Oil curse may have induced underdevelopment in Nigeria

by Anthony Ochela

Before the discovery of oil in Nigeria there were groundnut in the North, cocoa in the West, palm oil in the East and the regions had their peculiar sources of revenue and consequently never bothered to look across the Niger. They were, according to our history books, self-reliant.
There were therefore less social or civil frictions. All there were then were political hiccups in form of alliances and political self-assertions among the big boys. And even then, when the big boys quarrel, they always found ways of resolving issues because in the end they always fall back to their regions.

Enter oil
And the quiet evaporated. Evidently the balance that held quiet (and regional balance) in place was swept away by the coming of the money-spinner. This is because the object in question chose a single region in the country to make its home. Now it was making more money than General Yakubu Gowon, then Head of State, could handle.
Unbelievable, but true it was making more money than anyone could imagine. Even the groundnuts and the cocoas were overwhelmed. They gave up without a fight. With their tails between their legs, they quietly slipped into the wilderness to remain silent forever(?) So the discovery of oil in the South-South and the subsequent cornering of the product by the centre saw to the disappearance of the groundnut pyramids and other agricultural products all over the country.

The resultant over concentration on oil and the dollar factor instigated a scramble for the centre. A scramble that created a circle of mainly plunderers. The discovery of crude oil, which was welcomed as blessing, was later discovered to be more of a curse. Its positive points abound. When Gen. Murtala Muhammed had set up that body to consider a new federal capital territory he must have enjoined them not to worry about the cost implications.
In sprawling Abuja city we have presently received its nourishment from petrol dollars. The nation’s four refineries and the over1 mm jobs they created (consider the multiplier effect) are good pointers to the advantages oil bestowed on the nation.
Then something happened. I don’t know what though. But everywhere things were taking negative bends rather than the vice-versa. First agriculture took a swiping blow and had never recovered since. The same fate befell almost all sectors from education to power.

Fat cats and unemployment
While the fat cats were painting Abuja red, unemployment was steadily eating away the poor. In politics, as the oil wealth raised the stakes, the battle for political office became fiercer. Suddenly there were guns all over the place and thugs to wield them on the promptings of the hijackers of the nation's conscience.
The lines between politics of ideology and an association of opportunists grew thinner and soon disappeared. All the politicians became united in the struggle to share the national cake and all stumbling blocks were squarely addressed with either the Ghana-must-go bags or its brother -- from another father -- guns.

Records say the nation has made over $ 320 bn from oil since it first surfaced in Oloibiri. But no record could show where the dollars have gone. Herein lies the curse in Nigeria's crude oil.
In the face of so much oil and a continued rise in revenue profile the greater majority of Nigerians are becoming poorer. The Naira is getting weaker by the minute; our foreign debt is threatening all economic budgets with its penchants for climbing uncharted heights. To top it all, Nigeria was last year declared the first runner up in the race to find the world's most corrupt nation.
Nobody contested the verdict because a body practically instituted by Nigerians refereed the show. Oil, however, the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission has told us, at a seminar his commission hosted recently, is non-renewable. Posed differently crude oil is exhaustible and Nigeria's may run out in 35 years. The solution, besides economic diversification, is to find more.

Good news for Borno
Nigeria has been exploring for oil in states like Anambra, Benue and Borno. The good news is that the Nigerian National Petroleum Corporation (NNPC), according to its GMD, Engr. Funsho Kupolokun, will from early next year begin to allocate oil blocks in the Chad Basin Region to possible investors after spending about $ 347 mm in research. Borno's neighbours in the Chad and Central African Republics have since discovered oil in commercial quantities on the land.
Borno may soon join the club of the rich states. If this becomes real a lot of issues would sort themselves out.
-- The nation's oil reserves would improve;
-- some form of balance in revenue earnings between both ends in Nigeria would be restored;
-- the noise for resource control would, upon an improved number of choristers, get louder;
-- President Obasanjo would no longer concentrate his troops on the south flanks of the nation, as he would have to deploy some to the north who may soon recruit friends of the environment and more jobs to the local boys pressure groups, and Nigeria's curse could take a turn for the worse;
-- some of the nation's laws could require amendments to be able to function properly.

The Niger Delta Development Commission (NDDC) Act might have to be amended to read something like Oil Producing Areas Development Commission Bill. Some laws are short-sighted you see? But this script would not say anything about short-sighted lawmakers.
Although there are lamentations all over the policy over the development that crude oil money has failed the nation and its people everyone agrees that the South-South people are the envy of the other regions of the country that lack the liquid gold. For instance, states in the oil producing areas receive between N 3 and N 6 bn monthly from the Federation Account on the basis of the derivation principle while some non-oil producing states receive less than a billion in a month.

The dollarised curse may have induced underdevelopment in the country, encouraged incessant strife in the Niger-Delta region and a fierce battle for the soul of the nation among politicians.
Some people wonder why Engr. Kupolokun is dragging his feet over the issue of oil exploration in the Borno region. I bet the Borno people, and the north by extension, won't mind a dollarised curse.