The Niger Delta Oil and Western Strategic Interests: The Need for an Understanding (2)

By

Priye S. Torulagha
 


 The  Strategic Importance of the Niger Delta

The relationship between Western oil companies and the indigenes of the Niger Delta, as shown above, seems to be very unhealthy.  Western multinational companies doing business in the Niger Delta have singularly pursued a very narrowly focused economic agenda, based on maximizing the exploitation of the bounties of the region without giving anything in return, in terms of infrastructural development, affordable housing, education and training for the youths, medical facilities, economic development, pipe-borne water, rural electrification, sustainable environmental management, and an equitable compensation for the exploration and the use of the land. m In short, the indigenes of the Niger Delta do not get anything for the use and destruction of their lands and the environment.



A cynic might say that it is not the responsibility of private companies to develop communities in which they do business.   The person might further add that it is the responsibility of the government to do so.   Therefore, the cynic could argue that it is solely the duty of the Federal Government of Nigeria to develop the Niger Delta and not the oil companies. 
 


Nonetheless, it can be inferred that the relationship between the citizens of the Niger Delta and the multinational oil companies, during the twentieth and early twenty-first centuries, has not changed remarkably from the relationship between them and the Royal Niger Company in the nineteenth century.    The attitude toward the indigenes and the economic objectives of the Royal Niger Company, the modern Anglo-Dutch Shell (SPDC), Chevron-Texaco, Exxon-Mobil, Agip, Ellf-Acquitaine etc.are incredulously similar if not the same.  The Royal Niger Company used force to compel the indigenes  to forego their economic rights.  The modern oil giants are doing exactly the same, using security forces, and conspiring with corrupt Nigerian leaders to stifle the rights of the people while exploiting the resources beneath their territories. 



Western relationship with the citizens of the Niger Delta need not be based on mutual antagonism engendered by perceptions of exploitation and marginalization.  In fact, it can be emphasized that there is a strong need for a paradigm change in the relationship between the two.  The need for change is accentuated by the fact that the Niger Delta and the West can build a very positive political and economic relationship that can last for a very long time.  The need for change is also necessitated by the fact that the West and the industrialized world needs extensive petroleum resources to drive their engines of economic development and the indigenes of the Niger Delta need the financial resources to develop their lands, enhance their economic growth, and sustain the environment.   However, for a mutually benefiting relationship to take place, Western nations ( the United States, Britain, Holland, France, Italy etc.) need to be politically more involved in persuading their oil companies:  SPDC, Chevron-Texaco, Exxon-Mobil, Agip, Elf-Aquitaine etc. to adopt a more humanistic approach in their business practices and become proactive in assisting the positive development of the region.  It also requires them to recognize that the Niger Delta is strategically very important to their political and economic well-being as well as the stabilization of the international oil market.    Perhaps, it might be more educative and persuasive if the reasons why the Niger Delta is strategically very significant to the West/industrialized world are spelt out in economic and political terms.



1.  Economic Considerations

The strategic significance of the Niger Delta to Nigeria and the West cannot be underestimated.  It is indeed a region with enormous economic benefit to all the stakeholders.  Since Anglo-Dutch Shell, otherwise known in Nigeria as the SPDC arrived in Nigeria in
1927, it has reaped enormous benefits for itself, Nigeria, Britain, and Holland.  Since that epochal arrival, other Western oil companies have followed suit.  Other giant multinational oil companies doing business in the Niger Delta include BP (Britain), Chevron-Texaco, Exxon-Mobil, Halliburton, William Brothers, Litwin etc. (USA), Agip (Italy), Total Fina (Italy), Elf-Aquitaine (France), Ramboil (Canada), Statoil (Norway), Dietsman Comerint (Netherland), SASOL (South Africa) etc.    

a.  Oil Revenue:  Although, it is much difficult to concisely estimate the total revenue that these giant oil companies have generated for themselves and their home countries in the West, it is possible to infer that since Nigeria is estimated to have earned more than $350 billion, after payments to the oil companies, in the last thirty five years (using 1995 oil prices) of oil exploration in the Niger Delta, these companies too have inferably earned sizable incomes from doing business in the region.  It should also be noted that Nigeria was estimated to earn about $12 billion annually from oil activities in 1999(Charette, 1999, February).  The CIA (2001, March 21) noted that oil extraction has “generated immense profit.”  This is not doubtable, following the increasing desire of the oil companies to invest
billions of dollars on both onshore and offshore oil and gas explorations as more discoveries are made.

