The implementation of policies like fuel subsidy removal in Nigeria demands a critical reevaluation of the country’s oil block ownership.
Throughout Nigeria’s history, the allocation of oil licenses and mining leases has remained veiled in secrecy, mired in corruption, and entangled in patronage dynamics. This culture of secrecy originated from past military regimes and persisted beyond 1999, favoring a select few without any attempt to rectify this imbalance.
The Nigeria Extractive Industries Transparency Initiative (NEITI) has long highlighted the lack of transparency in acquiring and awarding oil prospecting licenses, financing mechanisms, and the insufficient disclosure of oil and gas production revenues. Despite minor adjustments, the sector still operates under a shroud of mystery, leaving ownership ambiguous.
Rumors persist about many allocated oil blocks being underutilized, leading to economic losses for the nation. Even after the enactment of the Petroleum Industry Act (PIA), a pattern initiated during General Sani Abacha’s regime continues unabated. This pattern is exacerbated by the heads of state simultaneously holding the Petroleum Minister portfolio, hindering any meaningful scrutiny of the sector.
With the oil and gas industry contributing significantly to Federal Government earnings and Nigeria’s external revenues, its association with inexplicable secrecy and exclusive monopolies undermines policies like subsidy removal, alienating many Nigerians. Global bodies like the Revenue Watch Institute (RWI) have criticized Nigeria’s governance of its extractive industries as notably weak.
The assertion made by Senator Ita Enang that “Northerners owned 83 per cent of all oil blocks in the country” remains unchallenged. This lack of clarity in ownership raises questions about the transparency and fairness of subsidy removal policies, particularly when they disadvantage the masses.
Addressing dwindling revenues necessitates prioritizing public accountability by curbing financial leakages and extravagant spending. This entails confronting fuel subsidy fraud, a persistent issue in fuel importation.
The perpetuation of secrecy and exclusivity within the oil sector doesn’t sit well with Nigerians, especially when the blessing of oil becomes a curse for the majority. The marginalization of the Niger Delta, despite its substantial resource contributions, remains a poignant injustice. Even the Niger Delta Development Commission (NDDC) operates under remote control by external power blocs, exacerbating the region’s woes.
Leaders managing Nigeria’s affairs ought to acknowledge the sacrifices made by the masses and restore confidence through transparent spending practices. Exemplary leadership becomes imperative during challenging times, ensuring the populace isn’t misled or taken for granted.
Good governance, crucial for security, demands just and transparent leadership, unlike the current state characterized by secrecy and exclusivity, especially evident in oil block allocations. The provocative display of wealth among a select few, amidst abject poverty, breeds bitterness among the majority, raising questions about the relationship between wealth, productivity, and patriotism.
The people of the Niger Delta, pivotal in sustaining Nigeria’s economy, deserve fairer treatment. The handling of oil license awards and allocations, despite provisions in the PIA and the 13 per cent derivation bonus, demands rectification to ensure fairness.
Representatives from the Oil producing states in the National Assembly should champion the interests of their constituencies instead of being used to undermine oil-producing communities.
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