Resource control, revenue allocation and petroleum politics in Nigeria: the Niger Delta question
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Abstract
The Niger Delta question represents one of the most intractable sources of political destabilization, constitutes a profound threat to national security, and economic development of the Nigerian state. Therefore, the study of the intricate dynamics among multinational oil corporations, the Nigerian State, and insurgent militias illuminates the root causes, societal schisms and the political economy of resource induced conflicts in Africa’s major oil producing nation state. This case study illustrates and explicates the “paradox of plenty”, the “resource curse”, the “shadow state syndrome”, and the debilitating effects of petroleum politics in Nigeria. Economic exploitation of the region’s vast crude oil reserves by multinationals and government authorities is juxtaposed with the specter of environmental devastation, excruciating poverty, and recurrent rule of impunity. National elite contestations concerning the legalities of resource control, internecine squabbles over revenue allocation formulas and derivation principles have been compounded by incessant disruptions of crude oil pipelines, necessitating drastic reduction in the country’s petroleum output and revenues derived from the global economy. Due to the multi-layered dimensions of the effects of crude oil, guns, profits, and geo-territorial instability, the protracted problems of the Niger Delta thus, provides us with pertinent analytical and contextual frameworks for the study of the dynamics, volatility and transparency issues in global extractive industries. In the muddled rivers and creeks of the Niger Delta, characterized by regional destabilization, there has emerged a clandestine economy of protection syndicates, marked exponential increase in kidnappings and targeting of expatriate workers, as well as state sponsored military reprisals against self-styled insurgents, warlords, and militia movements.
Keywords
MEND Ethnic militias Land Use Act Surveillance contract Host community Revenue derivation formula Oil bunkering Onshore/offshore dichotomy Force majeure Joint task force Resource control Fiscal federalism Environmental degradation Oil Pipeline ActAbbreviations
- EITI
Extractive Industry Transparency Initiative
- MOSOP
Movement for the Survival of the Ogoni People
- NDDC
Niger Delta Development Commission
- NDVF
Niger Delta Volunteer Force
- SSS
State Security Service
- CSR
Corporate Social Responsibility
- MEND
Movement for the Emancipation of the Niger Delta
- SPDC
Shell Petroleum Development Company
- NDV
Niger Delta Vigilante
- NDPVF
Niger Delta People’s Volunteer Force
- COMA
Coalition of Military Action in the Niger Delta
- EBA
Egbesu Boys of Africa
- KD
Kaiama Declaration
- NNPC
Nigerian National Petroleum Corporation
- MOPOL
Mobile Police
- SALW
Small arms and light weapons
- OMPADEC
Oil Mineral Producing Area Development Commission
- SNC
Sovereign National Conference
- JTF
Joint Task Force
- IOCs
International oil corporations
- IYC
Ijaw Youth Council
- MND
Ministry of Niger Delta
- NDPSF
Niger Delta People’s Salvation Front
- NDSF
Niger Delta Strike Force
- PDP
People’s Democratic Party
- DDR
Disarmament, Demobilization, and Rehabilitation
- OBR
Ogoni Bill of Rights (1990)
- UNODC
United Nations Office on Drugs and Crime
- PIB
Petroleum Industry Bill
Supplementary material
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