Let me state from the outset that I am aware that at the end of this piece, some will want to preach to me about a New Nigeria and the need to jettison Ethnicity. This piece/ comments are aimed at illuminating this historical contradictions in the prevailing thought on Oil Politics in this Forum.
Once again, as always, I will not fail to point out the truth. Viz: Oil is not the cause of our problems. The Problem is lack of conscientious leadership. This has given room to ETHNIC BASED POLITICAL DOMINATION. It was ethnic based political domination that led to the HYPER-CENTRALIZATION OF POWER in this country. It was same that led to the needless 30 months Civil War & the creation of nonviable states It was same that created primitive accumulation in our body polity. I guess it's time I addressed this issue once and for all.
This was what went down. Before Independence and the few years following it, Agricultural products found mainly in the homelands of the major Ethnic groups where the mainstay of the Nigerian Political economy. The structure of Government was DELIBERATELY DESIGNED then to reflect the resource location. Thus, the Hausa/Fulani controlled the Northern Region that produced Tin, Groundnut & hide & skin. The Yorubas controlled the Cocoa producing Western Region. While the Igbos on their part controlled the Palm Products producing Eastern Region. Funny enough, their was no SOUTHERN REGION, even though the smallest child with any knowledge of compass knew that it has North, East, South & West. As always, Nigeria's was DIFFERENT. Now, because the resources were securely in the hands of the 3 Major Ethnic Groups, the Nigerian central Elite, which was and still is a conglomerate of the elites of the ethnic groups ion the country, but Controlled and dominated by those from the Big 3 (B3), due to their population, allowed the practice of a GOOD FEDERAL SYSTEM. Under that system(1946-1966) there was regional autonomy. Each region ran it's business with relative autarky from the Central Government. Each of the regions had control of their resources and destiny. They reaped the benefits of their resources and pay an agreed Percentage to the Federal Government as tax. That was how, they had money to do what they want to do. The Western Region scored high on Education (Free Education and the establishment of The University of Ibadan), built the tallest building in Africa then, the Cocoa house in Ibadan, established the first TV station in Africa, etc. The Western Region was richest then.
The Northern and Eastern Regions were not left behind. They too used their moneys they way they deemed fit. ABU Zaria & UNN, Nsuka were established in the North & East respectively. among other things.
It should be noted that at this period, Revenue Allocation in this country was based on the Derivation Formula. All the Revenue Allocation Commissions before Independence, from Hick-Phillipson (1951) to Raisman Commission (1958) put Derivation at nothing less than 50%. However, all this changed when a new resource with high money spinning potentials-OIL- was discovered in Oloibiri in the non-Ibo section of Eastern Nigeria. The Raisman Report did not hide this. The report stated the revenue that will accrue to the Eastern Region in the future "was too sizable to ignore".( Raisma Report, 1958, p.24.) So with this in mind, the elites on the major ethnic groups, seeing that their homelands do not produce any drop of Oil at the time, used their access to state power to reduce the Derivation component of the Revenue Allocation system, that creates Fiscal Autonomy and True Federalism in the Pre-independence era. However, because Oil was still not a major contributor to the nations wealth, Sections 134 and 140 subsection 1 of the 1960 & 1963 Constitutions respectively stated that:"...there shall be paid by the Federation to each Region(now State) a sum equal to 50 Percent...the proceeds of any royalty received by the Federation in respect of any mineral extracted from that region, and any mining rents derived by the Federation during that year from that region"
Even when the Military took office in 1966, Gowon did not reduce Derivation until 1970. And he only reduced it from 50% to 45%. One is forced to ask why Gowon a Military man left it in tact. This writer is inclined to proffer two hypotheses. 1. It was because Gowon is from Jos and has witnessed the horrors of Tin mining and the fate of the occupants of the area after their resource dries up. & 2. He did it to compensate the Oil Producing states & their People for their loyalty and support during the civil war. He did not touch it even when Oil became the major Foreign Exchange Earner in 1973, due to the Israeli/ Arab war of that year. Oil started contributing 93% of all export earnings from that year.
