Contending Issues in the Niger Delta Crisis of Nigeria - Journal of ...

Chapter IX: The Politics and Policies of Oil Deregulation in Nigeria:
Implications and Policy Suggestions
It is instructive that China, which is the fastest growing
developing economy in the world today, has achieved this feat by
internal home-grown policies. For example, China has resisted all
pressures by these international financial institutions to float its
currency. This has not prevented the massive inflow of foreign direct
investment which continues to play a major role in the unprecedented
growth of the economy.
It is unlikely that the violence in delta region will be brought to
an end by federal military blustering and posturing, or through
seeking foreign military assistance. It will have to be resolved through
a dialogue, not necessarily another summit, with all interested
parties, preferably by the National Assembly. It should now take the
lead in ending this unjust and unfair fiscal system through the
appropriate legislation. The oil producing states should immediately
be offered an annual graduated increase of 5 per cent to bring the
principle of derivation to a maximum of 40 per cent over a period of
10 years. This will force the non-oil producing states to look inwards
for the additional revenue they will now need to make up for the short
fall in their revenue. As for the federal government it should not get
more than 20 per cent of the total oil income.
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