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Niger Delta, Oil Companies and Banks By Maxwell James
That the Niger Delta region, over the past four decades has caused increasing national and international concern can not be overemphasised. The region is seen globally as one of the numerous sad sides of the Nigerian state. The huge paradox of the region is also evident as the vast revenues being generated by the region have barely impacted positively on the local populace – a clear case of baboon dey work, monkey dey chop in local parlance. These and many more reasons have thrown enormous challenges towards effort aimed at achieving sustainable human and economic development in the region. The control of resources between communities, oil companies and government as well as managing the wealth in the interest of the disenfranchised rural inhabitants forms the thrust of this piece.
The bane of Nigeria’s developmental strides has often been hinged on corruption and bad leadership. Oil companies have also been accused at various times by international organisations like Catholic Relief Services, Amnesty International, Human Right Watch, Oil Watch etc of doing less than enough to ameliorate the region’s problem. For instance, with the present state of event in the troubled region which include: deplorable roads; lack of access to safe drinking water; youth unrest and collapse of family values, one shudders a bit if the private sector has done enough to give the oil bearing communities a little from the enormous revenues they generate on a daily basis the area. We are also mindful of the fact that some inordinate elders and government officials alike have subjected their conscience on sale for a fee – thereby mortgaging the future of their youth. However, a lot of private intervention can be done in terms of human and infrastructural development to give vent to the proposed quest for development in the region.
Though we are also contending with some impious existing laws and environmental legislations like the Mineral Act of 1958, the Land Use Decree of 1978 and the Petroleum Decree of 1969 in our body politic, this we intend to leave for another day as we propose legislative agenda for the Niger Delta – using major but similar international cases as a yardstick. Now, we must strive to do our best to effect tranquillity and guaranty quality life for the rural inhabitants.
For instance, with oil accounting for over 90% of export earnings and some 80% of government revenue, Niger Delta is expected to be the hub of bubbling economic activities of all kind. But what we have is synonymous with mindless exploitation and sabbatical of any meaningful activity except government business and outright begging. This is noticeable because since the discovery of oil in commercial quantity in Nigeria – precisely at Oloibiri by Shell Petroleum Development Company (SPDC), the private sectors as represented by oil and construction companies as well as banks prefer to operate from distance even before the advent of hostage taking and other violent agitations in the region. How can we reconcile the fact that none of these companies sites their corporate headquarters in the Niger Delta region? What law says NO to that? The argument that the region lacks the infrastructure both human and otherwise is as warp as it is jaded. This negative policy of establishing their administrative headquarters elsewhere has effectively conspired to rob the oil bearing communities of their right of having their indigenes massively employed in these giant companies.
Even before the advent of boisterous youth activities in the region as stated earlier, Lagos has always played host to companies’ corporate offices where they recruit ‘strangers’ and deploy them to Niger Delta to work. Today, after expecting appreciable standard of living, peaceful atmosphere for business and plausible governance for decades of oil exploitations in the region, what we have is chillingly disquieting as the JTF is still struggling to contain militia groups in the oil producing region due to long years of neglect that may not be unconnected with the above reasons; it is on record that Nigeria has lost well above US$26.3 billion of oil revenue between 2003 to date. One may wonder how much it will cost to transform the region.
In my previous piece entitled “Making Oil Revenue Work” I contended that….. “The Aceh province in Indonesia had also had their fair share of struggle …which pundits say is related to social and economic justice like the Niger Delta …. But the cordial relationship between the government, oil companies (private sector) and communities was not affected at all as evident in the fact that after series of protracted crises, the Acehnese unlike the Niger Deltans were given the bulk of the oil revenue to mitigate insurgency”
Here, we can say that a possible end to the Niger Delta crisis may not be in sight because the economic independence of the region is still a far cry.
The banking industry in Niger Delta remains one of the greatest beneficiaries of the enormous wealth embedded in the region. For instance, the Central Bank Governor, Prof Chukwuma C. Soludo once reeled out ‘the success story’ of the sector. He said “with over 3, 866 branches, a total asset base of N6.5 trillion, a definitive prospect of 7 banks hitting shareholders’ fun in excess of $1 billion by the end of the year (2007), Nigeria’s 25 mega banks have achieved world class status in less than three years.” He emphasised the sector’s determination to be the nation’s key driver in assuming an enviable position as one the largest economies in the world by the year 2020. Good dream. We may not question the shoddy deals in the sector which include: strange inter-bank deals: illegal cut cutting ranging from 10% to 20% of huge cash advances; endless round trips and dubious annual audits etc. What interests us here, is how their corporate ethics can translate to meaningful life in the environment they operate.
In Yenagoa, the Bayelsa state capital, banks are competing for space in the busy Mbiama – Yenagoa road without any plan for expansion. My curiosity led me ask one of the new generation banks Chief why is it that 90% of his staff are none Bayelsans? He informed me without mincing words that recruitment in the industry is usually effected at the head office(s). This is a sad story as scores of Bayelsans that may not be able to withstand the high recruitment politics of banks are totally disenfranchised from gaining banking job in their state despite the criminal deduction of COT on government funds (clear violation of CBN Guide to Bank Charges) being perpetrated by our world class banks in yenagoa. Also, attempt was made to know the rationale behind the non-existence of any bank in other part of the state despite appreciable bubbling economic activity like trading. The bank manager shouted insecurity! But today all the banks are scrambling for space at the proposed Brass LNG site, a more volatile place to transact business. Oil money is sweet!
In all, corporate ethics are very weak in our clime which means, the Niger Delta problem in not only confined to government alone. The private sector is equally taking giant steps in this regards and something urgent must be done to fix this predicament. Corporate culture must be strengthened in this area in Nigeria if we hope to achieve serenity and good business prospect in the Niger Delta.
Maxwell James Kpansia – Epie Yenagoa Bayelsa State |