Received 17 October 2015; accepted 9 May 2016; published 12 May 2016

ABSTRACT

Notably, the Nigeria Liquefied Natural Gas (NLNG) project is the pioneer Liquefied Natural Gas (LNG) plant in Nigeria, aimed at both the diversification of the petroleum industry and utilization of the vastly flared natural gas resources of the nation. However, large scale energy projects have been known to generate both positive and/or negative impacts. Environmental Management Plans (EMP) have often been the compendium of information on approved mitigations, which normally include activities that could maximize the benefits of the host communities, and it’s not unusual for the Community Development and Corporate Social Responsibility (CDCSR) department of such an organization to be saddled with these contributions. But the activities of Nigeria LNG Ltd.’s CSR department have often been the source of criticism, as well as aspiration for improvement by host communities and other stake holders. This article thus aims to present a comprehensive compendium of NLNG’s CDCSR activities, up to the year 2010, and also highlight the level of satisfaction of the immediate and distant host communities against the level of performance of other donors in the area. Also the arrays of negative socio-economic consequences of the Nigeria LNG Ltd.’s activities were identified based on community perception. The results generally showed that comparatively, NLNG project has made more innovative positive socio-economic and health contributions to its areas of operation than the three tiers of government and other donors (including SPDC and Mobil Producing Nigeria). Surprisingly, agitations against Nigeria LNG Ltd.’s activities have not overshadowed its community development provisions, which have been of major assistance in several communities. There is however a dire need to review several aspects of Nigeria LNG Ltd.’s CDCSR activities, especially in the fulfilment of documented promises, as well as in project conception and community participation, for better completed projects acceptance by indigenous host communities. Conflict management strategies also need to be improved, while the dissatisfaction over benefits in New Finima needs to be urgently addressed.

Keywords:

Socio-Economic Development, Impact, Nigeria Liquefied Natural Gas (LNG) Limited, Niger Delta Area, Bonny Local Government Area

1. Introduction

The economic and environmental implications of the long time uncontrolled gas flaring activities in Nigeria, are serious because the process results in a significant waste of very valuable fuel resources, which invariably, also pollute water, air, and soil on which human populations in the Niger Delta depend [1] . Nigeria still remains one of the most underdeveloped and corrupt countries in the world [2] . Foreign exchange earnings from crude oil sales, currently provides for nearly 80 percent of government revenue, over 90 percent of foreign exchange earnings, and 90 - 95 percent of export earnings.

Notably, more than 75 percent of this petroleum resource is found in the coastal areas of the Niger Delta, which is the largest oil reserve in Africa, as well as the tenth largest in the world [3] . According to the Ministry of Petroleum Resources, there are 150 oil fields and 1481 oil wells in the Niger Delta region [4] . These activities are characterized by large scale gas flaring which have continued for decades, and have been the source of major concern by environmentalists, due to its notable potentials for large scale environmental pollution, climate change and health implications in host communities.

If it is possible one would say, if these flared gases are used, then these problems of environmental pollution and other forms of degradation could arguably be solved. Thus, the need for a gas-using project, from which the host communities of natural gas utilizing projects, and invariably the country at large could equally benefit, arises. Observations by African News Service [5] on crude oil (and invariably gas resources) exploiting companies and the environment are also quite revealing, especially as regards the implications of gas flaring.

The Nigerian Liquefied Natural Gas (LNG) project is thus, strategically designed to utilize the abundant gas resources of the nation, which are paradoxically currently being wasted through decades of flaring, and associated with adverse consequences on the regional and invariably international climates. Thus the existing cleared plant site and residential area on Bonny Island were allocated to Nigeria LNG Ltd. (NLNG). The subsequent on-site activities involved the relocation of Old Finima by the Federal authorities and a purpose-built new town was provided. Relocation to New Finima town took place in 1991, after which the site was leveled and covered with hydraulic fill to raise the site to the correct levels for construction. The relocation of indigenous populations and confiscation of coastal areas, especially known to be breeding grounds for marine species, portends major ecological danger and cultural trauma to man and loss of vital habitat used for centuries by animal species.

