Journal of Economics and Business
ISSN 2615-3726 (Online)
ISSN 2621-5667 (Print)
Published: 31 May 2018
Corporate Investment in Developing Countries and State’s Responsibility in Sustainable Management of Natural Resources
Eni E. Alobo, Adoga J. Adams, Kevin U. Udungeri
University of Calabar, Nigeria
Download Full-Text Pdf
Environmental squalor has continued to create hostile challenges for health and economic development in Nigeria. Some of these glitches include deforestation, pollution, global warming, etc. Despite environmental laws and policies targeted at eradicating these problems, the situation in Nigeria seems deteriorating due to the fact that these laws are not meritoriously enforced. In this article, we have critically evaluated some of the notable laws and regulations governing the oil and gas sector designed to protect the environment against harmful activities. The consequence that flowed from this evaluation is the realisation that despite the efforts of the government in establishing laws and regulations to protect the environment, there have been very little positive results in the area of effective implementation and enforcement of these laws. This we discovered was attributable to the lack of political will on the part of the government and the serious challenge of regulating Multi-National Corporations due to their economic strength and their transnational nature. Again, our appraisal clearly established that although there are laws regulating the oil industry of Nigeria, some of these laws are very old and of no consequence, while others do not have direct control over corporate operations and Multi-National Corporations. This has created regulation and implementation gap and the attendant negative consequences on the Nigerian environment. In this connection, we have elicited and recommended practical solutions to these problems to enable government to strikes the delicate balance between the need to encourage corporate investment and the necessity to protect the environment from the resulting hazards.
ACHPR (1981). Adopted by African Heads of States and government on the 27th of June, and came into force on 21 October 1986.
Acts and Regulations, Department of Petroleum Resources- DPR Nigeria (dpr.gov.ng) Retrieved from: https:// dpr.gov.ng/index/acts-and-regulations/ Retrieved January 11, 2017.
Akpandem, J. (1998). ‘Why OMPADEC May Be Scrapped,' Punch (Lagos), March 4.
Akpotaire, V. (2005) ‘The Nigerian Indigenisation Laws as Disincentives to Foreign Investments: The End of the Era,' Business Law Review 26(3), 62 at 66.
Amos O. E. Anthony O. E, (2012). ‘Can the Economic Community of West African States Community Court of Justice Enforce the African Charter Replicas of the Non-Justiciable Chapter II Human Rights Provisions of the Nigerian Constitution against Nigeria,,' International Human Rights Law Review, 1(2), 312-337.
Bronwen, M. (1999). ‘The Price of Oil: Corporate Responsibility and Human Rights Violation in Nigeria’s Oil Producing Communities. Human Rights Watch, New York. Retrieved from: https://www.hrw.org/reports/1999/nigeria/ (Retrieved December 17, 2017).
Dine, J. (2002). Companies, Trade and Human Rights. Cambridge: Cambridge University Press.
Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC; OJ L275/32.
Earths Rights International, ‘Wiwa v Royal Dutch/Shell’ (Press Release of Earth Rights International) Retrieved from http://www.earthrights.org/legal/wiwa-v-royal-dutchshell Retrieved November 10, 2017)
Edwin, U. (1998). ‘Mobil Covered for Nigeria Spill, ‘Business Insurance, Reuters, January 26. Retrieved from: http://connection.ebscohost.com/c/articles/187821/mobil-covered-nigeria-spill > (Retrieved December 18, 2016).
Elena, B. & Jonah, R.(2011). Globalisation and Natural Resource Law, Challenges, Key Issues, and Perspectives: Edward Elgar Publishing Limited.
Eluka, J et al. (2006). ‘Multinational Corporations and Effects on Nigerian Economy,' European Journal of Business and Management, 8(9), 58 at 59-60.
Emeka, P. A. (2009). ‘Enhancing Environmental Protection and Socio-Economic Development in Africa: A Fresh Look at the Right to a General Satisfactory Environment under the African Charter on Human and Peoples’ Rights Law Environment and Development Journal, 5(1) 60, 61.
Fatona, P. O., Adetayo, O., & Adesanwo, (2015). ‘Environmental Impact Assessment (EIA) Law and Practice in Nigeria: How Far? How Well?’ American Journal of Environmental Policy and Management, 1(1), 11, p.12. Retrieved from: http://www.aascit.org/journal/ajepm (Retrieved October 23, 2017)
Fayaz, A. S. et al. (2012). ‘A Critical Review of Multinational Companies, their Structures and Strategies and their Link with International Human Resource Management.' Sept-Oct, IOSR Journal of Business and Management (IOSRJBM), 3(5) 28.
Fiona, C. B. ( ), ‘Taking Control of Foreign Investment: A Case Study of Indigenisation Policy in Nigeria’ (n 47).
