Corporate Social responsibility: A Paneacea for sustainable Development in Niger Delta Region of Nigeria

Abstract

Abstract The objective of this study is to investigate the extent to which corporate social responsibility programme of oil and gas companies contribute to the social economic development in Niger Delta region that host oil and gas operations. Several stakeholders, namely Government leaders, community leaders and other members of oil and gas operating communities in Niger Delta are clamouring for a bigger share of revenue deriving from oil and gas operations in their areas in an effort to achieve a level of socio-economic development that is commensurate with the level of petroleum extraction in their areas of operations to reduce resource curse or the paradox of poverty that host oil and gas companies. Meanwhile, the oil companies believe that through their Corporate Social Responsibility programmes CSR, they are significantly contributing to sustainable socio-economic development of the rural communities that host their oil and gas operations. This scenario presents a gap and a conflict which necessitated an investigation into the study. The methodological framework employed in the study is that of literature review and multiple case study of some corporate social responsibility programe of some oil and gas companies. The study finding indicates that there are CSR programme like road construction, borehole water infrastructure, building of school and health facilities and award of scholarships. This entrench the believe in the oil and gas companies that their corporate social investment programme is more than adequate, however, the indigenous people in the host communities feel that these social investments are inadequate. To solve this problem, foster unity and harmony between key stakeholders in the oil and gas communities, the study concluded that a minimum corporate social investment threshold based on percentage of revenue be set and applied uniformly across the petroleum industry in Nigeria. In addition, each oil and gas company should make an annual CSR report to show the attainment of minimum annual corporate social investment. This will remove opacity and enhance transparency, uniformity and predictability in the CSR programme of oil and gas companies in Niger Delta, with the level of socio-economic development reflecting the level of oil and gas endowment and extraction in the petroleum bearing communities.