Vanguard (Lagos)

Nigeria: Fashola Seeks International Regulation for Oil Spills

Governor Babatunde Fashola of Lagos State, yesterday decried the failure of oil multinationals operating in developing countries to effectively address issues of environmental degradation, particularly oil spills and pollution, compared to what the BP was forced to pay for cleaning up a recent spill in the Gulf of Mexico.

Fashola, who spoke at the opening session of a two-day Arbitration Regional Conference of the Energy, Environment, Natural Resources and Infrastructure Law, SEERIL, a section of the International Bar Association, IBA, in Lagos, wondered why the price of crude oil is internationally regulated, while efforts at checking environmental problems arising from pollution is not.

His words: "As a coastal state in the Gulf of Guinea, we are following with keen interest the oil spill in the Gulf of Mexico. Of concern to us is the effect of the spill on the ecosystem, threatening hundreds of species of fish, birds and other wildlife along the Gulf Coast as well as several generations of marine-related businesses; small and big.

"The eventual resolution of issues relating to the spill will unavoidably involve the enforcement of rights and obligations between parties and remediation of grievances of which I believe the services of members of this audience would be required.

International regulation for oil spills

"We are concerned about the environmental issues playing out in the Gulf of Mexico. We have seen with this case that the safety measures put in place have failed to protect the environment. If there are international regulation and common practice to determine the price of oil, we should also have a common international practice in fighting oil spills and pollution. Also, the standard we have in protecting communities from oil spills and pollution in the West, should also apply in poor and developing countries."

On the theme of the conference, he said: "Energy and infrastructure, clearly, are critical success factors to the socio-economic development of any society. These sub-sectors of the economy rest on a legal framework, significantly, the allocation of obligations in contracts and other legal documents.

"Naturally, in the performance of these sectors in any economy, disputes will arise. The best way of resolving such disputes, I believe, is in part the reason for this conference."

Attorney-General of the Federation, Ibrahim Adoke, SAN, who was represented by Mr Tunde Busari, commended the issues to be discussed at the conference, adding that Bills to harmonise and reform Alternative Dispute Resolution, ADR, laws in the country would soon be sent to the National Assembly for passage into laws.

Chief Bajo Ojo, SAN, former Attorney-General of the Federation and Minister of Justice, and a co-chair of SEERIL, said: "While it is no longer in doubt that disputes which are always inevitable in business venture dissipate energy, time and money, having a good mechanism to resolve such disputes when they do arise goes a long way to guarantee economic prosperity, which was what informed the holding of this conference in Nigeria."

  • Comment (3)

Copyright © 2010 Vanguard. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica aggregates and indexes content from over 130 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.

Comments Post a comment

  • mingione
    Jun 27 2010, 09:51

    The current crises taking place in the Gulf of Mexico can hardly be seen as an American problem. Once upon a time, there was the voice of someone crying loudly in the wilderness, and when he did, those who were not affected by his complaints laughed loudly and encouraged a Nigerian leader to hang him because those who benefited from the environmental degredation in the Rivers State were quick to classify him as "Enemy of the State". As Jews protested to Pilate to crucify Christ, those who were deriving the most benefit from environmental degradation in Ogoniland and the entire Rivers State which included today's Bayelsa State were equally yelling for Abacha to hang Ken Saro-Wiwa. Infact, the oil companies had both Abacha and his top soldiers on their payroll all, in an attempt to silence these environmental activists.

    What price can BP pay for destroying the environment and the livelihoods of people in the Gulf? Is the issue a matter of dollar attributes, or should we begin now to write legislations to discourage offshore drilling altogether, unless oil companies can demonstrate beyond all reasonable doubts that they are capable of controlling the kind of spillage taking place now in the Gulf of Mexico? Shouldn't our legislators begin now to look into the roles the oil cmpanies are playing by trying to "pass the buck" as we say in the United States, or in other words, transfer their responsibilities to someone else by putting their "rig servicing" obligations to some "off- the- wall" registered company in some unrecognizable "island country" somewhere in the middle of the Pacific with weak Maritime Laws?

    Meanwhile, in the midst of this crises, the head of BP was seen in his yatch vacationing somewhere in the British Isles while the lives of the coastal communities are being shattered. Personally, I would stop all forms of oil drilling in all coastal lands world-wide. It is not enough that these oil companies under-report the quantity of crudes they extract from these rigs so as to avoid paying adequate taxes to the host countries, and for countries like Nigeria where the leaders are for sale. But to not have adequate technology to stop an uncontrollable "gusher" from destroying the environment is an abomination in the highest order. Frankly, oil companies since 1952 have been celebrating Christmas daily in Nigeria. The country had no laws in place to address environmental concerns. Those who became leaders were also vulnerable to a culture of bribery, especially when they realized that it was better to accept the new culture of kleptocracy than to raise an eye brow over something that they thought, would not directly affect them because they lived so far away in the North. Today, even as the chicken has come home to roost, the North still don't get it.

    I am going to put it in another perspective. Due to Global Warming, Lake Chad which used to supply fisheries to the North has now dried up. The oil companies have destroyed the aquatic life in the Rivers State and the entire Niger Delta, and thus destroying the livelihoods of the coastal communities. They are ill prepared to deal with the latent carcinogenic effects of the poisnous fisheries which the coastal communities and the entire nation would soon be facing. This, would not be their concern, as long as they are able to register quadzillions of dollars in quarterly profits, thus satisfying their shareholders expectations. The unfortunate thing is that no one from the Niger Delta can be considered a shareholder in these oil companies. A few shares here and there does not constitute ownership of an oil company because you virtually have no voice in the management of the company. By the way, I am not talking about servicing companies which many local communities think that perhaps they own. These are just european facades dressed as Nigerian companies, and these buffons are happy to tell their fellow Nigerians that they own an oil servicing company when in actual fact, they have no idea what it means to be an oil servicing company.

    For our lawmakers, I would seriously urge you to think Nigeria first before you begin to propose your next legislation for regulating the oil industry. There has got to be a point where you would draw the line in the sand and think of the interest of the future generation of your fellow citizens. It is not enough to amass wealth and destroy the only place you call home. I have difficulty understanding the rationale for excessively acquiring that which you can never take with you when you die. Firstly, the crop of children who grow up today in Nigeria have no real appreciation for continuity. Their main objective is to enjoy the fruits of the hard labour of their parents, and hardly place any value to hard work. These are the Abdul Farouk Mutallab of this world who would gladly seek an easy way out by joining destructive organizations because their foundations are not ground in principle.

    I want to remind our relatives in the North that what happens in the South, East or West would inadvertently affect everybody in the country. It would have been wise to heed the warnings of Ken Saro-Wiwa than to have killed him. Again, what is happening in the Gulf of Mexico is just a precursor of what is yet to happen in the rest of the world unless coastal countries now begin to take seriously the issues of environmental degredation.

  • fuming
    Jun 27 2010, 15:34

    i wqnder who will be held responsible when the spillage is caused by oil bunkers pilfering and how they can determine who is responsible when there are no facilities to check or catch oil bunkering or bunkerers.

  • fuming
    Jun 27 2010, 15:35

    i wqnder who will be held responsible when the spillage is caused by oil bunkers pilfering and how they can determine who is responsible when there are no facilities to check or catch oil bunkering or bunkerers.