Black Gold And The Curse Of A Nation

The Insight

By Lateef Adewole

My last week’s article about our 61st independence anniversary was followed with mixed reactions. Many felt I was too harsh and undiplomatic. They expected that even if things are that bad, I should have been more “positive” in the opinion piece. I understood. In like manner, many others who felt as I did, agreed with me. They believe there is no wisdom papering over a crack. And that, “a ki f’owo t’ondunni s’abe aso” (a man does not hide his sore hands. Otherwise, he wouldn’t get help with cure).

Since last week, I have read shades of opinion expressed by many Nigerians about their country. The truth is, there is overwhelming disappointment. What appeal does one make to someone who is hungry? As they say, a hungry man is an angry man. What made it worse is that citizens are suffering in the midst of abundant blessings to the country from God. Also, that while the ordinary people are enmeshed in poverty, their leaders, the ruling class, live ostentatious lifestyles, funded by the scarce and inadequate national resources. They behave as if they live on a different planet. So, how does anyone expect the masses to feel? Jubilant? That’s impossible.

There was a viral post I saw on social media titled; “Nigeria @61: Is this the same Nigeria?” In it, many issues were raised concerning our Nigeria of the past and now. Concerns like when dollar was far less than a naira, when travelling to UK and many other western countries by Nigerians required no visas but just to buy tickets as if one was going to Abuja, when flight to London was 150 naira, to USA was about 550 naira. When Nigeria had the largest fleet of Aircrafts and ships in Africa and countries like Ethiopia came to learn how we were doing it. Same Ethiopia Airline has become world-class, but Nigerian Airways is nowhere to be found, except now in “computer animation”.

It was mentioned how Dubai came to borrow money from Nigeria but instead, we “dashed” them. Vehicles were assembled in Nigeria, and even exported to neighbouring African countries. Nigeria was the manufacturing hub in the West Africa, but all that have disappeared. The same Nigeria where foreign students and teachers came to study and teach in our secondary schools and universities. University College Hospital (UCH), Ibadan, was the epicentre of medical research. Our graduates were respected all around the world. And many more. Where did all of these go? What went wrong with us as a people and as a country?

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Any keen follower of Nigeria’s trajectory and good student of history will not grope too much in the dark before placing their hands on the possible cause. In my studies, I place that largely on the discovery of crude oil in Nigeria, often referred to as “black gold”. This discovery that was supposed to be a blessing to our country became a curse. It became the root of many calamities to befall the country, directly or indirectly, immediately or at a later time.

The history of prospecting for crude oil in Nigeria started as far back as 1906 by the agents of Britain during colonisation. Shell BP was the pioneer, in 1908. Unsuccessful prospection was done in Araromi and Okitipupa areas of the present Ondo state by Nigerian Bitumen Corporation in 1908. Subsequent efforts eventually yielded positive results after about fifty years. In 1956, oil was discovered in commercial quantity in Oloibiri, Niger Delta area, in the present Bayelsa state by Shell BP. By 1958, the first shipment of 5,100 barrels per day crude oil to Europe began. This gradually continued with the expansion of the space to accommodate more oil companies like Mobil, AGIP, Elf, etc.

By 1971, Nigeria was already producing as high as 2 million barrels per day. Money was flowing like river. The bomb was the global oil shock of 1973-74. Nigeria began to realise unprecedented amount of revenues, from a resource we didn’t suffer to create. We were gifted by the Almighty through some natural scientific processes which happened underneath the ground and beneath the oceans. It was so overwhelming that the then head of state of Nigeria at the time, General Yakubu Gowon was quoted to have said that “Nigeria’s problem was not money, but what to do with it”.

Our story was like that of a prodigal son. The country was rolling in petrol dollars. Many countries held Nigeria in high esteem, not genuinely because of our productive capacity, but because we had excess money that we were too foolish to know what to do with it. Naira was said to be spent on the streets of London in the 70’s. No need looking for British Pounds Sterling when travelling abroad. The exchange rate of Pounds to Naira was 1 to 2. Dollar was far less than a naira. So, what happened to all that? Higher level corruption was birthed! It was not as if there was no corruption before then but it began to skyrocket.

