Thomas John And The Niger Delta Question

By Reuben Abati

I was most recently, on December 19, 2008, to be precise, guest speaker at the 70th birthday anniversary of Dr. Thomas John, former Managing Director of the NNPC. I had commented at the occasion on the Niger Delta question, since in any case I believe that unless this is addressed, Nigeria is bound to remain trapped. The lecture at that occasion was rather lengthy. This week and probably next week, I shall attempt to borrow a few lines from the full text of that presentation, for no reason other than to remind all of us afresh of what we already know: the significance of the Niger Delta Question. The original lecture was titled Oil Thieves, Madmen and a Cheated People: The Niger (ia) Delta Question Revisited. But I have opted for a less controversial banner here, with the hope that readers will focus on the more important issues. One thing is certain though: in 2009, the Nigerian government must address the Niger Delta question or risk greater instability.

I began that presentation by noting that: I consider it a great honour and privilege to have been invited as Guest Speaker at this special occasion, the 70th birthday anniversary of Dr. Thomas Asuquo John, a truly distinguished Nigerian whose record of service in the public domain is unblemished, and whose example has remained inspiring through the years. Life expectancy in Nigeria is said to be about 46 years, to live up to the age of 70 and beyond in a country such as ours where there is so much uncertainty and life is increasingly becoming "short, nasty and brutish" is no mean achievement and to have spent the 70 years with distinction, honour and recognition and the respect of all and sundry, as is the case with our host today, is worth celebrating.

I want to join friends, family and the admirers of Dr John in wishing him a happy 70th birthday, and many more years of fruitful service to the nation. It is often commonly remarked that the age of 70 is the Biblical age, but persons who are more knowledgeable about the Scriptures have drawn my attention to the fact that indeed the Biblical age is the age of Methuselah, not 70, or what is stated in some other portion of the Bible. But since my assignment today, is not to discuss the Bible and the politics of longevity, I shall simply restrict myself to wishing the celebrant, long life and good health.

I have taken the liberty of choosing as the subject of this presentation, the all-important issue of the Niger Delta, and the reason for doing so, I guess is fairly obvious. Our celebrant spent the better part of his career in the oil and gas industry; rising to become the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), and President of the Nigerian Society of Chemical Engineers. He has been a witness to and a leading player in the developments in Nigeria's extractive industry for more than two decades, and he is easily one of the most authoritative analysts of the fortunes of that industry. Dr John is an accomplished technocrat and community leader. He is if I may add, from the Niger Delta.

There is no debating the fact that the extractive industry is the life-wire of the Nigerian economy, and the NNPC is the country's major income earner, but strategic as all of this may be, oil and gas fortunes have sadly brought Nigeria so many woes and misfortunes. This is to be analysed in the context of the social, economic and political crises associated with oil and gas, the grand human scale of the politics of oil, or what is also known as the curse of oil in Nigeria.

The oil question is at the heart of the Nigerian question and the theatre for the interplay of associated forces, the battleground of the dilemma is the Niger Delta, for the purpose of this exercise, Niger Delta refers to the states of Cross River (often considered marginal player) Ondo, Imo, Abia, Edo, Rivers, Bayelsa, Akwa Ibom and Delta but more directly the last four states which face more peculiar problems. It is one of the largest wetlands in the world, and clearly, the largest in Africa, covering over "20, 000 square kilometres". I intend to draw the attention of this audience afresh to the Niger Delta question. In doing so, I shall endeavour to avoid the familiar jargon of existing narratives on the issue, and offer a direct construction and critique of the extent of the crisis and its implications for Nigeria's present and future.

The Strategic Importance of Oil

It is a trite point that oil is important to the world as a major source of energy. Anywhere in the world where a vehicle's tank is being filled with gasoline, or an engine is being run with diesel or any other fuel, or a lantern or stove is being filled with kerosene, or any petroleum-based product is being used, there is a linkage to a complex process that involves exploration, refining, high-end engineering and technology, human and material resources, the politics of nations and the rights and expectations of human beings.

