The Coalition of Civil Society Organizations (CSOs) has called on President Bola Tinubu and the National Assembly to stop all ongoing and planned divestments of oil assets in the Niger Delta region by oil companies.

This demand was outlined in a petition titled “Urgent Call to Halt All Divestment in the Niger Delta, Including Shell’s Refused Sale of SPDC Shares”, addressed to President Tinubu on December 16, 2024, and Speaker of the House of Representatives, Rep. Tajudeen Abbas on December 18, 2024.

During a press briefing in Abuja, Mr. Isaac Botti, Programmes Coordinator of Social Action Nigeria, and Reverend Nnimmo Bassey, Founder of Health of Mother Earth Foundation (HOMEF), highlighted the severe environmental and social impacts of oil exploration in the Niger Delta. They stated:

“We are here as representatives of Nigerian society organizations, community leaders, and concerned citizens to address a grave and urgent issue that threatens not only the people of the Niger Delta but the environmental and economic interests of Nigeria and the social future of all Nigerians”, he said.

The Coalition expressed concern over the divestment process by International Oil Companies (IOCs), particularly Shell’s proposed sale of its remaining shares in the Shell Petroleum Development Company (SPDC) to the Renaissance consortium, as well as similar moves by companies like TotalEnergies.

They warned that these actions could undermine national interests and exacerbate environmental damage in the region.

The Coalition detailed extensive damage caused by decades of oil exploration, including:

• Water Contamination: High levels of hydrocarbons in water sources have rendered them unsafe for drinking.
• Soil Degradation: Continuous oil spills have destroyed farmlands, threatening food security.
• Biodiversity Loss: Entire ecosystems have been decimated by oil spills.

Citing reports by the United Nations Environment Programme (UNEP) and the Bayelsa State Oil and Environment Commission (BSOEC), the Coalition provided alarming statistics. UNEP revealed benzene levels 900 times above safe limits in Ogoniland, while chromium levels in Bayelsa were over 1,000 times higher than World Health Organization (WHO) standards.

The BSOEC estimated it would cost at least $12 billion to remediate Bayelsa over 12 years, with a broader cleanup across the Niger Delta requiring $100 billion. Comparatively, the Deepwater Horizon oil spill in the U.S. saw BP pay $60 billion for damages from a single incident.

The Coalition emphasized that past divestments by Shell, ENI/AGIP, and ExxonMobil have left unresolved environmental liabilities:

• Shell’s sale to Aiteo in Nembe resulted in worsening pollution without proper cleanup efforts.
• ExxonMobil and ENI/AGIP similarly failed to ensure adequate environmental management post-divestment.

These cases have set a troubling precedent of IOCs avoiding accountability for environmental degradation.

The Coalition urged the federal government and the National Assembly to take immediate action by:

1. Halting all IOC divestments until historical environmental liabilities are addressed.
2. Ensuring inclusive consultations with host communities before divestments.
3. Mandating that Shell, TotalEnergies, and other IOCs fund cleanup and remediation efforts.
4. Upholding the regulatory independence of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
5. Creating an Environmental Restoration Fund to support long-term remediation.

They also demanded profit-sharing opportunities for host communities and the inclusion of gas flaring cessation in divestment agreements.

The Coalition stressed that approving Shell’s SPDC share sale without addressing environmental and social liabilities would undermine Nigeria’s sovereignty and well-being.

“Approving Shell’s or TotalEnergies’ divestment in its current form without addressing the profound environmental and social costs would be a grave injustice to the people of the Niger Delta and could lead to significant unrest in the region.”, it stated.

The Coalition reaffirmed its commitment to ensuring environmental justice and called on President Tinubu and the National Assembly to prioritize the welfare of Nigerians over corporate interests.

The House of Representatives has approved the 2025 budget proposal for a second reading, calling for better funding for security and agriculture.

During Thursday’s plenary, presided over by Speaker Tajudeen Abbas, lawmakers debated the N49.7 trillion budget presented by President Bola Tinubu.

The debate was sequel to the adoption of a motion moved by the House Leader, Rep. Julius Ihonvbere to authorize withdrawals from the Consolidated Revenue Fund.

Rep. Ihonvbere who called for support, emphasised that the budget addresses key national challenges, “This proposal focuses on issues affecting Nigerians. It deserves swift consideration and passage”.

The budget highlighted defence, infrastructure, and human capital development. Defence and security were allocated N4.91 trillion, infrastructure N4.06 trillion for key highways, while education and health sectors received N3.52 trillion and N2.48 trillion respectively. The budget projects N34.82 trillion in revenue, leaving a N13.39 trillion deficit to be financed through borrowing.

Key economic assumptions include reducing inflation from 34.6% to 15% and improving the naira exchange rate from N1,700/$ to N1,500/$. Oil production is targeted at 2.06 million barrels per day.

Lawmakers’ Contributions

Rep Abdussamad Dasuki, lawmaker representing Kebbe/Tambuwal federal constituency of Sokoto state, commended President Tinubu’s leadership but called for a review of budget estimates. He also criticized the allocation to the North-West Development Commission, questioning the criteria used.

“On paper, this budget looks robust, but in dollar terms, it falls short. The Finance Committee must address this,” he urged.

Rep Ismaila Dabo (Bauchi) emphasised the need for adequate funding for agriculture, citing rising food prices. He also urged the government to focus on revenue generation rather than excessive borrowing.

“Inflation on food is unbearable. Agriculture needs proper funding to ease the burden on Nigerians,” he said.

Rep Ahmad Jaha, representing Damboa/Gwoza/Chibok, Federal constituency of Borno state stressed the importance of security funding.

“Security is crucial to achieving other targets, including oil production. The N4.91 trillion allocated is inadequate,” he noted.

Rep Jeremiah Umaru from Nasarawa State,  questioned the allocation to the South-West Development Commission (SWDC), even as he cited the absence of a constituted board and argued that the allocation was premature.

Deputy Chief Whip, Rep. George Ozodinobi advocated increased funding for the South-East Development Commission (SEDC).

“The allocation for the SEDC is insufficient for its take-off. More funding is needed,” he argued.

Concerns Over Projections

Minority Leader, Rep. Kingsley Chinda criticized the economic targets, and said that they are unrealistic.

“Reducing inflation to 15% and improving the exchange rate to N1,500/$ are overly ambitious. These projections do not align with current realities,” he stated.

Call for Peace Initiatives

Rep Chike Okafor from Imo state, urged the Federal Government to explore non-violent solutions to security challenges, including the release of Nnamdi Kanu.

“Releasing Kanu could aid peace efforts in the South-East,” he said.

The House adjourned plenary until January 14, 2025.