b.  Proven Oil Reserves:  Nigeria is estimated to have 24 to 31.5 billion barrels of proven oil reserves (Nigeria: Country Analysis, March 2003).  Nigeria produces between 2 million and 2.118 million barrels of oil per day, depending on an approved OPEC quota and oil price fluctuations.  Anglo-Dutch Shell (SPDC) produces 50% of Nigeria’s crude oil, ENI/Agip   The Anglo-Dutch Shell planned to invest $8.5 billion in a five year period.  Elf is intended to invest $1 billion on its Amenam field.    Chevron planned to build a Liquefied Natural Gas plant in Escravos, teaming up with South Africa’s SASOL company (The Washington Times, 1999). 



As Nigeria tries to increase its oil production capacity, there is an increasing search for more oil offshore.  The search has yielded a number of discoveries.  For instance, SPDC announced that its Bonga discovery would yield about 600 million to 1 billion barrels of oil reserve per day.  The Bonga reserve alone would increase Shell’s production capacity to about 350,000 billion barrels of oil per day.  In 1997, Shell made the Ngolo reserve discovery.  The Ngolo was estimated to yield about 100 million barrels of reserves. (Washington Times.).   Other oil companies immediately joined Shell to share the potential reserves.  Exxon got 20%, ENI/Agip got 12.5% and Elf Aquitaine got the remaining 12.5%.   Agip struck the Abo reserves which was estimated to have 4,800 billion barrels of oil reserve per day in 1996.  It had promised to start production in 2001.    The BP/Amoco  signed a joint venture with a 35% share while Exxon signed for a 25% share of the find (Ibid.).  A Nigerian local oil firm, Famfa Oil and Texaco discovered the Agabami reserves in January 1999.   This find was estimated to have several million recoverable oil reserves.  Norway’s Statoil company discovered the Nnowa reserves which was also estimated to contain several million barrels of oil reserves.



c.  Gas Reserves:  Since Nigeria has abundant gas deposits on both onshore and offshore, the effort to tap into the vast gas fields have led the oil companies to scramble for a piece of the action.  Nigeria is estimated to have 157 trillion cubic feet (tcf) of gas reserves.  The gas reserve potential is estimated at 300 trillion cubic feet.  This makes Nigeria the tenth largest proven natural gas reserve in the world (Ibid).  Out of this massive reserve,  Nigeria currently use only about 12% of the gas to enhance oil recovery while flaring away about 75%.



The Liquefied Natural Gas Project in Bonny, Rivers State, was estimated at $3.7 to $3.8 billion.  The Nigerian National Petroleum Company (NNPC) has 49 percent share in the project.while Shell has 26.6%, Elf has 15%, Agip has 10.4% share (Washington Times).


To extend the gas market to other West African countries, a gas pipeline is intended to connect Nigeria to Benin, Togo, and Ghana was planned for three years ago.  Chevron, Shell, NNPC, Ghanaian National Petroleum Corporation (GNPC), Societe Beninoise de Gaz of Benin and Societe Togolaise de Gaz are jointly involved in this project (Ibid.).



Western energy companies which have signed deals with Nigeria’s NNPC to purchase natural gas supplies include Italy’s ENEL electric company (49%), Spain’s Enagas at 22%, Turkey’s Botas at 17%, France’s Gaz de France at 7%, and Portugal’s Trangas at 5%.    Another gas project which was scheduled to start in the late 2002 had Spain’s Enagas agreeing to buy 70% of the gas for 21 years and Transgas of Portugal agreeing to a 1 billion cubic feet of gas deal per year.



While it is particularly difficult to pinpoint how much each Western oil company has made financially through investment in Nigeria’s oil industry, it can be said that they are not doing bad at all.  If they were not earning considerable profits, they would have left Nigeria by now.  After all, Shell has been in operation since 1927.  Agip came to Nigeria in 1961 and continues to operate successfully.   If the Niger Delta were not yielding much profit, the western oil companies would not have been so eager to invest billions of dollars in the increasing deep sea oil and gas explorations around the Nigerian coast.


The economic stakes are enormous, as far as the Niger Delta is concerned.  Western nations need to seriously pay attention to the region since their economies partially depend on the successful operations of their oil companies in Nigeria.  For example, when the liquefied natural gas reserves fields have been fully explored, operationalized, and piped for commercial usage, many western nations, including Portugal, Spain, Turkey, Britain, the US, etc will depend, to a great, on a steady supply of gas from the Niger Delta region of Nigeria to heat their homes and facilitate their industrial activities.    