Nigeria is at the centre of this process as the sixth largest producer of oil in the world, and the largest oil-producing country in Africa, a position it now faces the risk of losing permanently to Angola due to its inability to manage its own affairs well. Crude oil is so important to Nigeria, it is the country's main export and the source of 95 per cent of its revenue. A sharp drop in the spot market price of oil automatically changes Nigeria's fortunes, while high oil prices raises the country's fortunes. In recent times, the country's over-dependence on oil receipts and in turn, its vulnerability have been well demonstrated.

Oil was first discovered in Nigeria in 1908, but commercial exploration did not commence until the discovery of oil in Oloibiri, now in present-day Bayelsa state in 1956. From an initial production of 5, 000 barrels per day, oil production from Nigeria's over 140 oil fields, over the years reached as high as 2. 4 million barrels per day. The projection for the 2009 budget is about 2-9 barrels per day, although, instability in the oil producing regions, as occurred during the civil war, 1967-70, and in the course of the current insurgency in the Delta can obstruct oil production activities, again exposing the soft underbelly of Nigeria's cash cow.

But under normal circumstances, Nigeria's crude oil is most sought after. It is classified as the Bonny variety, "light and sweet", it is low in sulphur and easier to refine. Located in the Gulf of Guinea, multinational oil corporations find transportation to Western refineries easier. Much of the oil is also located offshore, creating further convenience for the multinational corporations. The crisis of governance and the poverty of development in Nigeria have also been to the advantage of the multinationals.

Nigeria's inability to develop local capacity in oil exploration, and to acquire the required technology, has made it possible for the MNCs engaged in joint venture partnerships with it to get way with lopsided contractual agreements. Nigeria does not even have the capacity to monitor how much oil is taken out of the wells by the oil exploration companies. Nigerian officials saddled with the responsibility of ensuring this are corrupt and can be manipulated with rewards. Foreign oil companies have learnt to play the game by paying rent to corrupt officials who look the other way as Nigeria's prime resources are stolen.

When Western interests refer to Nigeria as an important African country, they are necessarily more interested in the advantages that access to its oil offers. Nigeria is even said to be essentially a gas producing country. Should all its oil wells dry up as has been predicted, the country has gas deposits that could last for more than 100 years. With the crisis in the Middle East, the West particularly the United States has been looking for new sources for oil, with its eyes trained on the Gulf of Guinea and Nigeria's hydrocarbon resources, hence the decision to bring American military presence to the Gulf of Guinea.

Nigeria is fully aware of its importance as an oil producing country. Much of the wealth that came the way of the country in the last 50 years has been derived from oil wealth. In the 70s, in the face of the oil boom, a former Nigerian Head of State was so excited he allegedly boasted that "Nigeria's problem was not money but how to spend it". A broad-angled Nigerian middle class soon emerged which indeed did not know how to spend money. It was a middle class that was sold on conspicuous consumption.

The Nigerian national currency was so strong in the years of the oil boom that when a Nigerian showed up in a shop in London, the attendants took immediate notice and awaited a spending spree that could earn them bonuses. A thieving elite also helped itself to the country's resources. Every privileged public official wanted an oil block, even those who did not know the difference between palm oil and crude oil became petroleum consultants. On weekends, Nigerians travelled to London or Paris to have parties or simply spend the weekend. Gradually, the oil boom turned into the oil curse, but as we shall see shortly, the failure was more felt at the political and social level.

Nigeria And The Curse of Oil

Prior to the discovery of oil and the season of oil boom, Nigeria was mainly an agriculture-based country. The area now known as the Niger Delta was a palm oil belt and the main article of trade then was palm oil, which attracted the interest of the Royal Niger Company which set up its base originally in the Niger Delta. In the Western and Mid-Western part of the country, the people cultivated cocoa and rubber, and other agricultural products, the East was active in the palm oil trade and across the Niger, the Northern part of the country boasted of groundnut pyramids and mineral resources.

A federal principle informed the relations among the states. Under the British colonial authorities, the federating units first enjoyed 100 per cent derivation in 1946, then later 50 per cent derivation, and contributed only 20 per cent of their resources to the common pool. Because the different parts of the country were productive centres of activity, there was great competition among the regions to see which would surpass the other in terms of development.

