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Resource Control: MY silly solution!?!

Started by alhaji_aminu, July 07, 2005, 04:52:51 PM

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alhaji_aminu

Salam all.
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Its myadudu. I have changed my screen name to alhaji_aminu
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I'll go right to the point. The NPRC is experiencing a crises which seems to defy a negotiated solution. The key sticking point, as most will guess, is money- the money derived from OIL. Our brothers in the Niger Delta are clamoring for an increase in the derivation formula (from 13% to 25%). The northern delegates are opposed to such an increase.

What I have realised is that both sides have valid arguments. On the side of the South-South, they feel, and rightly so, that resources found in "their" backyard are not benefitting them as they should; showing enironmental degradation and pollution to prove their case.
The Northerners on the other hand are saying, these resource belong to the federal governemnt and the current 13% regime is doing enough to alleviate what ever suffering they endure as  a result of the oil mining. They also say, increasing the derivation formula to say, 25% will cause serious injuries to the effective governance of their states.

My take on the situation is that, the oil producing communities do deserve better why? because the acceptable practice the world over is for the people located closest to a mineral resource to derive the most benefit from it. And how, you might ask, can we ensure this in NIgeria?

The answer is simple. We need to abolish the 13% derivation formula and desolve the NDDC. We then replace them with a "20%" package targeted specifically at the communities. The 20% should come directly from the federal government share of the revenue.  

The North and the nation will not be adversely affected by this. In the mean time, the governement must put in concerted efforts towards reviving the neglected agricultural sector in Nigeria. And by putting concerted effort, I mean allocating 15% of our budget towards the sector in the form of subsidies and infrastructure. The north should insist on having the FSPC plant in Kaduna and NAFCON in porthacourt  rehabilitated to supply fertilizers to the farmers. The north should also make sure that the steyr plant in Bauchi is put back into operation and subsequently provide 100 tractors for every local government area.

I think if these recommendations are considered, we might witness the much sought agricultural revolution in NIgeria.

So what do you think of the current impasse? is there a way out?

ps: before you start cracking, think of you'll do if oil was found in your back yard- Ie think objectively.

Bissalam

mrguest

Quote from: "alhaji_aminu"Salam all.
************************************************************
Its myadudu. I have changed my screen name to alhaji_aminu
************************************************************
I'll go right to the point. The NPRC is experiencing a crises which seems to defy a negotiated solution. The key sticking point, as most will guess, is money- the money derived from OIL. Our brothers in the Niger Delta are clamoring for an increase in the derivation formula (from 13% to 25%). The northern delegates are opposed to such an increase.

What I have realised is that both sides have valid arguments. On the side of the South-South, they feel, and rightly so, that resources found in "their" backyard are not benefitting them as they should; showing enironmental degradation and pollution to prove their case.
The Northerners on the other hand are saying, these resource belong to the federal governemnt and the current 13% regime is doing enough to alleviate what ever suffering they endure as  a result of the oil mining. They also say, increasing the derivation formula to say, 25% will cause serious injuries to the effective governance of their states.

My take on the situation is that, the oil producing communities do deserve better why? because the acceptable practice the world over is for the people located closest to a mineral resource to derive the most benefit from it. And how, you might ask, can we ensure this in NIgeria?

The answer is simple. We need to abolish the 13% derivation formula and desolve the NDDC. We then replace them with a "20%" package targeted specifically at the communities. The 20% should come directly from the federal government share of the revenue.  

The North and the nation will not be adversely affected by this. In the mean time, the governement must put in concerted efforts towards reviving the neglected agricultural sector in Nigeria. And by putting concerted effort, I mean allocating 15% of our budget towards the sector in the form of subsidies and infrastructure. The north should insist on having the FSPC plant in Kaduna and NAFCON in porthacourt  rehabilitated to supply fertilizers to the farmers. The north should also make sure that the steyr plant in Bauchi is put back into operation and subsequently provide 100 tractors for every local government area.

I think if these recommendations are considered, we might witness the much sought agricultural revolution in NIgeria.

So what do you think of the current impasse? is there a way out?

ps: before you start cracking, think of you'll do if oil was found in your back yard- Ie think objectively.

Bissalam




Really I believe you are right, but I would like to give another solution..




Let us give them 40% .on offshore production. and the govt keep 100% for onshore..  we only produce 25% offshore.. and 75% of onshore.
And the money should not be given to the state, but be shared to oil producing local govt, and NOT community.  NDDC is nonsence just so big men stealling money..





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alhaji_aminu

mrguest....

I think yours is a solution that might be workable. I do , however, think that you inverted some of the facts as presented.  The bulk of Nigeria's crude is found onshore (or onland) and the rest offshore (in the sea where nigeria has jurisdiction).

I think what you wanted to say was the Niger Delta should be given 40% of onshore production not offshore you you stated. It might be I mistake you your part......

mallamt

myadudu
quite the contrary, I do not believe your suggestion is/was silly infact i find it a credible offering to this problem of resource control.

This is a subject matter that has the potential of setting us again on a bloody path.  And it is an issue that has a lot of interference from the international community be it even in covet form.  On this issue or topic it will be interesting to find out what is the definition of resource which is being debated right now.  To what extent should the effort of a people in bringing about this "resource" be considered?  As stupid as the questions may be, they are questions that must be answered without emotions if we intend to get a resolution on the matter.  One of the things that I have wondered is can people be paid for something they have not worked for?  Or can people be paid because they find themselves in an area rich with resources even if they had nothing to do with the resources being there?  Because this will then lead us to another question, that is the fact that about 1/10th of the world oxygen comes from a particular area of the world should we (or the world) then pay this part of the world compensation for producing this oxygen?  One can go on and on about certain other resources around the world that the world benifits from and does not pay a cent for even though these resources are located in specific areas of the world.

But is it wrong to then pay compensation for degradation of land and environment? absolutely not! infact it should be a right which must be demanded as far as I am concerned.  We can not up root people form their indigeneous land, break up cultures and traditions and think that we should not pay for it.  That is why I personally believe that the oil exploration and drilling thing must be done together with the inhabitant communities.

This problem has brought about the work out of the south-south from the National Political Reforms Conference and the report has been submitted without them.  I have wondered that from the time derivation started being paid for the uplifting of oil what has the money been used for?  who accounts for the money? what have host communities really benifited?  why can't host communities be contacted directly let them say how or where their money should be deposited, I do not believe any govt structure should be involved in the reciept of the money, but for security reasons govt (federal) should be able to audit the communities.  I believe that the people fighting for resource control have very little concern for the communities that suffer degradtion due to oil spillage etc rather they are interested in their own pockets.