Oil Prices – Nigeria missed Opportunity

Just as Nigerians were welcoming the dawn of a new democratic government in 1999, it was as if the forces that control the international market prices of crude oil knew the challenges that lied ahead the new government. Crumbling infrastructures, collapsing education, dying economy, skyrocketing prices of commodities, death trap roads, sick healthcare system and the list goes on. They (the forces) decided to smile on us by making sure the prices of crude oil began a consistent northward movement so that we can at least meet some these challenges.

If we could recall, crude oil prices were less than twenty united state dollars ($20) when General Olusegun Obasanjo was sworn-in as the President of Nigeria. Hardly had he settled down in office, when these prices began to move and by the time he left office in 2007, the prices were around seventy united state dollars ($70). Since the present Administration of Umoru Musa Yar’Adua took office more than a year ago the story has not been different. Oil prices have risen even to an all time high of one hundred and forty united stated dollars ($140 US). But in the past several days, oil prices, due to less demands, have embarked on a free southward movement, the new movement has been attributed to the global financial crisis ravaging not only the world’s most powerful economies but also those of the small boys like Nigeria. If the words of analysts and experts are to be believed, the financial crisis may not go away too soon, which means the free fall of oil prices may last for a while – meaning less money for countries like Nigeria.

One question that comes to my mind each time I thought about the rise and fall of oil prices in regards to the then and now state of Nigeria and Nigerians is that; what have we achieved with all the excess money we got from the jumps in oil prices? The answer I can best come up with is NOTHING. We read and saw how other oil producing nations were using the their extra monies to benefit their citizens. For example in Saudi Arabia, petroleum prices were sold at record low prices, scholarships were given to people that could not afford education and some citizens got checks from the government as their share of the national cake, more good roads were built, better hospital were built. Funny enough people like Atiku Abubakar and the Umoru Yar’Adua have visited these hospitals for medical check ups while Nigerian hospitals beg for attention. In Venezuela, the story is the same. In Alaska, US, where most US oil come from residents were issued checks of one thousand two hundred dollars ($1200 US) for individuals and two thousand five hundred dollars ($2500 US) per family all from the excess money that accrued to the state government due to the spike in oil prices. The reverse was the case in Nigeria. The only people that received not only checks but also fat bank accounts are the presidents, governors, their deputies, and all their cronies. Former President Obasanjo got his fortune so turned around that he went from just N20, 000 (about $200 US) in total money at hand when he came into office to billions of naira enough to have one of the best Universities in the nation, enough to have the best farm in the country, enough to be among the richest in the world. His vice president, Abubakar Atiku, was not outdone by the president, he also has his own university, uncountable number of houses around the world. What about the governors, the ministers, senators, representatives, commissioners, house of assembly legislators, local government officials, they all made fortunes. What did the masses in Nigeria get from high oil prices? Persistent increase in the prices of petroleum products, the last time I knew, petrol was officially seventy-five Naira (N75) for a litter, and unofficially? Only God knows. More excuses why new refineries cannot be built and the existing ones cannot function, more crumbling infrastructures, continuous failing healthcare system, failing education standards and so on.

One thing is clear, Nigerian leaders have had the opportunity in the last eight years to use the excess monies accrued from oil prices to make a difference, but they have chosen to line their pockets and benefit their family members and cronies. If not why would a nation like Nigeria is not able to boast of uninterrupted power supply? Why are the roads still that bad? Why is there so much poverty in the land? Why are the leaders still travelling abroad for medical treatments when some of the world’s best hospitals have Nigerians as doctors? Why? Why? (I can continue but am crying now). If oil prices continue to go southward at the rate they are now doing, it is certain that one day Nigerians will look back and say this was the time we missed the opportunity to tackle many of our challenges. And guess what? Posterity will judge the present crop of Nigerian leaders.

Olufemi Nelson FAJOLU (fajinelson@yahoo.com)

Knoxville, TN USA.