http://www.ft.com/cms/s/0/6e85dd6a-bc04-11de-9426-00144feab49a.html

Nigeria offers ‘revolutionary’ delta deal

By Tom Burgis in Port Harcourt

Published: October 18 2009 18:14 | Last updated: October 18 2009 23:37

[B]Nigeria plans to transfer 10 per cent of all its oil and gas ventures to the inhabitants of the oil-producing Niger Delta, [/B]in an attempt to end a rebellion that has hampered production in sub-Saharan Africa’s leading energy supplier.

The initiative, which comes against the backdrop of a sweeping attempt to overhaul Nigeria’s oil industry would, if approved, by parliament signal a bold new phase in government efforts to broker a lasting settlement in the delta. But first it has to overcome the anticipated objections of representatives of other regions.


The latest overture follows an amnesty that has lured into the open some of the main leaders of the militants who have led a sustained campaign in the delta region against the federal government and the oil industry.

Emmanuel Egbogah, the president’s special adviser on oil, told the Financial Times that [B]Umaru Yar’Adua, president, has backed the idea of transfering to delta communities 10 per cent stakes from the holdings of the national oil company in the joint ventures that exploit Nigeria’s vast reserves,[/B]

Mr Egbogah said he intended to add the proposal to [B]reforms that the government hopes to enact by the end of the year, which would also impose tougher terms on oil companies[/B] but which are currently embroiled in a tortuous debate in parliament.

A Chinese offer for up to a sixth of the country’s reserves – including stakes in some blocks operated by Royal Dutch Shell, ExxonMobil and Chevron – has raised the stakes still further.

The plan for the delta was “a serious one, a major one, something quite revolutionary”, Mr Egbogah contended.

The initiative is aimed at answering a longstanding demand from the delta’s fighters and activists, ethnic leaders and aggrieved communities for a share in the ownership of the oil that generates 80 per cent of government revenue.

[B]All citizens of oil-bearing communities would be entitled to cash benefits, delivered through a trust-style mechanism, which they could use individually or pool for social projects. [/B]It was unclear how the government would apportion the stakes and avert competition between different communities for a larger slice of them.
[B]
The rest of Africa’s most populous nation could face reduced income as a result but potentially this would be offset by higher output, if the initiative led to a reduction in sabotage of the oil industry.[/B]

Mr Egbogah said [B]the 10 per cent stakes would pay dividends on revenues after taxes and costs to communities, bypassing powerful governors of the eight oil-producing states who were instead calling for an increase in the extra share of petroleum revenues they already receive. The stakes could not be resold.[/B]

The government hopes to provide a disincentive to oil-theft and sabotage by linking the earnings of each qualifying community to production from the joint venture that extracts its resources.

[B]“These benefits will flow directly to them,” Mr Egbogah said. “Every community, whether blind or deaf or dumb, every citizen will say: ‘I own a part of this business.’ ”[/B]

Attacks on oil facilities have cut production in Nigeria, an important supplier to the US, by as much as 40 per cent in recent years. A multibillion dollar trade in stolen oil has flourished while the majority of the delta’s estimated 28m people live amid despoiled waterways often lacking basic services.

The misery persists in spite of the oil-state governments receiving an additional 13 per cent of national petroleum revenues, making their budgets two or three times the size of those in some other regions.

Mr Egbogah said the plan would cover “all petroleum assets in the country” but added that “obviously there are no oil-producing communities in the offshore”, which is home to major deepwater fields.

Seven onshore joint ventures between the state-owned Nigerian National Petroleum Corporation and foreign oil groups in the delta account for 70 per cent of Nigeria’s production. The NNPC holds between 55 per cent and 60 per cent in each.

Officials believe the community stakes could see well over Naira50bn ($338m €227m, £207m) diverted to the communities in its first year.

Shell said its joint venture, which produced 17 per cent of Nigeria’s output last year, has contributed $34bn (€23bn, £21bn) to the government in the past four years. The Anglo-Dutch group said the government received 95 per cent of all onshore revenue after costs.

Progress. . . .

10% is too small. This proposal is a means for divide and rule.

Give us true federalism.

Beaf:

10% is too small. This proposal is a means for divide and rule.

