“You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.” ― R. Buckminster Fuller (1885-1983)
DEVELOPMENT of any society is imperative if that society must evolve and that is the sole responsibility of government as the advancement that comes with development is also of high importance to the success of any government.
In Nigeria, and by extension Africa, infrastructural decadence has become the norm as governments over the years have learnt and mastered the act of abandoning projects halfway only to be further abandoned by successive governments.
This situation has continued to hinder the potential greatness of Nigeria, a country naturally endowed with all manner of untapped mineral resources save for crude oil which has become a mainstay for the national economy at the detriment of other natural resources littering the country.
Sadly though, crude oil which has accounted for huge foreign exchange receipts over the years has not translated to infrastructural or economic development thereby creating a huge vacuum, even as the former is known to be crucial to the growth of the latter. The government has literarily failed to make the existing infrastructural model obsolete by replacing them with new ones.
By virtue of crude oil discovery in Nigeria, international oil companies sprang up in the country and over time it became imperative for these companies to fill a part of the vacuum created by government’s inaction over the years via the model popularly known today as Corporate Social Responsibility, CSR.
It is noteworthy that little or no mention has been made about the efforts and contributions of these international oil companies operating in Nigeria to the development of our national economy and wellbeing. The reports that frequently make the headlines are in the negatives and that is understandable due to numerous well known factors.
It is however imperative to also highlight the positive contributions of the IOC’s and what they have been doing quietly over the years, especially those things that have been long abandoned by government.
An exemplary case study, one with almost zero community crises since commencement of its operations in Nigeria is the American oil giant Exxonmobil. Even while it is commendable to note that Shell, Chevron, Total and the rest of them all have robust CSR schemes, but when the government never plays its part as expected, no amount of effort from any individual or group can ever be enough.
ExxonMobil is the world’s largest publicly owned oil and gas company, operating on six continents, and a leader in almost every aspect of the energy business, hence its operations in Nigeria would be met with such international standards befitting only of a company of its size and operations.
In different areas spanning education, health, road infrastructures, rural community development, human capacity development, the company has relentlessly shown commitment to an unparalleled, world class CSR scheme.
Education:
In promoting its educational support programme in the country, the company has spent over N4 billion on the Nigerian National Petroleum Corporation (NNPC)/ Mobil Producing Nigeria (MPN) Joint Venture (JV) undergraduate scholarship which it extended to Nigerian students from all parts of the country, while 50 per cent of this amount or N2 billion went to students from Akwa Ibom state, being the state hosting most of the company’s activities in Nigeria.
Similarly, over N57 million has equally been spent on the NNPC/MPN JV secondary school scholarship targeting indigent students from Akwa Ibom State over the last four years while over N1 billion spent on the provision of the NNPC/Esso Exploration and Production Nigeria Limited (ExxonMobil subsidiary company) international postgraduate scholarship to Nigerian students in the last two decades.
ExxonMobil has preserved a culture of lengthening its undergraduate scholarship scheme, providing opportunity for about 500 Nigerians every year of which over 8000 students have benefitted from that robust plan in the last two decades. In the last seven years, over 200 candidates benefitted from the NNPC/EEPNL national post graduate scholarship to show the company’s strong educational support to the country.
These are just a few mention of what Exxonmobil has done in bringing quality education to many Nigerian children and youths, many of whom may not have had access to education had they been solely dependent on government for education.
The company by its actions has shown it holds the strong view that an educated society is a developed society, and for that singular reason it has continued over the years to invest heavily on national undergraduate and post graduate scholarships with the hope, of course that these ones would one day take charge of the country and ensure things are done properly.
For a company that currently accounts for over 30% of Nigeria’s crude production, thereby becoming the highest crude oil producer and revenue contributor to the nation, Exxonmobil more than other IOC’s have shown commitment to Nigeria, generating well over N1 trillion annual revenue contribution to the federal government of Nigeria since 2010 with little or no furore, and more than N160 billion NDDC contributions since 200. The company inspite of these direct contributions to the national coffers and economy has never relent on its CSR efforts in all its operating communities in the country, with special interest in Akwa Ibom state, its main host.
Social infrastructure Package:
In July 2013, Mobil Producing Nigeria Unlimited, MPN, announced plans to make multi-year social investments in Akwa Ibom State. These investments supplement the company’s regular annual community development projects which are in partnership with its joint venture partner NNPC.
The social investment package funds both short and long-term projects for communities in which MPN operates, as well as other parts of Akwa Ibom State. Total proposed contributions are N24.6 billion.
Short-term projects include contributions for the Eket-Ibeno road reconstruction and community assistance projects in the four communities surrounding MPN’s operations in Qua Iboe Terminal (QIT), as well as nearby coastal communities.
Long-term projects include contributions for proposed projects such as enhancing Ibeno Beach, upgrading the University of Uyo engineering facility, and designing and constructing a trauma center at the University of Uyo Teaching Hospital. The state government already has an implementation committee in place to work with the oil giant on the heels of the initial announcement.
Special Projects II:
Under its special project II arrangement, another major CSR program MPN and its partner NNPC is poised to spend about N24Billion on 384 projects across 8 communities in Akwa Ibom State. It is a social investment across our neighboring communities, specifically Ibeno, Eket, Esit Eket, Onna, Ikot Abasi, Mkpat Enin, Eastern Obolo & Mbo. It is an act of goodwill done in good faith to appreciate the kind gestures of the communities towards MPN. This is addition to another N8 billion as counterpart funding for the dualization of Eket-Ibeno road bringing the total funding package to N32 billion.
Now, this is huge and staggering by any standard, and is worthy of commendation. Also worthy of mention is the quality of projects embarked upon by these IOC’s which always makes one wonder why the government is unable to replicate such quality projects around the country.
Exxonmobil and its JV partner NNPC contributes N320 billion annually to the Akwa ibom state government as ground rent and taxes, as well as over N160 billion to the NDDC since 2001. The JV has contributed over US$210 million to community assistance projects in Akwa Ibom from 2002 – 2014. The company also recruits over 35 percent of its workforce from its host state of Akwa-Ibom. Little wonder the company records little or no community issues over the 50 years period it has operated In Nigeria.
If Exxonmobil is embarking on these mind boggling CSR projects in Akwa Ibom state and other parts of the country, Shell is doing same in Rivers State and other parts of the country, Chevron is doing same in Delta and Ondo state and some parts of the country, while Total also implements same in Rivers state and other parts of the country, Eni’s Agip would also consider doing same in its area of operations this would transform the country in no mean way.
If there are no hindrances and these oil companies are allowed to do as much through their CSR programs the impact would be felt and the projects would last a lifetime. This is surely the way to go if national infrastructural development is still a key booster to the economy especially in a country that does not plan long term, have no regard for basic statistics, and where successive governments have done nothing but failed the people woefully over the past years. A proper and well articulated CSR program as orchestrated by Exxonmobil and other international Oil Companies across the country can surely fill that vacuum as created by years of government’s negligence.
Mr. Adeoye, an industry analyst and Host of the Energie Platform show writes from Houston Texas, USA.
Disclaimer
Comments expressed here do not reflect the opinions of Vanguard newspapers or any employee thereof.