However, everything changed when the Ethnic Elites thought that Gowon is not doing what they sent him to do. They sent Murtala/Obasanjo to take over from Gowon in 1975. And one of the first actions of that Government was to reduce Derivation to 20% from Gowon's 45%. They also created 7 new unproductive states to share OIL MONEY. During this period, Population, Equality of States and Land mass took over from derivation as the major components of Revenue Allocation in the Country. The prominence given to these 3 components revealed the true intent of the new Government and their policies. By Equality of States, it means that it does not matter whether you contribute ABSOLUTELY NOTHING to the Federation's Account, as long as you are a State, you will share from the 30% of all Revenues of the country.Thus, since the Yorubas & Hausa/Fulanis had far more states than others, they get more based on this. The Ibos were relegated to the background and punished after the war. So they had few states.
The same calculations go for Population and Land mass. Since 40% and 10% of all revenue is shared based on Population and lands Mass respectively,(and with all the fraudulent censors figures) you guess is as good as mine who benefits from this absurd formula.If you dont get it, ask yourself this simple question. Viz: Who has the Highest Population & Land Mass in Nigeria? & who has been ruling for most of our 49 years history? That, I am sure will help solve the maths.
As if this was not bad enough, the so called Democratic Government of Shagari reduced Derivation from 20% to 2% in 1982. Yes! 2%! Buhari/ Idiagbon further slashed it to 1.5% in 1984. One thing to note here is that, anytime Derivation is reduced, the other 3 are increased.
All of the foregoing reductions and increases are aimed at benefiting a section of the country. Whether you all accepts it or not, you know it in your hearts that I am right.
Oil is not the problem. It is the management of the oil resources by the elite of the country, headed by the elites of the B3 that has led us into the woods. If you keep saying Oil is the problem and still refuse to give the Niger Delta People THEIR PROBLEM Oil, then U are an hypocrite. If Oil is a Curse as many people, especially Northerners claim, then, let the Niger Delta people control their curse. Why arrogate a curse to yourself?
In conclusion, Oil is not the bane of the Nigerian political economy. Oil is rather a blessing. However, we have misused our blessing. We have invested the proceeds in Corruption and darkness. We have invested it in Pink elephant projects. It wasn't Oil that told farmers in other regions of the country to leave their farms? It ain't oil that told them to sit back and wait for Federal Government hand outs every month. All regions of this country have Resources. But Ethnic based political domination and wickedness have blinded many to look within themselves for solutions. They all depend on oil money. That is why we have a monocultural economy today. Besides oil and gas, Nigeria has at least 34 other untapped minerals. We is nobody talking about all of these? It is pure wickedness. Everybody wants to suck the Oil wells in the Niger Delta until they are DRY, then leave the people with nothing. The People are not stupid enough to think that oil will flow forever. They have seen how dry the First Oil well in Oloibiri Bayelsa State is. They have no illusions. They want to enjoy the benefits of their resources. That is why we have militancy there.
OIL IS NOT A CURSE.
For more, see my Blogs on this via the links bellow:
http://www.naijapals.com/?L=blogs.blog&article=4083 | Posted: at 25-04-2009 08:21 PM (16 years ago) | Upcoming |
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lonelyzeal
TRENDING GISTS 
. Sorry, i never intending insulting Notherners' sensibilities. The fact still remains that because there's oil money now, notherners are behaving as if they are lazy people whereas they are not. If oil were to be a resource from the north, by now there could have been nothing like Nigeria. Take away oil money from northerners and the groundnut pyramids would return back. They know it, its just that we are allowing our greed to direct our thoughts. The best thing that will ever happen to Nigeria is to practise true federalism. Let every state control their resources and lets see if we would not do better than we are presently. 
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