*Over collection of revenue from Shell, Elf, others

By Ise-Oluwa Ige

ABUJA – A civil society group, Socio-Economic Rights and Accountability Project (SERAP) has given the Federal Government seven days ultimatum to commence collection of overdue revenue from six multinational oil companies including Shell Petroleum Development Company (SPDC) or face legal action.

The group listed other companies failing to pay revenues to the coffers of the Federal Government as Elf Petroleum Nigeria Ltd; Agip Nigeria PLC; Chevron Oil Nigeria PLC; Total Nigeria PLC; and Exxonmobil Corporation

The group said the alleged failure by the government to “fully collect overdue revenue from the oil companies involved and ensure its transparent and efficient use for infrastructural development and the good of the country was a violation of Section 16 of the Deep Offshore and Inland Basin Production Contracts Act of 1999; the 1999 Nigerian Constitution and Nigeria’s international human rights obligations and commitments.”

In a letter dated 18 October 2009 and signed by Solicitor to SERAP, Mr Femi Falana, and sent to Attorney General of the Federation and Minister of Justice, Mr Michael Kaase AONDOKAA (SAN), the group threatened to “take steps to seek the leave of court for an order of mandamus compelling the government to discharge its responsibility under Section 16 of the Act if the government fails to act within 7 days of the receipt and/or publication of the letter.”

Section 16 (1) of the Act states: The provisions of this decree shall be subject to review to ensure that if the price of crude oil at any time exceeds $20 per barrel, real terms, the share of the government of the federation in the additional revenue shall be adjusted under the Production Sharing Contracts to such extent that the Production Sharing Contracts shall be economically beneficial to the government of the federation.

“Under international law, Nigeria is obligated to use its maximum available resources to achieve economic, social and cultural rights of its citizens. Implicit in this obligation is the responsibility of the government to exercise due diligence in the collection of all due revenue.

The more resources a state has the greater its ability to provide services that guarantee economic, social and cultural rights.