Niger Delta Crisis in Nigeria
June 22, 2008 Current Affairs 2 CommentsHIGH COST OF NIGER DELTA CRISIS TO NIGERIAN PEOPLE & ECONOMY
Nigeria is not benefiting from the booming price of Oil which is now well over $130.00 a Barrel,
the profits and infrastructure implementations that can be made from Oil and Oil related businesses. Other Oil producing countries are booming, Saudi Arabia is producing 9.7 million barrels a day, which means more than $1.26 Billion a day in revenue and other Oil Producing countries are doubling their annual GDP, Gulf Oil States and the Middle Eastern Countries are set to earn over half a Trillion US Dollars this year and even countries like Angola are powering ahead in Oil production. Nigeria is lagging behind every major Oil producing country, due to the mismanagement, corruption and crisis in the Niger Delta.
The Government of the military dictator, Sunny Abacha made this problem worse by executing Ken Saro-Wiwa,
the Nigerian author, television producer, and environmentalist, son of Chief Jim Wiwa, Ken Saro-Wiwa was the President, of the Movement for the Survival of the Ogoni People (MOSOP), Saro-Wiwa led a campaign against environmental damage associated with the operations of multinational oil companies, especially Shell. The military dictator Sunny Abacha instead of addressing this problem, by working with the local community to address their grievances, which are legitimate; he added fuel to the fire and made the problem even worse, instead of forcing the Oil Companies, in this case the biggest Culprit, Shell, to clean up the environment in the Niger Delta, and compensate the local community, which would have at that time only amounted to very small percentage of their profits, compared to what Nigeria is now loosing daily, due to sabotage. The successive Government of Olusegun Obasanjo equally exacerbated the problem, by not addressing the problems of the Niger Delta Community.
The Multi National Oil Companies like Shell are responsible for most of the great injustice done to the Niger Delta Region and the entire Nigerian Nation. Shell Oil Company is not working in the interests of Nigeria, the destruction of Niger Delta, affects every Nigerian, this is why this is a great injustice to peace loving Niger Deltans and Nigerian people.
The problem, that was once, of people looking for rights and trying to correct injustice, that has been done to them, since Oil was discovered in Niger Delta Region of Nigeria, decades ago. People in Niger Delta Region of Nigeria, which is supposed to be the richest part of Nigeria, have suffered tremendously, from lack of infrastructure, pollution, of their once fertile lands and rivers, and lack of education.
This problem and cause has now been hijacked, by criminals who are
kidnapping Nigerians and foreigners. Their actions have stopped many worth while infrastructure projects that would have helped the Nigerian Economy, like new roads, new Oil and gas pipe lines, Telecom infrastructure and other projects.
This week alone an explosion in the Niger Delta, by militants attacking the offshore Bonga Oil-fields facility, caused the reduction of 225,000 barrels of Oil a day, and led Shell to halt production at the facility. Shell Oil Companies production of oil in Nigeria has reduced to a small percentage of the true production capacity that is possible in Nigeria. The reduction of the 225,000 barrels of crude per day by Shell is equivalent to about 10% of Nigeria’s current crude export amount.
The Militants in the Niger Delta and Nigerian government’s lack of will to resolve this problem, is now contributing to the Global Oil Crisis.
The cost to Nigerian Economy has amounted to Billions of US Dollars and has contributed to the hardship of the ordinary Nigerians; it also contributing to the Gas and fuel shortage and the ability to generate Electricity, due to the sabotage of Gas Pipe lines, there has been a shortage of gas supplied to Electricity Power stations, causing huge power shortage in Nigeria. Nigeria is already years behind from being self sufficient in refining capacity and energy generation, that is estimated to cost over $40 Billion to correct. All these things have lead to a lot of hardship for the ordinary Nigerian.
No matter what
natural resources Nigeria has, if the Government of Umaru Musa Yar’adua does not take responsibility and take control of the situation in the Niger Delta, the Country and therefore the Nigerian People will not benefit at all, from the financial gain that will come from the Oil Revenue and infrastructural benefits. The actions of militants in the Niger Delta is costing the nation 700,000 barrels of crude a day, about $84 million in lost oil revenue daily and the country’s expected revenue has reduced from $336 million daily to the present earning of $252 million at the rate of $130 per barrel.
Instead of loosing capacity in crude production, Nigeria by now should be exporting in excess of 4-5 Million barrels a day. Nigeria needs to get off the list of poor countries and hopeless economy and move to the list of the fastest growing economies in the World.
Nigeria by rights should be the richest country in Africa and one of the top 20 economies in the World, with a modern infrastructure and an educated work force, second to none, anywhere in the continent of Africa.