All over the world, gas extracting and processing facilities are springing up. The number of LNG projects has even increased [6] , faster than crude oil refineries, as crude oil reserves dwindle across the globe (Tables 1-3). The environmental, socio-economic and health implications are not presently adequately known as is the case of crude oil refineries worldwide. It’s thus of great interest, to know the possible positive and/or negative socio-economic, health and ecological implications of a considerably a large project like the NLNG plant: to know if the impacts of LNG projects differ widely or slightly from those of the traditionally familiar, crude oil exploitation and processing facilities in rural areas? Or if there are strong similarities. However, of importance to this study is the understanding of the mitigation strategies adopted by LNG projects worldwide, and precisely, what have been the experiences in Corporate Social Responsibility (CSR) motivated community development activities by NLNG in Bonny Local Government Area?. What are the negative implications of the NLNG project?. How has NLNG contributed to human health management in the study area.

The construction of the NLNG project includes road building for the project and community uses, as well as the laying of gas transmission pipelines, through relatively undisturbed areas, often open up such areas to secondary

Notes: In Nov 2005, Fugro Survey Pty Ltd. successfully completed the first phase of contract for sub-sea survey work. Subsidiaries of Fluor Corporation have been awarded a contract by RasGas 3 to provide the initial phase of engineering, procurement and construction management services for RasGas’ Common Offplot Project in Qatar. In November, 2005, Peru LNG announced that the project was moving ahead as per the schedule.

Note: LNG peaks having plants and small scale plants serving satellites are not included.

invasions. [7] has pointed out that generally, industries in rural areas have been implicated for the introduction of new population of non-indigenous construction laborers and management staff, may enable the introduction of new land seeking cultivators, immigrants, inflationary trends, new diseases, high crime rate, increased noise level from motorized equipments and other heavy duty vehicles, alcoholism, prostitution, disregard for local culture and dissemination of alien ideas and information. The presence of construction crews and non-indigenous workers may also increase local population which can make high demand on existing infrastructural facilities. Such outcomes are better managed through pre-project environmental Impact Assessment.

Pre-project socio-economic impact studies, especially the baseline data collection by [8] in the Bayelsa and Rivers states areas of the Niger Delta, covering Ogbogolo (Enwhe), Edeoha, Owerewere, Egbebiri (biseni), Ikata, Ula-okobo, Ukpeliede, Akara-Olu, Ula-Ikata, Edeoha, Odiereke-Ubie, Otuokpoti, Akinma, Oyigba, Okogbe, Ozochi, Ibelebiri, Aminigboko, Akala-mini, Ihuowo, Ebrass,Oruama, Oshika, Azikoro/Yenagoa, Oruama, Odau, Egunughau, Azikoro, Oruma, Edagbeni/Betterland, Akara-Olu, Ogoda, Biseni, Ula-Ikatu, Obedum, Odhiougbokor, Ozochi, Ubeta, Idu, Alaokobo, Idu Ekpeye etc. has been of significant importance in the proactive assessment of the possible negative and/or positive consequences of a few trains and nodes of the Integrated Oil and Gas Project (IOGP) in the volatile Niger Delta area of Nigeria. This report by [8] contributed largely in the emergence of the Environmental Impact Assessment Final Report by [9] .

The transportation, processing and distribution of NLNG raw materials and finished products are thus, most likely to generate beneficial and/or non-beneficial socio-economic activities in the immediate host and distance communities. The case of commercial logging crews for instance, may not be directly similar to the pioneering, NLNG project construction, but both however, have operational crews and focuses on the exploitation of natural resources in rural and relatively isolated communities. The likes of [7] [10] [11] have concluded that industries depending on natural resources and operating in rural areas have the potentials of affecting the environment and rural households’ livelihood and other socio-economic activities, negative and/or positively.

One of the strategies for overcoming resentments emanating from resource utilization resulting in environmental degradation is the amelioration of the negative consequences through what is now commonly known as “Corporate Social Responsibility (CSR)”. This invariably is founded and guided by the outcome of the Environmental Management Plan (EMP).