But the discovery of oil and the oil boom suddenly put an end to this, as all Nigerians wanted a share of the national cake. In the 1963 Constitution, derivation was 50 per cent, and the Federal Government got only 30 per cent. This same Constitution granted the ownership of the Continental shelf to the regions. But by 1966, this had been constructively jettisoned. Controlling Nigeria's oil resources became the Federal Government's compulsive obsession. The civil war further exposed the strategic value of the oil resources in the Niger Delta, and as the military seized control of power and politics, exercising control over oil and revenue, became a major task. In 1970, derivation had been reduced to 45 per cent. In 1975, it was further reduced to 25 per cent. In 1981, the Shagari administration took it all the way down to 5 per cent. General Buhari further reduced it to 1. 5 per cent. It later went up to 3 per cent under the Babangida administration.

In the 1999 Constitution, derivation is fixed at 13 per cent, in response to agitations by the oil producing communities. But by far, the biggest damage that the obsession with oil has done to Nigeria over the years is a gradual descent into national indolence. Every month, Commissioners of Finance from the states travel to Abuja to collect their own states' share of oil revenue. In those states, almost nothing is done to encourage productivity. Nigeria has since effectively become a mono-cultural economy, with its destiny tied so delicately to its crude oil resources. The more the leadership elite was confronted with this simple truth, the more they tried to seize further control of oil and gas resources.

Reducing the amount of money due to the original owners of the oil is one strategy, but an even more invidious strategy has been the introduction of legislations which vest all control in the Federal Government and disempowers the Federating Units. These include the Minerals and Mining Act, the Petroleum Profit Tax Act, the Land Use Act, the Oil in Navigable Waters Act, the Oil Pipeline Act, the National Inland Waterways Authority Act, the Petroleum Act, the Exclusive Economic Zone Act, the Territorial waters act and the Lands (Title Vesting etc) Decree. Sections of the extant Constitution notably Sections 16 (2), 162 (5)-(7), item 39 on the Exclusive list have also been identified as contentious.

The combined effect is the politicisation of Nigeria's extractive industry. One major aspect of this is the rebellion of the people of the Niger Delta, who confronted with a rapacious Nigerian state, and the tripartite ethnic hegemony in Nigeria began to protest early about the injustice of the theft of their resources by the Nigerian state. This is the context of the Niger Delta Struggle, now a definitive aspect of Nigerian history, tied to its past, responsible for much of the present national drift and certainly relevant to the country's future.

To be continued.

Robot  # 1 | 04.01.2009 10:39

Thomas John And The Niger Delta Question By Reuben Abati I was most recently, on December 19, 2008, to be precise, guest speaker at the 70th birthday anniversary of Dr. Thomas John, former Managing Director of the NNPC. I had commented at the occasion on the Niger Delta question, since in any case I believe that unless this is addressed, Nigeria is bound to remain trapped. The lecture at that occasion was rather lengthy. This week and probably next week, I shall attempt to borrow a few lines from the full text of that presentation, for no reason other than to remind all of us afresh of what we already know: the significance of the Niger Delta Question. The original lecture was titled Oil Thieves, Madmen and a Cheated People: The Niger (ia) Delta Question Revisited. But I have opted for a less controversial banner here, with the hope that readers will focus on the more important issues. One thing is certain though: in 2009, the Nigerian gov...Read the full article.

positubosun  # 2 | 05.01.2009 08:21

I used to respect this Man a lot until I read the story of how he was compromised in the latest news emanating from Saharareporters. I think Mr Reuben Abati should resign from the respected Editorial Board of the Guardian Newspapers, and join the corrupt PDP government.

