy:

  1. Poor access to markets and support services,
  2. Chronic lack of investment capital,
  3. Low level of consideration for health and safety.

Also the significant negative impact on the environment will be easily traced and monitored.

4. Miners operating without legal mining rights would be easily traced,

5. Gender issues and child labour prevalence curtailed and

6. Conflicts in mining and minerals tracked and sorted out.

Buying centers are essential if the stakeholders will be able to realize the potentials of this sector with all the benefit and interest accruing to the sector.

Paul. O. Ogwu

PWYPNigeria

ogwupaulo@yahoo.com

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SOCIO-ECONOMIC EXPENDITURE OF EXTRACTIVE INDUSTRIES REVENUE AS EFFECTIVE TOOL FOR CITIZENS INVOLVEMENT IN THE EXTRACTIVE SECTOR ACCOUNTABILITY PROCESS: THE CASE OF NIGERIA

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The use of EITI audit on social expenditure and its impact on the citizenry is exemplary as it is one of the genuine ways of measuring the effectiveness of natural resource management. The objective of EITI is to assist member countries in reversing the regime of secrecy and opacity through the periodic audit of the extractive sector and widespread dissemination of the findings of the audit reports, which contains the payments made by extractive companies to the government in form of taxes, royalties, signature bonuses, rents and management of such resources.

Social and economic spending of extractive revenue helps the economic growth and well-being of the citizenry. The resource management no matter how altruistic is about the citizen impact and benefit of the natural resources found in an area. These spending and distribution are from taxes, royalties and payments levied by central, regional and local governments from the extractive companies. The extractive companies often make contributions to regional or local governments, federal communities, non-governmental organizations or other third parties in the areas where they operate and also they contribute to social corporate responsibility (CSR) in where they operate.

Social expenditures can take many forms. They may involve cash payments such as donations, grants or other types of cash transfers, the construction of roads, infrastructure, schools, or the provision of services like training and health care for the host communities. In some cases, these social expenditures are based on legal or contractual obligations entered before the right to explore the resources by the host communities or the government. In addition, the revenue received by the government may be spent providing social services or other needs of the government.

The contribution or lack of contribution helps in building or sustaining some level of social and civic trust within the community and the country. Revenues from natural resources are often more challenging to manage than revenues from other sectors especially some mono economics or economics with weak tax regime. Government revenues may vary as production and prices fluctuate from one year to the other and this hinders planning and sustainability. That is why it not advisable to solely depend on natural resource revenue for most of the country income.

Social spending and impact is also the best way to asserting the level of effective management of the natural resource revenue by the country with natural resources. It is easier to track because it is the basic benefits that citizens can relate with and benefit from. It is equally a lead from the tracking of revenue by the government through another process of the EITI which is revenue reporting by the government. Nigeria NEITI was one of the few counties that first pioneered the social expenditure reporting through the release of the first report on the Fiscal allocation and expenditure report 1999 to 2011 which look at the transfer to the subnational government and other covered entities for some selected states and covered entities. The finding from the report exposed the lack of or poor utilization of the social expenditure from the subnational government ie health, education and human capital development. Even at the national level just like the subnational level, the bulk of the expenditure is spent on the recurrent expenditure which is the payment of salaries and another overhead cost to a small percentage of the population.

It is pathetic even at the national level the countries budget which is funded mostly by the revenue from the extractive especially oil and cas that make up of more than 80% of our national budget. From the budget up to 70% to 75 % fully funded recurrent expenditures of salaries, emolument and overhead cost over the years for less than 2% of the population and 30% hardly funded capital project which the majority of the citizenry benefit from. This loop side nature of the public finance management and expenditure have resulted in the country having an abysmal performance in all the basic measurement of the citizen well-being and benefit from the extractive revenue.

Let us look at the countries abysmal statistics which shows the level of the mismanagement of the little expenditure from natural resources in Nigeria. Nigeria is ranked 152 in 188 ranking on Human Development Indexes (HDI) 2017.It is estimated that the country has about 87 million people out of the estimated 180,000 million est 2016 in abject poverty (less than $1 per day). An out of school children of 13.5 million which is the highest in the world. An infant mortality of 69.8 death per 1000 (2015) and maternity mortality (814 deaths /100000 (2015). The country spends about 3.7% of her GDP in the health sector. In addition, the transparency international rating places Nigeria 148 out of 180 (2017). Nigeria also has a debt to GDP ratio of 21.5% (2017) with a substantial part of the revenue going to debt servicing. The latest “Commitment to Reducing Inequality (CRI)” index released two weeks ago at the annual International Monetary Fund and World Bank (IMF/WB) meeting in Bali, Indonesia, revealed that one in 10 Nigerian children do not reach their fifth birthday. All these show a country that needs to diversify her economy from the extractive sector to be able to have a significant issue in the country’s economy and investment in social welfare.

