News

April 22, 2026

Oil-rich communities remain poorest despite decades of extraction — Igbuzor

oil revenue

By Obas Esiedesa, Abuja

Despite generating billions in oil revenues over decades, Nigeria’s oil-producing communities, particularly in the Niger Delta, remain among the poorest and most deprived, a development expert, Dr Otive Igbuzor, has said.

Speaking at the Resource Justice Network (RJN) strategy launch in Abuja, Igbuzor described the situation as a “paradox of wealth and poverty,” where communities that host oil resources bear the brunt of environmental damage but see little benefit from the wealth generated.

He said the country’s extractive economic model has produced “arrested development,” with revenues accruing to governments and elites while living conditions in oil-rich areas continue to deteriorate.

“The places that have oil in the Niger Delta host the poorest people in the region,” he stated, noting that decades of oil production have left communities grappling with pollution, loss of livelihoods, and deep social inequality.

Igbuzor pointed at widespread environmental degradation in the region, including oil spills and gas flaring, which he said have caused severe health risks, reduced agricultural productivity, and destroyed biodiversity.

According to him, these impacts have disproportionately affected local populations who depend on farming and fishing for survival.

He further noted that the exclusion of host communities from decision-making processes in the oil and gas sector has worsened their marginalisation, fuelling grievances and conflict.

“Communities that should have been primary beneficiaries of resource wealth have instead borne the burden of environmental destruction,” he said.

The development expert also pointed to structural governance failures, including weak institutions, corruption, and elite capture, as key drivers of the deprivation in oil-rich regions. He argued that resource wealth in Nigeria has historically been controlled by a few, with minimal ownership or participation from local populations.

Igbuzor warned that Nigeria’s ongoing energy transition could replicate the same pattern of exclusion if deliberate efforts are not made to prioritise equity and justice.

He cautioned against “green extractivism,” where renewable energy projects displace communities or deny them benefits, similar to what has occurred in the fossil fuel sector.

He called for urgent reforms to ensure fair distribution of resource benefits, environmental restoration, and greater inclusion of host communities in governance.

According to him, addressing decades of neglect in the Niger Delta requires more than clean-up efforts; it demands compensation, accountability, and active participation of affected communities in decisions about their resources.

He stressed that unless these injustices are corrected, Nigeria risks continuing a cycle where resource-rich areas remain impoverished despite their contribution to national wealth.

In her remarks, the National Coordinator of Resource Justice Network Nigeria (formerly Publish What You Pay Nigeria), Dr Erisa Danladi, said the continued deprivation of host communities reflects broader failures in managing Nigeria’s natural resources.

Danladi noted that while the country has made progress in promoting transparency through initiatives such as the Nigeria Extractive Industries Transparency Initiative (NEITI), the impact has not sufficiently translated into improved living conditions for communities directly affected by extraction.

She warned that the scope of challenges facing oil-producing and mining communities has expanded beyond revenue issues to include environmental degradation, threats to livelihoods, and shrinking civic space, stressing that these realities demand a broader approach to resource governance.

According to her, communities in oil-producing areas are still bearing the consequences of poorly managed transitions, while weak regulatory systems are exposing mining communities to new risks, further deepening inequality and vulnerability across resource-rich regions.

Also speaking, Director, Policy, Planning and Strategy, Dr Dieta Bassi commended the transition from Publish What You Pay Nigeria to the Resource Justice Network, describing it as a significant step in strengthening advocacy for transparency and accountability in the extractive sector.

Bassey noted that since its launch in 2004, Publish What You Pay Nigeria had played a key role in supporting effective implementation of the Extractive Industries Transparency Initiative (EITI), including contributions to the adoption of the EITI Act and broader governance reforms in the sector.

He added that the coalition has continued to build the capacity of civil society actors, promote public debate on extractive sector governance, and support the dissemination of EITI reports to states and local communities, stressing that the Nigeria Extractive Industries Transparency Initiative would sustain its partnership with the network to deepen civic engagement and accountability in resource utilisation.