OIL POLITICS IN NIGERIA
Oil has emerged as a prominent factor in the power capacity profile of nations. Nations engage in armed conflicts due to the strategic significance of oil resources. The Gulf War that occurred in 1991 serves as a noteworthy illustration. Oil plays a distinctive and pivotal role in the process of national development in Nigeria. The impact of oil exploration and exploitation in the nation has been characterised by dual aspects. On one hand, the phenomenon has elicited positive emotions among certain individuals, while on the other hand, it has resulted in significant hardships, particularly for communities involved in oil production, due to its adverse environmental consequences and the imposition of political dominance (Ugoh, 2008). Despite the considerable abundance of oil wealth, the regions in question have experienced an astonishingly high level of poverty and minimal progress in terms of development. In order to mitigate the occurrence of such circumstances and uplift the underdeveloped oil communities, it is imperative for the federal government and multinational oil corporations to alter their antagonistic strategies. In order to garner the trust and support of the populace residing in the Niger Delta region, particularly the younger demographic, it is imperative for the concerned parties to prioritise initiatives aimed at fostering human development.
The Niger Delta region comprises a complex network of interconnected creeks, lagoons, and mangrove swamp forests, interspersed with extensive reserves of hydrocarbon resources. According to Ugoh (2008), the Niger Delta region yields approximately 2.5 million barrels of crude oil on a daily basis. The productivity level of Nigeria positions it as the foremost oil producer in Africa and the sixth largest globally. Furthermore, the aforementioned findings and productions play a significant role in establishing the Niger Delta region as accountable for nearly 95 percent of Nigeria’s foreign exchange earnings and 90 percent of its revenue, as stated in the Annual Report of the Central Bank of Nigeria in 2003. The Niger Delta region holds significant importance and strategic value for both Nigeria and the international community. The Niger Delta region initially consisted of six states: Akwa-Ibom, Bayelsa, Cross River, Delta, Edo, and Rivers. These states are located along the coastal fringes of Nigeria. In contemporary discourse, the designation “Niger Delta region” has evolved to encompass not only the original six States, but also the additional inclusion of Abia, Imo, and Ondo States, collectively representing areas involved in the production of crude oil. The unregulated practises of multinational oil corporations, characterised by their ecologically detrimental approaches, have resulted in significant environmental challenges. The region’s population of nearly twenty-seven million individuals has experienced significant hardship as a consequence of the environmental degradation that has occurred. These areas lack significant industrial sectors. The pollution has resulted in the destruction of their means of subsistence. Gas flaring in the region has been associated with the dissemination of diseases and the occurrence of acid rain. Regrettably, the federal government and oil companies have demonstrated a lack of fulfilment in their societal obligations towards the inhabitants of the Niger Delta. Consequently, this has resulted in significant tensions between the oil communities and the oil companies, as well as between the oil communities and the federal government.
The term “development” is subject to varying definitions among scholars. According to the definition provided by Obasanjo and Mabogunje (1991), development refers to a process that focuses on the ability of individuals within a specific region and timeframe to effectively oversee and facilitate beneficial transformations. This entails the capacity to anticipate, strategize, comprehend, and supervise alterations, while also minimising or eradicating undesired or unjustified modifications. In essence, development pertains to individuals as they embody a reservoir of potential for development, and it is the deliberate harnessing and utilisation of this potential that constitutes the process of development. According to Ugoh (2008), the concept of development encompasses a wide range of factors. The focus extends beyond consumption to encompass production as well. Certain scholars posit that development encompasses both qualitative and quantitative enhancements in the overall well-being and livelihoods of individuals. Soyombo (2005) provides an explanation of national development, wherein it is characterised as the enhancement of both qualitative and quantitative aspects of the living conditions of a State’s population, in accordance with the objectives outlined in the national development plans.
An alternative interpretation of development was proposed by Afonja and Pearce (1986), as posited by other scholars. According to their perspective, the objective of development is to meet four conditions of stability. These conditions encompass the stability of normative patterns, the level of commitment exhibited by the entities involved, the acceptance of a shared understanding of the situation, and the integration of the system within the larger system to which it belongs. The authors posited that the presence of these four conditions is attributed to the resistance of traditional societies towards adopting innovations. Therefore, it is important to note that the mere fulfilment of any of these conditions does not automatically indicate the occurrence of growth and development. In the African context, instances of conflict frequently arise due to factors such as marginalisation, identity politics, grievances, and the deprivation of essential resources within local communities. These conflicts are perpetuated by individuals or groups who wield coercive power. According to Anyadike (1997), the emergence of conflicts in Africa can be attributed to a global economic system that perpetuates a cycle of poverty and domination, thereby exacerbating local disputes pertaining to power and wealth. This observation appears to be applicable in the context of the Niger Delta region. Due to the absence of autonomy within the Nigerian state, it resorts to expropriation as a means of sustaining its dominance through the utilisation of coercive instruments. This phenomenon results in severe economic impoverishment, significant environmental deterioration, and substantial lack of progress in the regions where oil production takes place.