2. Corporate Social Responsibility (CRS) Concept in Petroleum Resources Development and Management

Corporate Social Responsibility (CSR), also referred to as Corporate Conscience (CC), Corporate Citizenship (CC), Social Performance (SP), or Sustainable Responsible Business (SRB) is describable as a form of corporate self-regulation, which is integrated into a business model. CSR policy functions is a corporate built-in, self-regulating system through which business monitors and ensures that it actively comply with the stipulated laws, ethical standards, as well as international norms. The main objective of CSR is to enhance responsibility for the company’s activities in the host communities and promote desirable impacts of the activities in the environment. It’s also vital for moderating the effects of negative impacts on consumers, employees, host communities, including other stakeholders [12] .

Also, CSR-focused businesses are devoted to encourage public interest by encouraging community prosperity and development, while strategically discouraging such outcomes which are detrimental to the public, irrespective of legality or justifiability. CSR is thus better perceived as the strategically planned incorporation of the consequences of corporate activities on the public into corporate decision-making, based on a tripartite effort to consider the wellbeing of the people, the earth planet, and profit accruing to the company [12] .

3. Study Area

The study area is Bonny Local Government Area (L.G.A) (which covers the whole of Bonny Island and mainland area) and is located about 40 kilometers to the south-eastern part of Port Harcourt, which is the state capital. Bonny Island (which is a major study focus area) is located on the outer southern section of the Niger Delta complex. It’s a trapezoid shaped landmass with the following co-ordinates: Northwestward Latitude 4˚33'N and Longitude 7˚08'E: North eastward Latitude 4˚30'N and Longitude 7˚20'E: Southwestward Latitude 4˚22'N and Longitude 7˚20'E; Southwestward Latitude 4˚22'N and Longitude 7˚08'E [13] . Bonny L.G.A comprises of Bonny Island and the outlying mainland areas around it.

Bonny Island is mostly surrounded by the Atlantic Ocean and has a population of about 170,000 people. Figure 1 presents a map of Rivers State, showing Bonny LGA), while Figure 2 shows the map of Bonny Island, (including the outlying lands, adding together to form the local government area). The considered communities for study include Finima, Banigo, Greens, Jumbo, Peterside, Epelema, Dema, Fibiri, Kalibiama, Oloma, Bonny, Iyoba, Kruma, Abalamabie, Banigo Akiama, Peterside, Borokiri and Borokiri.

Population and Socio-Economic Activities

The socio-economic activity is largely extractive. The indigenous population depends on fishing for their subsistence, but also engages in small-scale agriculture by cultivating some domestic crops such as cassava, yam, coconut and plantain. The discovery of oil and gas has helped to diversify the socio-economic activities of the people and improved the economic and administrative importance of the island.

There are now civil servants that work in local government offices and administrative as well as management level employees and laborers who are employed to work in Natural Gas Processing Plant (NGPP) on Bonny Island. The influx of workers for the Base and Expansion projects construction and associated traders and service workers placed pressure on accommodation and services on Bonny Island.

The population of Bonny is difficult to determine as there are numerous estimates. It was put at 67,254 persons, while the population of Rivers state was established in the 2006 census at 5.2 million. For crude oil and natural gas exploitation respectively Shell Petroleum Development Company (SPDC) and Nigeria LNG Limited became major players, and to a lesser extent, Mobil Nigerian Producing Unlimited (MNP) [14] .

The main population Centre on Bonny Island is Bonny Town some 5 km from the NLNG plant site. Based on another estimate (1991 Census), Bonny Town, New Finima and Bonny Local Government Area (LGA) as a whole had populations of 22,989, 5,590 and 76,124 people, respectively. Bonny Town alone accounted for about 30% of the LGA’s population, while Finima contributed about 7.3%) [14] .

At the peak of NLNG’s Base project construction in 1998-9, over 17,500 construction workers (excluding dependants) were present on Bonny Island. With the influence of NLNG and other companies, it is likely that Bonny Town and New Finima, now account for higher proportions of the LGA’s population [14] . Notably [13] has also indicated that based on the 1991 census the estimated population of Bonny L.G.A was 76,412 persons.

