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Mobil in Nigeria Africa Fund 1998
Mobil in Nigeria: Partner in Oppression
by Michael Fleshman, The Africa Fund
The Mobil Oil Corporation is the second largest producer of crude oil in Nigeria, trailing only the
Shell Oil Company as a dominant force in the Nigerian economy. Nigeria depends on oil for over
90 percent of its export earnings and 85 percent of all government revenue. Mobil describes itself
as a "partner for progress" in Nigeria, but its close financial, security and political ties to the military
dictatorship demonstrate that Mobil is really a partner in oppression.
Financing The Dictatorship
Mobil is a strategically important business partner with the military government through its joint
ventures with the state oil company. Of the 700,000 barrels of oil currently produced by Mobil
Nigeria every day, 420,000 barrels, or 60 percent, go directly to the regime. Mobil's share is the
remaining 40 percent, or 280,000 barrels per day. During 1997 Mobil generated over $8 million a
day for the dictatorship -- nearly $3 billion annually. This money sustains the dictatorship in the face
of overwhelming popular opposition.
Mobil is also a major supplier of petroleum products inside Nigeria, operating over 200 gas stations
across the country. The company has launched a multi-billion dollar expansion of its Nigerian
operations, including construction of a high volume natural gas processing plant.
Ties To The Security Forces
The Shell Oil Company has been rocked by revelations that it arms and pays the salaries of Nigerian
army and police forces sent to crush peaceful opposition to Shell's environmental destruction. Shell
charges that Mobil and other Western oil companies also provide guns and ammunition to the
security forces, a charge Mobil representatives deny. The Africa Fund has been unable to
independently confirm or deny Shell's allegations. But Mobil admits that it too pays salaries and
expenses for a special government security force detailed to guard the oil companies. Corporate
funding for any unit of the dictatorship's security forces raise important human rights and political
concerns.
Undermining The Democracy Movement
In June 1993 the Nigerian military annulled elections intended to restore elected civilian
government. A few months later the current Nigerian dictator, General Sani Abacha, seized power
and launched a bloody crackdown on the Nigerian democracy movement. In July 1994 Nigerian oil
workers responded to the arrest of the winner of the 1993 vote, Moshood Abiola, with a heroic 12-week strike for democracy. While European oil companies were forced to cut back production,
Mobil and another major U.S. company, Chevron, undermined the strike by flying in foreign
strikebreakers and actually increasing production. Although Mobil denies strikebreaking, oil
workers union leader Milton Dabibi charged in November 1995 that, "Chevron and Mobil stabbed
us in the back during the strikes. They are the main cause of our failure."
Dabibi was arrested shortly after he made this statement and remains imprisoned without trial.
Neither Mobil nor Chevron have made any public statement about the arrests of Milton Dabibi,
Moshood Abiola, Beko Ransome-Kuti or any of the other estimated 7,000 democracy activists now
in Abacha's jails.
A Killing Silence On Human Rights Abuses
The Africa Fund is unaware of any public or private statements from Mobil to the Nigerian military
government about the deteriorating human rights situation in the country. The company argues that
it does not "interfere" in the internal affairs of other countries, but the record shows quite the
opposite. Mobil routinely lobbies the Nigerian government on a full range of economic and political
matters related to the company's commercial interests.
It is only on human rights issues that the company maintains a killing silence -- even when
oppression strikes Mobil operations and Mobil employees as it did during the 1994 strike.
Corporate Social Responsibility
In company publications and regular 'advertorials' in The New York Times and other major
newspapers, Mobil promotes itself as a good corporate citizen in Nigeria -- spending some $5
million a year on community development projects. But in 1997 Mobil's share of Nigerian crude oil
sales totaled almost $2 billion, a figure that excludes earnings from the company's lucrative Nigerian
retail operations. In a country where military corruption has left 40 percent of Nigerian children
malnourished, Mobil returns a fraction of a penny in charitable and development giving to Nigerian
people for every dollar it extracts. The harm caused by Mobil's economic support for the dictatorship
far outweighs the good done by corporate philanthropy.
Lobbying For Abacha
In November 1995, following the execution of environmentalist and anti-Shell campaigner Ken
Saro-Wiwa, President Clinton announced his support for international oil sanctions against Nigeria.
But during a recent meeting with The Africa Fund, a state department official acknowledged that
lobbying by the oil companies had weakened support for Nigerian sanctions in Washington. In
January 1996 Mobil ran a small 'advertorial' in The New York Times opposing sanctions as a tool
of U.S. foreign policy. Mobil ran the same anti-sanctions ad full page in the Nigerian press --
sending a clear message of support to Nigerian dictator Sani Abacha.
More recently Mobil has run ads endorsing the regime's bogus 1998 democratization scheme, a
cynical plan to put a democratic veneer on continuing military rule. The company's support for the
dictatorship stands in sharp contrast to the views of Nigerian church and human rights leaders, who
refuse to support an election from which Nigerian democracy leaders are banned and in which
Abacha will likely be the only Presidential candidate allowed.
As a member of the powerful and secretive U.S. Corporate Council on Africa, Mobil actively
campaigns for a U.S. policy that puts corporate profits ahead of Black lives in Nigeria.
Talking Points on Mobil's Involvement in Nigeria
Mobil Bears Great Moral Responsibility For Human Rights Abuses In Nigeria and Must Withdraw.
Mobil operations in Nigeria produce over $8 million a day for the Abacha military dictatorship.
Without these dollars the regime would not be able to survive. Mobil and the other major Western
oil companies operate in business partnerships with the military regime and therefore bear direct
responsibility for the suffering of the Nigerian people. It is wrong for Mobil to do business with the
brutal Nigerian dictatorship just as it was wrong for Mobil to do business in racist South Africa.
Human lives are more important than corporate profits.
Mobil Must Immediately Cut Its Ties To The Dictator's Security Forces.
In January 1998, the State Department charged that in Nigeria "all branches of the security forces
committed serious human rights abuses." Yet Mobil directly pays salaries and expenses for armed
and uniformed Nigerian security forces assigned to protect Mobil facilities. This is direct complicity
with the repressive apparatus of the regime and cannot be reconciled with Mobil's claims of political
neutrality and corporate good citizenship in Nigeria.
Mobil Must Cancel Its Nigeria Expansion Plan.
At a time when Nigerian democracy leaders are calling for international sanctions against the regime,
Mobil has commenced a vast expansion of its Nigerian operations. New investment will only
strengthen Mobil's ties to Abacha, signal continued Western corporate support for his regime and
will add millions of dollars into his coffers. Mobil should condition any future expansion program
on the restoration of democracy and respect for human rights.
Corporate Lobbying For Abacha Must Stop.
Corporate lobbying against sanctions has blocked effective U.S. action against Nigeria and
encouraged Abacha to ignore international condemnation of human rights abuses. Mobil must stop
placing anti-sanctions ads in the Nigerian press, halt its lobbying campaign in Washington and speak
out publicly against repression. Mobil's highly visible support for the regime is making the company
a target for religious, trade union and investor action for democracy and justice in Nigeria.
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