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Special Report

Oloibiri, the community where crude oil was first discovered, poverty deprives residents of solar energy

By Mathew Adeleke

November 03, 2020

Nigeria hit a goldmine in 1956 when it first discovered oil in Oloibiri, a small community in Ogbia local government area of Bayelsa State, in the Niger Delta region. On the fragile shoulder of the small, but popular coastal village lies the country’s journey to prosperity. Oloibiri changed Nigeria’s economic status for the better. It became a Jerusalem for arrays of visitors and commercial activities improved. But the community was abandoned as soon as oil exploration stopped. Oloibiri is now a mere shadow of itself, MATTHEW ADELEKE reports.

For Edwin Ofonih, 73-year-old retired tax revenue collector, Oloibiri when he was a child is not in any way different from the present. According to him, there are no sweet memories as the residents of the community, who are majorly from the Ijaw ethnic group, still cannot boast of any development despite its historical significance in the country.  

The septuagenarian who now spends most of his time working at his cassava and sugarcane farm, said the massive barrels of crude oil extracted from the community did not change the fortune of the residents for better as they continually engage themselves in petty fishing and farming, feeding and sustaining themselves with their little income. 

His wrinkled face was clouded with a mournful expression as he pitifully bemoaned the sad fate of the community. His tone was sorrowful, yet effortlessly calm as he narrated how decades of neglect planted poverty and hardship on the residents. 

“Many live from hand to mouth every day as they earned little or no income from their sales,” Ofonih retorted, gnashing his teeth, taking a deep breath before he continued.

In its fertile days, Oloibiri began with an initial production of 5,000 barrels of oil per day and later shot its output to 2,000,000, placing the country as the 6th largest oil producer on the chart of the Organisation of Petroleum Exporting Countries (OPEC).

“I was nine years old when they found oil in Oloibiri.  The survey team came to Oloibiri for oil assessment in 1952  and they took the mud to their Shell office in Owerri for assessment. They later realised that there was a high quantity of oil in Oloibiri and the European company then came under Tailor Udu to install the pipes and drill the oil for people to see.

“We didn’t have water during the time of oil discovery. We drank from the river and cooked from it. There was no borehole. It was later that a military governor, Anthony Ukpo, helped the community with a borehole in 1985 and they channelled the water around the village. After it stopped working, Bayelsa State gave the community another one in 2008.

“We did not enjoy any other benefit in the community. The government later brought the office of taxation to collect tax from the people. Without taxation, there is no road and school; and back then, I worked in the ministry of finance in the revenue section.

“We were treated like we didn’t mean anything.  No dispensary, no hospital. As you can see now, right from the time Shell came here and took that oil, nothing was done in Oloibiri, not even something that cost a kobo, apart from the standard school that was later built. Now, they are trying to build a hospital in the community. Letters that Oloibiri has written to the federal government are many. If you put them in a whole house, it will spill over.”

Living in Darkness: A sad tale of neglect and suffering

Ofonih paused again to catch his breath. He detailed how residents have been subjected to complete darkness even when the community was actively boosting the nation’s purse right from when it was in the old Rivers State. Bayelsa was carved out of Rivers in 1996. 

However, oil exploration in the community stopped in 1978. As things stand, Oloibiri is void of any industrial development. No barber’s shop, fashion outlets or small-scale enterprises, aside from petty trading. For the two nights spent by this reporter in the community, there was complete darkness in most of the streets and houses. 

Aside from the government school, which was founded on September 12, 1973, a poorly executed maternity health centre by the state government has suffered decades of neglect in the community. 

“No light in the community during that time; even Shell neglected us. It was Thomas Egbas and Baniah Abori who bought the generators in the 70s. There was no development and no economy; we were only doing our fishing and farming,” Ofonih said.

“There is no potable water and health facilities. Residents had to purify their water with alum before they could drink or cook with it and we also depend on herbal concoction to fight our medical challenges.”

Oloibiri is not connected to the national electricity grid. Hence, people depend on big diesel-generators that feed the community of about 1,000 residents. A generator plant was donated as far back as 1970 by Melford Okilo, then governor of River state. The community also  received another power plant, a 350-KVA generator, from a former chairman of the local government, 

As the community constantly battles with damages and repairs of the generators, and most times, the inability of some families to contribute N500 monthly for the purchase of diesel, the community leaders could not sustain adequate electricity supply to its people. Darkness began to birth insecurity as cases of theft grew. After a series of letters, the federal government finally launched a solar plant in Oloibiri and neighbouring communities.

Bringing Renewable Energy to the Underprivileged 

In June, the federal government through its Rural Electrification Agency (REA) inaugurated a solar hybrid mini-grids in Oloibiri under the $200 million World Bank-funded Nigeria Electrification Project (NEP) to provide clean, safe and reliable electricity to the residents. 

The project is aimed at providing energy access to households and small businesses in off-grid communities across the country. The project in Oloibiri and Akipelai, a neighbouring village in the state, include 134.64kW of solar PV, 180kWh of lithium battery storage and two units of 100kva diesel generator sets.

“The REA is committed to scaling up reliable and sustainable energy access to rural unserved and underserved communities through the provision of grants to mini-grid developers, which is the intent of the federal government through the NEP,” Ahmad Salihijo Ahmad, REA managing director, said.

