Unemployment and Restiveness in the Niger Delta: A Catalyst for Change through PIA and NOGICD Acts

Strategic Insights -

Civil society groups in Rivers State have emphasized the potential of the Petroleum Industry Act (PIA) and the Nigerian Oil and Gas Industry Content Development (NOGICD) Act to create jobs and reduce youth restiveness in the Niger Delta. The National Bureau of Statistics (NBS) data for 2023 reveals an unemployment rate of 6.56% in the region, surpassing the national average of 5.4%. Civil society actors have linked the high unemployment figures to incidents of pipeline vandalism and economic sabotage.

Key Takeaways:

  • Constance Meju, Chairman of the Center for Gender Equity and Sustainable Development, attributes the restiveness in the region to environmental degradation, pollution, and the destruction of farmlands and fishing areas, leading to poverty and unemployment among the youth.
  • Henry Eferegbo, Executive Director of the OLEGH Centre for Community Development, emphasizes the need for proper implementation of the PIA and NOGICD Act provisions to create jobs for youths in the region, pointing out that the PIA requires oil companies to contribute 3% of their previous year's operating expenditure to the Host Community Development Trust Fund.
  • Eferegbo notes that some Host Community Development Trusts have funds running into billions of Naira, which can be used to liberalize the system, create opportunities for youths to be skilled, and fund indigenous businesses and overall social development.
  • Emem Okon, Executive Director of Kebetkache Women Development and Resource Centre, stresses the importance of mainstreaming gender in reporting on pollution, oil extraction, environmental degradation, and issues surrounding the PIA and NOGICD Act.
  • Okon highlights the need to involve women, youth, and persons with disabilities in the needs assessment and community development plans, and to create awareness and education for trustees on managing the trusts.

Statistics:

  • Unemployment rate in the Niger Delta region: 6.56% (NBS, 2023)
  • National unemployment rate: 5.4% (NBS, 2023)
  • 3% contribution to Host Community Development Trust Fund by oil companies (PIA)
  • 50% of semi-skilled jobs, 10% of skilled jobs, and 20% of total personnel required for indigenes of the host community (NIGICD Act, 2010)

Sources:

  • National Bureau of Statistics (NBS)
  • Centre for Gender Equity and Sustainable Development
  • OLEGH Centre for Community Development
  • Kebetkache Women Development and Resource Centre
  • Petroleum Industry Act (PIA)
  • Nigerian Oil and Gas Industry Content Development Act (NOGICD Act, 2010)