SPECIAL REPORT:
How Shell’s Robust CSR Initiatives Give Succour To Nigerians
By Sulaimon Salau
CORPORATESocial Responsibility (CSR) appears to be yielding positive results with the Shell Petroleum Development Company (SPDC) increasingly investing in Nigerians to improve their means of livelihood.
In the last two years, the oil multinational has invested massively in various areas of human spheres to improve the well being of its host communities and the citizenry as a whole.
Latest statistics obtained by SlyeNews revealed that the Shell Petroleum Development Company Joint Venture (SPDC JV), Shell Nigeria Exploration and Production Company (SNEPCo) and Shell Nigeria Gas (SNG) have spent $49.4 million in 2020 and another $33.8 million in 2021 on direct social investment.
Scores of Nigerians who have benefitted from the CSR projects have testified to the live changing experience during their encounter with Shell CSR initiatives.
The major international oil company is one of the firms that have deeply impacted on Nigerians through various schemes. The latest is the on-going weeklong free eye care tagged: “Vision First Initiative” in Lagos.
Country Chair of Shell Companies in Nigeria, Osagie Okunbor, said for more than 60 years, Shell has invested in Nigeria’s economy and the Nigerian people.
He said: “The highest concentration of direct social investment in 2021 within the group was made in Nigeria. As a development partner with a strong belief in Nigeria, we will continue to support the country’s aspirations towards achieving the UN’s Sustainable Development Goals.
“Through our social investment, we aim to contribute positively to development in the communities where we operate. Shell Companies in Nigeria contribute to programmes in health, education, access to energy, road safety, community skills and enterprise development,” he stated.
According to documents obtained by SlyeNews, the SPDC JV, in compliance with statutory requirements, paid $38.7 million in 2021 to the Niger Delta Development Commission (NDDC), while SNEPCo and its co-ventures paid $23 million to the NDDC.
Also, SPDC partnered with the Rivers State Government, Vieux Manioc BV of the Netherlands, and the Embassy of The Netherlands in Nigeria to develop the Rivers Cassava Processing Company Limited. The company, which was inaugurated in 2021, drives mobile machines to farmers for them to use to process the cassava they grew into flour for market.
However, community-driven programmes have been delivered through a Global Memorandum of Understanding (GMoU), which is an agreement between the SPDC JV and a cluster of several communities. In 2021, the company confirmed that five GMoUs were renewed and one new GMoU was deployed.
“Over the last five years the SPDC JV has spent $98.6 million on development programmes through GMoUs, benefitting more than 300 communities in the Niger Delta.
“In 2021, a community-driven rural electricity project for the Gbarain/Ekpetiama GMoU cluster was completed. It provides reliable power access to over 450 households from the Obunagha and Tunuama communities of Bayelsa state,” it stated.
Besides, Shell Companies in Nigeria have directly employed 2,500 people (of whom 97% were Nigerian nationals) with more than 8,500 contractors supporting operations. Shell has also spent $800 million on contracts to Nigerian-registered companies in 2021, which is the same level as the 2020 spend.
Since the start of the COVID-19 pandemic in early 2020, Shell Companies in Nigeria have worked to help protect staff, contractors and the communities where it operate, while also supporting the Nigerian state and federal governments. Shell Companies in Nigeria donated ambulances, ventilators, testing machines and kits, medical consumables and personal protection equipment to seven Nigerian states.
Shell also contributed financially to the purchase of vaccines for Nigerians through the COVAX programme and launched community education and vaccination campaigns in 2021, reaching thousands of people.
In the area of quality health care, the oil giant had supported community health programmes in Nigeria since the 1980s, benefitting many hundreds of thousands of Nigerians. The SPDC JV and SNEPCo said it has supported 19 health-care centres and signature intervention projects throughout Nigeria.
Part of the scheme is the Community Health Insurance Scheme (CHIS), which is a partnership between the SPDC JV, Rivers State Government and local communities. The programme improves people’s access to affordable, quality health care. In 2021, the scheme costs individuals $24 per year ($27 in 2020) and covers about 95% of health-care needs. Since inception in 2010, more than 85,000 people have been enrolled. In 2021, 8,180 people enrolled in the scheme.
Also, the Oloibiri Health Programme (OHP) is an SPDC JV-sponsored local government initiative in Ogbia area of Bayelsa State. OHP strengthens local health-care systems in the Ogbia area of Bayelsa State by upgrading and integrating facilities, training and supporting local health-care and community workers and helping to ensure a reliable supply of medicines. The programme has seen service utilisation rise to more than 3,600 patients in 2021 from around 800 when it was launched in 2017.
The Obio Cottage Hospital is a specialist maternity hospital in Port Harcourt supporting families at a crucial moment in their lives. It is funded by the Community Health Insurance Scheme. It has specialist pre- and post-natal wards and an operating theatre. More than 34,000 babies have been safely delivered at the hospital since 2010.
