Source: The New Security Beat

A 400-Year Curse

Nigeria collected $46 billion in oil revenue during FY 2009, trailing only Saudi Arabia, Iran, and the United Arab Emirates. Despite their country’s mineral wealth, however, roughly 70 percent of Nigerians live below the poverty line, with the oil-producing south facing particularly abject deficiencies.



“I have never worked in an area as bereft as the Niger Delta – it is shockingly undeveloped,” said former Wilson Center fellow Deirdre Lapin, in a phone interview with ECSP (listen to the audio embedded above for the full interview). Lapin worked in community development for Shell in Nigeria from 1997-2003 and also spent time at USAID and UNICEF. “Compared to everywhere else I have been, it is without question the most neglected and the least advanced in terms of general development and welfare for the ordinary person,” she said.



According to the UN, the Niger Delta accounts for upwards of 80 percent of Nigeria’s foreign exchange earnings and about 70 percent of total government revenues. Instead of benefiting from its mineral wealth, the delta has suffered tremendous environmental damage that has spurred a grassroots anti-oil (and later anti-government) insurgency. During the oil companies’ drilling drive in the 1970s, it was not uncommon to see large amounts of tar collected on the roots of mangroves and the sides of creeks, and oil slicks were frequent, Lapin said.



The environmental situation in the delta improved as production plateaued, but due to oil theft, poor maintenance, and derelict equipment and pipelines scattered across the delta, spills continue. According to The New York Times, by some estimates, the delta has endured the equivalent of an Exxon Valdez spill every year, for the last 50 years. But there has never been an impartial, empirically based environmental study of the impact of the oil and gas industry on the delta, Lapin said, which would be an important step forward. (A UNEP study is currently underway but has already been criticized for alleged inaccuracy.)



Southern Nigeria’s infamous duality – miserable lack of infrastructure, services, and security in the midst of abundant natural resources – helped give rise to the term “resource curse” among development specialists, a term which has since been applied to similar situations in the Democratic Republic of Congo, Sierra Leone, and even Afghanistan. Lapin pointed out that in the eastern part of the delta, the resource curse actually goes back 400 years, to the slave trade and palm oil.



“Blood Oil” and Scarcity in the Delta



The sophisticated insurgency in the delta began as a response to the oil and gas industry, but has in many ways become dependent on it. Groups of armed “boys” – some of whom are remnants of political-intimidation efforts during the 2003 elections – have become notorious in the delta and abroad, often putting on shows for the media. Some of these groups are loosely organized under the moniker MEND (Movement for the Emancipation of the Niger Delta), with the stated intent of driving the oil companies out of the delta in response to environmental destruction and lack of revenue sharing, but others simply profit through extortion, racketeering, and oil theft (also known as “bunkering”). At the peak of their activities, insurgent activity has cut oil production between 25 and 35 percent, Lapin said, prompting oil companies to move further and further off-shore in recent years.



With unemployment in the delta at 90 percent by some estimates, militancy has become a viable way of life for many. Bunkering can net up to $60 million a day, according to a BBC report. The practice, which former president Umaru Yar'Adua called Nigeria’s “blood oil,” costs the government up to $5 billion annually, and many gangs are rumored to have political connections that protect them in exchange for their services.

For the complete article, please see The New Security Beat.