Femi Atoyebi
16 November 2008
opinion
Lagos — Over a hundred million years, bitumen deposit started gathering in some parts of what is now regarded as Nigeria. In Ogun, Edo, and Ondo States of the country, the mineral was discovered around 1900 by the then Nigeria Bitumen Corporation. But what was not determined was the quantity of the deposits. The outbreak of First World War in 1914, coupled with eventual discovery of crude oil in the Niger Delta suppressed further efforts to explore the prospect of bitumen in Nigeria. Lately however, its quantity in Ikale Kingdom in Ondo State has been identified as large enough to sustain road construction in the country and help relieve heavy dependent on crude oil as major exports. More than a decade after, the kingdom is still wondering what fate has befallen their God-given unique brand of mineral.
Chief Donald Oguntimeyin is the president of Ikale Central Organisation for the past seven years. While giving an insight into efforts of the successive governments to kick-start exploitation of the deposit in their major cities, he concluded that the cost involved in harnessing its huge potentials was not considered when blocs were allocated in 2002. According to him, some Nigerian businessmen who got the blocs never meant to begin operation.
"There is no major development despite the Federal Government declaring major discovery several years ago. The first sets of allocation of blocs were given to the wrong people; people who do not have the financial ability and the facilities to put the resource into use for the nation's benefit. They secured it and waited for a third party to buy and develop. Unfortunately, the fraud in third party transfer these days has erased trust for such system to be effective when it comes to mega project of this nature.
"Our people now suffer the consequence because they wait endlessly day-in-day-out for development to come through proper utilisation of their land potential. If Nigeria is serious to establish the nation as a major bitumen producer, it must do a re-think and seek genuine investors who are ready to go in and start work immediately," he told THISDAY in an interview in Ikale recently.
Asked if his bias is based on the possible sentiment that the Ikale people might have been relegated in the allocation formula, Oguntimehin revealed that there are indigenes of the kingdom who won bids for some of the blocs. "There are some of our people who got it, but as a leader, I say with all boldness that they have no knowledge or financial means to develop the huge potentials. Bitumen exploration involves billions of dollars, not just people who have the means to lobby for a bloc or two. "Today I believe there are Nigerians who have the means to do it, and if not so, the state should be allowed to invest in it," the community leader emphasised.
With at least forty two billion barrels of the deposit already in stock in the South West area of Nigeria, the Ikale kingdom boasts of the largest concentration on their land. At present, Nigeria imports bitumen to supplement local meagre production, whereas, it boasts of its deposit in commercial quantity. When however production starts, much of the local people, who are largely farmers and fishermen risk being displaced of homes and farm land. But it seems the community leaders have thought over it and decided on the way out.
"The first characteristic of a community that craves for development is to be tolerant. Our people are naturally tolerant and ready to sacrifice whatever it takes to make development work. What investors will enjoy from our people is total cooperation. The land is vast and generally fertile. If the project claims a section of the land, those affected will understand and move elsewhere.
"I have been their leader for the past seven years and from the several congresses we have held, the people have displayed the zeal to go the extra length to welcome investors. But their patience is now being frustrated; they are waiting endlessly while their potentials lie in waste," Oguntimehin further stressed.
There are major towns and hamlets that make up the whole kingdom and some of the prominent indigenes of the land have argued that they are endowed with enough resources to be granted a state, if Ekiti could achieve the status. Though they are presently not interested in such pursuit, the organisation's president said the nation comes first in whatever they agitate.
"By size, we have one of the largest areas in Nigeria, dominated by a common people. By same measurement, it should be a state in the country. But our people are not concerned about that. If Ekiti State should be used as a yardstick, we should be granted one by now because we are of almost the same size. We have been restricted to only two large local governments; Irele and Okitipupa. Okitipupa alone is bigger than six local governments.
"The land is blessed with enough mineral resources to stand on its own. We can comfortably stand right and prove financial independence. This is not to deride some states in Nigeria but we have enough potential to be a state. Some of the resources on the river side have been explored. But there are areas with crude oil deposit that are yet to be tapped. In Igodan, a village near Igodan Lisa in Okitipupa Local Government, the crude oil potential is yet to be explored since it was discovered," he added.
In 2003, the former Minister of Solid Minerals, Chief Magnus Ugbesia, had a meeting with representatives of two of the major companies who were allocated blocs for the project, NISSAND, which was awarded block 307C and BEECON which got block 307B. Failure to get technical partners and raise enough funds to start work by the companies necessitated the meeting.
Although a six month ultimatum was earlier given to the contractors, government soft-pedalled after the companies convinced that proper exploration and exploitation works would soon start. While the community awaits real work to be commenced by the investors, Nigerians also wait to welcome a boost in bitumen production, which is the major ingredient in road construction.
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Chief I salute you. It is incumbent upon all leaders who are worth their salt to create programmes beneficial to their people first and not the otheer way round as it appears from evidence to be the case in Nigeria.
A local company that has been granted an exploration license must be at least entitled to rent that license for a reasonable fee to a corporation with the requisite capital to develop through exploration the oil resources of their land.
Nigeria is victim to an age old scam whereby local groups are funded by foreign oil companies to grant them exclusive rights to the oil, then pitted against other groups within the same communities to create a volatile environment. That voliatility then discourages smaller investors from accessing the oil which then ensures the dominance of all oil resources by the larger oil companies who have the capital to burn from a monopolistic position. The conflict they create and the monopoly they hold creates high oil prices through the risks they create through conflict.
The chief should organise cooperatives from within his people. A million people contributing $100 each creates a pool of $100,000,000 which can be further leveraged to a Billion through borrowings. The final result will be jobs for them in their own land their own resources and imported expertise and technology. Thats empowerment.
Its been done before in other places and can be done in Nigeria as well.
Gopal Ramakrishnan