By Naphtali Iringe-Koko
I will start this discussion with a brief introduction bordering on the development challenges that confront the Niger Delta which are as follows: Th e special nature of the Niger Delta demands a special development template with new solid development initiatives. Th ere is not a doubt in my mind that development with enduring quality is what is uppermost in the minds of committed Niger Deltans for the sake of future generations. I do not believe that the issue of who heads the NDDC or Ministry of Niger Delta is material to them.
The government would need to think outside the box in order to bring meaningful development to the oil region. Th e Niger Delta is a unique region located in an area comprising wetlands, formed by sediments. The area comprises sandy coastal ridge barriers, mangrove swamps, lowland rainforests, isolated islands and villages inhabited by indigenous communities. Th e special nature of the Niger Delta vis-a-vis its people, isolation, ecological and hydrological features required special attention by the Federal Government of Nigeria. Driven by these challenges, the Federal Government established the Willink Commission in 1957.
Th e commission was tasked with the duty of looking into the concerns (lack of development, poor infrastructure, isolation, neglect and poverty) of the minorities of the Niger Delta region. Th e commission’s report was published in 1958, following which NDDB (Niger Delta Development Board) was created and included in the 1963 Constitution. Th e NDDB was to be reviewed after 10 years but the civil war which commenced on May 30, 1967 and ended in January, 1970 interrupted its activities.
Th e NDDC is now the interventionist agency in its place. Th e NDDC was created in 2000 and since its creation, it has delivered no meaningful development in that region. Niger Delta is yarning for meaningful development benchmarked by the following performance standards: Fitness for purpose because of the difficult terrain; Value for money and stakeholders satisfaction (Meets the approval of Federal Government (FG), our Development partners and Niger Deltans). Based on the above comments, I believe FG requires a new development model to fast track the development of Niger Delta. It is my honest opinion that the NDDC and the state governments should go back to the drawing board and face the issues that led to the creation of Willink Commission and establish solid development programmes that are inclusive i.e. development that will also impact on the rural committees. It is no longer news that oil and gas activities dominate the landscape of the Niger Delta.
Th e adverse eff ects of these activities have added to the development challenges indicated in the Willink Commission report, and have created overwhelming socio-economic challenges in the region. The oil and gas companies therefore have their legitimate roles in the development of the region in the areas of social investments. Pollution of the environment is part of the challenges of the oil and gas companies but that is completely a separate issue as it is currently being addressed under the polluter pays principle by the FG and the oil and gas companies. Th ank God that the Buhari government has come to the rescue of a problem that developed into a jinx.
We are all looking forward that the Ogoni land clean-up will be extended to include the other parts of Niger Delta. Without the oil and gas companies practically getting involved in the development of Niger Delta, I do not believe we will make any reasonable progress and this could adversely affect the future generations of the oil region. Oil related projects should include social investments in areas such as health centres; hospitals; educational facilities; labour intensive projects such as refi neries; petrochemicals; fertilizer and LNG projects which are expected to generate both direct and indirect employment and would also stimulate the local economies. Th e loss of traditional occupations have resulted in unemployment and exacerbated poverty.
Th ese industries are the most reliable in remedying the adverse effects of the oil and gas industry in the areas of job creation and stimulation of local economies. Projects targeted at replacing unfi t housing stocks are also recommended for addressing the adverse eff ects of gas fl aring and air pollution. Th e host communities fund as provided in the PIGB is not a substitute. It is an accepted industry practice all over the world. Apart from their individual Corporate Social Responsibilities (CSR) to their individual host communities, there is need to jointly create an SPE (Project Company) for Niger Delta development as illustrated in the diagram and channel the 3% budget contribution to the SPE to fund its operating costs, interest payments and repayment of loans obtained from shareholders, multilateral/bilateral agencies, international commercial banks, local banks etc.
I have not a doubt in my mind that the oil and gas majors with their extra-ordinary people, extra-ordinary reserves, extra-ordinary assets etc can team up with the FG to make a real diff erence in the lives of the Niger Deltans. Honestly, I am looking forward to an oil industry where oil and gas business takes its proper place as society friend rather than its enemy. Th e oil and gas companies must rise to the Niger Delta challenges and do their own bit in order to usher in a New Niger Delta where oil and gas companies would be regarded as friends instead of enemies. Th e NDDC, Niger Delta Ministry and State governments of the oil region should go back to the drawing board and revisit issues relating to the establishment of the Willink Commission in 1957.
Th ey should concentrate their eff orts in addressing these issues with the 13% derivation and their receipts from the ecological fund. In order to deliver quality projects to the people of Niger Delta, the trio could enter into PPP arrangement with the likes of Julius Berger and use part of the 13% derivation in funding the PPP. If the FG continues with the current development model there is risk that the future generations of Niger Delta will be condemned to serving this generations’ mismanagement at the cost of investing in their own future. It would be a moral betrayal to choose the easy route by ducking the diffi cult decisions today at the cost of prosperity tomorrow. Iringe-Koko is a chartered accountant