If the Niger Delta were to become very unstable, the financial and economic interests of Anglo-Dutch, which is the largest oil company in Nigeria, Chevron-Texaco, Exxon-Mobil, Agip, Total-Fina, Statoil, SASOL, etc. would be severely threatened.  Such a development would lead to the devaluation of their stocks in Britain, the US, Holland, France, Italy, Japan, Canada, Norway etc.  If their stocks were devalued, stockholders in various countries would experience financial setbacks.    If the stock owners were to experience such setbacks, the economies of Britain, the US, Holland, France, Italy, Norway etc. would also experience some kind of economic recession or setback.



Such a development would probably lead to an increase in oil prices, thereby compounding the financial problems of the aforementioned countries and citizens.  The inflation arising from oil price increases would most probably compel political leaders in Britain, the US, Holland, France, Italy, Japan, etc. to scramble for a solution in order to stabilize the Niger Delta since the Middle East is already volatile.  Of course, instability in the Niger Delta would not create the kind of impact that the 1973 Middle East oil embargo had on the economies of the industrialized countries, it could, nevertheless, make matters very complicated in the oil market.


d.  Avoiding Short-term Economic Objectives:  The Niger Delta also provides an opportunity for Western nations, citizens and their multinational companies to demonstrate to the world that they have changed their attitudes regarding the achievement of short-term economic objectives.  In the past, especially during the Cold War, Western nations contributed immensely in installing and propping up dictatorial and authoritarian regimes in regions of the world where Western economic interests were at stake.  This was done for short-term economic and political gains with the resultant effects being very costly to the long-term strategic interests of the West.   For example, Prime Minister Patrice Lumumba was overthrown in the early 1960s because he had planned to nationalize businesses that were involved in mineral resources extraction in the country.  Since his ouster and violent death, the Republic of the Congo has never been the same again.   More than four million Congolese have died, yet, there is no hope of peace in the immediate future.  Dr.  Mosedegh, the political leader of Iran was overthrown and replaced by the Shah of Iran to make it easier for Western oil companies to explore for oil in the country.  Dr Mosedegh had threatened to nationalize the oil industry and the multinational companies did not like that.  The Shah was put in power and propped up supposedly to stabilize the country for the oil business and the security of the Persian Gulf Region.  The Iranians got tired of the Shah’s authoritarian ways and drove him out of power in 1979.  The revolution was led by Ayatollah Khomeini.  The Iranian Revolution spurred the emergence of a militant or fundamentalist international Islamic movement.  The US and other western countries are now spending billions in an attempt to contain Islamic militancy in many parts of the world.  



Short-term objectives persuaded Western countries and the Soviet Union to support and propped up Saddam Hussein.  During the 1980s, he was given all sorts of assistance, including conventional arms, biochemical agents, agricultural loans etc.   The West remained quiet and supportive while he attacked Iran, used biochemical weapons against the Kurds and the Iranians and killed thousands of Iraqis.  Well, the West will probably now spend more than $100 billion to stabilize Iraq after driving Saddam from power.



It is hoped that the West will not make the same mistake by remaining quiet while the indigenes of the Niger Delta are suppressed and exploited by Nigerian leaders and the oil companies.  So far, it appears that the Western nations have not learnt from the past mistakes and have been very quiet over the Nigerian situation.  The same could be said of Equatorial Guinea where the leader is being propped up, regardless of his authoritarian style of leadership. It is a common African saying that prevention is better than cure.   This means that the West should try to ameliorate the Niger delta situation now, instead of remaining quiet before the situation gets out of control.  The DRC, Iran, and Iraq are excellent cases to encourage the west from allowing their multinational companies to engage in exploitative economic arrangements that could lead to conflict.


2.  The Political Implications

a.  Political Marriage:  The romance between the Niger Delta and the West began when the Portuguese first arrived at the Niger Delta coast of West Africa in the fifteenth century.   Trade between the Europeans and the Africans began immediately.  This was followed by British political colonization of the Nigerian region.  Thus, Britain created Nigeria and the Niger Delta is part of Nigeria.  Since the creation of Nigeria, whether for better or worse, Nigerians and the West have forged political, cultural, economic, historical, and psychological relationships and interpersonal linkages that continue to remain so, despite occasional friction.   Nigeria, through its actions, has consistently demonstrated its relationship with the West.    At its independence in October 1st, 1960, Nigeria adopted the Parliamentary system of government.   The parliamentary system is most associated with Britain.   When the system did not serve the country well, Nigeria began to experiment with the Presidential system in the 1980s.  The presidential system is particularly associated with the United States.  The current political dispensation is basically presidential.  During the Cold War, Nigeria steadfastly remained in the pro-Western camp and never threatened to become a communist country. 



