Oando Energy Resources Nigeria Limited’s recent decision to discontinue free electricity in Omoku, announced on October 30, 2025, shatters a decades-long social contract with the community.
Since at least 1970, Agip Oil Company has provided free power as part of its Corporate Social Responsibility (CSR) obligations, a benefit seamlessly inherited by Oando following its 2024 acquisition of Agip’s assets.
This move, outlined in a letter to the Omoku City Council of Traditional Rulers and Chiefs, transfers maintenance responsibility to the Ogba Host Communities Development Trust, as per the Petroleum Industry Act of 2021. However, it unfairly burdens residents without adequate support, betraying the spirit of partnership.
Oando reaps significant profits from Omoku’s oil resources, extracting billions of naira annually. Given this, maintaining free electricity seems the least they could offer as a reciprocal benefit. The Nigerian government’s CSR guidelines, updated on June 15, 2023, emphasize the enhancement of community welfare.
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A standard Oando appears to be neglected. Instead, the company’s 2024 CSR budget of ₦1.15 billion focused on schools and environmental programs, sidelining the critical need for reliable power. This prioritization highlights a disconnect from the community’s core requirements.
The impact on Omoku residents is profound. Many rely on gas-free electric cooking, and introducing paid electricity strains local finances, especially in a region already grappling with economic challenges.
The 2019 delay of the Omoku-II power station further underscores Oando’s infrastructure neglect, exacerbating the effects of this decision.
While the Petroleum Industry Act mandates community development trusts, Oando’s abrupt withdrawal lacks a transition plan, leaving room for corruption and mismanagement by local entities.
This shift prioritizes corporate profit over the historical bond between Omoku and oil firms. For a company benefiting immensely from the community’s resources, abandoning a decades-old commitment is not just unfair, it’s a breach of trust.
Oando must reconsider this move, aligning with CSR principles to restore the mutual respect that once defined its relationship with Omoku. As of November 11, 2025, the community deserves better than this corporate betrayal.
