A Paper Presented at French International Confab, Senegal'06

FRENCH DIPLOMATIC MISSIONS AND INVESTMENTS IN THE 21st CENTURY ANGLOPHONE NIGERIA

By

JIBO NURA

NIGERIA

BEING A PAPER PRESENTED AT A FRENCH COLONIAL HISTORICAL SOCIETY CONFERENCE

DAKAR, SENEGAL

MAY 17-20TH 2006.

Abstract:

?Power to assimilate goes hand in hand with capacity to be assimilated; so also ability to accommodate is ideally meant to be reciprocated by good gesture. This view can only be upheld if goals are clearly stated and pursued with an object of self-confidence and diplomatic semblance. In Nigeria, there is ample presence of Frenchmen and their investments ranging from Peugeot automobiles, Michelin tyres, Elf and Total petroleum companies and so on that are enjoying un conditional patronage. Should France keep on advancing her own interests and continue taking advantage of these business ventures via this consummating marriage, even when Nigeria had lost Bakassi? France should specifically search for her position in this regard and Nigeria on the other hand will be ready to take the lead?.

Introduction:

Good diplomatic relations, trade and investment are essential to the development of nations and nation-states. They represent a new system of relationships of power and legitimacy in foreign policy priorities, seeking to curb the influence of states. Developed and developing economies are fast losing hold in terms of their national character, due to a shift in paradigm from domestic to global, thus increasingly becoming international.

The recent trend in trade and investment coupled with the new international dimensions for global economies may tend to have no control over the social consequences of increased competition. In this circumstance, however, certain questions abound as to the sustainability of open economies. Consequently, fear about the impact of open and liberalized economies is already spreading rapidly in many industrialized countries. The protagonists of the protectionist creed are to be found across the political spectrum and which extends to foreign policies and diplomacy.

In the near future, there will perhaps be no simple or perfect solution to the problems of regional economic inequalities and the uneven patterns of trade and investment. If this happens, there is no doubt that many of the countries currently by-passed by the globalization process will need to implement structural reforms in capital and product markets. This might have a negative effect, most especially if not complemented by improvements in infrastructure to support basic needs in agriculture, industry, education, health, science, technology and commerce. The provision of effective social protection and labour market programmes could also complement the improvements. Naturally, when economic policy that is going to have draconian effects on living standards emerges from such a process, its political culture and heritage are considered less than legitimate. In many cases, the few domestic actors and foreign players involved in the negotiations succumb to both national and international pressures in the end, accept conditions that have adverse social implications.

Therefore, the role of advanced state diplomacies such as France in the promotion and protection of developing countries interests like Nigeria remains highly relevant. Particularly in this new intellectual trend and universal political system.

French Business ventures and economic diplomacy in Nigeria:

France has a lot of economic presence in Nigeria, but due to the apparent involvement of French authorities in unresolved border disputes between Nigeria and her neighbours, the relationship among the duo would have been very cordial. The main problem with the Nigeria?s neighbouring countries such as Cameroon, Chad, Benin and Niger republics lies in the fact that most of them are French speaking. Hence, they could be used as staging posts for penetrating or launching attacks on Nigeria (Rufa?i, 1996).

To affirm this view, however, the International Herald Tribune of august 1977 asserted thus: ?France has evolved a broad African policy that has as its long term goal of the extension of French special relationship with its former African colonies to each of the countries of the continent. As a result, France provides technical military assistance agreement to most, if not all of its former colonies. They in turn, provide the latter with base facilities. Likewise Chad and Cameroon have defense agreement with France with considerable military latitude and facilities (Rufa?i, 1996).

Due to these inherent colonial accommodation and ?God- fatherism?, France could not be a strong economic ally to Nigeria. Its expansionist tendency and continued pursuit of strategic economic relations and empowerment with Nigeria could have been quite remarkable. Current happenings abound as to the vast number of French multinational corporations? that are engaged in several oil explorations and construction matters in Nigeria. For example, Elf Aquitaine, which was created in 1941, largely to exploit the Lacq oil and gas field in southwest France, is today the country?s largest petroleum company that operates in Nigeria. Total, the second largest French petroleum company, and world?s 23rd largest petroleum producer and 17th largest refiner, founded in 1924 at the initiative of the French government, has a long standing operation in Nigeria. With 2.4 million barrels oil storage capacity, it is one of the biggest in its class that evacuates the oil from Amenam-Kpono and other Nigeria?s adjoining oil fields. The operation of this company is no doubt with the consent of the NNPC in agreement with Nigeria?s government. But the issue is; what benefits or quid pro quo do Nigerians stand to gain out of this lucrative exploitation of Amenam-Kpono? It is clear that the French government?s ownership of five percent interest, coupled with the ownership interests of several large French institutional investors who for a very long time hold a substantial stake in the company, generally indicate an unfairly and uneconomic partnership agreement with Nigeria.