Political discussions about reforming the Nigerian economic system have centered on adopting strategies and tactics that are not fundamentally opposed to Western models of economic development, including a need to reduce the size of the public sector and  increasing the role of the private sector in  spearheading economic growth.  The indigenes of the Niger Delta also identify with these economic options and want an even greater decentralization of the economy so that states, local governments, and citizens can become active participants in making economic decisions that affects their lives.   This is the impetus for their call for resources control.  They believe that oil revenue will be better managed if the oil producing states assume direct control of the management of the petroleum sector since they have a greater stake in the product.  



b.  United Nigeria:  Although, bedeviled by perennial misrule, utter economic mismanagement, and corruption, due to lack of dedicated leadership, Nigeria continues to be technically the jewel in the crown of British geopolitical influence, the bridge to Sub- aharan Africa, and the hope of African development, modernization, and security.  As a result, it is strategically significant for Nigeria to remain as one nation so that various aspirations can be achieved.



However, the hope of Nigerians, Africans in general, and the West could be shattered or dashed if the Niger Delta situation vis-à-vis revenue allocation and development are not resolved in a manner that is beneficial to all stake holders.  The Western nations, particularly Britain, and the United States, have a moral responsibility to persuade Nigerian power-wielders to amicably resolve the Niger Delta issues so that the country does not fall apart or become an economic basket case due to continuing mismanagement, excessive corruption, and the unjustifiable distribution of the oil revenue.   The region presently holds the economic key to the survival of Nigeria as a viable state.  Oil, which is mostly found in the Niger Delta, accounts for “50 percent of Nigeria’s gross domestic product (GDP) and 95 percent of the country’s foreign exchange earnings” (Washington Times September 30, 1999).



c.  Regional Security:  It is not a secret that the security and political stability of the West African region partially depends on the viability of Nigeria.   In other words, the United Nations, the West, and the African people expect Nigeria to play a greater role in the stabilization of the continent, especially, West Africa, in times of crisis.  Nigeria  assisted immeasurably in stabilizing Sierra Leone and Liberia during the civil wars.  In the process, Nigeria lost over 2000 soldiers and spent about $12 billion.  Nigeria would not have been able to play this role if not for the massive infusion of oil revenue from the Niger Delta into its defense budget.  For Nigeria to continue to play active role in regional and world affairs, the Niger Delta must be stabilized through serious political negotiations of the substantive issues.  It will be impossible for Nigeria to try to maintain security outside while its own house is burning uncontrollably.



d.  War Against terrorism:  The West, particularly the United States, is engaged in a War Against Terrorism, after September 11, 2001, in which almost 3,000 people lost their lives to devastating terrorist attacks, with hijacked commercial planes.   For the US and its Western allies to win the war, it needs a multilateral effort cutting across continents, regions, cultures, religions, and societies.  Likewise, the war must be fought with strict adherence to human rights, political freedoms, and respect for all, regardless of their size, political and economic importance or location.   On the other hand, if the war is fought with rampant abuses of the rights of minorities, the frivolous application of authoritarian and dictatorial security practices, the unnecessary and excessive use of military forces, and unsubstantiated summary arrests, detentions, and executions of suspects, the war would hardly be won since such tactics would only encourage more terrorist actions against their “perceived oppressors.” 



Likewise, economic exploitation, deprivation, and marginalization through political oppression, especially, against communities in which multinational companies do business would most likely add to the catalog of dissatisfied groups in the world who would want to fight for their political and economic liberation.  As can be seen, Nigeria and the oil companies are using such tactics to clamp down on the demands for an equitable distribution of the oil revenue, for cleaning the environment, for reducing oil spillage, and for stopping gas flaring.    The use of strong-arm tactics to intimidate and suppress the aspirations of the peoples of the area only seems to help in fueling strong antagonism against the federal Government of Nigeria and the oil companies.  There is no need for the West and their oil companies to turn the indigenes of the Niger Delta against them by adopting short-sighted policies, practices, and actions that are inimical to mutual coexistence.  It could be said that anti-western feelings and terrorism are, to a large extent, by products of bitter experiences encountered by various groups in the world, following exploitative business practices of Western multinational corporations and states.  The West does not need another dissatisfied region of the world while it is engaged in theantiterrorist war elsewhere.



