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Nigeria ’s
economy is one of the most fragile economies in the world. Predominantly
dependent on crude oil, and with a number of factors pushing up crude prices
for the better part of the Obasanjo years and still pushing up, the federal
government, the thirty-six state governments and hundreds of local governments
have been having a field day. They just wait for the end of each month, and
swim in cheap money when
Abuja shares proceeds from
crude oil sales.
Recent events in the oil
industry have caused disruptions in
Nigeria ’s
crude exports. As at today, daily crude export is threatening to go further
below 1 million barrels per day (from the usual 2 million barrels per day).
Militants blew up some pipelines last week and workers of
Exxon-Mobil
Nigeria are threatening to go
on strike. I tell you, this trend does not amuse anyone of the people in
government, from Aso Rock to 36 government houses to 774 local governments. It
may sound alarmist, but the truth of the matter is that, we should not be
surprised to see little disruptions like the blowing of a couple of shell
pipelines or a strike by workers affect federal revenues in such a way that
would completely halt business in these
wait-for-allocation-from-Abuja-at-the-end-of-every-month states and local governments.
That exactly is what is
happening as Hassan Lawal, labor minister frets when Adams Oshiomole showed
solidarity with oil workers and union members of the Petroleum and Natural Gas
Senior Staff Association of Nigeria (PENGASSAN). It was at a recent PENGASSAN
Delegates meeting in
Abuja . Oshiomole said: “I
want to suggest as your own friend and comrade that one of the resolutions that
you should pass in this forum is that you have no business extracting more
crude oil at $120 per day if the proceed will be shared by an irresponsible
political leadership." (See The Guardian cover,
Wednesday,
April 30, 2008 )
The livid minister of labor
is said to have “warned” Oshiomole not to incite the Nigerian public against
the government. I am not surprised. Our ruling elite will pee in their pants if
the trend in crude production paints the slightest picture that the monthly
“awoof” money from
Abuja will be affected. The
fears of Lawal and his kleptomaniac colleagues are sure deeper than he has
casually expressed. We recall when oil workers union nearly brought down the
evil dictatorship of Sani Abacha in 1994, during the struggle for the
validation of the June 12 election, which remains the best ever election
conducted in
Nigeria . The
larger Nigeria Labour Congress (NLC) had compromised on the struggle, thus, the
oil branch took up the revolutionary gauntlet and carried the peoples struggle
to a higher, more significant level. Sadly, the government needs not worry
about “strike” by the current PENGASSAN or NUPENG because they do not have
leaders with the clout, charisma and the intelligence of Frank Kokori, who
organized and led the June 12 struggle by oil workers.
Honestly, I am often outraged
when prices of crude surge to high heavens, in which case
Nigeria
stands to gain more cheap petro-dollars. My sadness is
always because this means more “awoof” money for our governors and local
government chairmen to share among politicians. All the allocations are just
shared among politician-contractors!
You
need to visit some local government headquarters, especially the rural ones,
and see the frenzy of activities each month to appreciate the danger that is
caused millions of Nigerians by this monthly “awoof” money. I come from a
northern state, yet I am often at pains trying to explain to my fellow brothers
and sisters how cheap and free money from
Abuja has
retarded our progress and has continued to do more harm than good to our states
and local governments. We have done better in the past without this cheap but
evil
Abuja money, we can still perform better
without it. How can one explain a governor Danjuma Goje of
Gombe
State paying himself 200 million
naira as pension while still serving as governor? (See http://www.thisdayonline.com/nview.php?id=109948) Only “awoof” money could make this happen!
Once we were discussing with
a top government official from one of the northern states, it was during the
time when the issue of political settlement of the on-shore/off-shore dichotomy
that slightly gave more money to the oil producing states was raging in the
local media. The man was very angry with me and my position, so much that he
threatened to pull his state out of a capacity building and institutional
strengthening program in which I worked as program manager. I tried to let the
much older man (old enough to be my father) understand in calm but firm
language. But believe me, I will be the happiest person when this cheap cash
stops flowing from
Abuja . After all, it does not
make any positive difference in the life of Nigerians.
Not that I am
totally against federal support for the 36 states and 774 local governments.
But for God’s, the way this is currently done simply encourages corruption and
laziness. States take no initiative to tap and develop abundant resources in
their regions because they believe and know that money will be shared in
Abuja
at the end of the month, and they will surely have it. Some
method needs to be put to the system of supporting states and local
governments. For instance, the federal government could have a system of
funding key social development projects, through specific grants to the states,
and the continuance of grants, or issuing new grants in a particular sector
could be tied to the phased or full completion of the projects. If
Kaduna
State is granted money by
Abuja
to build a hospital for instance, the hospital must be fully
completed before
Kaduna state can enjoy another
federal grant as far as building hospitals is concerned. The states can do the
same for their local governments. But this whole-scale monthly sharing of money
smacks of armed robbers sitting down to share loot.
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Posted by Robot| 30.04.2008 20:17