LAN  # 3 | 05.01.2009 12:31

@ Bosun Please, you may need to read Obi's and Onanuga's responses again. The transaction was carried out at arm's length, no discount. Or is there any crime for a journalist to legally acquire or sell properties. For us to believe the allegation against the editors, Sahara reporters will need to show evidence that the plots were allocated free of charge, otherwise the integrity of their reports are at stake.:source While I appreciate saharareporters, they should stop adding 'extras', 'jarasis' to their reports.:frown:

Bunch17  # 4 | 05.01.2009 13:17

=LAN;309014>@ Bosun Please, you may need to read Obi's and Onanuga's responses again. The transaction was carried out at arm's length, no discount. Or is there any crime for a journalist to legally acquire or sell properties. For us to believe the allegation against the editors, Sahara reporters will need to show evidence that the plots were allocated free of charge, otherwise the integrity of their reports are at stake.:source While I appreciate saharareporters, they should stop adding 'extras', 'jarasis' to their reports.:frown: Does this only apply to Editors or does it apply to every Bunch, Waziri or Ewuro?

Louis  # 5 | 05.01.2009 16:36

I will get straight to the point. What Nigeria needs is a few good men in government that will focus not on fighting corruption but on improving the economy. Trying to fight corruption in an economy as bad as Nigeria’s is tantamount to putting the proverbial cart before the horse, or trying to consume the contents of a nut without first cracking its outer shell. Some might argue that the economy cannot be improved unless corruption is eradicated or that corruption is an essential part of improving the economy. For me it is the other way round - improve the economy and then fight corruption, or at least make the economy your primary focus whilst fighting corruption as a secondary priority. Let’s take a look at an example. What if Gov. Fashola of Lagos State had made fighting corruption his primary mission – would he be enjoying the widely acclaimed success he is enjoying today? I reckon he would either be in a state of extreme frustration or worse dead. Instead, he is tackling practical issues that affect the lives of regular Lagosians – transport, refuse, jobs etc. The best example I think I have heard of his genius, is a scheme that allegedly pays anyone by the kilo who brings refuse to one or more designated collection and disposal points. I don’t have confirmation that this scheme truly does exist but I hope to God it does. What better idea can you imagine for cleaning up Lagos whilst providing a means of income for the jobless who might hitherto have turned to crime in desperation? Perhaps the scheme might even spawn a new and welcome type of crime – stealing refuse. I can just hear it now – OC to pick-up driver: “wey your evidence say this rubbish na ya own?”:) But seriously, I think a lot of arguably well meaning government initiatives have failed for trying to solve the right problem at the wrong time. The War Against Indiscipline (WAI) for example was never going to be sustainable. A more appropriate scheme would have been WAH – War Against Hunger. Some readers may know of Maslow’s Hierarchy of Needs theory which suggests that needs have a hierarchy and therefore some basic needs must be met before attempting to meet higher ones. I doubt that even our esteemed idols in the western world would be as orderly and respecting of the law if they were as hungry and frustrated as a lot of Nigerians are. In fact we know that they weren’t so civilised in times past and we might yet be treated to a repeat show if the global economic crisis persists.

ozoodoo  # 6 | 05.01.2009 19:37

=positubosun;308861>I used to respect this Man a lot until I read the story of how he was compromised in the latest news emanating from Saharareporters. I think Mr Reuben Abati should resign from the respected Editorial Board of the Guardian Newspapers, and join the corrupt PDP government. The cloths are beginning to come off the body of the masquerades!!