It is not a coincident that anti-western feelings and terrorism seem to thrive most in regions of the world where people feel exploited, suppressed, marginalized, deprived, and cheated.  The Middle East, Africa, some parts of South-East Asia and Latin America, in particular, are rife with conflicts due to the feeling of exploitation, suppression, marginalization, deprivation, and excessive corruption.  The West already has its hands filled with turmoil in the Middle East (Israeli/Palestinian and Iraq).  Indonesia is engaged in a civil war in the Aceh region where some separatists have been fighting the government for over 20 years due to oil related issues.   The Philippines is always in the news as some Islamic elements feel oppressed by the existing political arrangement.  Columbia has been in a state of war for more than forty years.  The country has three well-established armies vying for power. 

 

 Peru’s war against the Shining Path is characterized by high tide and low tide periods.    It makes a strategic sense not to extend the frontiers of the terrorist war by allowing exploitative business practices to continue in the West African region.    Already, the citizens of Equatorial Guinea are already as frustrated and displeased as the indigenes of the Niger Delta, over  the arrangement between Western oil companies and the one-man dictatorship that exists in the country.   The Equatorial Guineans have not benefited from the oil that flows from their territory while the leader and his family have become very wealthy. Thus, the antiterrorism war cannot be won if exploitation, suppression, marginalization, deprivation, and corruption are allowed to run wild in countries in which Western multinational corporations do business.
 


Despite being exploited, suppressed, marginalized, deprived, and cheated for years, the   ethnic groups in the region are peace-loving people and want to do business in an environment that is mutually beneficial to all stakeholders.  This is not an overstatement, even though lately, the news from the region has been characterized by violence emanating from militant opposition to further oil exploration and interethnic fights.  This was not the case for almost forty years.  It should be recalled that an effort to explore for oil in the Niger Delta began in 1951 when the Anglo-Dutch Shell began drilling at Ihuofer Exploration.  A successful oil discovery in Oloibiri, in Ogbialand, in the present day Bayelsa State of Nigeria in 1956 changed the political and economic dynamics of the Niger Delta, Nigeria, the oil companies, and their home countries (Daily Times of Nigeria. November 3, 2003).   This shows that the ethnic groups in the region were very tolerant of Nigeria and the oil companies doing business in their backyards for more than thirty years without any major incident.   The United States, Britain, Italy, France, Holland etc. must persuade their friend, President Olusegun Obasanjo, through serious diplomatic efforts, to change the way business is done in the region.



e.  Strategic Significance:  The Niger Delta is strategically important to the United States, Britain, France, Holland, Italy and other industrialized countries since it can serve as an alternative source of petroleum in the event of a major military conflict in the Middle East and terrorism.  In short, the Niger Delta is an excellent area to engage in oil business activity due to a number of factors.   The indigenes are very tolerant, as far as they are treated fairly.  They share some aspects of Western political and cultural ideals due to British colonization.  The traditional religious system is not ideologically opposed to Christianity or other religions for that matter.  A sizable number of the population of the region has converted to Christianity.  They believe in using negotiations to resolve conflict.   They are growth oriented and are willing to adopt workable political and economic formulas to advance the development of the region and Nigeria.  These aspirations are not contradictory to Western political, cultural and business interests.  Consequently, Western nations that have oil companies doing business in the Niger Delta need to recognize these great strengths and work to strengthen ties by persuading their companies and Nigeria to pay a closer attention to the concerns of the residents of the region. 
 


f.  Security Considerations.  It is very essential that the Niger Delta remains stable for oil and gas production since the Middle East is tumultuous.   Western nations, led by the United States, has been making efforts to establish alternative source of petroleum.  Part of the plan involves developing the African, particularly West African oil reserves so that if the Middle East were to become too difficult to do business, a reliable oil source can be found in Africa.  It is inferable that strategic considerations led the US to provide naval boats to Nigeria in an effort to update the country’s naval capability in patrolling the coastal waters.  It can also be said that the same reason probably led the US to diplomatically propose the stationing of US troops in the Niger Delta, in an effort to stabilize the region for major oil exploration.    While the fall back plan is highly welcomed, the effort to stabilize the West African region, particularly the Niger Delta of Nigeria, should not be focused entirely on the security aspects of the situation.  A holistic approach is needed to eradicate the endemic political and economic problems that have bedecked the region.   Military security without an accompanying political and economic reforms in the relationship between the indigenes of the region, Nigeria and the oil companies would not result in any form of security for the oil companies.  The reason being that the region has been neglected and deprived for too long and the people are very angry at their exploitation and marginalization by both Nigeria and the oil companies.  