Before oil, Nigeria was on the path of growth. Pre and post independence eras saw a country that the world was looking forward to, to rise as a colossus and conquer the globe. At that time, we had great visionary and disciplined leaders. When self rule was first introduced in Nigeria, it saw the late sage, Chief Obafemi Awolowo became the Premier of the Western region and Dr. Nnamdi Azikiwe became that of the Eastern region. Later, the Northern region that was initially reluctant also joined, with Sir Ahmadu Bello, becoming the Premier of Northern region.

Before oil became the mainstay of Nigeria revenue, agriculture was the real deal. All parts of the country were some cultivation sites and farming communities. There were different crops and farm produces that were peculiar to each region, from which the people, their region and the country as a whole, generated enormous revenues. These revenues were judiciously deployed to build many infrastructures for the service of the citizens. Some still in existence till date.

The north had groundnuts, from which the popular ground pyramids in Kano, and other cities like Bebeji, Malam Madori, Dawakin Kudu, Kofar Mazugal, in the northern region were known. They were sold in export to generate funds for the regional government, with contributions to the central government.

The Eastern region was known for palm oil. This oil was a blessing to the people and the region. It was consumed locally and exported to earn foreign exchange. Eastern government, under the leadership of Dr. Nnamdi Azikiwe, used it to develop the region. Schools, hospitals, roads, and many other infrastructures were built with money from the agriculture.

In the Western region, cocoa was the main agricultural produce. Others included rubber, timber, etc. It was produced vastly by the Yorubas. It is cash crop. So, the produce were cultivated for export. The Western regional government earned good foreign exchange from it, which was not stolen, but used to develop the region. The farmers were also well protected by trusted and selfless leaders with different produce boards like the one for cocoa. This ensured the farmers got value for their goods. They did not labour in vain.

Between 1951 and 1959, Awo revolutionised the Western region as the Premier within eight years and as the leader of Action Group (AG) till 1966. The region became a frontrunner in Nigeria and a shining example of what good governance should be. The many monuments that the Yorubas in particular, and Nigeria in general, were and still are proud of, were built by then. The Cocoa house in Ibadan, that was the tallest building in Nigeria and West Africa at the time, was built from cocoa money. It was proposed by Awo and completed in 1965.

Liberty stadium was built in 1960. In 1959, The Western Nigeria Government Broadcasting Corporation (WNBC) was established to manage the first television station in Africa; Western Nigerian Televison (WNTV) and the first commercial radio service in Nigeria; Western Nigeria Broadcasting Service (WNBS). Free education was declared throughout the region. Schools were built and trained teachers engaged. This singular act was a game changer for the Yorubas. It pulled millions out of illiteracy. The Yorubas became well educated, both locally and abroad, something that became their trademark and source of pride till date. Hospitals were built, and health workers to served their were recruited and trained to provide free healthcare services. And many more. Other regions followed suit.

The first few universities were built with money realised from agriculture, not crude oil. University of Ibadan (1948), University of Ife (1961), Ahmadu Bello University (1962), UNILAG (1962) University of Nigeria, Nsuka (1955). And many other higher schools were built with agric-money. But, as we began to earn petrol dollars, the country leaders began to abandon agriculture. Sadly too, the regional parliamentary system of government that spurred healthy competition among the regions collapsed.

The crisis that engulfed the Western region and conflagration that followed, led to the unsuccessful military coup of January 15, 1966 and subsequent countercoups, and later, the civil war. All through these period, agriculture was still the mainstay with oil as complement. The war was fought by the Nigerian government, without borrowing a penny, courtesy of extreme financial discipline of Chief Awolowo, who was the Federal Commissioner for Finance and Deputy to the then Head of State, General Yakubu Gowon.