Give us true federalism.

a 10 mile trek begins with one small step. dis deal na good deal, make we see how e go turn out.

now, with amnesty and dis new deal, if mend try any nonsense and blow up any ting, dem go have themselves to blame, if federal troops use unprecedented force against them.

thats wassup

Nice move by the FG.but they should understand this is not the ultimate we need, free education from primary through university is possible,massive employment both skilled and unskilled is possible,a good percentage of appointments in the federal level is possible,good development in all the N'state capitals just like abuja, and lots more just to mention a few

@ndu_chuks

All this your talk of "unprecedented force". Do you really think a man defending his home will give way to a stranger threatening "unprecedented force"?

You guys got jokes sha!

a step forward, but of cos, comes three step backwards, government style. we are watching.

Beaf:

10% is too small. This proposal is a means for divide and rule.

Give us true federalism.

You will probably never get 'true federalism'.
And 10% is a pretty good deal when you stack it alongside the derivation money already accruing to the ND states.

This will finally force the people of the ND to look inwards at their corrupt local leaders who loot the monies intended for development at the state and grassroots level.

adagz 01:

Nice move by the FG.but they should understand this is not the ultimate we need, free education from primary through university is possible,massive employment both skilled and unskilled is possible,a good percentage of appointments in the federal level is possible,good development in all the N'state capitals just like abuja, and lots more just to mention a few

It's been possible for so long now. Why not ask your government what it has been doing for years with the allocation it has been getting? I mean consider this - some ND states have been getting almost 5 times more per capita than states like Lagos can boast of. What has the governments done to date with all that money?

Another Akara giving to a hungry child to stop him crying.
I wonder why our government is afraid of applyign the main solution to the problem.
The same thing we are crying for is what makes united states what they are today.
Lets see how that will work out solving ND problem.

@kobojunkyard
This is what we greet you with when you enter Warri. Travel a bit, don't let hatred kill you.

@Beaf, so a waterfountain is essential to the people How? Roflmao!!!

Dude, I used to think you one of the intelligent few on here but I have to say you have been disappointing a lot of folks since you started on this ND rant of yours. Someone asks of free education from primary to university level and your repost is the above?? ***SHUDDERS****

I c . . .  I ca. . .  I can. . . I can't . . . . I can't even believe that came from someone who actually has his head in the right place for his own people, let alone for himself. lol

@kobojunkyard

Poor thing! Don't be stupid now, you compared the ND to Lagos. My state is far ahead of Lagos in all the right areas, from infant mortality to immunisation.

I think you are jealous of the ND. You always come screaming and shouting like someone possessed with evil spirits.
So let it kill you.

I know you will die with this; do you know there is also airconditioned public transport?

Roflmao!!!!


Again, someone asked of Free Education for all from Primary to University level and you are here telling me of Waterfountains and air-conditioned buses?? Roflmao!!! you really are a class act. Roflmao!!!

^
We leave your state in the dust. . . 'Crying for you

Beaf:

^
We leave your state in the dust. . . 'Crying for you

Please stop. . . seriously stop acting like an slowpoke and try to pretend you still have a brain up in that skull of yours.

For all you know of me, I am probably another Niger Deltan, only I don't carry it on my head. Or are you going to tell me that I am not because I don't agree with you? I cry for people like you who are quick to take SIDES in a country like Nigeria where we have learnt time and time again that the people remain the duped at the end of the day.

Now FG want 2set-aside some money 4the community elders 2embezzle.
Isn't this GREAT.

Kobojunkie:

Please stop. . . seriously stop acting like an slowpoke and try to pretend you still have a brain up in that skull of yours.

For all you know of me, I am probably another Niger Deltan, only I don't carry it on my head. Or are you going to tell me that I am not because I don't agree with you? I cry for people like you who are quick to take SIDES in a country like Nigeria where we have learnt time and time again that the people remain the duped at the end of the day.

Shut up fool. Just a couple of days ago, you were confessing to be from an undeveloped part of Lagos. Hate filled wretch.

Lying is like stealing.

Beaf:

Shut up fool. Just a couple of days ago, you were confessing to be from an undeveloped part of Lagos. Hate filled wretch.

Lying is like stealing.

You like to lie, don't you?? Roflmao!!!! How can I be from lagos when I readily confess over and over that I am an outsider with a house in lagos? What else? Will those who have read that I have lived in Kano also claim I am from Kano? Or those who read that I have lived in Aba claim that I am from Aba, or the one who reads that I spent extended periods in South africa say I am from South Africa??

Again, please, seriously, start using your head, and stop letting your emotions use you cause you come off more and more like an emotionally deranged idiot who cannot reason past his emotional issues.

^
You come from those deprived areas like Ekpe, instead of rooting for your issues with you governor, you want to descend on the ND with bile.
Jealousy will kill you o!