Fiona, C. B. (1991), ‘Taking Control of Foreign Investment: A Case Study of Indigenisation in Nigeria.' The International and Comparative Law Quarterly, 40(2), 302, at 306.
Friday, A. O. (2009), ‘Challenges of Oil and Gas Pipeline Network and the Role of Physical Planners in Nigeria' School of Architecture, Planning, and Landscape, Newcastle University, UK. Retrieved from research.ncl.ac.uk/forum/v10il/3_Friday%20v2.0.pdf
Gabriel, E. (2006). ‘Environmental Costs and Responsibilities Resulting from Oil Exploitation in Developing Countries: The Case of the Niger Delta of Nigeria.' Journal of Business Ethics, 27, 34. DOI 10.1007/s10551-006-9067-8.
Gaines, S. E (1991). The Polluter-Pays principle: From Economic Equity to Environmental Ethos. Tex Int’l L. J. 463, p.468.
Gbadebo, O. O. (2007). ‘Crude Oil and the Nigerian Economic Performance Department of Economics Development Studies, College of Business and Social Sciences, Covenant University, Nigeria. P.4
Halliburton Watch, ‘Halliburton and Nigeria: A Chronology of Key Events in the Unfolding Bribery Scandal,' Retrieved from: Retrieved December 13, 2016)
Jargers, N. (2005). Corporate Human Rights Obligations: In Search of Accountability (Intersentia).
John, D. & Deborah M. (2010). ‘Sustainable Development: From Brundtland to Rio 2012’ International Institute for Sustainable Development (IISD) New York.
John, K. (2002). ‘The Myth and Reality of Transboundary Environmental Impact Assessment. American Journal of International Law, 97, 291 at 295.
Jona, R. (2004) ‘Trading Water: The Human Factor Review of European Community and International Law, Focus on Fresh Water and Wetlands in International Law, 13(4)) P.22.
Ken, K E. (2011). ‘The Legislative and Institutional Framework on Environmental Protection in the Oil and Gas Sector in Nigeria – A Review.' Journal of International Law and Jurisprudence, 2, 39, 44.
Lammers J. (2007). ‘International Responsibility and Liability for Damage Caused by Environmental Interferences- New Developments’ Environmental Policy and Law, 27 (2-3), 107.
Ling, Z. (2015). Is the polluter paying for vessel-source pollution?’ The Hong Kong Polytechnic University, JBL 4. 348.
Menno, K. & Saman, Z.(2000). Liability of Multinational Corporations under International Law. Boston: Kluwer Law International.
Muhammed, T. L. (2012). ‘Review of NESREA Act 2007 and Regulations 2009-2011: A New Dawn in Environmental Compliance and Enforcement in Nigeria’, 2012 8 Law, Environment and Development Journal (LEAD) 116 p.121 Retrieved from: http://www.lead-journal.org/content/12116.pdf (Retrieved October 23, 2017).
National Policy of the Environment, Retrieved from: <http://www.nesrea.gov.ng/policy/index.html> Retrieved from: January 21, 2017.
Nick H. (2002), The Economic Value of Environmental Damage, in Michael Bowman and Alan Boyle, Environmental Damage in International Comparative Law. Oxford University Press 2002.
Nico, S. (1997), Sovereignty over Natural Resources: Balancing Rights and Duties. Cambridge: Cambridge University Press.
Nigeria Launches $1 Billion Ogoni Clean-up and Restoration Programme, (Thu, June 2, 2016). Retrieved from: http://www.unep.org/newscentre/default.aspx?DocumentID=27076&ArticleID=36199 Retrieved January 11, 2017.
Nwilo, P. C. & Badejo, O. T, (2005) ‘Oil Spill Problems and Management in the Niger Delta’ Department of Surveying & Geoinformatics, University of Lagos, Nigeria, P.569. Retrieved from: www.ioscproceedings.org/doi/pdf/10.7901/2169-3358-2005-1-567. (Retrieved October 23, 2017)
Olufemi, O. A (2008). ‘Corporate Social Responsibility, Multinational Corporations and the Law in Nigeria: Controlling Multinationals in Host States., Journal of African Law, (52)1, 94.
Orla, G. & Pereira, R. (2013). ‘Sovereignty over Natural Resources in the 21st Century: Natural Resource Governance and the Right to Self-Determination of Indigenous People under International Law’, 14(2), p.451.
Producing Communities (1999) Human Rights Watch, New York. P.25. Retrieved from: .hrw.org/reports/1999/nigeria/ Retrieved December 17, 2017.
Rhuks, T. A. (2009). ‘Forging Peaceful Relationships Between Oil Companies and Host Communities in Nigeria’s Delta Region: A Stakeholder’s Perspective to Corporate Social Responsibility’ Journal of Enterprising Communities: People and Places in Global Economy, 3(2), 205 at 207
Sarah, K. (1994). Nigeria: The Political Economy of Oil. Oxford: Oxford University Press.
