Court Judgments and Compensation Drive IOCs' Exit from Nigeria, Says NDDC Chief

International oil companies (IOCs) are divesting from onshore operations in Nigeria not solely due to pipeline attacks, but significantly because of substantial compensation payments following court judgments, according to Samuel Ogbuku, Managing Director of the Niger Delta Development Commission (NDDC).

Ogbuku explained that these multinational firms believe they are losing money due to heavy taxes and the considerable sums awarded as compensation in legal cases brought by communities. "They feel they are spending so much and are operating at a loss," he stated at the NDDC Law and Development Summit in Port Harcourt.

The NDDC chief emphasized the critical role of law in societal progress, drawing parallels with philosophical theories of the social contract. He noted that while laws guide civil society, their application and tailoring to specific societies are crucial, referencing Lockean and Hobbesian philosophies in relation to American and British democratic models.

He also touched upon the complexities of Nigerian law, where various states have their own amendments, particularly to criminal laws. Ogbuku questioned the philosophical foundations of Nigerian law, suggesting a need to integrate various influences. The summit aimed to explore how law can drive sustainable development in the Niger Delta region, a critical issue given the ongoing divestment by IOCs and the subsequent sale of assets to local operators, who may lack the capital for oil production.

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They feel they are spending so much and are operating at a loss.