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National Conference: A Deadlock for Greatness By Leonard Karshima Shilgba
The ongoing National Political Reform Conference (NPRC) has reached a deadlock with the hardening of positions by the North, in particular, and the South-South. The issue at the center is resource-control, or rather an “acceptable” percentage of derivation from endowed natural resources that should fall to the host communities or States. While the South-South, in their consideration of their fellow citizens from other parts of Nigeria, says 25% derivation should be enshrined in our next constitution with annualized 5% increase for the next 5 years until the independence and Republican constitution level of 50% is arrived at, the North, in particular wants nothing of that, but would rather “concede” a paltry 17%- a mere 4% increase to the existing 13% derivation.
There seems to be a deliberate or pre-set misconception of the issue of resource-control; it does not mean oil-control. It does not mean the South-South region enjoying 50% pre-sharing control of their oil and gas resources. What it means is that each State or region will enjoy a major share of revenue derivable from all natural resources existing on its territory- in this case, the South-South is proposing, and rightly so, that 50% should be this majority share. I say rightly so because, the first two post-independence Constitutions (1960, 1963), which were crafted without any military censorship- directly or indirectly- by free born Nigerians stipulated so. It is therefore common sense that constitutions which the military governments over various and different seasons imposed on Nigerians since they first suspended unilaterally the 1963 Republican Constitution in 1966 could not be suitable replacement of a Constitution that was crafted through consensus.
It is semantically logical that what is suspended could be activated in the future. If illegal military governments, without the mandate of Nigerians, have foisted on us Constitutions as they saw fit since the suspension of the freely crafted 1963 Republican Constitution which recognized the wisdom of creating rather than sharing wealth among federating units of Nigeria, should any region or State resist a “re-visit” of this torrid issue of derivation for the lame excuse that “some States will become super rich while others become super poor”? Besides, can any NPRC procedural law, however so glorified, be so sacrosanct as to be valued above the peace, unity, and development of our country?
It is undisputable that Nigeria recorded massive economic development during the period 1960-1966 when there was healthy economic competition between the federating regions. It is on record that the South-East Region for instance spent about 45% of its income on education in order to catch up with South-Western Nigeria where Pa Awolowo instigated free Education which has resulted in that part of Nigeria having the highest literacy level in Nigeria today, and a vocal an articulate media unrivaled elsewhere in Nigeria. Sir Ahmadu Bello equally saw the value of functional education as he encouraged handsome spending on Education in the North culminating in the establishment of the first University in the North- the Ahmadu Bello University, Zaria. This visionary leader from the North decided to stay as Premier of the North to develop his region rather than seek to become the Prime Minister of Nigeria.
Unfortunately, since the Military incursion into Nigerian politics in 1966 and the “suspension” of the 1963 Constitution, we have groped for four decades, only trying to find our feet now with the far-reaching reforms in place today. We moved from active production to wanton sharing of the “National cake”. Suddenly oil was discovered in commercial quantity, and it became our curse since the 50% derivation went with the suspended 1963 Constitution and so federating States could afford the luxury of idleness and waste anchored on easy money from the sharing pool. That is how massive groundnut pyramids in the North, Palm products in the East, Rubber in the South-South and Cocoa production in the South-West dwindled, trickled and vanished.
Some people would want us to continue like this-sharing instead of producing and creating new vistas of wealth from necessity. I totally agree with the AREWA youth who are in full support of 50% derivation for natural resource-producing units in the Nigerian federation. I also see the enforcement of the 50% derivation as a blessing for the nation. They say necessity is the mother of invention. Our State Governors and leaders will become more creative in the absence of cheap money from the Federation account.
It is not congruous for Northern leaders to ask their South-South colleagues to account for the 13% derivation they have been receiving if they have not and will not account for the revenue they have been receiving from the federation account since 1999. It is the responsibility of people of a State to hold their Governor to account, failure which they should bear whatever consequences of bad governance.
I am so excited at the development at the NPRC, not because of the seeming deadlock, but because of what it means for Nigeria-It spells GREATNESS. No one can correctly tell the level of development Nigeria will attain in just 10 years with healthy economic competition among the federating States when the most latent of resources could be tapped, refined and applied for common good because of the stress of necessity. It is mischievous and insulting to the integrity and sense of patriotism of conference delegates for the CNPP to insinuate that President Obasanjo encouraged the conference deadlock because he could not tele-guide it. This insinuation is even self-contradictory since it is curious how the people he cannot control can be made to stick to their hard positions, particularly on the issue of resource control.
The Governor of the Central Bank Professor Charles Soludo cited some publication recently at the 2005 Democracy Day lecture in Abuja which underscores the importance of economic development-reflected in the per capita income of a country-to survival of democracy. As I have written previously, the problem of Nigeria is simply economic compounded by corruption which thrives in the absence of economic competition and wealth creation. Excessive corruption is to be expected where government controls the means of production and is the dominant employer in the economy.
