Niger Delta: Darfur in Waiting?

Published on 21st July 2008

Recently, the Nigerian government deployed soldiers and warships to dislodge militants amongst oil producing communities.This development is in response to militant attacks on flow stations and other oil installations, thereby disrupting oil production and substantially cutting oil revenue.The military campaign aims at ending a series of kidnappings, vandalisation of oil equipment and routing the militants. Will the latest military operation solve the Niger Delta  crisis?

The Niger Delta was peaceful region until oil in commercial quantities was discovered in it  but oil related activities did not improve the lives of people. Resistance used to be in form of pockets of violence and protests until it snowballed into large scale hostage-taking with demands for ransom as well as attacking oil installations, navy, police stations and soldiers.

Although the federal government might has embarked on the latest campaign apparently to stem the volatile situation in the region and end disruptions to oil production which has threatened the nation’s revenue, There is  need for caution as previous military involvements never yielded positive results. They created bad public relations and a new set of problems, thereby aggravating the deep seated negative feelings in the region. For instance in 1994, more than 2000 civilian were reportedly killed, while about 100,000 turnrd into refugees when the Rivers State Internal Security outfit occupied Ogoniland. The military reprisal attacks in Odi Town in 1999 affected over 2500 civilians and destroyed the town.

There is need to evolve innovative and practicable solutions to the crises beyond the use of force.It is understandable why the government is keen on resolving the crisis in the region. The place of oil in Nigeria’s economy is immense. It contributes 95 per cent of export earnings, 83 per cent of government revenue, and about a third of gross domestic product (GDP). On daily basis, Nigeria loses $46.44 million due to the two recent attacks on Bonga and Chevron facilities. This is outside $84 million daily lost to the general activities of the militants. In monetary terms, this translates to $2.52 billion per month and more than a whopping $30 billion a year.

However, the current oil proceeds sharing formula is inherently flawed and is incapable of solving the crisis even if it is raised to 50 per cent. This is because statutory allocation goes to states, local governments and other bureaucracies like Niger Delta Development Commission (NDDC). As things currently stand, a lasting solution surpasses the mere provision of infrastructure and political compensation for lackeys. The people who own the land must derive direct benefit from oil revenue accruing to the national purse. They must see themselves as stakeholders. As important the people are, the present arrangement does not have them in picture.

A few weeks ago, some oil companies proposed the need to distribute a certain percentage of their profits directly to the inhabitants of the area. This no doubt represents an innovative approach towards solving the problem in the region. Under this arrangement, rather than relying on oil revenue, the government would have to rely on normal tax policy instruments. This will insulate the system from corruption and mismanagement as oil revenue would stay out of the hands of the public officials. Above all, it will rectify the imbalance of economics and political power that often favour government and against the people.

It is a fact that the discovery of oil has had negative impact on domestic economy and political institutions. It has given rise to officials seeking rent which in turn affects investment climate and growth. When oil revenue flows in large quantity as it is in Nigeria, promoting wealth creation becomes a mirage and citizens have less incentives to hold their government accountable. The government in turn has little incentive to manage well, provide adequate public services or respond to citizens. In addition, under the circumstances, building a strong market economy and a well-established property rights become a mirage.

A lasting solution rests on a genuine restructuring of ownership and control of lands. There is need to reform the Petroleum Act and the Land Use Act that effectively deprive local residents of ownership stake in land and its resources. Consent for oil exploration should involve local communities and families. This will make them partly responsible, apart from restoring ownership. This is a sure way not only to sustainable peace in the Niger Delta but also a powerful linkage to a freer economy through limitation in government restrictive policies.

Oil producing communities must be stakeholders in oil business. When they do, they will ultimately see themselves as co-owners. They will dare not destroy what is theirs. Under this arrangement, everyone wins; the government, the people and oil companies. In East Africa, when people in communities where wildlife lived never got any direct benefits, people saw the animals as problems and the rate of poaching and illegal sale of ivory boomed. This was reversed when people get direct benefits and there were incentives for them to protect the animals.

The involvement of military is largely misdirected for it  serves to strengthen the youths who are bent on resisting military occupation. Many young people in the area possess varying knowledge of weapon handling. Military option will further provide a veritable ground for brainwashing and consequent recruitment of young people into militancy.

The Niger Delta crisis requires careful handling. The military operation is a short time solution. To insist on using military might to end the crisis would at the end be counter productive.


By Thompson Ayodele, Executive Director, IPPA, Nigeria and Olusegun Sotola. Ayodele and Sotola are with the Initiative for Public Policy Analysis (IPPA), a public policy think-tank based in Lagos.

 

 


This article has been read 2,245 times
COMMENTS