Contending Issues in the Niger Delta Crisis of Nigeria - Journal of ...
Contending Issues in the Niger Delta Crisis of Nigeria - Journal of ... Contending Issues in the Niger Delta Crisis of Nigeria - Journal of ...
Olawale Olaopa, Ibikunle Ogundari, Mike Awoleye, and Willie Siyanbola directly, or indirectly, more revenue from the oil sector than any of the oil producing states. It was a classic case of internal colonialism. This was, roughly, the situation until in 1999 when the new Constitution, for the first time, after decades of relentless exploitation of the oil producing states, conceded 13 per cent of oil revenue to the nine oil producing states. This change was a response to the increasing and violent agitation of the people and militia of the oil producing states for a greater share of the oil revenue accruing to the federation account. But this increase is considered by the oil producing states as too little and too late. They are now asking for true fiscal federalism based on the principle of 50 per cent derivation at independence, or total control. But the situation has changed. There are 27 states that produce no oil but share in the oil revenue, and there is little or no support among these states, or the ruling PDP, for the idea of reverting to the principle of 50 per cent derivation. Without the oil money many of them will simply be unable to adequately perform. The argument being advanced in some quarters, particularly from the states that produce no oil, that the governments of the oil producing states are wasteful and mismanaged their vast oil income has some validity. A study by the Centre for Advanced Social Studies (CASS) in Port Harcourt published that about N3.1 trillion get to the nine Niger Delta State from the federation accounts. The Study also concluded that despite this vast income the region had a per capital 227
Chapter IX: The Politics and Policies of Oil Deregulation in Nigeria: Implications and Policy Suggestions income lower than the national average of $280 per annum and that, in terms of delivery of health, education and other social services, these states were the most backward in the country. To a large extent the political leaders in these states are responsible for the large scale graft that has made economic and social development in the region difficult, if not impossible. Whichever reason adduced by the government of non-oil producing states, the fact still remains that the situation, as appalling as it is, cannot be used as an excuse or justification for denying the oil producing states a fairer share of the total national revenue. There is a clear case of injustice here and a nation cannot be built or survive on rampart injustice. The federal Government that gets over 51 per cent of the total oil revenue is even more wasteful, as are the state and local governments. Almost on a daily basis there are press reports about huge federal financial scams, running into billions of naira. But no one in the federal government has used the argument to call for a reduction in the share of the federal government in the federation account. And there is no doubt that the northern establishment that has refused to give way on this issue would take a different view if the oil resources were in the North. But by a quirk of nature most of the oil is from the part of Nigeria that has little or no political clout to make good its demand. Oil revenue, and the manner it is shared, is vital for the peace and stability of this country. The struggle for the control of oil resources 228
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Chapter IX: The Politics and Policies <strong>of</strong> Oil Deregulation <strong>in</strong> <strong>Niger</strong>ia:<br />
Implications and Policy Suggestions<br />
<strong>in</strong>come lower than <strong>the</strong> national average <strong>of</strong> $280 per annum and that,<br />
<strong>in</strong> terms <strong>of</strong> delivery <strong>of</strong> health, education and o<strong>the</strong>r social services,<br />
<strong>the</strong>se states were <strong>the</strong> most backward <strong>in</strong> <strong>the</strong> country. To a large extent<br />
<strong>the</strong> political leaders <strong>in</strong> <strong>the</strong>se states are responsible for <strong>the</strong> large scale<br />
graft that has made economic and social development <strong>in</strong> <strong>the</strong> region<br />
difficult, if not impossible.<br />
Whichever reason adduced by <strong>the</strong> government <strong>of</strong> non-oil<br />
produc<strong>in</strong>g states, <strong>the</strong> fact still rema<strong>in</strong>s that <strong>the</strong> situation, as appall<strong>in</strong>g<br />
as it is, cannot be used as an excuse or justification for deny<strong>in</strong>g <strong>the</strong><br />
oil produc<strong>in</strong>g states a fairer share <strong>of</strong> <strong>the</strong> total national revenue. There<br />
is a clear case <strong>of</strong> <strong>in</strong>justice here and a nation cannot be built or survive<br />
on rampart <strong>in</strong>justice. The federal Government that gets over 51 per<br />
cent <strong>of</strong> <strong>the</strong> total oil revenue is even more wasteful, as are <strong>the</strong> state<br />
and local governments. Almost on a daily basis <strong>the</strong>re are press<br />
reports about huge federal f<strong>in</strong>ancial scams, runn<strong>in</strong>g <strong>in</strong>to billions <strong>of</strong><br />
naira.<br />
But no one <strong>in</strong> <strong>the</strong> federal government has used <strong>the</strong> argument<br />
to call for a reduction <strong>in</strong> <strong>the</strong> share <strong>of</strong> <strong>the</strong> federal government <strong>in</strong> <strong>the</strong><br />
federation account. And <strong>the</strong>re is no doubt that <strong>the</strong> nor<strong>the</strong>rn<br />
establishment that has refused to give way on this issue would take a<br />
different view if <strong>the</strong> oil resources were <strong>in</strong> <strong>the</strong> North. But by a quirk <strong>of</strong><br />
nature most <strong>of</strong> <strong>the</strong> oil is from <strong>the</strong> part <strong>of</strong> <strong>Niger</strong>ia that has little or no<br />
political clout to make good its demand.<br />
Oil revenue, and <strong>the</strong> manner it is shared, is vital for <strong>the</strong> peace and<br />
stability <strong>of</strong> this country. The struggle for <strong>the</strong> control <strong>of</strong> oil resources<br />
228