In oppressive Socialist enclaves, it may appear on the surface that corruption is absent, but in truth, a small privileged group of despots use coercion to control the wealth on behalf of the people who have no voice. This is what I call cunning and dubious consumption and it is worse than orthodox corruption, since it is very insidious, and when it becomes exposed, a supposedly prosperous economy is without a true foundation for economic development and thus must get foreign assistance to survive as a nation.
The present reforms by the Obasanjo government encapsulated in the NEEDS document will be guaranteed enduring implementation long after the end of his term if the NPRC is made to succeed. And of all issues discussed both at committee and plenary sessions, the most determining of the fate of the reforms is the natural resource derivation (or resource-control). A wise re-course to the 1960, 1963 Constitutional provisions on derivation is the most important guarantee of peace and mutual respect in the federation which are vital ingredients of development.
At the moment, some oil importing countries are researching on alternative sources of energy. Brazil today depends less on imported oil since they have developed ethanol from sugar cane which constitutes over 40% of fuel used in their automobiles which are designed to run on both traditional gasoline and ethanol (bio-fuel). The USA is also challenged and motivated to seek solace in bio-fuel in order to wean her massive industries and people from imported oil. The legislature is also very concerned and has called for proactive measures in this regard. Japan has successfully produced a car that runs without gasoline fuel energy; it operates electrically (although the cost of a unit is far out of reach of an average worker yet even by Japan’s wage standards).
What all these efforts portend is that in the near future, crude oil demand will fall with competing alternatives. What becomes of Nigeria then if oil is still the major revenue spinner? What becomes of the South-South then when other regions and States in Nigeria only agree to resource control then and the South-South is left with its degraded environment and Nigerians say as far as resource control is concerned, “to your tents o Israel”?
I am not from the South-South region, but I am concerned for them. It will not be wise if they back down now; they will suffer more in the future when their resources are depleted and their sons and daughters are forgotten by the children of other regions. We have a short memory as a nation. Children from non-oil producing regions will not even remember that the South-South once produced the bulk of Nigeria’s wealth! Whether today or tomorrow, the issue of resource control will be brought up when some people feel it will suit them most then.
The South-South does not have large land mass for agricultural purposes; their fish and other water resources are destroyed through oil spillages, and someone is concerned that if they control 50% of their oil wealth non-oil producing States will have less income? What warped thinking! Does it mean that without oil Nigeria will not develop? On what did she thrive in the 60’s? O yes, someone says they used revenue from their agricultural products to explore for oil and so the South-South must not ask for 50% derivation? For how long have Nigerians been sharing from the oil money?
Even in business BOT agreements like the Ajaokuta steel project, there is a limit for recouping returns on investments; the same thing goes for oil companies in joint partnerships with the government on funding of joint ventures. But the point should be made that the South-South has been so considerate to propose a staggering for 5 years to arrive at 50% derivation, which will enable non-oil producing States enough time to streamline expenses (reduce their over-bloated government cabinets), re-prioritize, and explore alternative means of revenue, which are there but their dependence on oil has blinded them to. Besides, solid mineral resources which exist in every State in Nigeria will be exploited for development of those States since they too will control 50% of their resources.
It is my considered opinion that resistance to 50% derivation is born out of ignorance and misplaced fears. The NEEDS reform content should be adopted by every State of the federation with modifications to suit every State’s peculiarity. There is nothing sacrosanct in it even as Professor Charles Soludo said, “The challenge by analysts is to tell policy makers what is in the NEEDS document that should not be there or what should be in it that is not there. This is how knowledge grows.”
It would be academic laziness for us to sit in our cozy environment abroad or at home and engage in professional fault-finding without offering intelligent alternatives. The era of generic lampooning of government and its policies is gone. The era of parroting the refrain, “Our problem is bad leadership” is gone. What can we do as Nigerians in the Diaspora? What can we do as privileged Nigerians at home?
It does not take great knowledge to launch scathing, misplaced, uninformed, or deliberately mischievous broadside. But it takes some sizeable modicum of knowledge to provide appropriate recipe for growth, prosperity and development.
It is my hope that before July 11 when the NPRC plenary session resumes, reason will have prevailed. The South-South is not proposing anything new; they are only saying Nigeria should go back to arrangements which marked great notches of development in the 60’s. They are saying, “We understand change takes long to sink in and be accepted, and so let 25% derivation be agreed now with annualized 5% until 50% is achieved”. I see this as reasonable and considerate, but I also see a kind of blindness or myopia on the part of the antagonists. Does anyone know whether a money spinning natural resource (even large quanta of crude oil) that would fetch a great deal of revenue will be found in a seemingly poor State tomorrow?
Northern leaders should not see just the now; I challenge them to prove they are not dependent on the South-South and agree to 50% resource control. Let them convince Nigerians they can survive without oil money by saying, “Ok with 50% derivation”. Let them prove they believe in their creativity to reproduce the agricultural wealth of the 60’s and early 70’s by confidently saying “yes to 50% derivation”. Let them prove by affirmation that they believe the North equally has economic natural resources that 50% derivation will produce sufficient revenue for development.