However, we should all bear in mind that Nigeria is not a rich country when you do a comparative analysis of the production output from oil and gas with some other oil producing countries and the population of Nigeria. Also the country’s GDP and PPP shows the country is still a relatively poor country. Nigeria is ranked 23rd in the world oil reserve per capita, and $ 23,400 which is among the lowest of all major oil producers. The Country needs to diversify the economy with the oil income although this is always affected by the volatility in the oil sector and the shoddiness of the subsidy regime in the downstream sector of the oil and gas sector. If the deregulation of the downstream sector is effectively done this could free up the resource to effectively invest in the social services sector which will, in turn, improve the human development index of the country.

The EITI aim of using the reporting and data from the social and public expenditure can best be effective for the citizenry to hold the different stakeholders accountable. Experience has shown that the most effective tool in citizens questioning the management of natural resource is the EITI report on the Fiscal Allocation and Disbursement report as shown in Nigeria. When the finding is effectively disseminated and the findings and mismanagement tied to the resources, it would have provided the citizenry, even in the remotest of villages, the tool to hold their leaders and public officials accountable. This reduces the incidence of corruption and natural resources revenue mismanagement. This will also ensure that good macroeconomic policy, resource mobilization, social services availability, infrastructure development, and effective stakeholders participation and engagement is uphold.

Paul Ogwu

PWYP Nigeria

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PWYP Engagement with covered entities towards the remediation of NEITI Report Findings

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In a bid to implement the global EITI requirement, NEITI audit reports clearly points out remediation issues that will impact policies, legislation and operational procedures if adequately addressed. PWYP Nigeria believes that if the remediation is adequately addressed, there will be a great improvement in the Nigeria’s Extractive sector. NEITI findings highlight key issues of which some have been since 1999 relating to different agencies and these issues have continually remained in subsequent audit reports, thus the need to adequately carry out advocacy on the remedial issues and engage the stakeholders or companies who have continually showed lapses in the data or operational reports supplied in the audit reports.  This was the basis for the engagement.

Some of these covered entities includes NNPC, DPR, PPPRA, FIRS, NAOC, MOBIL/ESSO, WALTERSMITH, SHELL, SNEPCO, PLATFORM, ORIENTAL ENERGY, PILLAR OIL, NIMASA, and CBN. It is however sad to say that some of these companies or agencies did not turn up for the meeting.


NEITI audit reports, clearly point out remediation issues that will impact policies, legislation, and operational procedures that will check corruption in the extractive sector if adequately implemented.


Over the years, the Nigerian government and the covered entities has shown slow or little compliance to the remedial issues. Civil society, citizens and the media seem to have experimented several ways to bring about remediation but the result has not been very successful. It is to this end that Publish What You Pay Nigeria resorted to engaging some of these covered entities to advocate for remediation of the NEITI Audit reports.

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CSOs media engagement and advocacy to media houses on the PIGBs

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PWYP and other CSOs held a media engagement and advocacy to some media houses in a bid to push for the president to assent to the PIGBs. This advocacy visit was in an effort of Publish What You Pay Nigeria with its partners to increase awareness of the state of the PIBS and the need for the President to assent to the bills which have already taken over 17 years to get to his office.

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PWYP Nigeria Media briefing on the Petroleum Industry Bills

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PWYP Nigeria has organised a media briefing on the Petroleum Industry Bills. The event which took place on the 25th of June 2018 in Abuja was aimed at calling on the President and the National Assembly to expedite action on the PIBs stating the huge economic loss on the economy and consequent effect on transparency in the Oil & Gas Sub-sector of the economy.  Read and download the Press Statement here PWYP Press Statement On The Lingering Passage Of The PIBs (Abuja – June 25, 2018)

Read in Punch
Read in The Authority News
Read in Thisday News
Read in Daily Trust
Read in Independent News
Read in CableNews
Read online news
Read in Vanguard News

 

 

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