ikechukwu  # 7 | 06.01.2009 07:41

I have seen a lot to understand that in Niger Delta nobody, I repeat nobody is still fighting for anything called resource control again what everybody is fighting for now is the resource control of his pocket, from Abuja to Yenogoa it is the same crooks that have hijacked the struggle and it is now a criminal game whether the individual is NNPC MD or Governor. So these days all issues about fighting for Niger Delta emancipation or resource control or negotiating for it in whatever name has become a circus show played for the people who are ready to buy all the bogus arguments. No one is still fighting anything called resource control and that is the truth. Resource control fight has gone with the wind. Yaradua is not interested in it, Niger Delta Governors/ministers don’t give a damn about it neither is MEND or the so called south-south, Ijaw this, Ogoni that, or south- whatever or any other swarming so called militants. So deceiving ourselves with Niger Delta issue is just delving more into a criminal cook up from Abuja to the creeks of that area. The Governors must look for a way of justifying their security votes thereby encouraging or even forming their own militants. The military top brass must find a way of keeping themselves busy with security money by always encouraging militants to strike while they look the other way. The federal Government must justify the reason she requested for billions of Naira for Niger Delta by forming the Niger Delta ministry so the wahala must continue. FG must also continue to make the trouble there an issue while the monumental pilfering in the name of security for Niger Delta continues, as it would be hard pressed to explain why it requested or even spent such an amount if there were less fighting. Again, it is a complicated criminal game directed from Abuja down to the Niger Delta. Nobody is fighting for the wretched looking fisher man in Oporoma, nobody is concerned about the kwashiorkor looking child in Nembe, nobody(without exceptions) gives a hoot about the oil-caused –skin- cancer child in burutu or bomadi. Infact nobody gives any interest to the hopelessly looking teenagers in Angiama, as far as some people are concerned the hungry farmers at Ilaje can go to hell. I can go on and on and on. All these gragra by Yar’Adua, Niger Delta elders and the militants is a game played by criminals. To tell you how ridiculous the whole thing is turning to UMYA has just picked Ufot Ekaete as the ND minister (a man who was Obj's right hand man in the monumental disaster of his tenure) also UMYA has Ibori’s former commissioner for finance for 8 years as his principal secretary in Aso rock, and we all know Ibori’s relationship with some ‘militants’. Abuja is now full of militants in power. The money sharing show as regards how Niger Delta’s fabricated war would be solved must continue. It is as bad as that. The other day JTF said they capture 22 Philipinos doing bunkering, but alas the Philipinos gave the graphic detail of what happened claiming that JTF and the militants shared them(Philipinos).They(Philipinos) said that JTF arrested(not captured as claimed) 13 of them, while the militants took away 8 of them because of disagreement on the modus operandi of sharing the money that would arise from bunkering activities between the trio( JTF, militants and the philipinos).JTF shamelessly agreed that they now had 13 philipinos and right now doing everything to kill(infact 'murder) the story. Someone should ask the reason why Henry Orkar is tried in Camera, someone should bother to ask why Asari was never given a trial, an interest should come for why Ateke is not wanted for trial but been driven in a way to just go extinct. The answer is simple nobody wants them to talk in the open about their just being errands boys for those in power thereby changing the complexities of the whole struggle in the minds of Nigeria who will see the hands of Isaw and voice of Jacob. How come the military know too well the camps of the militants, they know their area coordinates, they know their leaders yet they are hard pressed knocking them out. To even make the story ridiculous the same military that know so much about these militants tell us they did not know how they slipped through their radar to attack big FPSO(Bonga) in deep waters last year with all the Naval ships swarming around, they are even telling us that some escorts with heavy military back up are attacked with fatalities on the soldiers , yet nobody is interested in apprehending the top leaders of the militants(that are so well known to the military). Haba! Someone should know that some people are seeing through this façade now. If the military never gave a go ahead signal no militant would ever dare high sea.If the military never gave a go ahead no militant would dare shoot at serious military back up.I know this for a fact! Questions should be asked why this thing was not happening during Abacha or even Babangida’s regime on the same scale we are seeing now. Mind you Abacha killed Ken saro wiwa in 1994 and he stayed for 4 years after that yet the same wide spread militancy thing never happened, so why? It is simple the military was in power and they owed nobody any apology for however they spent their security money, but in Civilian regime with you must create the scenario to spend this kind of money especially with the continual high price of crude. Whether you are a marginalized Niger Deltan or from any other similarly marginalized place in Nigeria is of no interest to these thieving crooks, its only important if it fuels the condition that would continue to make the Niger Delta as volatile as they desire, that is the reason spontaneous brake out of militants is encouraged while SSS is ready to pounce on anybody who wants to make sacrifice for Genuine peace in that area. You can demand for a private chat with Dr Asuni. It is a criminal game my people. I will surely like to produce a film on this area someday.

noellej  # 8 | 06.01.2009 19:53

ikechukwu i look forward to watching the film when it comes out..:) you underline a very big problem in Nigeria and the whole of Africa, and therefore a major stumbling block to our progress, which is our lack of ability to be our brothers 'and sisters' keepers. After that comes greed. Unless those two vices are defeated we will continue to remain where we are-nowhere.