The discovery of oil in the southeastern region of Nigeria occurred during the 1950s, and subsequently, in 1958, the commencement of oil exports took place. Currently, the activities of oil exploration and exploitation are carried out by various foreign companies, including the British company Shell/BP, as well as Agip/Phillips, Safrap, Mobil, Texaco, and Chevron. The Nigerian government holds significant ownership stakes in these companies, which engage in joint stock ventures. During the latter half of the 20th century, specifically the late 1960s and 1970s, the oil industry’s growth brought about a significant transformation in the national economy, resulting in the country earning substantial foreign exchange. Nigeria’s emergence as a significant global player was facilitated by its possession of oil resources, which endowed the nation with strategic importance. The Niger Delta region’s pursuit of economic survival reached a critical juncture in 1965. During this period, the late Isaac Boro and his group resorted to armed resistance in their pursuit of establishing a distinct political entity for the region. The law enforcement officers dispatched to suppress the uprising encountered significant resistance. After a certain period of time, the central government authorised the deployment of military forces in the area with the objective of suppressing the civil unrest. The cessation of the Niger Delta uprising was precipitated by the inaugural military coup on January 15, 1966.
The discovery of oil in the southeastern region of Nigeria occurred during the 1950s, and subsequently, in 1958, the commencement of oil exports took place. Currently, the activities of oil exploration and exploitation are carried out by various foreign companies, including the British company Shell/BP, as well as Agip/Phillips, Safrap, Mobil, Texaco, and Chevron. The Nigerian government holds significant ownership stakes in these companies, which engage in joint stock ventures. During the latter half of the 20th century, specifically the late 1960s and 1970s, the oil industry’s growth brought about a significant transformation in the national economy, resulting in the country earning substantial foreign exchange. Nigeria’s emergence as a significant global player was facilitated by its possession of oil resources, which endowed the nation with strategic importance. The Niger Delta region’s pursuit of economic survival reached a critical juncture in 1965. During this period, the late Isaac Boro and his group resorted to armed resistance in their pursuit of establishing a distinct political entity for the region. The law enforcement officers dispatched to suppress the uprising encountered significant resistance. After a certain period of time, the central government authorised the deployment of military forces in the area with the objective of suppressing the civil unrest. The cessation of the Niger Delta uprising was precipitated by the inaugural military coup on January 15, 1966.
Recommendation
The attainment of genuine progress in the Niger Delta region is contingent upon the presence of effective leadership within the broader context of Nigeria. It is imperative for the nation to cultivate a proficient leader who embodies qualities such as self-discipline, loyalty, modesty, humility, good interpersonal skills, attentiveness, and a willingness to make sacrifices for the betterment of the populace. Currently, those in positions of governmental authority are heavily engaged in the acquisition of regional resources through overt acts of corruption, while any dissenting voices are met with immediate and severe consequences. The imperative for the federal government lies in the necessity to reform its antiquated and detrimental practises, and instead adopt a progressive approach that fosters growth through the comprehensive democratisation of both political and economic spheres. It is imperative to dismantle the concentration of power at the central level, placing significant emphasis on the decentralisation of power. There is a necessity for the federal government to establish foundational regulations that will facilitate equitable and accountable practises of oil multinational corporations, with a focus on fostering a pro-development orientation.
References
Afonja, S., and Pearce, O. (1986). Social Change in Nigeria, England: Longman Group Limited. Central Bank of Nigeria, (2003), Annual Report and Statement of Accounts, December.
Anyadike Obinna (1997), Conflict watch Africa, Inter Press Services.
Eteng, I. (1997). “The Nigerian State, Oil Exploration and Community Interests; Issues and Perspectives” in Oil Exploration and Exploitation, The State and Crisis in Nigeria’s Oil- bearing Enclave, Lagos: October.
Obasanjo, O., and Akin Mabogunje. (1991). Elements of Development, Abeokuta: African leadership forum.
Soyombo, O (2005). “Social Welfare, Deviance and National Development in Nigeria in Oyekanmi, F.D (ed), Development Crisis and Social Change, Lagos; Department of Sociology, Akoka Lagos: University of Lagos.
Ugoh, S. (2008). Oil Politics and the crisis of development in the Niger Delta. Journal of Sustainable Development in Africa, 10(2), 91-115.
Photo Credit: https://www.brookings.edu/articles/the-removal-of-oil-price-subsidy-in-nigeria-lessons-in-leadership-and-policymaking-in-a-trust-deficit-environment/