However, Lafarge unlike Total, is a world leader in building materials that has at least, shown some level of commitment within its short period of operation in Nigeria. The company, which fully integrated the Ashaka Cement Plc into its group in July 2001, is the number one worldwide in cement and roofing, the second largest in aggregates and concrete and world number three in terms of gypsum. In 2004, the number of its employees was 77,000 with an ample presence in 75 countries. The company?s sales for the year 2004 amounted to ? 14,436 million; operating profit on ordinary activities was ? 2, 124 million.

Even though, Lafarge is not an oil refiner like Total and Elf but it places the customer (Nigerians) at the heart of its preoccupations. The group?s management economic style and investment culture support local and immediate community development and initiatives. For instance, the Ashaka Cement plc, which started operation in Nigeria since 1979, has under the acquisition of Lafarge 49.84 % ownership by Nigerians and 50.16% by the company through its subsidiaries. Caring for the community, including health care, education, culture and environment are integral parts to their operations. Community development projects such as refurbishing of the Bajoga satellite prison and Bage Village Head?s palace; donations to Biu Emirate council; Bajoga secondary school; community HIV/AIDS awareness campaign and other community donations amounting to
$ 635,636.13 was provided by Lafarge since 2004. And this is certainly a good omen! More so, the agricultural development in Nigeria (The ADENI) project is another example of a sort whereby the French foreign ministry in collaboration with Ahmadu Bello University, Zaria, is succeeding not only in creating agricultural but also political awareness among the farmers.

One should therefore look beyond the superficial, because the developed and developing countries these days base their powers on political superiority, military might and supremacy. With supremacy in the domain of oil production and exploitation, are rapidly transferring their foreign policy priorities to such spheres as science, technology, construction, education and agriculture, and linking them to spheres they endeavour to accommodate their interests through economic diplomacy.
   Of course, oil will continue to dominate the national and international scenes for many years to come, but that does not stop our countries (France and Nigeria) from venturing into technology transfer and agriculture. For instance, Peugeot automobile, an assembly plant under the directorship of Mr. Francois Serre, has 40% equity share going to French government. The Federal government of Nigeria has 30% and the rest goes to other state private and public companies. All what the Peugeot automobile does throughout its period of operation is nothing but assembly. In fact, one of the main objectives of setting the company is the development and manufacture of various ancillary industries to manufacture different components for the vehicles has been defeated. The long- term goal, which is to manufacture cars and other related items using local sources for internal consumption and for export into African countries, is also defeated. Only 30% local contents are currently produced by 70 suppliers. The main reason for this is simple. The refusal of the French people to transfer and open up their technology to co-opt their services with Nigeria?s indigenous automobile companies, parastatals, technological institutions and institutions of higher learning such as universities and polytechnics. And failure of the Nigerian government to intensify effort in affiliating the company?s services to various technological segments of the country. This has really contributed negatively to PAN?s manufacturing savvy. Therefore, the two countries must come together and act towards the actualization of this protracted promise that has hitherto remain but a mirage to both countries (Nigeria and France).

Indeed, the disintegration of the bipolar system of international economic relations has done a lot of favour in terms of bilateral agreements, trade and investment. As a result, French enterprises have been and are still active in the Nigerian market for more than a century. More than 120 French multinational companies and corporations are undergoing one form of activity or another in Nigeria but with very little reciprocation of gesture. They have been enjoying un-impeded patronage over time with little or no restriction. The French Ambassador to Nigeria, Mr. Yves Gaudeul acknowledged thus: ?Thanks to these efforts, France has a strong economic and cultural presence in Nigeria. It is in our interest to contribute together, more intensely to the growth and prosperity of this country whose citizens have a vibrant spirit of commerce, creativity and numerous talents in various domains?. Mr. Yves in his preface remark to the ?Societe d? Edition Diplomatique et Parlementaire? for the 2005 diary of the French embassy in Nigeria further averred ?Together, we should not relent on our efforts in supporting this country to steer its course within the international community for the greatest benefit of peace and development?.

