Oil sector laws and 3% compensation by the sector

After the law regulating the oil sector and proper distribution of the wealth in Africa, Nwale Nchimaonwi’s hopes were dashed after 20 years.

The Hydrocarbon-rich subsoil of the Niger Delta provides most of the revenues to the country. 

The disapproval of the farmers and activists is lies is because of environmental pollution, poverty, etc.

However, in mid-august, this law failed to provide justice to local communities around there.

The fair compensation amount was 10%, but the local communities are getting paid only 3%. This is far less than of deal.  

Only 3% cannot be helpful to fulfill the lacking behind needs such as cleaning up the leaks, job opportunities, roads, etc. 

For many past years, the Niger Delta has been a matter of discussion, with armed soldiers taking crude Oil from the pipelines, causing kidnappings for ransom and ecological mismanagement. 

After 2009, restoration of calms the production in Nigeria has fallen at considerably amount. 

But the real problem arose in 2016 when the local communities sued the foreign oil communities for compensation. 

Also Read: Rebasing South Africa’s Economy

Almost 3000 leaks of Oil

Recently the Shells compensated $111 million to the Ogoni Community. The compensation was the 1970 spill that infected the waters of fish and 225 hectares of land.

The spill happened in 1967-1970 during the civil war in Nigeria. And the company denies all its responsibility from that spill. 

For the community leader, the money is the source of the people’s smile beside the extensive damages.

Shell operates 57 oil wells before the force withdraws of Anglo-Dutch giant in 1993.

However, the production of Oil is ceased, but the transfer of crude oils is still be done through the pipelines by Shell. 

The oil wells are following the rules of the court very well. However, Ogoni is against resuming production.

During the time of 1976-1991, around two millions barrel of Oil were polluted. 

Saro-Wiwa fought till his last breath for the justice of his people. 

Mr. Nchimaonwi lightens up the flame of unemployment, low opportunities among the youths. 

Milestone for Oil Sector

According to President Muhammadu Buhari’s the new laws of the oil sector will attract more foreign investors to invest in it. Besides the fact that the industry is going through the trouble of insecurity, inefficiency, etc.

And going on the further step will also help the community of Nigeria as well. 

According to Godswill Akpabio, he wants to let people see this as a fantastic opportunity. People are thinking about the percentages. They think about using 3% efficiently, and this is important to change.

Tamaranebi Benjamin is down with the new laws very happily, but he wants to remove the provisions of sabotaging the territories by communities. 

And the elimination of such a province will lead them to final peace. 

Many people are taking 3% compensation as an insult by the sector.

People are going through many problems. They can’t grow fish and crops; they have nothing. And the government and the oil sector are only managing to give only 3%. 

They are saying that they will fight the government for justice and the resources God gives them. 

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