The North and funding of the Nigerian oil industry - Vanguard News

The North and funding of the Nigerian oil industry - Vanguard News - Professor Sagay

"Perhaps, by constantly repeating this delusional lie, the Northern political and intellectual elite think it will stick in Nigeria’s collective consciousness as the truth.  The truth is that the Northern elite is addicted to the proceeds of Niger Delta oil and gas.  They have completely abandoned any pretence at productivity and internally generated revenue.  The North is now completely dependent on the monthly federal allocation, which is the same thing as Niger Delta oil proceeds.  The blatant falsehood about Northern funding of the initial stages of the industry, arises out of the psychological need to justify this total dependence on Niger Delta oil proceeds for survival and for virtually every need of daily existence.  The Northern reasoning goes like this:  Oil exploration in the Niger Delta was financed by Northern groundnut proceeds and therefore the North is equally entitled to Niger Delta oil proceeds as the Niger Deltans themselves.  But what is the truth?"

"The first oil prospecting in Nigeria was by a German company known as the Nigerian Bitumen Company. It commenced operations in 1908 and wound up its activities in Nigeria at the commencement of the First World War in 1914."

"The second attempt at oil prospecting in Nigeria was in 1937 by a company known as Shell D’Arcy.

Shell D’Arcy also stopped operations in 1940 because of the Second World War. In 1946, Shell Company was joined by British Petroleum, BP, to establish the Shell BP Company which finally discovered oil at Oloibiri in 1956. These companies were later joined by Elf, Texaco, Agip, Gulf Oil, Mobil Producing and other oil prospecting and producing companies."

"From these early beginnings in 1908 to the present moment, that is 2014, the Nigerian state, including Northern Nigeria, has never spent one kobo in oil prospecting and oil producing, with funds other than from proceeds of petroleum products. The Nigerian Federal Government has at all relevant times been a beneficiary of the petroleum proceeds from the investments and activities of the oil multinationals." Professor Itse Sagay