The Ogoni Crisis: A Call for MNCs Responsibility and Accountability
Ioloi Christopoulou, '01

The Ogoni crisis is a case of human rights violations, environmental degradation, government corruption created by the activities of oil multinational corporation (MNCs) in Nigeria.

Nigeria is a country of almost 120 million people, constituting the most populous country in Africa. The population is divided in more than 250 different ethnic groups, on the basis of ethnic, regional, as well as religious differences. The Ogoni are one the 50-100 different linguistic and ethnic groups that form a total population of 6 million in the Niger River Delta Region. The Ogoni form a mere 0.4% of the total Nigerian population with their population rising to 500,000 people. In the rich and biodiverse environment of the Delta Region and in Ogoniland, in particular, Nigeria's natural resources, oil and natural gas, are mostly stored.

The oil exploitation began in 1958 when Shell/Royal Dutch found large quantities of crude oil. Today, Nigeria is an export-oriented economy with oil being the focus of all economic activity. The United States is the country's largest client for oil, buying more than 40% of the country's crude oil production.

Since the exploitation of oil and natural gas is very profitable, it would have been expected that affluence and high living standards would characterize this region. During these past four decades of exploitation of oil, worth $30,000 million, has been produced in Ogoniland. Nigeria is the 5th largest oil producer in the world, yet the people whose land is being used for the exploitation have not received the benefits of the black gold. Their revenue has been degradation of their water and soil resources, pollution, health defects and political suppression and violent reaction by the government. The Ogoni lack access to basic services, clean piped water, electricity, education, infrastructure, road system and health facilities.

Under the leadership of Ken Saro-Wiwa, the Movement for the Survival of the Ogoni People (MOSOP) developed in the early 1990's. MOSOP was a vocal group that demanded the protection of the rights of the Ogoni. A small group of 500,000 people threatened the interests of the Nigerian government and the economic profits of multinational corporations and especially Shell, which ranks first among the most profitable corporations in the world and tenth among the largest ones. Due to the corrupt nature of the Nigerian State, Shell has the power to influence its decisions as well as its acts. By providing it with logistical support, financial assistance and military equipment it guarantees that the violence against the Ogoni continues while its own interests remain unharmed. Shell has caused approximately 4,000 oil spills during its 40 years of operation, yet it claims that it had taken all precautionary measures to guarantee the protection of the environment and the welfare of the indigenous communities. Shell operates in 100 countries, but 40% of all its oil spills have occurred in Nigeria.

Greenpeace launched an international campaign, called "Shell-Shocked: The Environmental and Social Costs of Living with Shell in Nigeria". Oil industry interests, namely Shell Oil profits, are based on environmental degradation of the Ogoniland and abuses of the Ogoni. Human Rights Watch' most recent report on Nigeria, titled "The Price of Oil", provides an exhaustive description of the relationship between human rights violations and the activities of oil companies. Although the Greenpeace campaign has focused on Shell, it is used as an illustration of the activities of other oil companies in Nigeria, as well as an indication of the effects of non-liable corporation activity, on the environment. Similarly, the recommendations of the Human Rights Watch report are very specific. Oil companies should take action to set human rights at the forefront. They should adopt specific policies in support of human rights, ensure that their activities do not constitute violations or abuse of human or environmental rights.

The major international difficulty that this case helps us identify is the question of multinational regulation. MNCs are not inherently evil. In some cases they can prove beneficial. However, the ways most of these corporations choose to act, using double standards, suggests that the malicious and effects and disruptive consequences of these actions will prevail; the environment will continue to be destroyed and human rights will be violated. The international community needs to set standards of corporate responsibility and accountability that will apply to all countries regardless of their political structure and economic prosperity. The establishment of specific guidelines for the conduct of multinational corporations will guarantee fairness in trade, respect for people and protection of our ecosystem

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