Did you compare the infant mortality in your state to mine in all that long time you were gone? Is shame killing you now? I haven't even started with education.

Instead of travelling a bit, you want to paint the World with ignorance.

And he continues rambling. Dude, if you want to belive I am from epe that is fine, but do get to answering the question asked. I am tired of going around the circle with you. Any INTELLIGENT answers even one??

^
How won't you be ashamed of were you come from if it is nothing to write home about?

Tell us were you are from if it isn't some fu'cked up jungle that people need to to climb rocks and dodge animals to get to.

Tell us, so we can compare development. I dare you.

@ kobojunkie we are not here 2 make gruges or sentiments of tribalism. just to air our views.i believe u are not a true N'delta citizen,because if u are u wont be sayn all these.u should understand that what ever we have had 4 the past years is just a tips of OUR ICEBERG.the fact remains that we are being maginalise by the federal govt, I AM PROUDLY A N'DELTAN B COS WE ARE RICHLY BLESSED.

adagz 01:

@ kobojunkie we are not here 2 make gruges or sentiments of tribalism. just to air our views.i believe u are not a true N'delta citizen,because if u are u wont be sayn all these.u should understand that what ever we have had 4 the past years is just a tips of OUR ICEBERG.the fact remains that we are being maginalise by the federal govt, I AM PROUDLY A N'DELTAN B COS WE ARE RICHLY BLESSED.

Please, NO-MORE- unfortunate-POSTERS pretending to respond to an actual post of mine WANTED!!!! If you have NOTHING MEANINGFUL AND SENSIBLE to offer, please IGNORE ME completely. I know your post there is only for ATTENTION SAKE since it is in NO WAY CONNECTED to anything I have posted so far, neither does it answer any of the questions posed to this point.

Seriously, ONLY SAPIENT ADULTS WELCOME!!

10% Of Oil Ventures under the same lousy management team,

Talk about spinning wheels and throwing ice at the sun,

Ibime:

Progress. . . .

I don't see it. For every step in the proposal, there are many logistical nightmares---- administratively, socially, tribally, politically, culturally.
The government has no business running oil business on the backs of any group of people. The government should instead tax people extracting oil and other mineral from their land as is done in the US.
Time will tell that 10%, 15%, 50%, or even 100% of the money derived from N/D paid the N/D is not the answer.

@ Korofojunkje or whatever u call urself just like ur name junkie,no sense in ur big head,big fooool, 'sapient adult' mumu 4 ever

Nice move by the FG.but they should understand this is not the ultimate we need, free education from primary through university is possible,massive employment both skilled and unskilled is possible,a good percentage of appointments in the federal level is possible,good development in all the N'state capitals just like abuja, and lots more just to mention a few

You guys make the craziest and absurd statements I swear.

Why not just ask the federal government to get rid of your governors since you guys have no use for them because you guys act and carry on as if they don't exist or they do, but just to re-rout funds and ask you guys to keep looking at abuja for your next daily bread.

It's your elected leaders responsibility to provide what you just listed. Is it some kind of taboo or abomination for you guys to be honest and inject some kind of rational thinking when you make these silly and clueless demands.

Your leaders are not honest, you commoners are not honest. Talk about double jeopardy.

No wonder you guys are getting raped.

babapupa:


You guys make the craziest and absurd statements I swear.

Why not just ask the federal government to get rid of your governors since you guys have no use for them because you guys act and carry on as if they don't exist or they do, but just to re-rout funds and ask you guys to keep looking at abuja for your next daily bread.

It's your elected leaders responsibility to provide what you just listed. Is it some kind of taboo or abomination for you guys to be honest and inject some kind of rational thinking when you make these silly and clueless demands.

Your leaders are not honest, you commoners are not honest. Talk about double jeopardy.

No wonder you guys are getting raped.

My point exactly!
Right in front of their faces the money gets looted. And they constantly keep looking at Aso Rock and Abuja for more and more.

Whatever the case, this is one BOLD step in the right direction. I agree with Beaf that what we really need is ''true federalism'' - but like someone countered, a journey of a million miles starts with one bold step in the right direction.

I have been wondering what Egbogah was up to ever since his appointment as Special Adviser of Petroleum Matters - Little did I know that the man was really up to something good. Bless him. Good things takes time.

I just hope that some disgruntled elements in other parasitic parts of the country will not kick against this wonderful initiative. If they do, that will definitely take us millions of miles back into the abyss of doom!