17

May

2008

The Oil Curse in Nigeria and Gambari's 50% Prescription PDF Print E-mail
By Hosiah Emmanuel

The image below shows a recent oil pipeline explosion in Lagos, Nigeria.  Pipelines conveying oil from the Niger Delta region to different parts of Nigeria criss-cross the landscape. The pollution caused by this in a day is comparable to one-half of 30 days of pollution in a typical oil-producing community in the Niger Delta. I am being conservative here.

The image

Professor Agboola Gambari is a long-serving Nigerian diplomat at the United Nations.  He is the Under-Secretary for Political Affairs at the United Nations.  At a recent book launch in Lagos, Nigeria, he said:

"In this regard, and as an initial down payment for that effort, I propose that the government should consider devoting the equivalent of 50 per cent of this oil revenue for 30 days to address the most basic needs for the region."

He goes further to say:

"....such an action will demonstrate a substance and symbolic commitment by a new government that has rightly identified the Niger Delta as one of its seven challenges."

Today, the Federal Government(FG) pegs the price of crude oil  in the budget.  This peg is usually lower than one-half of the actual price in the market.  In an oil-addicted world, this peg's variance with the actual crude price could become even larger.  The difference is put in an "excess crude" account.  The FG then pays 13% of the peg as derivation to the ND states based on production volume per state.   In recent times we have come to learn that the excess crude account is a major source of corruption by federal politicians.  It is believed to be the major source of former president Obasanjo's ill-gotten wealth.

What Gambari advocates is a special, urgent case, in addition to the 13% derivation.  He is saying that the Federal Government should not wait for a comprehensive plan before tackling the Niger Delta problems.  He is apparently responding to a Nigerian energy minister who was reported to have stated that:

"...... because of the comprehensive approach of the current administration towards solving the Niger Delta problems, indigenes of  the area and Nigerians as a whole might not see its immediate resolutions."

Gambari is saying that the situation is urgent.  He is saying that the Federal Government should set aside 50% of "all" oil "revenue" that comes in every day for 30 days.  Not 50% of the budget-peg.  Not 50% of net income.  But 50% of oil revenue for 30 days.  Inside that "revenue" will include parts that would ordinarily belong to the oil majors.

He is saying:  take that 50% and use it to provide for the basic needs of the Niger Delta NOW while we await the comprehensive plan.  Contrast that to Prof. Pat Utomi of the Lagos Business School who stands on a Niger Delta platform to water his national political ambitions.  Or to Prof. Wole Soyinka who sent a representative to a Niger Delta forum to talk down on Niger Deltans by implying that the people of the Niger Delta lacked understanding of resource control.

Gambari doesn't think that a seminar or summit or special meeting is needed before Nigeria develops the Niger Delta.  He seems to be saying:  DO IT NOW with 30 days oil revenue.  He believes that the rest of Nigeria will not starve if 50% of 98% of what Nigeria makes in a month is spent to tack the basic needs of the Niger Delta that has suffered so much due to decades of oil exploitation.   Having benefited from the goodwill of Nigeria for so many years, I think that Gambari knows what he is talking about.  He seems to have realized that delaying the development of the Niger Delta is no longer fashionable.

I see reasons with Gambari!  Images like the one above will be averted in all parts of Nigeria if the leadership of Nigeria resolves the Niger Delta Question.  We are all in this thing together obviously.


Hosiah Emmanuel

Singapore



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RobotRobot is offline

 # 1 | 17.05.2008 12:41

The image below shows a recent oil pipeline explosion in Lagos, Nigeria. Pipelines conveyin...Read the full article.

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N.A.R.N.A.R. is offline

 # 2 | 17.05.2008 13:41

The suggestion by Prof Gambari is a good one but not quite necessary. The current allocation to the Niger Delta will go a long way to aleviate the suffering of the people IF It is spent on projects to impact the PEOPLE not the power brokers of the Niger Delta.

But the plan could be usefull is applied to certain major capital projects that do require large monetary input see #4 below

But before you can embark on development, the first order of business is to broker peace with MEND and other fractions for a period of 6 months. Within that period, the FG must show meaning ful progress to develop the delta.

You do not need a comprehensive plan to lay down basic infrastructure, there are immediate things that can be done to alliviate poverty in the Delta

1. Simply purchase boats for riverine transportation,
2. Sanction the oil companies for oil spills. Make them pay heavy fines
3. Get qualified companies to clean up poluted areas
4. A comprehensive plan to bury oil pipes below surface level should be implemented. Now pipelines with mordern technology needs to be laid down. This needs to be done in phases.
5. Employe the people of the delta in these developmental projects, this allows then to earn an honest living and turn away from bandits and rebels when they come calling.
6. Build well stocked health centers and hospitals over the region.
7. Finally, Simply implement one of the dozens of Master Plans that have already been produced by the previous administrations.

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FoxCatcherFoxCatcher is offline

 # 3 | 17.05.2008 16:13

Seriously... this matter is a ticking time bomb. Only those who have been to these areas can truly appreciate the agony of these people. I advocate that Gambari's formula be adopted not just for 30 days, but for one year at least.

Nigerians have grown lazy and slack becos of the oil money. If we adopt this formula for a year, I can assure you that various tiers of govt will suddenly discover alternative sources of income: collection of rates and taxes, development of internal natural resources (most of which are currently abandoned or neglected). Lagos State survived for long without the withheld LGA funds. LASG simply became more inventive and aggressive in their internal revenue drive. The state is better for it today

The argument that Niger Delta elites have been part of the problem and would only corner any such excess funds in untenable. If Niger Deltans allow their elites to siphon their hard fought resources that's their prerogative. LET them have what belongs to them. In the same way let all sections control and manage their own resources and its exploitation.

This will reduce the attraction of the centre and drastically reduce corruption. The first time I saw Abuja in 1993 and compared it with what I'd seen in the Delta, I was honest enough to admit that I would take up arms if I'm from there. I dont support the violence, but find it understandable if not excusable.

I no bi 9ja Deltan o :D:D Na ngbati side I dey. But spade na spade; mak we no call am spoon. Let them have their resources (at least 50%). If dey teeff am, na dem sabi; na dem own. :D:arrow:

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ProfegeeProfegee is offline

 # 4 | 19.05.2008 10:29

Gambari seems to have come to his senses now or maybe he is just saying something. Was he not part of the recycled government since over two decades ago. What advisory role has he played since IBB regime.

The welfare and development of this region should top the priority list of the governments and all stakeholders too. Be that as it may, will FG pay the Niger Delta through the state governments or the NDDC? Will it not amount to carrying coal to Newcastle, if Gambari's suggestion is implimented through the present selfish politicians?

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Rapon92Rapon92 is offline

 # 5 | 19.05.2008 11:51

Again this is what I have being saying about nigeria, Here you have a career diplomat, who has the experiance and knowlegde of almost 20yrs. Gambari advice in my opinon should be the first step in bring nigeria out of the mess, but again he maybe looked at as an I too know. the federal government should act on this and be the ones to oversee the projects that should be happenning in the niger delta. we cannot leave it to the local governments, as the issue is really a nigerian one due to the oil resoures that they get from that state. Make the people happy and I hardly think that there would be as much problems that is happen in the niger delta

My opinon

Gambari for president 2011:biggrin:
 

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