4. Methods

Both primary and secondary data were utilized for this study. The survey research method was adopted, in obtaining primary data from the communities. Visits and study exercises were carefully planned due to the water logged terrain and remote nature of some communities. Primary data were collected using open ended questionnaire, Checklists, Focused Group Discussions (FGDs) and Key Informant Interviews (KIIs). Secondary data were collected mainly from NLNG publications. Transect Walks (TWs) and Participatory Transects (PTs) were also used. Data were collected from communities listed in the sample framework in Table 4. This study is largely based on the review of related literature and on data presented in literature, including Nigeria LNG Ltd. publications [15] - [21] .

5. Results and Discussions

5.1. Developmental Programmes by NLNG

The available literature, published data, participatory transect walks (PTWs), key informant interviews (KIIs) and focused group discussion FGDs) shows that the Nigeria LNG Ltd. has provided several socio-economic development programmes, and constructed several physical infrastructures. Some example of such programs provided include the following:-. Bonny Educational Endowment Fund (BEEF), The Nigeria Prizes for Science and Literature, Bonny Vocational Center and Educational Programmes (Table 5: shows the courses available at the Bonny Vocational Center), Youth Empowerment Scheme (YES), Micro-Finance Scheme/Thrift and Loan schemes by NLNG project, (vi) Business Development/Advisory Support Services, Bonny Utilities Company (GUC), Right of Way Maintenance Contract for community members, Nigeria LNG Limited’s Direct employment, Taxes and Duties to Government, Other infrastructural facilities provided by the NLNG and some by Joint Industry Companies (JIC).

There are a number of projects claimed to have been provided by the NLNG project, from which the host communities of the project have benefitted. .Some of these includes specific community projects provided singularly by NLNG and some in collaboration with the Joint Industry Companies (JIC), comprising of NLNG, SPDC and Mobil. Tables 6-11, present specific community projects accompanying each stages of the NLNG project.

The roles of the Nigeria LNG Limited in Public Health Management (PHM) appear to be diverse. For instance [22] and [23] have highlighted the contributions of the Nigeria LNG Limited to health development as part of its corporate responsibility programmes in the operational areas, including administration of the pharmaceutical drug “Combantrin” for deworming and provision of an Electrocardiogram (ECG) Machine respectively. [22] also noted that “referral cases from Bonny General Hospital to other secondary and tertiary health centres in Port Harcourt will reduce considerably, with the donation of an electrocardiogram (ECG) machine to the hospital by the NLNG Residential Area Ladies Association”.

[23] reported the involvement of the NLNG Limited in the deworming of over two hundred pupils of public schools in Rumiji, Rivers states, Nigeria. The once in every three months deworming activity is part of the NLNG’s Deworming Programme (NLNG-DP). Some of the hosts and pipeline communities which have benefitted include Bonny and part of Ogbo in Ahoada East Local Government Area of Ekpeye Kingdom, as well as Ogba, Kalabari and Emohua communities. The deworming activities were carried out in collaboration with Neimeth Pharmaceuticals, Lagos, Rivers State Health Ministry, Local Government and Community Health Officials.

Table 12 highlights the contributions of Nigeria LNG Limited to HIV/AIDS prevention and management [20] . Other contributions include the implementation of a study of knowledge, attitude and practice; training of Health Peer Educators (HPEs) who are reservoirs and promulgators of social knowledge; Carried out campaigns aimed at influencing various groups on health related issues; established Youth Against AIDS Clubs in secondary schools; and campaigns to improve public acceptance and interpersonal relationship with persons living with AIDS.

Plate 1 shows socio-economic contributions of the Nigeria LNG Ltd. in Bonny Local Government Area. Also, the Nigeria LNG Ltd. for years has provided, medium sized ferries to transport indigenes/non-indigenes of host communities from Bonny Island to Port Harcourt at least twice each week for free, while at the inception of the NLNG planning, selected community opinion leaders were flown overseas to experience the likely developmental activities that could be triggered off by an LNG project in their communities. Table 13 presents the comparative communities ranking based on level of satisfaction on socio-economic development in the Sampled Communities.

Table 14 conveys respondents’ perception of the level of contribution of institutions and individual donors to

(a) (b)

(c) (d)

Plate 1. Socio-economic development contributions of Nigeria LNG limited to host communities. (a) The old primary school building for lighthouse community (field work); (b) The new primary school building being constructed by NLNG residential area women association for lighthouse community (fieldwork); (c) Nigeria LNG residential area ladies making donations of plasma televisions and other vital medical items to the bonny general hospital, bonny town [18] ; (d) A section of almost all female students receiving catering instructions from a trainer at the bonny vocational training school [18] .

socio-economic development in the study area. Notably NLNG project faired better than all other potential providers.

