NIGER-DELTA

Against the backdrop of the surging violence in the Niger-Delta region, the Federal Government has again expressed serious concern over cutback in crude oil production. The Minister of Energy in charge of Petroleum, Mr. Odein Ajumogobia, says the renewed attacks on oil installations have disrupted production, leading to an enormous shortfall in output. Before the recent attacks, oil production had already fallen by 473,000 barrels per day. The violence has sent global oil prices soaring to unprecedented levels.

Reports say that Royal Dutch Shell cut oil production by 169,000 barrels per day after some militants attacked two pipelines in the region. Due to industrial dispute, about 90 per cent of ExxonMobil’s output of about 850,000 barrels a day was also halted. It is said that nearly all multinational oil companies have moved expatriate families away from the volatile region.

The Movement for the Emancipation of the Niger Delta (MEND) has claimed responsibility for the major attacks on oil installations. In a statement, the group said, “Our candid advice to the oil majors is that they should not waste their time repairing any lines as we will continue to sabotage them,” adding that it has enough time on its side as there is so much to be destroyed.

Though the Yar’Adua administration has taken some steps, including the convening of peace meetings, militant activities, especially kidnapping for ransom, blowing up of oil installations and deliberate attacks on security operatives have continued unabated. In the 2008 budget, the FG has allocated a whopping N444.6 billion for security and Niger Delta.

Conflict began to flare up considerably in the late 1990s. In 2000, the Obasanjo administration created the Niger Delta Development Commission (NDDC) to help end the violence and spur socio-economic development. Yet the NDDC’s activities have not significantly doused the crisis. During and after the run-up to the 2003 general elections, violence between rival militia groups and against oil corporations escalated.

In September 2004, President Obasanjo invited Ateke Tom and Alhaji Asari Dokubo to Abuja for dialogue. And on October 1, 2004, a peace agreement was signed between the two groups. Over the next five months, more than 3,000 weapons were handed in by the militants and publicly destroyed. Then MEND emerged in early 2006, launching vicious attacks on Nigeria’s oil infrastructure. The militant group successfully shut down about one quarter of the year’s oil output. Last year, The United Nations reiterated its willingness to help the country resolve the crisis.

Violence in the region is worsened by international arms dealers who continue to find the country a lucrative market and by neighbouring African states that recruit Nigerians as mercenaries, creating a reservoir of people with the means and motive to maintain a violent atmosphere necessary for oil bunkering and other illicit activities to thrive. Rampant criminality is therefore a challenge that the government must confront.

Apart from its political and social implications, the escalating crisis is hurting the economy. For instance, the nation stands to lose considerable part of its revenue as the 2008 budget is predicated on a crude oil production of 2.45 million barrels per day. Oil accounts for approximately 90 per cent of the value of the nation’s exports.

For peace to return to the region, there must be a progressive and sincere movement towards fiscal autonomy. Apart from the amendment to the Land Use Act, which President Yar’Adua promised, the National Assembly should consider the review of the Petroleum Act immediately.

In the meantime, there must be a workable plan to create meaningful employment opportunities in the region. While international campaign against oil theft should be stepped up, the FG should take steps to curb the illicit arms trade in the region.