Abimbola Akosile and Senator Iroegbu
7 January 2009
analysis
Lagos — Analysts believe strict commitment to transparency at all levels of the society would help spur rapid growth in Nigeria.
While the Nigerian Extractive Industries Transparency Initiative (NEITI) wants greater clarity in the nation's extractive sector, the Africa Network for Environment and Economic Justice (ANEEJ) wants political commitment to transparency in the Niger Delta region to be mapped. Abimbola Akosile and Senator Iroegbu analyse a vital economic catalyst.
Strenuous Efforts
Statistics reveal that more than 90 per cent of Nigeria's revenue comes from the crude petroleum and attendant by-products drilled from the volatile Niger Delta region. The same region has also been described as one of the poorest in the country, in terms of human development and provision of basic infrastructure.
Despite the billions allocated to the member states of the region, there is a general consensus that the average inhabitant of the Niger Delta is yet to enjoy the benefits accrued from the oil and gas wealth found therein.
This disconnect has helped generate various discourse among concerned and not-so-concerned individuals. There is even a popular joke that in the Niger Delta, everything, including good roads, housing, potable water, and electricity among others, is in the 'pipeline'; reason for regular vandalisation and explosions in the region.
Various agencies, groups and organisations have debated, analysed, and examined the issues and reasons behind endemic poverty in the land of plenty (natural resources), and proffered suggestions as to the way out. All these are yet to translate into actual benefit for the common man or woman.
While the Nigerian Extractive Industries Transparency Initiative (NEITI),led by Prof. Assisi Asobie, beams its searchlight on the nation's extractive sector to promote revenue and expenditure transparency, the Africa Network for Environment and Economic Justice (ANEEJ), headed by Reverend David Ugolor, is calling for both accountability and transparency in the region and Nigeria as a whole.
Another strident stakeholder is the Niger Delta Budget Monitoring Group (NDEBUMOG), headed by Mr. George-Hill Anthony, which is more concerned with monitoring and tracking the budget of the Niger Delta states to determine how the billions collected in monthly federation allocations are being expended for the benefit of the citizenry. Such effort, but minimal headway so far.
Resource: Blessing or Curse?
The general tendency for national resources to be mismanaged especially by the political leaders and administration in Nigeria, has made concerned stakeholders to wonder if a natural blessing is gradually turning into a curse.
This is particularly true in the Niger Delta states, where the bulk of the nation's resources are located, with misappropriation of revenue allocations to the detriment of the people.
Despite a heated argument that the 13 per cent oil derivation paid to the Niger Delta is just not enough; in real terms, if the resources are judiciously utilised and not siphoned by the ruling class, it would go a long way to improve the standard of living of the people.
Many have wondered why most of the states remained largely poor in both human and material resources despite huge annual budgets that are often spent without visible impact on the lives of the ordinary citizens.
Transparent Need
The foregoing brought about the issue of Extractive Industries Initiative (EITI), a global framework to ensure efficiency, transparency and accountability in resource governance.
"EITI promises reverse the paradox of poverty of plenty", said Professor Asobie, NEITI's Chairman.
Nigeria adopted the EITI principles since 2003 with a commitment to promote sustainable development in the country. Today, Nigeria has domesticated and institutionalised the EITI process, especially at the Federal level, but it is yet to be implemented at the state level.
Consequently, there is a recommendation for the adoption and step-down of EITI processes in Nigerian states to the Local Government Areas, Wards and Communities, particularly in the our rich and resource based Niger Delta region.
However, there is the challenge of lack of political will, capacity and technical know-how to fully implement the demand of EITI, which are probity, transparency and accountability in resource utilisation.
The need to tackle this challenge head-on enabled stakeholders like the donor countries of Britain, Switzerland and Norway in collaboration with ANEEJ, a Nigerian Non Governmental Organisation, to seek transparency through 'Mapping Political Commitment to Transparency in the Niger Delta.
A survey conducted by ANEEJ revealed that most state governments in the region are yet to acquire the culture of openness, reporting, disclosure and accountability.
The survey and the preparatory work for the Capacity Building Programme brought together a group drawn from the Swiss, Norwegian, UK, Canadian and US governments, the World Bank, NEITI and stakeholders across the Niger Delta.
Explaining why the project by ANEEJ is necessary, the Ambassador of Switzerland to Nigeria said because the core projects in the Niger Delta needed to be strengthened, it was essential to take a step behind by first mapping the political commitment to transparency in the (nine states) of the Niger Delta.
This was done by asking the final beneficiaries, the state and non state actors of the nine targeted Niger Delta states, if they are willing, and ready, to undergo an ambitious and demanding project.
