COPPSON COMMUNIQUÉ
AN OPEN LETTER TO THE PEOPLE OF NIGERIA ON
REVENUE ALLOCATION AND ENVIRONMENTAL DEGRADATION
PREAMBLE:
The Coalition of Petroleum Producing States Of Nigeria (COPPSON), Inc. was founded in 1996 in Los Angeles, California, USA as an umbrella organization for millions of those from the petroleum producing states of Nigeria. COPPSON’s international corporate office is located in Los Angeles with local offices in all the petroleum producing states. Since its inception, the organization has worked diligently to promote international understanding between the peoples of other nationals, including the United States of America, and the petroleum producing states of Nigeria. The organization has also worked to encourage economic, social and cultural cooperation within the region.
Our meetings and workshops with the international communities have created potential opportunities for educational, professional and technical exchange programs in the future. The background of the founding members consists of respected professionals in the United States with diverse academic and vocational backgrounds in Engineering, Medicine, Law, Economics, Education, Business, and Social Science, to mention but a few.
It is true that injustice of any kind leads to psychological damage, self doubt, declining ambition and weakened fighting spirit. An institutionalized injustice over a prolong period becomes accomplished facts of life. Subliminal injustice, the most deadly of all, comes in all shapes and forms. In Nigeria this includes denial of opportunity, education, job, healthcare, in addition to environmental destruction. The resultant effect is a gradual human extinction.
To combat this injustice, various groups, such as Rivers State Foundation, have conducted in-depth investigations and presented their reports to Nigerian government that has chosen not to respond. COPPSON has also conducted additional investigations and has found out that at no point in our history has the cause to right these wrongs become more necessary than now. In light of these, COPPSON was formed to promote the following objectives:
(1)i) ECONOMIC JUSTICE:
To serve as a "Responsible Advocate" on the advancement of equity, social justice, and fair-play. It shall educate and mobilize the indigenes within and outside Nigeria to work to reinstate the "Derivative Sharing Formula", repeal the Land Use Decree and other unjust decrees.
ii) PROMOTION OF ECONOMIC COOPERATION:To promote international understanding and economic cooperation within and outside the region. It shall serve as a forum for networking and exchange of professional ideas; and as a forum where leaders of the region can interact with international organizations on issues of common interest.
iii) ENVIRONMENTAL DEGRADATION AND PUBLIC HEALTH:
Petroleum Exploration: Oil and gas production which bring in over 95% of the foreign exchange and more than 80% of the federal government total revenue commenced in our land and waters in the southeastern-delta region of the country in 1957.
(2) Economic Apartheid:
(The Petroleum Act of 1969: Cap 350, LFN, 1990): This decree which is analogous to those enacted by apartheid South Africa against blacks, was promulgated during the military administration of General Yakubu Gowon with intent to confiscate the oil and gas belonging to this region, mostly minority states. This decree vested the entire ownership and control of all petroleum in, under or on any lands to the Military Governor of the states. This decree, whose chief architect was Chief Obafemi Awolowo then a Finance Minister, essentially, ‘killed’ the "Principles of Derivation" which hitherto, as stated in the 1963 Constitution, Section 140, says: "There shall be paid by the federation to each region a sum equal to 50% of (a) The proceeds of any royalties received by the federation in respect of any mineral extracted in that region..." And 15% of such proceeds went to the central government and 35% to other regions.
(3) Deceptive Revenue Allocation (1995 Draft Constitution Part 163, Section 2):
Due to tribal politics, which is just as dangerous as apartheid politics, not only was the derivative sharing formula abrogated in 1970, on-shore/off-shore dichotomy was introduced. General Gowon’s government seized all production off-shore. On-shore production attracted a paltry 1.5% "compensation". Due to outcry, in 1979, this was increased to 3% where it stands today. New parameters for revenue sharing recommended in the 1995 Draft Constitution (Part 163, Section 2) included: 13% increase, Terrain (hills, valleys, plateaus, etc.), Land mass, and Population Density. Even though this Constitution has not been approved, all the enlisted parameters including the badly flawed 1991 census figures are being used in revenue sharing since 1996 EXCEPT the 13% which is entrenched in Abacha’s 1999 Constitution. Why terrain and land mass? Why not water or swarm or even jungle?
(4) The Land Use Act of 1978 (Cap 202, LFN, 1990):
This decree along with the subsequent modifications further expanded the full control of all mineral resources of the region by the federal military government. These were crafted and decreed into law during the administration of General Olusegun Obasanjo who, ironically, became the loudest critic of late dictator General Abacha on the inhumane treatment of the Ogonis!
(5) The 1994 Allocation of 13% To The Petroleum Producing Region:
The increase of statutory revenue allocation to the oil
producing communities from 3% to 13% as recommended by the constitutional
conference Drafting Committee is a welcome development. The 13% is presently
our baseline, and for clarification purposes, any percentage must be based on
actual production rate.
