CODAF Calls For Greater Transparency In Oil Contracts

The Community Development Advocacy Foundation (CODAF), a non-governmental organization, has emphasized the importance of transparency in contracts between oil companies and host communities to ensure sustainable benefits for local populations.

This message was conveyed during a town hall meeting titled “Addressing Community Grievances on the Cost of Corruption in the Oil and Gas Sector in Isoko, Delta State,” organized by CODAF in partnership with budgiT.

At the meeting held in Ozoro, Isoko North Local Government Area, Council Chairman Mr. Godwin Ogorugba commended CODAF for raising awareness among oil-producing communities about their relationships with oil companies.

Represented by Vice Chairman Mrs. Evelyn Aluta, Ogorugba said, “This advocacy is timely, as corruption has deeply infiltrated our lives. Even in the marketplace, corruption prevails as sellers seek to maximize their profits.”

He continued, “Corruption has led to significant societal decline, particularly in the oil and gas sector. We must ask ourselves who is going to tackle this issue at the grassroots level. It is our responsibility, which makes this advocacy crucial.”

Facilitator Mr. Fred Nowho highlighted the period from 1969 to 2021 as one where governance in the petroleum sector was severely lacking.

He noted that the introduction of the Petroleum Industry Act (PIA) in 2021 established new standards for oil companies involved in exploration and exploitation, setting the stage for improved community relations.

“The goal is to educate communities on knowing their rights and holding companies accountable for any violations,” he explained.

“Unfortunately, many community leaders are unaware of the details within the PIA beyond the sections that address community trust development.

“Without understanding the agreements between oil companies and the federal government, it is impossible to advocate effectively for community interests.”

Ayo Nerfertiti stressed the need for community leaders to take proactive measures against corruption in the oil and gas sector, urging them to hold companies accountable for any breaches.

“We must avoid shortcuts in order to bring about the necessary development our communities require,” he said.

Dr. Mrs. Okiemute Edewor from the Department of Geography and Sustainability at Delta State University also praised CODAF for organizing the informative session.

“What we’ve learned today is crucial; we are no longer interested in the minimal compensation offered by oil companies. Instead, we demand that they fulfill their obligations,” she asserted.

“Let’s unite to fight for a sustainable environment and ensure oil companies meet their responsibilities.”

In response to the proceedings, Prince Asesa Jerry, Vice Chairman of Ellu, expressed gratitude for the insights gained during the meeting.

“This program has illuminated many aspects we were previously unaware of. We now understand how to approach oil companies, empowered by the laws that support us. I appreciate CODAF and the facilitators for bringing this important knowledge to our community.”