EITI Process: Commitment Rating
The survey buttressed the fact that there is lack of progress in sustainable development of local communities in the 9 Niger Delta states, particularly in the management and expenditure of the 13 per cent derivation of the federal oil revenues.
According to the Executive Director, ANEEJ, David Ugolor, there is a lack of understanding of the issues, which when combined with general lack of capacity to deliver, poses a major constraining factor to realising fundamental changes in the region.
Detailing the state by state response to the issue of transparency and accountability in resource governance, Ugolor noted that about 5 states namely Bayelsa, Delta, Edo, Cross River, and Rivers State have made remarkable progress at encouraging the enabling legislation and collaboration for EITI processes.
On the other hand, 4 states namely Abia, Akwa Ibom, Imo and Ondo states are well behind with some having no intention of making legislative provisions for transparency and accountability such as the Fiscal Responsibility and Procurement Act, Oil and Gas Commission, Due Process and Access to Information.
Cogent Findings, Tips
The survey exposed basic factors impeding political commitment to transparency in the Niger Delta region. These include poor working relationships between development and community CSOs (including media and academia) and executive government; government agencies and legislatures (mutual trust).
There is also lack of technical expertise in all groups on revenue management, budgeting, and knowledge of extractive industry practices and process; lack of proactive oversight and holding the executive to account by state legislators.
It was noted that despite the profusion of strategic development plans such as the State Economic Empowerment and Development Strategy (SEEDS), and Niger Delta Development Commission (NDDC) Master Plan, there is clearly no agreed and implemented state wide or Niger Delta wide strategy on development.
On a positive note however, promotion of transparency and good governance is said to be taking root at the highest levels within state governments in the Niger Delta region.
"Recent statements and initiatives announced by the Governors of Bayelsa, Delta and Rivers underline the commitment now being made to the electorate in ensuring fiscal responsibility and the delivery of development projects", the report noted.
Despite these initiatives offered in the implementation of the proposed policies, it is generally believed that existing capacity within the state ministries and agencies is not sufficient and will hamper the implementation of policies. Civil Society Organisations (CSOs) have been enjoined to rise to the challenge by engaging in revenue issue with focus on monitoring, with solution based dialogues on standard accounting practices and external audits.
In addition, State Assemblies need to be seen holding to account the Ministries and Agencies and exerting their rights in the State Assemblies.
In this regard the NDDC is reaching out to Niger Delta legislators to involve them in the delivery of the NDDC Master Plan, with the NDDC Managing Director suggesting State Assemblies to enact legislation in support of the implementation of the Master Plan.
Furthermore, more is expected from the media which has been playing a vital role in keeping the Niger Delta issues in the spotlight, for the development of a strategy on pushing for access to revenue and project information.
The media was also tasked on the development of campaigns in collaborations with civil society organisations, for example in support of the EFCC and the Freedom of Information Act.
Other key recommendations include coordinated development for the Niger Delta through collaborative approach to all development oriented activities.
The report noted that the donor and international community can play an important role in supporting the development of a strategic framework, bringing together all the existing plans the NNDC Master Plan, SEEDS and other crosscutting Federal initiatives together; with work being conducted by 'non-state actors' including international institutions and work funded by donor agencies.
Survey Fallout
After the survey, donor agencies embarked on a three-week capacity building programme through ANEEJ. Ugolor said they have identified five states: Bayelsa, Cross River, Delta, Edo and Rivers, where the stakeholders appear ready to work together in achieving greater transparency.
He said they would convene roundtable meetings in each of the States with representatives from all stakeholder groups, which will take stock of existing legislation on fiscal responsibility, procurement, access to information; and also encourage the stakeholders to design workshops that can address local issues and challenges.
He promised that remaining four states are not left out, as "the programme will reach all nine Niger Delta States during the 2nd and 3rd year of the implementation".
Cries of Concern
It is quite ironical and development paradox that oil, gas and minerals, or extractive industries that are supposed to generate wealth with great potential to driving rapid social and economic development, have instead become synonymous with poverty.
That oil wealth from the Niger Delta region has been linked with corruption and mismanagement in governance is no longer in doubt, but the question is for how long will the pillage last. And the challenge is on how to stop and reverse the trend so that the present and future generations can be blessed rather than cursed by this wealth.
Due process must be applied in planning and execution of government projects, with openness in budget expenditure. There is no better time to stop the ugly scenario in the Niger Delta and Nigeria than now, and no better way out than through strict adherence to transparency and accountability in governance.
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