Traditional Extractivism and the Politics of Suistainability Interrogating International Oil Companies (IOCs) Social Investment Approaches in Nigeria's Niger Delta

Abstract

Natural resource extraction in contexts of limited regulation can generate significant adverse environmental outcomes, with negative implications for sustainability. Enhancing sustainability in turn requires targeted policy approaches to protect impacted communities’ social and economic conditions. This paper spotlights International Oil Companies’ (IOCs) social investment approaches in the Niger Delta region and how it impacts sustainability in the context of traditional extractivism. Through the lens of the political economy perspective, this paper investigates the interplay between the political economy of oil in Nigeria and the social investments of IOCs, elucidating the repercussions for the region’s development. The political economy perspective offers a robust framework for comprehending the intricate mesh of interests, power dynamics, and resource allocation that mold the actions of IOCs in the Niger Delta. This perspective provides a holistic foundation for deconstructing the manifold challenges and opportunities arising from oil extraction in the region. The paper posits that IOCs’ extraction activities in the Niger Delta entrench practices and processes which undermine social investment goals and impede sustainable development. The paper further notes that despite substantial financial commitments, IOCs’ social investments often fall short in delivering substantial enhancements in overall living conditions in the Niger Delta. The paper underscores the imperative of embracing a comprehensive and sustainable developmental approach that champions the well-being of local communities and the environment. As a result, it recommends among others that there should be paramount importance on community engagement, fortifying transparency and accountability, adopting a perspective oriented towards long-term development, championing environmental responsibility, and bolstering economic empowerment and cultural preservation.