Another initiative highlighted in the document was the Health-in-Motion (HIM), a mobile community health outreach programme that takes free medical services to where people live and work. Since 2010, more than a million people have benefitted from the programme. In 2021, a further 2,451 people benefited from HIM.
Commenting on the Shell’s Oloibiri health programme, Bayelsa State Governor, Senator Douye Diri said: “Corporate Social Responsibility means doing well. What you have done today means you’re doing well. You are impacting the lives of the communities, of people, and of government of the state. You have done so well today, and we commend you. You are investing in education and in social development in Ogbia to improve the quality of life of our people,”
Meanwhile, since educating Nigeria’s young population is critical to the country’s development, the SPDC JV and SNEPCo have offered thousands of Nigerian children, mostly from poor families in the Niger Delta, the opportunity to receive quality education for free.
The SPDC JV and SNEPCo fund secondary and tertiary education scholarships. In 2021, the SPDC JV and SNEPCo invested $6.2 million in scholarships. Since 2016, the SPDC JV and SNEPCo scholarship programmes have awarded more than 2,500 secondary school grants, over 3,200 university grants and 900 Cradle-to-Career scholarship grants to students.
Shell also invested in specific initiatives that will benefit the energy sector. For example, the SPDC JV, in collaboration with the University of Benin and Rivers State University, funds a Centre of Excellence in Geosciences and Petroleum Engineering.
Working in collaboration with Rivers State University, the SPDC JV funds a Centre of Excellence in Marine and Offshore Engineering. The two centres offer specialised postgraduate degrees. By the end of 2021, over 122 students had graduated from the programmes and over 82% of these graduates have been employed in the oil and gas industry.
In 2021, the first phase of a $5 million facilities expansion was opened at the Nigerian Maritime University in Okerenkoko, Delta State. The new facilities are being donated by the SPDC JV partners and the first phase included auditoriums and a lecture room.
Aspiration, innovation and entrepreneurship are drivers of economic growth and Shell also worked to improve the opportunities for Nigerians to achieve their ambitions. In 2021, 190 Nigerians benefitted from Shell’s LiveWIRE youth programme, receiving training in enterprise development and management, as well as business start-up grants. Since 2016, 1,173 Nigerian youths have been trained under the programme.
One of the beneficiaries of Shell LiveWIRE, Yolo Bakumor Smith, who is the CEO of De-Rabacon Plastics said: “There is often a paper-thin line between success and failure in business, especially for a start-up. The training, support systems and valuable networks I have gained over the last five years courtesy of Shell LiveWIRE, have gone a long way to ensure that my business start-up, De-Rabacon Plastics is thriving.
“Shell’s approach to supporting local enterprises to grow and excel is enabling us to scale up our business and focus on designing eco-friendly, energy-efficient and affordable products. Today, my organisation employs 16 people and has recycled over 800,000 tonnes of plastic waste,” he said.
Another beneficiary, Christopher Irimagha, described the opportunity as ‘life-changing’, saying: “The training has been beneficial in positioning us for success in our community.”
SPDC’s General Manager, External Relations, Igo Weli, said: “Developing local skills, talent and contracting capacity in the Nigerian oil and gas industry is very important to SPDC and its partners. That is why we have continued to embark on programmes and projects that have sustainable impact on our host communities and the Nigerian economy.
“This is a demonstration of how much benefit a conducive business environment and cordial relationship between host communities and industry players can bring to the people.”
Currently, the Vision First Initiative” is on going in Lagos with expectations of a life changing story, just as the earlier outings where the beneficiaries gave their testimonies.
Chinagorom Ogechi had been having issues with her sight for some time, “sometimes it causes severe headaches, and my eyes feel like they want to fall out”, she said. She was diagnosed with a cataract and scheduled for surgery. As a civil servant, Ogechi said there was no way she would have been able to afford the surgery. In a voice thick with emotion she added, “I am very happy and want to say a very big thank you to Shell SPDC, Rivers State, you people have really done nobly”.
Brandy Keniyowei’s eye issues started in 1999, and when his sight failed, he was forced to stop working. He had to depend on his brothers and sisters for help and this meant that sometimes, his needs weren’t met. Now that his sight has been restored, “I am happy all the time because I can see very clearly. I want God to give Shell long life and happiness”, he said.
In Obunagha community, Comrade Priye Joseph Okoko, Community Development Committee Chairman, said they were excited when the first batch of community members was taken for surgery even though they thought it was a mirage when Shell first informed them about their intentions. So far, over 30 people from Obunagha community have benefitted from the programme.
Restating its commitment to the society, Shell stated: “Nigeria is a vibrant country, offering opportunities for people to improve their livelihoods. The government, non-governmental organisations and companies have a role to play in creating these opportunities”.
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