Bringing it to Oloibiri was a relief to the people. Victory at last, they thought. They were happy the community would be completely out of the darkness and as well improve their standard of living. 

But the current reality seems to be on the contrary. As soon as the solar plant began operations in the community, some residents started opting out as they could not afford the money to buy and install meters and the frequent energy subscriptions.

The schedule of tariff given to the residents in the community by Renewvia Solar Energy Nigeria Limited, the company in charge of the plant, for the supply of energy clearly puts the connection fee at N2000 per household with a credit unit worth N1000. The energy charge of the company is also put on N210 per unit. Though the official energy charge is N210 per unit, residents say they pay at least N250 when subscribing.

Residents: “We cannot afford it”

Clad in a blue-striped wrapper, 37-year-old Lydia Victor said she has lived in Oloibiri for more than 20 years. She stated that she has not been using solar energy in her house because she could not afford to purchase the meter and buy power.

“You have to buy a metre of N2000 and then start recharging. The solar is not free, though it is not compulsory for everyone. Only the interested ones who have the money do go for the solar; but as for me, we are not using solar because we cannot afford it,” Lydia said.

She was embittered and concerned about the costs and the prepaid method of operation. As a peasant farmer who earns little income, solar power is a luxury. Lydia added that it would be better if the electrification agency plants street lights to help brighten the community at night. 

For Rebecca Igeneta, a 57-year-old farmer, the story is the same. She feels solar energy is the preserve of salary earners who can afford to recharge frequently. She also maintained that it will be better if the community is provided with street lights only, rather than supplying electricity to their homes.

“I go to my farm and come back in the evening. If you ask any of us doing farm work, they will tell you that we do not benefit from the solar. It is the people who are collecting salaries that are capable of using solar,” she told Dataphyte.

“When night comes, the thieves in the community operate without being caught, even though they are just a stone’s throw away from you. But if there is street light across the community, it will be better for a farmer like me.”

While mending a shoe in his shop, David Moses, a 42-year-old physically challenged cobbler, lamented that the electrification agency has stopped them from using the community generator which is mostly fuelled by generous individuals and politicians. 

“We have our own generator that powers the community with the support of politicians who buy diesel for us every month. With the coming of the solar, we cannot use our community generator again. They disconnected our wires from the generator,” Moses whined.

“We jointly contribute to subscribe to the meter connected to the borehole in the community. At least, if we cannot have free light, they should make the water free for us. It is just as if we are indirectly buying our own water.” 

Despite hundreds of meters mounted on electric poles, many who purchased it at the early stage of the operation later abandoned it as they could not bear the cost of the subscription. For the few residents who could afford to import solar energy into their homes, it has become an unwritten rule that all appliances are disconnected when not in use to reduce the rate of energy consumption. 

Will the solar system make a difference in their lives?

In an interview with Monaiani Jonnie, former Community Development Chairman (CDC) in Oloibiri, he said it is unfortunate that no significant development can be pointed to in the community. 

“For instance, not even a single barbing salon is located in Oloibiri here, talk less of a mini-factory. And somebody who really wants to settle down here and open an industry would benefit from this solar light. But people do not have the foresight to do all these things,” Jonnie told Dataphyte.

“The people who complain about the light are fond of free things given to them. The community has lived on Imiringin gas turbine for a long time without paying money. The light would come and people would use it the way they like, and this also made the contribution of money very difficult in the community. But the solar we have now is very reliable.”

Speaking on the development, Christopher Ebiware, country manager for Renewvia Solar Energy, said that the company has over 190 subscribers in the community.

“We have been enjoying patronage from Oloibiri, as we have more than 190 solar users in the community”. Ebiware said. The solar energy supplier affirmed there is energy efficiency and the people of Oloibiri can subscribe when they need it. “The electricity we provide is 24/7; you can use it at any time as long as you can afford it,” Ebiware said.

“A lot of people were complaining that their solar didn’t last. We paid our electricians to find out, and we realised that a lot of people either turn on their equipment and leave them on, or they have leaking current in their houses or someone is stealing from them. And when we discovered all this, we brought it to their notice.”

According to Tobi Oluwatola, Country Director for Solar Nigeria, lack of energy access in rural communities like Oloibiri can only worsen the education, health care and economic productivity of the areas.

“The fundamental question is one of opportunity cost. If you don’t provide rural people with energy at commercially viable rates, what is their alternative? One alternative is candles, lanterns and generators which cost the average rural home N6-10k per month, not including the cost of maintenance and transportation to the city to procure fuels,” Oluwatola said.

“Therefore if private actors can provide steady renewable energy at N3-5k per month to these homes, it represents a saving for them. This is before we consider the environmental and health costs of lanterns and generators. The alternative of no energy is even worse; with adverse effects on education, healthcare, security and economic productivity outcome in the rural areas.

“It is imperative for governments to provide subsidies and viability gap funding to reduce tariffs passed on the rural consumers.”

Despite years of neglect and suffering, Oloibiri looks forward to better days ahead. The people remain unrelenting believing that one day, their community will not only be remembered in the books of history for feeding the most populous black nation in the world; but a place where life becomes meaningful.

 

Editor’s Note: The title and part of this report has been edited to reflect the voices in the report.