US oil giant ChevronTexaco has to review its Nigeria aid program, as it is afraid that the present system is stoking conflict. It is proved to be "inadequate, expensive and divisive", the company said.
Over the past decade, the firm has donated $129m in aid in Nigeria.
Chevron stated, that the rivalries created by the system of dishing out aid at village level was "inadvertently leading to or adding to the causes of conflicts among communities.?
US oil giant pledged to put more emphasis in future on working with regional councils to devise projects locals want.
"Violent, incessant inter-and-intra ethnic conflicts have left many of the development projects funded by the company destroyed, not to count the many lives and property lost," Reuters reported the company's statement as saying.
The company found, that local officials often used the money to fund gangsterism rather than to provide healthcare or create jobs.
