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20 - Local Content Requirements and Social Inclusion in Global Energy Markets: Towards Business and Human Rights Content

from Part III - Lessons Learned and Future Directions

Published online by Cambridge University Press:  05 March 2021

Damilola S. Olawuyi
Affiliation:
Hamad Bin Khalifa University, Doha
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Summary

This chapter offers an investigation of the business and human rights concerns resulting from energy projects in sub-Saharan Africa, using Nigeria as a focal case study. This investigation focuses on whether local content requirements (LCRs) in Nigeria’s domestic laws have induced social exclusions and various human rights violations, or in the alternative, enhanced sustainable development, accountability and respect for human rights. In Africa, energy projects have become avenues for strong socio-economic, political, and cultural contestations among a diversity of actors. Such projects more often than not produce social exclusions for stakeholders, and leads to damaging effects on the business, cultural and economic development of marginalized communities. While the participation of a local community is indispensable to an understanding of the local context, citizens must be able to lead their own development and build their own institutions. The emerging business and human rights approach to energy projects supports a people-based development model, potentially capable of more readily addressing issues of social injustice, corporate irresponsibility and the marginalisation of local communities. Tackling the core problems of development, from social exclusion to economic growth and environmental sustainability, requires understanding how LCRs operate and interact at multiple levels. This chapter contends that integrating human rights language to energy projects must be anchored on a solid based pragmatic approach that takes cognizance of domestic regulatory capacity, institutional efficacy and democratic legitimacy of governance institutions. The chapter advocates for legal and institutional pathways for integrating business and human rights norms into the design and implementation of LCRs.

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Publisher: Cambridge University Press
Print publication year: 2021

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