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Oil exploitation and the imperative of fiscal
accountability (2)
By Bobson Gbinije and Benard T. Ikegwuoha
Continued from Friday
Thus, in helping to open
the financial books of the oil corporations and the Federal Government of
Nigeria, the United State Government and the West should instruct all banks,
especially Western Banks, to publish the revenue generated from Nigeria by the
oil companies and the Federal Government, the taxes oil corporation have paid
to the Government, the dividends paid to shareholders, salaries and
remuneration paid to staff of the oil corporations. Similarly, the American
administration should engage the multinational oil corporation and the Nigerian
Government to live by the same standard the American Government is held to. In
doing so, we would begin to expose the level of corruption inherent in the partnership
between the oil corporations and the Nigerian Government. For example, there is
something so strange that the U.S. Government could not trace Abacha’s
money in American banks, but the same American Government was able to trace Al
Queda funds from American banks.
It is our belief that
the American Government have not been able to expose these high level
corruption in Nigeria, especially in the oil sector because in their extraction
of oil from Nigeria, the U.S. and the West have behaved like “drug
addicts” and that is why there isn’t the enforcement of Western
standards that have repeatedly been violated in Nigeria by the oil corporations
and the Federal Government in the oil producing regions of Nigeria.
It is also believed that, with transparency and
accountability incorporated in the system and enforced, that corporations and
Government of Nigeria cannot be allowed to play the same old game they had
previously played and got away with, this rationale is evidenced in the fact
that, 44 years of oil production in Nigeria, especially in the Niger Delta Area
has produced only misery and degradation of the region’s environment, and
has potential for conflicts and fighting as we have seen since the
Obasanjo’s administration came into power in May, 1999.
The crisis that has
engulfed the Niger Delta Region, we all know has to do with resource
allocation, control and management. In order to solve the problem, the
Government must take responsibility for its failure in the management of the
resource and revenue generated that it is supposed to. The Federal Government
should henceforth set standards for the management of the resources of the
country in a democratic and transparent manner; open its books, tell Nigerians
how much it receive annually from oil corporations, the taxes paid and how
these proceeds are allocated to the Federal Ministries, State and Local
Government.
The lessons to be
learned is that, there should be more planning for what would happen in the
future, this would help everyone to know what needs to be done for the
maintenance of standard of living when oil is exhausted. In the past, oil had
given rise to the prospect for coup d’etat and crisis at the National
Assembly (NA) have been associated with the sharing of oil money by the parliamentarians.
This has always forced the National Assembly to embark on the process of
impeachment process against either the President or the President of the
Senate. Between 1999 and 2003, we saw the impeachment of two Senate President
with several attempts made on the third because members believed that the
President of the Senate enjoys a lot of material perquisites, so they felt like
disarmining the Senate President into inescapable submission to the whims and
caprices of a gang of Senators. Impeachment process therefore became a sort of
concession, tradeoffs, and quid pro quo. The same tactic has been utilized to
initiate impeachment process against the President of Nigeria under whose
presidency the oil ministry resides. The NA members contend that the ministry
of petroleum being under the presidency gives him the right to sign contracts
with companies trying to get into the oil industry. This has generated a lot of
tension and suspicion that allocation of oil wells do in fact go to the cronies
of the President, especially the political contributors for the
President’s re-election campaign. In all, oil in Nigeria and the
management systoles of the presidential team has produced the capacity for
provoking instability.
In retrospect, since oil
was discovered in Nigeria, it is estimated that the country has earned an
estimated amount of $300 billion and in 2003 alone, the nation earned an
estimated $15 billion, but it is very hard to see the physical evidence in
terms of infrastructures, which would lure foreign investors to invest in the
nation’s economy. In this regard, the Nigerian economy can be described
as a distorted economy in so far as investment in the oil sector alone has
helped to undermine development in the non-oil sector of the economy. Foreign
investors are only willing to invest in the oil sector where profit is highly
maximized and environmental standards are hardly enforced with a lot of
problems, consequently, majority of the people are poorer than some other
countries without oil that have invested in non oil sectors of the economy,
especially in agriculture.
So billions of Dollars
have been generated in Nigeria with little to show for it in terms of
development; this is caused also by rampant corruption by the political elite
and leadership. Furthermore, the Multinational Oil Corporations are
repatriating quite a large amount of money to Western countries without
re-investing the money in either the oil or non oil sectors of the economy that
would in turn generate employment and foster good business relationship with
the communities.
For the Nigeria economy
to prosper, there must be transparency, a proper and democratic Government that
is accountable to the people; a Government that promulgates policies that
redistributes the wealth. Nigerian oil money should, like in Norway be well
invested in the improvement of public infrastructure and social service; even
some of the most secretive Government in the Middle East, Brunei, Saudi Arabia
for example, have really invested in the improvement of their public
infrastructures and social services.
The OMPADEC and now NDDC
initiative as a dynamic superstructure for cushioning the seismographic effects
of oil exploitation and exploration on the people of the Niger Delta through
all-embracing developmental projects is a step in the right direction. But it
has turned out to be a mere placebo, a propaganda contraption and a
Barmecide-dish. It has flaunted and vaunted so many plans, projects and blue
prints but with little or nothing on ground. It promises mountains but performs
molehills. The NNDC is the most politicized institution in Nigeria, starved of
funds and loaded with administrative square pegs in round holes. It is
calculated to bamboozle Niger Deltans. It has motion with movement. The NDDC
must be de-politicised, rid of corruption and adequately financed to make its desired
impact.
The plight of the Niger
Deltans is being further compound and by the lack of transparency and minuscule
accountability index of the Niger Delta Governors. The 13 per cent derivation
and other revenues accruing to us has either being siphoned abroad, missing in
failed banks or invested in apocryphal projects. There is no free education, no
drugs in our dilapidated hospitals, no roads, no effective drainage system, no
houses, no water and no light. We beseech our Delta Governors to show transparency
and accountability in the management of our income and expenditure account and
investing on projects that will impact positively on the lives of the people.
Finally, the Federal
Government of Nigeria must note that oil is not an everlasting asset, it must
surely dry up one day. It is only when the area that the oil is coming from is
made to feel the impact through positive all-embracing development that it will
be appreciated. The lack transparency and accountability in the management of
our oil income at State and Federal levels has further worsened the
exploitation of the Niger Delta people. The recurrent restiveness in the Niger
Delta will continue to be on the ascendancy unless the Federal Government shows
some honesty in the management of our finances. Many more Alhaji Asari Dokubo
are rehearsing underground and will unleash their own terror unless the
exploitation, roguery, thievery and corrupt tendencies of our leadership is
quelled.
Concluded
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