(6) Inland Waterways Authority Act (Decree No. 52 of 1993):
This decree which was promulgated recently seems to duplicate the already existing Land Use Decree of 1978. It states that all lands adjoining the banks of rivers such as the Niger Delta and the surrounding rivers and measuring 50 meters from the banks are now the property of federal government. This means that no one can take sand, gravel, or trees from this area without prior authorization from the authority. We realize how easy decrees are being promulgated in the name of government, without regards to millions thrown into hardship. A parallel can be drawn with the eviction Decrees in apartheid South Africa that uprooted blacks from their lands to give room to white Afrikaner farms, vis-à-vis, racial South African government.
(7) Environmental Destruction:
We view with grave concern, the blatant disregard of the environmental destruction associated with oil and gas exploration in the region over the period of nearly four decades. The multi-national oil companies such as Shell, Mobil, Texaco, Chevron, Agip, and Elf whose records of compliance with environmental laws in western countries are impeccable, continue to destroy our land, waters, and air with impunity. The consistent environmental pollution and degradation have wrought nearly 40 years of deadly health effects on the inhabitants, especially, the aged and the very young. The critical food chain is increasingly in danger of disappearing due to altered ecosystem triggered by air and water pollution. Due to this callousness on the part of these oil companies, people from this region continue to suffer from the deadly effect of this exposure, needlessly.
(8) Neglect of Oil Producing Communities:
At a daily production of 2.2 million barrels of crude oil and over 50,000 barrels of gas condensate, Nigeria receives not less than $50 million (N4,250,000,000.00) per day. This amounts to over 95% of Nigeria’s foreign exchange. It is appalling to note that communities in this region are without infrastructures and amenities commensurate with their contribution to the well being of Nigeria. Worse still, many communities are not even compensated for the negative externalities associated with the oil exploration. A classic example are the residents of Bakassi peninsula who have been displaced because of the frequent clashes between Nigerian and Cameroun armies. Some of these people have been killed, some have lost their fishing equipment and their life possessions. Many other areas of the region lack even the most basic amenities such as safe drinking water, roads, hospitals, decent elementary, and secondary schools. The Petroleum Trust Fund (PTF) and the Oil Mineral Producing Areas Development Commission (OMPADEC), presumably, set to tackle these issues have proven to be a ruse: a smoke-screen meant to cover-up years of man’s inhumanity to man. Perhaps, Nigerians should have been told that PTF and OMPADEC are just two of dozens of conduits for the powerful few to siphon oil money into their private accounts overseas.
(9) Economic And Political Marginalization:
The blatant marginalization and absolute political alienation of the region through maneuvering with the constitution, laws, decrees, politics, and governance by each military dictator is nothing short of tribal imperialism. In spite of this, the region continues to be the goose that lays the golden eggs that hardly looks golden. These and many other factors have spawned the increase in violent protests and inter-ethnic conflicts in this region as a result of competing for the crumbs. For the first time in Nigeria, two military administrators were physically assaulted in two different states within six months of each other in early 1998. The federal government must take immediate and appropriate steps to redress the unjust situation in this region while they still have ample opportunity.
Revenue Allocation:
It has been established and documented that the abrogation of the "Principles of Derivation", where each region receives its statutory allocation based on its contribution to the national wealth as spelt out in the 1963 Constitution, Section 140, was not done with good intention. We strongly believe that the Principles of Derivation will guarantee every single state a percentage of the oil revenue. Therefore, the decree that abrogated the Principles of Derivation is an ill-fated decree and must be repealed.
Resource Control:
In absence of a workable Revenue Allocation Formula, we join hand with the Governors of Niger Delta in demanding for 100% control of our resources with appropriate taxes paid to the Federal Government.
The Land Use Decree of 1978:
This Decree crafted by the federal military government is not only repugnant in essence, it is also a calculated attempt by a few Nigerian to perpetually deprive the oil producing communities of their oil wealth and to suppress their economic, social, and political will. This and Inland Waterways decrees are ill-fated decrees and, therefore, must be repealed.
Environmental Degradation:
Oil companies (Shell, Mobil, et al) operating in western nations have impeccable records of compliance with environmental laws. They should be held to the same standards in Nigeria. They should have emergency response plans to handle oil spills as soon as they occur. Oil, we all know, will be depleted sooner or later, but without a healthy environment, we are doomed. Therefore, as a matter of urgency, the federal government must conduct environmental impact studies with a view to evaluating and mitigating the negative effects of the short and long term exposure of the inhabitants and the environment to incessant oil spills and gas flaring. It is estimated that the oil industry loses millions of barrels of oil per year through spills, leaks, and inefficiencies to land and waters. Gas flaring is a major source of carbon dioxide, a greenhouse gas, as well as chemicals that form smog and, hence, acid rain. The federal government must establish in each producing state "Emergency Response Team (ERT)" to augment any environmental team oil companies may have. ERT will be on a 24-hour alert and will respond to oil spill wherever and whenever it occurs within minutes of such occurrence. Penalty and cleanup cost will be borne by the responsible oil company. COPPSON has emerged as international voice for justice and fairness for the petroleum producing states of Nigeria. COPPSON welcomes response from the government officials as well as supports from advocates of the region. We hope that for a better and prosperous Nigeria, the power that be will allow sense of reasoning, justice, and fairness to reign.
Signed:
Tom Mbeke-Ekanem Chairman
Mac E-Nunu Vice-Chairman
Akanifiok Inyang Secretary