It therefore becomes imperative to note that French investment in Nigeria has today reached a total stock of about U.S $ 4 billion, which is the largest in all of West Africa. In 2003, however, French sales in Nigeria amounted to ? 870 million. In fact, the 2004 figure was indeed remarkable. It was comparably labeled at ? 247.5 million within the first five months. Petroleum exports to France account for more than 90 percent of the total volume of exports, i.e. ?1.1-1 million of crude oil. Ranked first in the world in terms of foreign investment inflow(FDI) and fourth destination for international investments, France could have contributed much towards curtailing the current economic crises that is bedeviling Nigeria. It could have also helped in freeing the country from political and social dilemma.

Political diplomacy:

Power to assimilate goes hand in hand with a capacity to be assimilated; you cannot have one without the other. Both depend on self confidence, awareness of the possession of an intellectual superiority which is able to dispense with all outward signs of being ?different? and has no fear of losing itself. France possesses this self-confidence. But there is another and more significant side to it. What France expects from ?greater France? is the production of Frenchmen; French citizens in the future. The ideology of assimilation brought about in 1863 has a lot to do with turning people of all nations and races into children of France, found in this firmest foundation (Herbert, 1918).

Therefore, the political philosophy and mission upon which French government is based are deeply entrenched into her policies in order to increase the chances of succeeding and repositioning herself on the global and regional scales. While Americans maintain their pressure to deepen the technological gap that separate them from their international competitors on several particular sectors as aeronautic and spatial industry, France starts a time-trial to guarantee the survival and prosperity of their technological industrial base and hope to gather around her prosperous international partners. Because of this, since his assumption of office, President Jacques Chirac chose to adopt what one writer described as the Gaullist philosophical view in defining French affairs. The duo of Chirac and De Gaulle believe in the school of thought that French diplomatic policy and interest have to be guided by traditional posture in the face of the colonial and neo-colonial challenges. The diplomatic mission should therefore assume a role of isolationist tendency. That was perhaps the reason why at the peak of Nigeria?s civil war in 1967, Charles De Gaulle took a singular stance as anti-British when he supported the Ojukwu-led rebellion to fight the Nigerian government. This was because British interest was directly involved and Paris had wanted to soil her hands in Nigeria?s oil to her own advantage.

But these views objective as they were, are diametrically opposed to Franchois Mitterand?s administration who had flouted the Gaullist tradition by allowing Paris to dance to the tune of London and Washington under a parochial arrangement, the main reason he joined the coalition of 38 nations that contributed money, energy resources, and time to fight Iraq in 1991. But at the end of it all, the allied forces (France inclusive) could only be told by America and Britain that their sacrifice would be rewarded in heaven for restoring normalcy to the embattled Gulf region. The booty of post war reconstruction should go directly to America and her close neighbour. In short, the exit of Mitterand which brought Jacques Chirac to power, and power equation in western diplomatic circle took a new paradigm with Chirac adopting a somewhat isolationist posture on complex strategic issues, the same posture exhibited by Nigerian government in 1972 by General Yakubu Gawon when two fishing boats belonging to Enayan, a multipurpose co-operative were apprehended by Cameroonian gendarmnes. It was also the same posture exhibited by the Shagari led administration in 1980 when Cameroon, unilaterally went ahead to construct a Dam on River Benue at a cost of $1,428,571.43. Under the same regime in 1981, five Nigerians were killed in a border clash but there was never an effective response or reprisal from Nigerian soldiers during the periods of these two leaders. Instead, the leaders resorted to diplomatic dialogue especially after the murder of the five soldiers on May 16 1981(Rufa?i, 1996). That is the highest form of diplomacy that should prevail and thrive not only for presidents Chirac, Gawon or Shagari but also the world over.

Therefore, diplomatic missions whether political, economic, social or even business, has something to do with agreeing, pursuing and winning common stand points without resort to unnecessary misunderstanding or engaging in fighting. It is the best strategy ever practiced by one time former Chinese General, Sun Tsu since during the 6th century B.C.

Some solutions:

These are almost explicit to all the key areas of the analysis. What would be novel here is the international coordination and clear definition of mission statements and goals. This can be done by opening up genuine communication channels on policies and issues via upholding dignity, safeguarding interest and promoting solidarity between Nigeria and France for the benefit of all.

REFERENCES:

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