It appears that SPDC and Mobil Producing Nigeria have wider areas of operation in the Niger Delta areas than Nigeria LNG Ltd. Consequently, it appears that the Nigeria LNG Ltd. has been able to focus largely at the not so equally widespread host and gas pipelines traversed communities in its community development activities.

5.2. Other Positive Consequences

Traverse walks within communities showed that in New Finima Community, the Nigeria LNG Ltd. provided a Sports Arena, Traditional ruler’s palace, Burial ground fencing and gate, Bakery for women, one orthodox Church building and one Cherubim and Seraphim Aladura (white garment) Church building, a town hall provided by TSJK (Contractors to NLNG) as well as roads and New Finima Traditional ruler’s palace. Some respondents, indicated that Nigeria LNG Ltd. paid and facilitated the exhumation and relocation of Finima Community traditional rulers’ buried remains, from Old Finima to the New Finima burial site, where presently, the new graves could be seen, during this study.

In Bonny town, these include schools, extension of Bonny King’s palace, Big Market and so on. Also the NLNG has provided assistance in the area of medical buildings and facilities provision, as well as direct employment and regular payment of relevant personnel. During the NLNG project base project construction Nigeria LNG Ltd. disbursed financial incentives to school teachers to discourage them from abandoning the class rooms in order to work as laborers, for the purpose of earning “extra” incomes [24] .

5.3. Negative Consequences of NLNG Activities

The relocation of the indigenous people of Old Finima (traditionally living by the water side), and which initially populated the present site of the NLNG plant, has cultural implications. Focused Group Discussions (FGDs) and Key Informant Interviews (KIIs), especially within New Finima, revealed a high sense of loss, characterized by “a forced deprivation of contact with a “Sense of Well-being” and “Not dwelling within the traditional sphere of historical atmosphere” as summarized by a respondent. Table 15: presents data collected, based on respondents’ perception of pattern of negative consequences of the NLNG project, right from the NLNG Base project construction stage in 1993 to the last train construction on the household members in Bonny LGA.

Focus Group Discussions and Key Informant Interviews also indicated that efforts, to provide replacement residential buildings to families, now in New Finima by Nigerian National Petroleum Corporation (NNPC) on behalf of NLNG, which are structurally better than those originally at Old Finima, and evidently have better

household facilities, has not been able to stem the sense of loss felt by the indigenous Old Finima population. Such dissatisfaction has been aggravated, recently by the non-direct payment of royalties from NLNG to New Finima Communities, as well as other unfulfilled mitigation promises and the plan to actualize the forced payment for electricity. However, study also revealed that, rather than taking advantage of the hitherto free electricity supply, many youths prefer to waste the energy on air-conditioner units, usually in dilapidated makeshift houses locally called “Basha houses”.

Also, the interview sessions during the study revealed that the presence of NLNG, as well as other petroleum development multinational companies, including Mobil and S.P.D.C has resulted in unprecedented agitations, civil disobedience and community protests, communities land seizure, police and military incursions and interventions, environmental pollution (even NLNG releases unused gases from about three to four towering and noticeable columns and also generate solid wastes, in its liquefaction activities), and explosive increase in non-in- digenous population .

Oral interviews and transect walks, during which observations were made in various sessions, further indicated that the NLNG residential area (RA) and other residential areas own by other multinationals are in contrast to the pathetic conditions under which the indigenous population of the host communities live, and from where the low income labor forces for the multinational companies come from. The presence, of such well-planned oil and gas companies Residential Areas (RA), with uninterrupted electricity and water supplies has created “Aesthetic Islands”, which in the views of the indigenes are almost “Utopian Settlements” in the middle of “No Where”.

Other negative implications observed and corroborated through focused group interviews include the emergence of high inflation level, increase in prostitution and prevalent use of alcohol, HIV/AIDS prevalence, induced and self-imposed distraction by women from matrimonial fidelity, as well as disregards for indigenous culture, norms and values, which were frequently mentioned by host community members. The existence of other energy resources exploiting multinationals and crude oil development company servicing firms has made associating, almost all of these negative outcomes, for instance prostitution and inflation, with one particular organization operating in the study area OUTRIGHTLY IMPOSSIBLE.

