Resource control, revenue allocation and petroleum politics in Nigeria: the Niger Delta question
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.
KeywordsMEND 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 Act
Extractive Industry Transparency Initiative
Movement for the Survival of the Ogoni People
Niger Delta Development Commission
Niger Delta Volunteer Force
State Security Service
Corporate Social Responsibility
Movement for the Emancipation of the Niger Delta
Shell Petroleum Development Company
Niger Delta Vigilante
Niger Delta People’s Volunteer Force
Coalition of Military Action in the Niger Delta
Egbesu Boys of Africa
Nigerian National Petroleum Corporation
Small arms and light weapons
Oil Mineral Producing Area Development Commission
Sovereign National Conference
Joint Task Force
International oil corporations
Ijaw Youth Council
Ministry of Niger Delta
Niger Delta People’s Salvation Front
Niger Delta Strike Force
People’s Democratic Party
Disarmament, Demobilization, and Rehabilitation
Ogoni Bill of Rights (1990)
United Nations Office on Drugs and Crime
Petroleum Industry Bill
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