The assertion that military security alone will not guarantee security for the oil companies to do business is not an exaggeration.   The fighting between the Ijaws, the Itsekiris, and Nigerian security forces during March and April 2003 clearly showed that when the ethnic groups in the region are pushed to fight, they could disrupt oil and gas operations considerably.  During the Warri wars, as the fighting has subsequently been characterized, oil operations were reduced about 40% around the Western Niger Delta.  Chevron and Shell and other companies had to evacuate while the fighting raged on.  The efforts by the Nigerian Navy and the Army to stop the fighting did not succeed, hence, the oil companies had to wait until various groups negotiated the cessation of hostilities in a political manner.    If the Niger Delta were to seriously deteriorate, resulting in armed conflict, no amount of military security would guarantee a safe business environment for any oil company in the region.
 


Moreover, if the Niger Delta were engaged in a protracted hostility, involving ethnic fighters and the Nigerian armed forces, the impact would affect all the oil producing regions of West Africa.  The reason being that the conditions that apply to the Niger Delta also apply to other countries, including Sao Tome, Equatorial Guinea, Cameroon, Angola etc.  Basically, throughout the aforementioned countries, the indigenes of the regions in which oil is found are the most deprived and marginalized.  For example, Paul Lashmar (2003, May 1) reported “Equatorial Guinea has become a major gas producer in the past 10 years, yet the 500,000-strong population remains in poverty.”  A BBC reporter, Justin Pearce (2002, October 27). noted “The oil wealth that comes out of Cabinda represents more than 100.000 dollars each year for each resident of the province.  A psychological hunger is when your house has a view of an oil rig, and you still battle to feed your family each day.”   Some months ago, there was a military coup in Sao Tome due to dissatisfaction by some military officers.  The coup plotters gave up after Nigeria intervened to persuade them to hand over power back to an elected government.  In the Republic of the Cameroon, the degree of political and economic dissatisfaction is very high.  The Southern ethnic groups, particularly the Anglophones, are tired of being marginalized by the French-speaking political power-wielders.   



The possibility is not far fetched, after all. In other mineral-producing regions of Africa and elsewhere, civil wars have been raging for years over the issue of revenue allocation concerning natural resources.  The people of Southern Sudan have been fighting against political and economic marginalization by the Sudanese government for over twenty years.   The Democratic Republic of the Congo degenerated beyond control about three years ago as various ethnic groups scrambled to get a piece of the pie, politically and economically.   Over three million people have died in the DRC.  The West cannot afford to allow the Niger Delta to degenerate.   To do so would defeat the Western effort to build an alternative source of oil and gas.   




f.  Environmental Concerns:  Gas flaring results in global warming.  Global warming affects all regions of the world, not only the Niger Delta.  It is amazing that before any company engages in any business activity, particularly, the laying of a pipeline that is likely to alter he environment in the United Kingdom, about “17 different environmental surveys are required to be done before construction is allowed (The Ogoni Saga).  In the Niger Delta of Nigeria, the oil companies barely conduct any environmental assessment before engaging in any exploratory activity.   The poisoning and the degradation of the environment add fuel to the anger of the people.



Conclusion

First, the above discussion clearly show that the Niger Delta is treated as an economic colony.  Secondly, it shows that there is no regard for the political, economic, and environmental rights of the citizens of the Niger Delta.  Thirdly, it shows that Western multinational companies have no regard for democracy, freedom, justice, and human rights.   They prefer to do business with corrupt and authoritarian leaders.  Fourthly, as far as the relationship between the indigenes of the region and the oil companies are perceived to be exploitative, there will always be conflict involving the people, Nigeria and the oil companies.  Fifth, the present situation can be easily altered by a change of policy and attitude on the part of Nigerian leaders, western oil companies, and western nations.