As more money began to flow, our misery began to increase. Rather than saving for the raining days, our leaders went on spending spree. We hosted Festival of Art and Culture (FESTAC). We championed many causes in Africa, though noble. We were at the forefront of the fight against apathied in South Africa, fought to keep Liberia, Sierra Leone, Somalia one and so on, some of which now treat Nigerians with disdain.

The situation continued to degenerate as we reached the 80’s, 90’s and to the next millennium, the 2000s. I am not saying that the crude oil discovery and the financial resources that have accrued thus far have not helped the country. No, that’s not what I am saying. In fact, since the agriculture was abandoned as the main source of our national revenues, all developments that the country has witnessed to date, were financed with the help of that oil money.

The point I was making is that, considering the quantum of oil that we have explored, sold and the money realised from it in over six decades, we are not supposed to be where we are now. We should have been far from here. In the 60’s, the world was waiting for the giant in Nigeria to rise and fly but rather, the country was crawling in circle. Isn’t it a curse that a country that is the seventh in the world, in term of crude oil production per day, does not have a single functional refinery?

The president said in his independence anniversary speech that subsidy payment on petrol is affecting the money coming into the Federation Account. It’s wiping away the benefits that we are supposed to derive from our natural endowment of crude oil. The availability of cheap oil money has made everyone to become lazy. States depend on federal allocations on monthly basis to survive. All other resources in each state remained untapped. The dysfunctional unitary-like federal system we operate isn’t helping matter. People in power do not want restructuring. They do not want secession. They prefer to the maintain unproductive and unprogressive status quo.

Since oil money is cheap, the citizens do not feel obligated to demand for accountability from their leaders as to how such funds are utilised. People go into politics to simply feather their nests, not to serve. Stealing public funds became the order of the day. In spite of trillion of dollars that Nigeria has gotten from oil, Nigeria has perpetually remained in debt. So, what has the crude oil become to us; a blessing or a curse?

In all, while countries like Saudi Arabia, UAE, Kuwait, and many others, derive maximum benefits from their God-given natural resources like oil, few people in privileged positions keep plundering ours. We have many multimillionnaires and billionaires with no visible sources of income but through this oil, while over hundred million people are living below poverty level. With what we have made from oil, Nigeria has no business being the poverty capital of the world. But, here we are.

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Behind most upheavals that Nigeria has faced and or still facing, vested interest in crude oil was and still is there. The war was fought because of oil in Niger Delta. The Biafra warlords made the oil-rich Niger Delta, a core part of their interest. Among the first area that Nigeria recaptured was also the same region. In 1966, the North wanted to secede, in what was known as “Araba”. Now, the same north does not even want restructuring, not to talk of secession, all because of oil money.

All the manipulations of population census, lopsided state and local government areas created, were for the benefits of oil money sharing. Militancy in Niger Delta was caused by oil. The degradation of the environment in the Niger Delta, which has made life unbearable for the indigenes, was caused by oil. And so on. Where then are we?

The plans and efforts to diversify the economic base and revenue sources of the country must and should be sustained, and aggressively sped up. Oil contributes only 9% to GDP but over 90% of export earnings and over 40% of government revenues. Agriculture contributes 24.1% to GDP but less than 10% in export earnings. This is because we export only raw produces. That needs to change by increasing investments in the agriculture value chain.

Moreover, the use for same crude oil is gradually being phased out in many countries, with the campaigns about environmental protection, zero carbon, global warming, greenhouse effect, renewable energy, and the likes. Many countries have stipulated a deadline to stop production and use of vehicles using fosil fuels and replaced completely with electric vehicles. The demand for oil is gradually reducing globally. That should push Nigeria to be more responsible and focused, start preparing for post-oil era. The party may soon be over.

May God continue to protect us and guide us aright.

God Bless Nigeria.

Lateef Adewole
Email: [email protected]
Whatsapp: +2348179512401
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