The elderly male respondents interviewed, also complained about neglect, since more confrontational youths, and especially younger women, have been major recipients of developmental benefits from Nigeria LNG Ltd. and other donors in the study area. In many communities studied by [7] and to a high extent in this study, male and female youths often advocate for higher education, employment and vocational training; married women for vocational training and a degree of financial independence, as well as hospitals/medical centres, especially maternity medical facilities. Elderly men have paradoxically usually requested for town halls. Perhaps out of concern for ceremonial activities hosting, such as weddings of their children, chieftaincy titles confirmation, burial ceremonies, grand receptions, society, club and political meetings. There however is high desire for increased post-retirement income and education of offsprings observed in this study.

6. Conclusions

Given that the NLNG project is the pioneer LNG project in the country, an in-depth understanding of its hindsight multi-dimensional impact, become rationally mandatory. Literature is saturated with pre-project (proactive) impact assessment reports on the NLNG project and sparsely on retrospective impact findings. The need to assess the retrospective benefits and demerits of the NLNG project, has suggested the execution of this study. This analytical effort is aimed at examining the socio-economic contributions of the natural gas liquefaction project on Bonny Island on its host communities, and others distant relevant communities, including those through which the feeder gas pipes traverse.

The study examined the Nigeria LNG Ltd.’s CDCSR activities up to the year 2010. This focused largely at the comparative provision of infrastructures and programmes, by Nigeria LNG Ltd. and other donors. The outcome of this study includes the identification of positive and negative impacts of the project in the study. The research also involved a comparative assessment of the level of satisfaction of the immediate host and distant communities, with NLNG’s community development provisions, against the background of the level of performance of other donors, in the study area. The contribution to health management and administration of pharmaceutical preparation for deworming was also identified.

The study revealed that comparatively, NLNG project has made much more innovative positive socio-eco- nomic contributions to the study area, than the three tiers of government and other donors. Interviews of respondents indicated inadequacy of benefits from all the multinational donors, since there were multiple unfulfilled promises. However, Nigeria LNG Ltd. was ranked highest among the donors, based on its comparative performance, despite the desire of host communities for more accruing benefits.

Surprisingly, agitations against the CDCSR activities of Nigeria LNG Ltd. have not overshadowed its developmental provisions especially in the educational, health and physical development sectors. There are concerns about the close-door strategies of energy project proponents, including NLNG, SPDC and Mobil to information dissemination on its environmental management and compliance activities in the Bonny LGA, and especially the whole of the Niger Delta Area of Nigeria. Consequently, there is a dire need to review several aspects of Nigeria LNG Project Ltd.’s community development activities, especially in the area of more participatory project conception and community consultation, for better acceptance of programmes and projects by indigenous host communities. The participatory appraisal methods adopted revealed the need for improvement of benefits accruing to elderly persons in the host and pipeline communities.

7. Recommendations

In other to solve the various, developmental problems in the study area, the following recommendations are made:

1) Host community members should be increasingly involved in participatory infrastructural project selection and execution.

2) The employment of qualified indigenes should be encouraged to promote level of participation in decision making, within the Nigeria LNG Ltd’s mechanism.

3) More productive dialogue and more effective conflict resolution systems should be evolved.

4) Nigeria LNG Ltd. should create adequate complaint communication and feedback channels with host communities.

5) There should be greater efforts to adhere to the Environmental Management Plan (EMP) which is a stand- alone document detached from the Environmental Impact Statement, and meant to mitigate impact in multidimensional ways.

Cite this paper

Oluyemi Ayorinde Akintoye,Abiodun Komomo Eyong,Peter Okpe Agada,Opaminola Nicholas Digha,Okibe James Okibe, (2016) Socio-Economic Implication of Nigeria Liquefied Natural Gas (NLNG) Project in Bonny Local Government Area, Rivers State, Nigeria. Journal of Geoscience and Environment Protection,04,63-79. doi: 10.4236/gep.2016.45007

References