allAfrica.com: Nigeria: Onshore/Offshore Dichotomy and North's Dance of Shame

allAfrica.com: Nigeria: Onshore/Offshore Dichotomy and North's Dance of Shame

SAVING THE NIGER DELTA AND RESOURCE CONTROL: NEW INSIGHT INTO THE ONSHORE/OFFSHORE IMPASSE

In addition to what the author has written, I would like to ask these Governors and their Education Commissioners to give an account of their budgetary allocation for Education and related sectors over the years. The escalating religious intolerance in the north is attributable, principally, to the un-education of the greater majority of our children in the greater northern region. The un-education is compounded by the willful act and the unwillingness of the religious leaders and scholars to integrate religious teaching with economics and social emancipation. What Dr. Babangida Aliyu and his colleagues seem to have forgotten is the large scale ecological disaster that pervades the landscape in and around the Niger Delta. About 99% of our Millionaires made their wealth from crude oil. That is a fact. The article is written by a northerner and I hope the Governors will take a cue and learn to channel their resources diligently for the benefit of all.

The excerpt is the opinion of Hamiltonatlarge on the issue of Onshore/Offshore Dichotomy as posted on June 08, 2012 in our exit article, titled: "Divine Wisdom: Changing the World in Six Months."

RESOURCE CONTROL

If Nigerians allow true federalism to evolve as envisaged by our Founding Fathers it would diminish the appeal for the control of Aso Rock. In other words, if we create the right framework for the federating states within the union to manage their own people and the natural resources within their geographical boundaries, and develop at their own pace, there would be less friction and animosity in polity, and the "do or die" approach that encapsulates pursuit of power at the federal level would ebb significantly.

Furthermore, given that crude oil is the main stay of our economy, it will be disingenuous on our part to demand or suggest that the oil producing states take exclusive control and ownership of the mineral resources in their respective states at this stage. That would be economically suicidal, especially in some areas of the northern region of the country. As at now, most of the federating states do not have the means to successfully commence exploration and exploitation of mineral deposits in their respective states at sustainable and commercial level. It requires massive capital infusion, efficient labor force and planning.

Therefore, we suggest that the oil producing states take in equal proportion - 50/50 - of the Onshore Mineral deposits in their respective states with the federal government. The same standard should apply as well in other states in the federation where there are substantial deposits of mineral resources. On the other hand, Offshore Mineral deposits within a certain limit of our Economic Exclusion Zone or Continental Shelf should be under the exclusive control and ownership of the federal government. That is also the view of the Northern Governors, which I support in to to. Alex Aidaghese June 2012

MOVING FORWARD - SAVING THE NIGER DELTA

God gave us the Niger Delta and with all its natural riches for our use and enjoyment.  Be that as it may, it remains unquestionably beholden of us to explore, exploit, and utilize the natural riches for the use and benefit of present generations, while making reservations for the needs and use of the unborn generations who would have no other land, except the Niger Delta and Nigeria, to call their own.  It is called the sustainable development of natural resources.  What is required therefore is a framework for the sustainable development of the natural resources by the government of the Federal Republic of Nigeria on behalf of her people and the local communities in and around the Niger Delta.

It involves the integration of human rights and human development initiatives within the framework of the various international investment agreements negotiated between Nigeria Government and International Oil Companies (IOCs), as well as with Local Oil Companies (LOCs).  It requires balancing the investment interests of IOCs and LOCs with that of the host nation - Nigeria, without undermining the human rights and sustainable development of the local communities in the Niger Delta. That is the current trends in the development of mineral resources around the World. Nigeria should not be an exception.

It requires the establishment of a Land Reclamation Funds or Water Restoration Funds as the case may be, created at the inception of the exploration agreement to be funded by the Federal Government, IOCs, and LOCs with a certain percentage of estimated yearly earnings agreed upon by the parties. The contracting parties must deposit the reserve funds in an escrow account during each calendar year, specifically to offset environmental clean-up, oil spillage (as presently the case in Bonga Field), land reclamation, and decommissioning costs whenever the need arises or whenever the investors cease operations (Shell). The land reclamation funds, the escrow account, as well as water restorations obligations are essential and mandatory components of the integrated contract.

It recognizes the importance of local contents and training and education of the indigenes of the surrounding communities. Cash incentives only provide temporary relief and should be discontinued where possible; instead, effort should be made to expand Petroleum Training Institute, Effurun, with the capacity to absorb and provide basic machining, technical and mechanical training for candidates within the amnesty pools (former  members of MEND), with a view to preparing them for entry level positions in the energy sector.

It requires honest and transparent negotiations between the government, IOCs, and the local communities where natural resources are located. IOCs should endeavor to engage and interact socially and economically with the local people on regular basis by buying local produce, attending community affairs, and cultural festivals. It is called social license, which is more important than any PSA. In addition, the divide and rule system - setting up one community against another or one interest group against another as was the case in the trial and execution of Ken Saro-wiwa, is counterproductive and should be avoided by the stake holders.

January 05, 2012