25 June 2009
editorial
Lagos — More shocking effects of Nigeria's cession of Bakassi peninsula to Cameroun came recently with the delisting of Cross River State by the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) as an oil bearing state.
Two major reasons account for this state of affairs. First is the judgment by the International Court of Justice (ICJ) at the Hague, The Netherlands, on October 10, 2002 that the oil-rich Bakassi peninsula belongs to Cameroun. The second happened recently and followed the resolution by the National Boundary Commission (NBC) that the disputed 67 oil wells which were between Cross River and Akwa Ibom state actually belongs to the latter. With the excision of Bakassi from Cross River state and the ceding of the 67 oil wells to Akwa Ibom, Cross River became adjudged non-oil bearing state.
By the development, the state would cease to benefit from the 13 per cent derivation fund set aside for oil bearing states. It would also lose the status of a major beneficiary of oil-producer based sponsorships especially projects and programmes of the Niger Delta Development Commission (NDDC). In fact, part of the loses arising from the development is the office of the chairman of the NDDC, which should have gone to the state after Bayelsa.
Perhaps, the loss is not as worrisome as the way the de-listing of the state was effected.
This is because a matter that would lead to the change of status of a state in terms of revenue earnings especially in substantial volumes, should not have been treated as off handedly, with trivia.
It is even more difficult to understand the decision given that the issue of re-settling the displaced citizens of Bakassi, whose area was ceded to Cameroun is yet to be resolved.
So, what happens to the displaced people of Bakassi, who are in Cross River State, seeking to be resettled by the Cross River State government? It the RMAFC and the NBC allowed the resettlement of the Bakassi residents to be concluded before the delisting, if necessary.
Even the position by the two federal agencies that the state government should go to court if it did not welcome the decision is further evidence of insensitivity on their part.
While it is normal to seek redress in the court of law for any perceived injustice, that, normally, should be the last resort. President Umaru Yar'Adua should intervene in this matter by initiating a political solution, more so, as Cross River state was not a party to the negotiations or court processes that led to the eventual ceding of Bakassi to Cameroun.
The political solution has become necessary, given that Cross River state has legally been declared a non-littoral state by the Supreme Court, the implication being that all oil wells in the continental shelf or off shore fields have been appropriated by the Federal Government.
We make this submission on the grounds that the state directly and adversely is affected by the oil production activities in the waters around it.
Also, the emissions from the operating oil companies arising from flares equally negatively affects the people of Cross River state. It would, therefore, amount to double jeopardy to deny them the gains of the oil revenue as well as expose them to all these serious problems that come about as a result of oil production activities.
All said, it must be noted that the current challenge facing Cross River state would not be different from the scenario that would emerge when, finally, all the country's oil wells dry up as they would, someday.
This is why the way we have operated as a mono product economy for the past several years is very unfortunate. It is a matter of shame that successive governments have failed to diversify the economy. Paying lip service to diversifying the revenue base of the economy is no longer sustainable.
For Governor Liyel Imoke, our counsel, while he awaits the intervention of and possible respite from the Presidency or the courts, is that he should strive to diversify the revenue base of his government with every sense of urgency.
He should get more people and companies in the state to pay tax; he should empower people through assisting them to set up small and medium scale enterprises, and, put in place structures and programmes that would encourage free enterprise and business competitiveness.
Above all, this is the time to maximize the potentials of the Tinapa Business and Resort Centre. These trying times would, of course, challenge his creative energies, and it may surprise the government in Calabar that this set back may turn out to be a blessing. The governor and indigenes of Cross River State could just discover that their situation is not hopeless, afterall.
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