Thus, despite the current  exploitative relationships and bitter experiences, it is not too late to reverse cause and initiate a positive relationships between the various stakeholders.  The reason being that the Niger Delta is strategically important to the political and economic spheres of Nigeria, the West, and the world in general.   It is necessary to stabilize the region through an agreeable formula acceptable to the people of the region.  This is critical if Nigeria is to play its role in the stabilization of West Africa.  Moreover, the region also provides a safer alternative to the Middle East and has extensive oil and gas reserves for the markets in the West and Japan.  The Western nations must recognize the strategic importance of stabilizing the region by encouraging Western oil companies and Nigerian power-wielders to change their colonizing and exploitative attitudes.



Recommendations  
This being the case, it is imperative that Western nations pursue the following goals, options, actions:

(1) Pay more attention to the issues affecting the Niger Delta.  It is no longer sufficient for them to deal with the region solely through the Nigerian government.  The federal government has failed repeatedly to live up to its responsibilities. 

(2) Recognize the fact that the multinational companies are sources of conflict and the Western governments have a moral responsibility to supervise their conduct, even though they are private businesses.   

(3) Become proactively engaged in compelling the multinational oil companies to change their corruptible, exploitative, destabilizing, intimidating, brutalizing, and destructive business practices. 

(4) Use their diplomatic and economic leverage to persuade Nigerian power-wielders to become politically engaged without using military means to solve problems in the Niger Delta. 

(5) Persuade President Obasanjo to treat the indigenes of the Niger Delta justly by instituting a just and acceptable financial and developmental compensation. 

(6) Persuade the oil companies to institute an affirmative action plan.  The plan should include the following requirements: (

a) that a certain percentage of their workforce come directly from the region,

(b) that a certain percentage of their incomes must be reinvested in the region through infrastructural and institutional development,

(c) the provision of skill-building educational and training programs, medical facilities, and community development,

(d) payment of a certain percentage of land rights directly to the communities in which they explore for oil and gas and

(e) a proactive community relations program.

(7) The US, Britain, Holland, France, Italy etc. should treat the Niger Delta as a Special Development Region and thereby institute development assistance programs.  In other words, agencies like the United States Agency for International Development (USAID) should institute International Development Partnership (IDP) programs to facilitate development of the region.  The USAID can work  ith the American oil companies, and non-governmental bodies in Nigeria to devise developmental strategies for the region.    Britain, France, Holland etc. should also create their own assistance programs.    This is intended to stabilize the region so that mutually rewarding relationships can be established between the people and the oil companies, as well as between the people and the Western nations.

(8) The US should encourage the Environmental Protection Agency (EPA) to establish cooperative partnerships with Nigeria, the Niger Delta States, higher educational institutions in the US and Nigeria, and non-governmental agencies in the region to institute an effective environmental policy, research studies, and cleaning mechanisms.

(9) Western governments should endeavor to make their foreign policy goals more compatible with their often-stated ideals of democracy, freedom, justice, and human rights.   If the United States, and Britain, for example, are strongly committed to the democratization of the world and would take the practical means to do so, as in Iraq, then they cannot ignore the Niger Delta, Equatorial Guinea, Angola, the Democratic Republic of the Congo, Southern Sudan, the Aceh region of Indonesia.   This is necessary to establish stability not only in the Niger Delta but also throughout the world.

10.  Western nations should join forces with the United Nations to draft an international law which makes the illegal transfers of embezzled money by political leaders and high government officials illegal.   It should be noted that embezzlement is a major source of poverty in the world.  Poverty increases the need for people to act militantly against their perceived oppressors.  Generally, not only in Nigeria but elsewhere, money from natural resources are looted by political and military leaders.

11.Western nations should join forces with non-governmental organizations, the indigenous peoples of the world and the United Nations to draft and pass an international law which obligates that multinational companies pay equitably, based on negotiations, for their business activities in indigenous territories, be it in the Niger Delta or in Aceh or in Yine territory.  The law should make it possible to charge, arrest, and try any chief executive officer (CEO) for violation of the law.


These actions are necessary if peace and stability are to be established in the Niger Delta.  Prevention is better than cure.   As a result, it is time for Western nations that have oil companies in Nigeria to understand the situation and assist in resolving the problems, instead of remaining quiet.    If Western leaders and citizens are truly committed to the ideals of democracy, freedom, justice, and human rights, then let these ideals be materialized in the Niger Delta.  The indigenes of the Niger Delta are tired of their colonial status and want the situation resolved amicably.  Quod erat demonstrandum.         



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Concluded

 

Feb 2004