July 2024 marks the second year since the Petroleum Industry Act (PIA) was passed. Host communities are yet to benefit from the 3% statutory allocation due to many communities.
To mark the significance of this year’s PIA and the role of journalists in demystifying the oil and gas sector, the most shrouded industry in Nigeria, the Nigeria Union of Journalists are reminded of their role following the training and public discussion by Lady Ejiro Umukoro, the Executive
Director of LightRay Media.
In the complex landscape of Nigeria’s oil and gas industry, the role of the media has never been more critical. As the country grapples with economic instability and socio-environmental
challenges, the need for effective and efficient reportage in this sector is paramount. Nigeria, endowed with vast oil and gas reserves, relies heavily on this industry to fuel its economy.
However, despite its significant contributions, the sector remains marred by issues of mismanagement, corruption, and a lack of transparency. The Nigerian media, often referred to
as the Fourth Estate, plays a crucial role in holding the industry accountable and ensuring that the benefits of this natural wealth are felt by all citizens.
Lady Ejiro Umukoro, Executive Director of LightRay! Media, while delivering a lecture at the Nigerian Union of Journalists workshop in Delta, highlighted the urgent need for a paradigm shift in how the media covers the oil and gas sector.
The workshop, titled “Repositioning the Mass Media for Effective and Efficient Reportage of Oil and Gas Industry in Modern Time,” aimed at addressing the pressing need for better media
coverage of the oil and gas sector, brought together journalists from across the country to discuss the challenges and opportunities in reporting on this critical industry.
Umukoro’s lecture emphasized the importance of distinguishing journalism from public relations and advertising, urging journalists to uphold the principles of truth, accountability, and civic duty. She pointed out that despite the oil and gas sector’s pivotal role in funding Nigeria’s national budget, the media’s coverage has been inadequate, often failing to hold industry players
accountable for their actions.
With 70% of revenues from crude oil reportedly not reinvested back into the country, there is a pressing need for journalists to dig deeper, ask tougher questions, and ensure that the industry
operates transparently.
In her words: “When 70% of money accrued from crude oil do not find their way back to the country, the media, which is the Fourth Estate, must do better to follow the money trail to hold government accountable for the public good.”
She made a strong case on the difference between journalism and other roles of communication within the media ecosystem, stating that “Journalism is not PR. PR is reputation and image management. Advertising is feasibility and sales. Nigerian journalists must learn to separate these three”.
The Role and Responsibility of Journalists
Umukoro underscored the critical role of journalists in a democratic society, emphasizing their duty to truth, facts, and accountability. “When you’re a journalist, you wear the garb of truth, fact, unbiased reporting, accountability, solutions, and civic intelligence empowerment,” she stated.
She disapproved the Nigerian media’s performance in the oil and gas sector, pointing out the lack of transparency and the resulting negative public perception. “The NNPCL, Chevron, Shell, and other entities in the sector are seen as closed-off groups bleeding Nigeria to death while plunging its citizens into poverty amidst vast wealth,” she stated.
According to Umukoro, journalists must embrace their role as truth-tellers, upholding principles of accountability, civic intelligence, and public good. She criticized the media’s performance in its failure to adequately cover and report on the oil and gas sector, highlighting the lack of transparency and closed nature of the industry.
“We have enough data from within governments and businesses within this space that proves the sector is the most closed off. This shouldn’t be, especially in a democracy,” she stated.
Journalists have a pivotal role in the oil and gas industry, acting as watchdogs, educators, and advocates for transparency and accountability. In a sector that significantly influences Nigeria’s economy, their responsibilities are multifaceted and crucial for fostering a well-informed public and ensuring ethical practices within the industry.
Journalists must act as watchdogs, scrutinizing the activities of oil and gas companies and government entities involved in the sector. This includes investigating and reporting on issues
such as mismanagement, corruption, and environmental degradation. By holding these entities accountable, journalists help ensure that the wealth generated from Nigeria’s natural resources is managed responsibly and benefits the wider population.
A critical role of journalists is to educate and inform the public about the complexities of the oil and the gas industry. This involves breaking down technical jargon and presenting information in an accessible, digestible, and shareable format that requires a unique set of storytelling to make reports on the oil and gas sector go viral to create citizens’ engagement and better transparency.
Journalists should provide comprehensive coverage of policies, laws, and industry practices, enabling citizens to make informed opinions and decisions.
Economic Context and Challenges
Highlighting the economic implications, Umukoro explained that oil and gas revenues significantly fund Nigeria’s budget. However, mismanagement and lack of reinvestment hinder
the country’s growth.
“Despite choosing democracy, which demands transparency and accountability, we see a lack of
open data and public access to information,” she remarked. This secrecy contributes to the negative perception of the oil and gas sector and undermines public trust. The country, blessed with abundant natural resources, relies heavily on the oil and gas sector, which accounts for about 90% of its export revenues and over 60% of government income according to research.
This financial dependency underscores the sector’s critical role in shaping the country’s economic stability and growth.