I would be glad and proud of my Northern heritage if the Northern leaders can confidently, without prodding and night-long negotiation meetings, agree to 50% derivation long before July 11 when the NPRC plenary session is due to resume. Do they know what difference this will make to Nigeria’s growth and development? But I would be truly ashamed of being identified as a Northerner from Benue State if Northern leaders fear economic independence just like they were afraid of political independence. Let it not be continually blamed on them the slow pace of development in Nigeria.
I also understand that Northern leaders are averse to machine voting; I wonder how long they will continue to send the message that the North cannot stand on her own economically or cannot win elections without massive rigging. I plead for honor to be bestowed on us young Northern generation by our leaders. Many of us are exposed to what obtains in other parts of the world. Never despise your abilities because of the absence of what people value so much; you are your greatest resource.
I have a message for the North, North-central, South-South, South-West, and South-East: Enlarge the place of your tent and stretch out the curtains of your dwellings. Do not spare; lengthen your cords and strengthen your stakes. For you shall expand to the right and to the left, and your descendants shall inherit the nations and make desolate places inhabited. Do not fear, for you will not be ashamed; neither be disgraced, for you will not be put to shame. You will forget the shame of your youth.
As a nation, we need to enlarge our coast by enlarging and diversifying our sources of revenue. We should have confidence and vision to turn uninhabited places to become habitable through ingenuity. Let us make Nigeria very attractive through justice and resource control which confers responsibility to State Governors and local government chairmen to perform, either because there is no easy money coming from the central purse or they have so much as a result of derivation that the federal government cannot be blamed for under-development or environmental degradation. Let us bake the cake and not just share it. Our shame as a people will be wiped out as we heed and do what is right.
As I conclude, I want to make a hypothesis: Nigeria is leaning towards China and advocating a self-reliant Africa characterized by transparency, accountability, and good governance. She says, any oil company that bids for an oil block must choose to do one of three- build a refinery, an independent power plant or a gas plant. Local content in the downstream and upstream sectors of the oil industry is being encouraged. She says very soon oil companies must refine at least 50% of their crude in Nigeria as a prelude towards wiping off crude oil export; this means less crude export to nations like the USA. This is a threat!
Sound economic reforms are now in place with a growing private sector and a happy group of manufacturers who are taking advantage of the ban on many imports to produce. A group of rich visionary Nigerians have come together to form TRANSNATIONAL CORPORATION which will buy many foreign business interests in the future as we start spinning large quantities of money from exports. A black power is emerging! USA is not happy; the price of crude keeps going up, and if Nigeria cuts down on the volume of exports, the price will spiral the more. With the new policy of tying oil blocks award to building refineries among others, and companies like Zenon (Nigeria-owned) set to build a refinery in Epe Lagos state that will refine 400,000 barrels a day, the price of crude oil may kiss $100 late this year or early next year. Yes, they are anxiously looking for alternatives, but they are jittery all the same.
Suddenly the Christian Broadcasting Network (CBN), America-owned, complains loudly that the USA has poor intelligence on Nigeria, a “very strategic country to the USA economic interest”. They express concern that Osama Bin Laden has called for the overthrow of Nigerian government for being “pro-American”. Not long after this expressed concern by CBN, an American intelligence report comes out saying Nigeria would break up in 15 years. Shortly after, the USA closes its embassy on a spurious and nebulous security scare. Nigeria is not convinced, China is not convinced either. Countries like the UK and Germany also close their embassies in Nigeria just because the USA has done so. Many Nigerians are not convinced. Few days later, the embassies are re-opened followed by an American war ship on Nigerian waters with ambivalent reasons that make no sense. What will Nigeria do?
The USA would not mind fomenting trouble in the South-South region. A refusal to grant the 50% derivation being asked by the South-South could be a good excuse. President Obasanjo should not suspend the NPRC even if no consensus is reached on the torrid issues by July 11 (although I am confident that a positive resolution will be arrived at by that time) since this will rather fuel crisis in the South-South and Nigeria as a whole.
Nigeria has not broken up, but is rather picking up on every front. Sao Tome and Principe may be instigated against Nigeria, just to cause tension in the Gulf of Guinea region, reminiscent of the Iraq-Kuwait tension. It is foolishness for Sao Tome and Principe to believe those instigators. Well, Nigeria will grow and become very great and so the glory of the black man will be enhanced.
Whatever development that happens in South Africa will always be attributed to the white man; but whatever economic and social development that takes place in Nigeria will be testimonial to the ingenuity and managerial ability of the black man. Nigeria is thus one unique African country that bears the hope of Black Africa. We must always have this at the back of our minds as we continue with the NPRC hopefully from July 11. Let us disappoint our foreign detractors and please our children yet unborn who should inherit a nation and a new Africa of which they will be proud. Let us remember we have helped bring peace to may regions in the world, particularly in Africa; and it shouldn’t be difficult for our leaders at the NPRC, National Assembly, State Assemblies, and Executive at both federal and state levels to see that the right thing to do in order to enhance national development is allow a minimum of 50% derivation on natural resources. I may also suggest that 50% derivation should also be granted on Value Added Tax (VAT). I wish my land well, I love Nigeria.
Yokohama. Japan.
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