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This region is the central point of the oil and gas production

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  • "This region is the central point of the oil and gas production in Nigeria. Hence, it generatesrevenue of 40% of the country?s GDP owing to 606 oil fields which results to 95% of exportand 80% of the government?s revenue. Regardless of the wealth gen..

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  • "This region is the central point of the oil and gas production in Nigeria. Hence, it generatesrevenue of 40% of the country?s GDP owing to 606 oil fields which results to 95% of exportand 80% of the government?s revenue. Regardless of the wealth generated by the region, it isnot excluded of poverty and under development (Imomotimi and Collins, 2014: NDDC,2004).CSR is just one aspect of the issues affecting the Niger Delta, most of the oil companies(Shell, Chevron, Exxon-Mobil, Total etc.) at the centre of this debate will say that they haveappropriate CSR policies in place to address the social issues in the Niger Delta. The issuesare rather complex and reflect socio-cultural and political malaise facing the country. Theregion remains under developed and suffers poverty as successive government come and gowithout addressing the issues of the region.Figure 7 Incidence of poverty in the Niger Delta region (1980 -2015)Country/states 1980 1985 1992 1996 2004 2010 2015Nigeria 28.1 46.3 42.7 65.6 54.4 50.2 70.119.8 52.4 33.9 56.1 Edo(33.09) 25.7 42.5Edo/ Delta Delta(45.35)Cross river 10.2 41.9 45.5 66.9 41.61 32.7 72.5Imo/ Abia 14.4 33.1 49.9 56.2 Abia(22.27) 30.00 50.3Imo(27.39)Ondo 24.9 47.3 46.6 71.6 42.15 25.9 60.2Rivers/ 7.2 44.4 43.4 44.3 Bayelsa(19.98) 40.00 57.3Bayelsa Rivers(29.09)Source: National Bureau of Statistics (2015)6.2.2 THE OIL INDUSTRY IN NIGERIAThe exploration of petroleum in Nigeria began in the year 1957. It has grown to become thelargest sector generating revenue to the government for about 40 years (Gray and Karl, 2003).This sector accounts for about 98% of earnings from exports accruing to the government ofNigeria and about 70% of government expenditure (Udeh, 2002). The sector is operated byoil multinationals and the federal government of Nigeria having the highest stakes via itsnational company named NNPC (Nigerian National Petroleum Corporation). Majority of the country?s exploration and production of oil takes place in the Niger Deltaregion which consists of nine states that include: Akwa ibom, Abia, Bayelsa, Rivers, Crossriver, Edo, Delta, Ondo, and Imo. From the beginning, the oil business has contributed to theanxiety in the region that is now consumed with crisis which is hard to solve (Nannen, 2004).According to Gray and Karl (2003) in arguing that the sector brings conflicts to the nation,they both agreed that oil and other exporters of mineral resources prove the abnormallinkages between misrepresented economic performance, conflict, injustice, and poverty thanany other group in the country. According to those scholars, the sector brings militarisation,oppression, and disrupt democracy and conflicts over oil money providing the excuse for originating conflicts. This has been the case in Nigeria with a long history of exploration ofoil plagued with serious conflicts, control of resources, underdevelopment, degradation ofenvironment and political marginalisation (Nannem, 2004). To examine the role of multinational companies operating in the region, Mokhibor and Fallon(1998) posited that corporate violence and crisis generally are on the increase and they showdevastating threats on the civil society and its environment of operation areas. The situationof Multinational Corporation is even worse at the extractive sectors that are always accusedof recklessness of environment, abuses of human right etc. Pegg (1999) posits that Shell Nigeria has a catalytic impact in bringing the local populationinto disputes with the use of state security service and also being directly involved are notabsent when threats of retaliating is started in case the communities disturb during theproduction of oil. Also, Obi (1997) accepted violent conflict in the region as a cause ofglobalisation caused by the activities of oil companies through the resistance by the oilcommunities. Naanen (1995) studied the similar activity regarding the crisis that revealed the flaws oninternal colonialism system that points the state and oil companies in vertical unequal andrelations that are violent with the oil communities. Human Rights Watch (2002) exposed therole of the companies that produce oil in stirring the amber of violence in communities inwhich they operate in order to cause confusion and violence in the communities so thatattention can be diverted from them and their operations. Etan (1996) posits that the host communities made allegations against the oil companies tocollude with the government to destroy the traditional social and economic lifeline of the oilstates. The primary concern of the host communities is that are yet to establish cordialrelationships with them. These allegations according to the communities of the oil region areaffirmed by the comprehensive and deadly war against the communities of the region and the increase of crisis in the Niger Delta by the oil companies flexing of political, economic, andlegal muscles.According to Oyerinde (1998) exploits the challenge of tendencies of oil MNCs as aninherent feature of the current violence in the oil region.6.2.3 CSR PRACTICES BY PRIVATE SECTOR ORGANISATIONSPossibly an area that has a difference in corporate practice of the petroleum companies is theclaims of involvement with the national state in the abuses of human rights (Emeseh, 2009).These were common during the period that happened after the Ogoni crisis with a significantexample of the massacre of Umuechem in the year 1991. It is not common to find suchreports of collaboration even though the federal government is normally involved in such asrepresented by the Odi and Kaima massacre of 1998 and 2000 (Human Rights Watch, 2003). The most noticeable activity of oil companies in practicing CSR activities includedevelopment of community projects, for example health centres, building of primary schools,water, scholarships etc. in order to reduce underdevelopment and poverty of the region. Oil companies in the region report huge amount they spent on this type of expense, forinstance, Chevron spent $ 130 million in the last ten years (Chevron, 2006). Theoretically,CSR activities of these private companies should address the real social issues in these oilcommunities. Their practices should not be unsustainable where projects would be selected isad hoc, viability of long term projects not built into plans, the oil communities having no realinput, and no real impact seen. CSR activity should be that the local communities be able to participate in making decisionson development of resources in their communities. There is an example in Canada wherebythe local communities are allowed to participate in decision making process of thedevelopment of the mining sector (Matiation, 2002). There are other ways that the localcommunities in which the company operates can participate such as the Environmental "

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