Scott, P.(1970). Petroleum and the Nigerian Economy Stanford: University of California Press.
See Social and Economic Rights Action Centre (SERAC) and another v. Federal Republic of Nigeria, Communication 155/96, Decision of the African Commission on Human and Peoples’ Rights. Retrieved from: http://www.cesr.org/downloads/AfricanCommissionDecision.pdf Retrieved January 12, 2017.
Steyn M. S. (2003), ‘Oil Politics in Ecuador and Nigeria: A Perspective from the Environmental History on the Struggles between Ethnics Minority and the National Government’ (Unpublished Ph.D. Thesis) University the Free State, Bloemfontein, South. Retrieved from: http://scholar.ufs.ac.za:8080/ xmlui/handle/11660/1742 (Retrieved December 17, 2017).
Stockholm 1972- Declaration of the United Nations Conference on the Human Environment. Retrieved from: http://www.unep.org/documents.multilingual/default.asp?documentid=97&articleid=1503 > Retrieved January 11, 2017.
The African Charter on Human and Peoples’ Right (adopted 27 June1981, entered into force 21 October 1986) (1982) 21 ILM 58 (African Charter). Article 21.
The Brundtland Report on Sustainable Development Published by the World Commission on Environment and Development (WCED). Retrieved from: http://www.unece.org/oes/nutshell/2004-2005/focus _sustainable_development.html Retrieved January 12, 2017.
The UNEP Environmental Assessment of Ogoniland. Retrieved from: < http://www.shell.com.ng/sustainability/ environment/unep-environmental-assessment-of-ogoniland/unep-faq.html > January 11, 2017).
The UNEP Environmental Assessment of Ogoniland. Retrieved from: http://www.shell.com.ng/sustainability/ environment/unep-environmental-assessment-of-ogoniland/unep-faq.html January 11, 2017).
Tunde, I. O. (1995). ‘The Shift to the Classical Theory of Foreign Investment: Opening up the Nigerian Market, The International and Comparative Law Quarterly, (44)4, 916.
UNEP Environmental Assessment of Ogoniland p.12, available at: postconflict.unep.ch/publications/ OEA/UNEP_OEA.pdf.
UNEP Ogoniland Oil Assessment Reveals Extent of Environmental Contamination and Threats to Human Health. Available at Retrieved from: http://www.unep.org/newscentre/Default.aspx?DocumentID= 2649&ArticleID=8827 > Retrieved January 11, 2017.
UNEP, The Role of International Organisations in Development of Environmental Law: A Case of UNEP. Retrieved from 2990. Retrieved January 11, 2017.
UNFCC is an International Treaty negotiated at the Rio Summit in 1992 but came into force in 1994. Retrieved from: http://unfcc.int/esential_background/convention/items/6036.php Retrieved December 17, 2017.
UNGA Res 2200A (XXI) 16 December 1966) Common Article 1(2) of the International Covenant on Civil and Political Rights and International Covenant on Economic, Social and Cultural Rights. See also Article 47 of the International Covenant on Civil and Political Rights.
UNGA Res 626(VII) (December 21, 1952) entitled ‘Right to Exploit Natural Wealth and Resources’; UNGA Res 1515 (XV), (15 December, 1960) recommending respect for the sovereignty of every State to dispose of its wealth and natural resources; GA Res 1803 (XVII), (December 1962) declaration on ‘Permanent Sovereignty over Natural Resources’.
United Nations Conference on Environment and Development held in Rio de Janeiro, Brazil (3rd to 14th June 1992) Agenda 21. Earth Summit. Retrieved from http://www.un.org/geninfo/bp/enviro.html Retrieved December 17, 2017.
United Nations Conference on the Human Environment, 15 December 1972, A/RES/2994. U.N. Doc. A/Conf.48/14/Rev.1 (1973).
Van Dessel, J. P. (1995). ‘The Environmental Situation in the Niger Delta,' Nigeria, International Position Paper Prepared for Greenpeace Netherlands, February, section 5.1
Vidal, J. (2011). ‘Shell Accepts Liability for Two Oil Spills in Nigeria’ the Guardian (London 3 August) Retrieved from: http://www.guardian.co.uk/environment/2011/aug/03/shell-liability-oil-spills-nigeria. Retrieved November 17, 2017.
World Bank (1995). ‘Defining an Environmental Development Strategy for the Niger Delta, (May 25th,) P. 46. Retrieved from: http://document.worldbank.org/curated/en/506921468098056629/Annexes Retrieved December 18, 2017).
World Summit (2002). On Sustainable Development (WSSD) and the 2012 Earth Summit. Retrieved from: http:// sustainabledevelopment.un.org/rio20.html Retrieved December 17, 2017.
Yinka, O. (1987). ‘The Legal Framework for the Production of Petroleum in Nigeria.' Journal of Energy and Natural Resources Law. 15, 273 at 274.