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Militant Insurgency And Oil Exploitation In The Niger Delta
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CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Nigeria
as Africa’s most populated country and is the fifth largest supplier of
crude oil to the United States. When pumping at full capacity, it
produces an output of approximately 2.5 million barrels per day, making
it the world’s eighth-largest oil exporter. The country’s gas resources
are just as extensive, with proven natural gas reserves at 184 trillion
cubic feet, giving Nigeria the seventh-largest gas reserves worldwide.
Ninety-five percent of the country’s export earnings, accounting for 40
percent of its GDP, come from the oil and gas trade. This dependence on
the energy trade makes any disruption of exports especially threatening
to the Nigerian economy (Angola Press, July 19). Nigeria’s oil and gas
reserves are located in the south, in the Niger Delta region. As a
result of this uneven resource distribution, there are regular disputes
over the distribution of oil wealth; the Nigerian government controls
the revenue from energy exports, and distributes this revenue throughout
the country. The ethnic groups that live in the delta states believe
that the majority of energy revenues derived from their territory and
homelands should be controlled locally, rather than by the federal
government.
The first significant recent militant stirrings among the
residents of the delta began in the 1990s among the ethnic Ogoni
community. As a result of the small size of the Ogoni population and the
fact that Nigeria was ruled by the Abacha military junta at the time,
government forces were able to suppress the Ogoni and they executed nine
of their activists. The government’s aggressive response permanently
weakened the Ogoni resistance. Since this initial outbreak of conflict,
much more serious ethnic resistance in the delta has arisen, stemming
from a far more threatening community. The latest guerrilla attacks
against the government and international oil interests are being led by
the Ijaw, the largest ethnic group in the Niger Delta region.
Out of
Nigeria’s 137 million people, the Ijaw number approximately 14 million,
making them the country’s fourth-largest ethnic group. They live
primarily in the Niger Delta region. The Ijaw are generally Catholic
Christians, although they incorporate traditional tribal religious
practices into their beliefs. The major grievances of the Ijaw are the
wealth distribution policies of the government. For instance, while most
of the energy wealth emanates from the Niger Delta region, the Ijaw
live in poverty and suffer from extensive environmental degradation as a
result of frequent oil spills and gas flaring operations (the burning
of unwanted natural gas that rises when drilling for oil; the fumes are a
contributor to air pollution and acid rain). The Ijaw demand that a
larger proportion of Nigeria’s energy wealth be spent on their
communities, rather than distributed throughout the country. For
example, under the 1960 and 1963 Nigerian constitution, 50 percent of
oil revenue was returned to the states in which the resources were
derived. Currently, under the 1999 constitution, this “derivation
formula†stands at 13 percent and much of that money never trickles down
to the community level due to massive corruption. While the federal
government has offered to slightly increase the revenue allocation to
the states, the Ijaw community is calling for the derivation formula to
reach 20-25 percent. They are also demanding ownership and management of
the resources located on their land, including offshore oil fields.
Partly
as a result of these disagreements, the Ijaw formed militant groups to
launch operations against energy infrastructure and energy workers in
the delta, as well as against government authorities. They receive
support from the local populations, making it difficult for the
government to isolate and eliminate them. Their success in damaging oil
infrastructure and terrorizing international oil workers resulted in
Nigeria’s oil exports being cut by approximately 500,000 barrels per day
through much of 2006.
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ABSRACT - [ Total Page(s): 1 ]Oil exploitation and exploration which has its root in the Niger Delta was celebrated February, 2008 as fifty (50) years of oil exploitation in Nigeria. In spite of wealth generation by oil exploration and exploitation, opinions of observers on the performance of the oil production sector especially its developmental relation with oil host region/communities has not been impressive. Nigeria’s former two times petroleum minister and former president of OPEC, Rilwan Lukman describes oil pro ... Continue reading---