The Ripple Effect of Women’s Inclusion in Nigeria’s Oil Industry

Bekeme Olowola

Introduction

In Nigeria’s oil-rich regions, the role of women has traditionally been marginalised despite their potential to drive significant societal change. The Petroleum Industry Act (PIA), designed to enhance the governance and developmental benefits of oil resources, offers a promising framework for addressing gender disparities. This article explores the ripple effect of women’s inclusion in Nigeria’s oil industry, leveraging key findings from the PIA Research Report conducted by CSR-in-Action. By examining the impact of empowering women in oil-producing communities, we can understand how their participation leads to broader societal benefits, driving sustainable development and equity.

Background

Nigeria’s oil industry, primarily concentrated in the Niger Delta region, plays a crucial role in the national economy. The states of Akwa Ibom, Delta, and Rivers account for about 90.1% of the country’s total oil production. Despite the wealth generated, these regions face significant challenges, including environmental degradation, economic inequality, and social unrest. Historically, women in these communities have been excluded from decision-making processes, limiting their ability to contribute to and benefit from oil-related development initiatives.

The PIA was enacted in 2021 to address these issues by improving the management of oil resources and ensuring that host communities receive a fair share of the benefits. A critical component of the PIA is the establishment of Host Community Development Trusts (HCDTs), which are designed to fund and execute projects for the sustainable development of oil-producing areas. The PIA emphasises gender inclusion, requiring women’s representation in community committees and decision-making bodies.

Key Findings from the PIA Research Report

Recently, CSR-in-Action initiated research to investigate the implementation of the PIA as concerns the current state of women’s inclusion in Nigeria’s oil-producing communities. The study, conducted in Akwa Ibom, Delta, and Rivers States, utilised a multi-stage sampling method, involving structured questionnaires, Key Informant Interviews (KIIs), and Focus Group Discussions (FGDs).

Key findings include:

•    Low Level of Implementation: 70.6% of respondents reported a low level of implementation of community support provisions as outlined in the PIA.

•    Awareness and Participation: Only 35.7% of respondents indicated the existence of an advisory committee for the HCDT, and a mere 8.0% were members of community committees. Awareness of the PIA was notably low, with only 9% of men and 22% of women in Oleh community, Delta State, being aware of the Act.

•    Women’s Representation: Only 36.2% of respondents reported women’s representation in community committees. The inclusion of women in decision-making processes was minimal, with just 5% of respondents in Oleh community reporting women’s participation in oil company activities.

•    Economic and Social Benefits: In Akwa Ibom State, 28.5% of respondents in Ekpene community experienced positive effects from Mobil, including increased family productivity, income, and improved health conditions. However, in Delta State, the presence of Shell and Chevron had not significantly increased family productivity or income.

Impact of Women’s Inclusion on Society

Empowering women in oil-producing communities has a profound ripple effect, extending beyond individual benefits to foster broader societal change. The PIA Research Report highlights several key areas where women’s inclusion can drive positive outcomes:

1.  Economic Empowerment and Family Productivity: Women’s participation in economic activities and decision-making processes leads to increased family productivity and income. In Akwa Ibom State, for instance, Mobil’s involvement has positively impacted family productivity and income, as reported by 22.5% and 18.0% of respondents, respectively. Empowered women contribute to household financial stability, which in turn supports better education, health, and overall well-being for their families.

2.  Health and Well-being: The inclusion of women in community committees and health initiatives has a direct impact on family health and well-being. In Rivers State, 24.0% of respondents in Buan community reported that Shell had improved maternal health, while 21.0% noted similar contributions from Chevron. Women’s involvement in health-related decision-making ensures that community health needs are adequately addressed, leading to improved maternal and child health outcomes.

3.  Education and Literacy: Educated women are more likely to invest in their children’s education, creating a cycle of improved literacy and educational attainment. In Rivers State, 45.0% of respondents in Buan community affirmed that Shell had improved education and literacy rates. By participating in scholarship committees and educational initiatives, women ensure that more children, especially girls, have access to quality education.

4.  Reduction of Poverty and Hunger: Women’s inclusion in economic activities and decision-making helps reduce extreme hunger and poverty. In Mkpanak community, Akwa Ibom State, 15.0% of respondents reported that Mobil’s presence had led to a reduction in extreme hunger and poverty. Empowered women are better positioned to advocate for and implement sustainable development projects that address food security and economic disparities.

5.  Environmental Stewardship: Women play a crucial role in environmental conservation and management. Their inclusion in community committees ensures that environmental concerns, such as oil spillage and land degradation, are addressed. Despite low representation, women in Ugborodo community, Delta State, have reported involvement in compensation processes for oil spillage, highlighting the need for greater inclusion to enhance environmental stewardship.

Challenges and Barriers

Despite the recognised benefits of women’s inclusion, several challenges and barriers persist:

1.  Cultural and Societal Norms: Traditional gender roles and cultural biases often hinder women’s participation in decision-making processes. In Kwawa community, Rivers State, 80.5% of respondents reported that women were not included in the Host Community Bodies because they were too shy to indicate interest, or were persuaded by their husbands to refrain from pursuing leadership positions.

2.  Lack of Awareness: Awareness of the PIA and its provisions remains low among community members. This lack of awareness hampers the effective implementation of gender-inclusive policies. For example, only 0.5% of the population in Kwawa community, Rivers State, were aware of the Host Community Development Trust (HCDT).

3.  Limited Representation: Women’s representation in community committees and decision-making bodies is still limited. The PIA Research Report indicates that only 36.2% of respondents reported women’s representation in such committees, which restricts their ability to influence community development projects.

4.  Economic Constraints: Economic barriers, including lack of access to resources and financial support, prevent women from fully participating in economic activities and community leadership roles. Addressing these constraints is crucial for enhancing women’s economic empowerment.

Recommendations and Solutions

To maximise the benefits of women’s inclusion in Nigeria’s oil-producing communities, the following recommendations are proposed:

1.  Enhancing Awareness and Education: Implement community awareness campaigns to educate residents about the PIA, the HCDT, and the importance of gender inclusion. Workshops, seminars, and information sessions can help bridge the awareness gap.

2.  Promoting Gender-Inclusive Policies: Ensure strict enforcement of the PIA’s gender inclusion provisions. Oil companies and community leaders must be held accountable for implementing policies that promote women’s participation in decision-making processes.

3.  Supporting Women’s Economic Empowerment: Provide women with access to financial resources, training, and support to engage in economic activities. Microfinance programmes, entrepreneurship training, and vocational education can empower women economically.

4.  Encouraging Cultural Shifts: Address cultural barriers by promoting gender equality and challenging traditional norms that restrict women’s participation. Community dialogues and engagement with traditional leaders can foster a more inclusive environment.

5.  Strengthening Women’s Representation: Increase the number of women in community committees and leadership roles. Quotas and affirmative action policies can ensure that women are adequately represented in decision-making bodies.

Conclusion

The inclusion of women in Nigeria’s oil industry has a significant ripple effect, driving economic, social, and environmental benefits that extend beyond individual communities. By addressing the challenges and barriers to women’s inclusion and implementing targeted recommendations, Nigeria can harness the full potential of its oil industry to drive sustainable development and gender equity. The journey towards a more inclusive and equitable oil sector is essential for the well-being and prosperity of Nigeria’s oil-producing communities.

•Olowola, Chief Executive, CSR-in-Action, and Convener, Sustainability in the Extractive Industries (SITEI) Conference.