The substantial revenue generated from oil and gas is intended to support various facets of national development, including infrastructure, education, healthcare, and social services.
However, Umukoro pointed out that these funds often do not translate into tangible
improvements in these areas. The core issue lies in the systemic mismanagement and
misallocation of resources, where significant portions of oil revenues are lost to corruption and inefficiency.
Mismanagement and Lack of Reinvestment
Umukoro emphasized that despite the enormous potential of oil and gas revenues to drive economic growth, Nigeria faces persistent challenges due to the sector’s mismanagement.
Instead of reinvesting profits back into the economy to foster development, a large chunk of these revenues are siphoned off through corrupt practices and unaccountable governance. This
diversion of funds results in a lack of reinvestment in critical infrastructure and services that could propel the country forward.
For instance, the country’s refineries do not operate and are below capacity, necessitating the import of refined petroleum products, which drains the economy further Additionally, the infrastructure within the oil-producing regions, such as roads, schools, and
hospitals, remains underdeveloped, exacerbating the disparity between the wealth generated by the sector and the living conditions of the local populace.
Transparency and Public Trust
“Despite choosing democracy, which demands transparency and accountability, we see a lack of
open data and public access to information,” Umukoro remarked. This lack of transparency has been a significant impediment to public trust.
In a democratic system, the public expects and deserves access to information about how national resources are managed and utilized. However, the oil and gas sector in Nigeria isnotoriously opaque, with limited disclosure of financial transactions, contracts, and revenue allocations.
This secrecy fuels public suspicion and perpetuates a negative perception of the sector. Citizens often feel disconnected from the wealth generated by their country’s natural resources, leading
to disillusionment and scepticism about the benefits of the oil and gas industry.
The perception of the sector as a “closed-off group bleeding Nigeria to death” while ordinary Nigerians struggle with poverty as a direct consequence of this lack of transparency.
Impact on Economic Growth and Development
The mismanagement and opacity in the oil and gas sector have broader implications for Nigeria’s economic growth and development. When revenues are not reinvested effectively, it hampers
the country’s ability to build a diversified and resilient economy.
The over-reliance on oil and gas revenues makes Nigeria vulnerable to global oil price fluctuations, which can lead to economic instability. Furthermore, the failure to invest in other critical sectors, such as agriculture, manufacturing, and technology, limits job creation and
sustainable economic development.
Environmental Journalism and Solutions
Umukoro delineated the various niches within environmental journalism, stressing the need for comprehensive coverage of issues such as pollution, health impacts, and community effects.
She advocated for solutions journalism, which focuses on stories that drive positive change. “We are not here to create false narratives. We are here to collaborate and work together for the
good of Nigeria,” she emphasized. She outlined key areas of focus:
• Climate: Pollution, weather impacts.
• Conservation: Deforestation, wildlife, water crises.
• Oil and Gas: Health and reproductive impacts, climate implications, pollution, host communities, corporate social responsibility (CSR), policies, laws, and the impact on flora, fauna, and tourism.
A case study from Umukoro’s media tour revealed a significant gap in public awareness about the Petroleum Industry Act (PIA). Despite its passage over a year ago, many Nigerians remain unaware of its implications. “The radio and TV audiences were clueless even though major news outlets had reported on it. The few who knew were shocked to know it’s already a year and yet not a single positive impact of the PIA can be recalled by the citizens,” she shared. This gap in awareness underscores the
need for more effective communication and engagement by the media.
Umukoro’s lecture called for urgent reforms in how the oil and gas sector is managed and reported. She stressed the need for greater transparency, robust anti-corruption measures, and
effective reinvestment strategies to ensure that oil and gas revenues contribute meaningfully to national development. The media has a pivotal role in advocating for these changes by providing in-depth, investigative reporting that shines a light on the sector’s practices and holds stakeholders accountable.
Collaboration and Community Engagement
Umukoro stressed the importance of collaboration between the media, communities, and the oil and the gas industry. She called for increased engagement through public hearings, roundtables, and town halls to foster understanding and accountability. “Communities and the oil and gas
industries need to think and work as a team. These are the new narratives we want to see and read,” she advocated.
Umukoro further urged journalists to commit to higher standards of accountability and truthtelling, engaging deeply with communities to uncover impactful stories. “May 2024 be a new zest of oil and gas reportage in Nigeria like never seen before to speak truth to power, raise the standards of accountability, and improve the living standards across Nigeria,” she concluded.
The media plays a crucial role in fostering transparency and accountability in Nigeria’s oil and gas sector. Journalists are encouraged to take inspiration from this workshop and strive for excellence in their reporting, ultimately contributing to the country’s development and prosperity. By embracing their role as truth-tellers and public advocates, Nigerian journalists can help bridge the gap between the industry and the public, ensuring a more transparent and
accountable sector.
Addressing these economic challenges and fostering a more transparent and accountable oil and gas industry, Nigeria can better harness its natural resources for the benefit of all its citizens,
promoting sustainable growth and development.
