Rich country, poor people By Muyiwa Adetiba

The recent Sunday Vanguard carried a rather sad story of our oil industry and in the story, was a strong indictment of leadership both in Government and in the communities. The article stated very bluntly, the poignant facts that more gas is flared in Nigeria than anywhere else in the world. According to the article, 2.5 billion cubic feet of gas is wasted annually which is 40% of all of Africa’s natural gas consumption.

The article also stated that the resultant loss to Nigeria is in the region of 2.5 million dollars. This is discounting the health concerns from the toxins associated with the flaring which have led to premature deaths, respiratory illness and cancer. It concludes, and I agree, that ‘the story of gas flaring is one of appalling carelessness, greed, corruption and double standards.’ The article brought it nearer home when it stated that at the time the country was producing 2.2 million barrels per day, we were producing and flaring 2.2billion standard cubic feet of associated gas. This daily production could produce 200 tetra watt hours of electricity which is equivalent to 50% of all of Africa’s power consumption.

I have a story about this gas flaring that makes one feel sorry for a country like Nigeria that is run by such a self-centred and greedy elite. The path of one gentleman, an engineer from the Niger Delta area crossed mine some 25 years ago, when his son and mine entered Corona Secondary School. He was doing ok dealing with Nepa installations until he got involved in a technological breakthrough that could have made him a multimillionaire in another country but almost ruined him here.

On a trip to Paris, he met a Professor who had developed a technology for capping flared gas and re-injecting the oil back into the system. Not only would this have led to a greater efficiency, it would have led to a cleaner environment. My friend used his connections and his money to try and get the project off the ground. For starters, an agreement with NNPC took forever. Everybody he met was interested but everybody he met want a piece of the action. These included officials in NNPC, officials in Government, and influential Nigerians including some powerful men of God. This ‘settle me first’ approach meant the necessary agreement could not be signed and the necessary money needed to perfect the technology could not be raised. Not one powerful person paused to consider the needs of the country. This is the story of the NNPC. This is the story of the oil and gas industry. This is the story of Nigeria.

I was still mulling over the Sunday Vanguard article when three days later, a book which also lamented the waste and missed opportunities in Nigeria, landed on my table. The coincidence was just too much to be ignored. The title of the book is ‘Rich country, poor people’ which as you would have noticed, is the title of this column. It was written by a man from my own generation; a close friend to a close friend. His name is Banji Oyelaran-Oyeyinka, a Professor of Innovation and Industrialisation Policy and a Director with the United Nations. I would, if I had the space, have wanted to do a complete review of this scholarly work. But as it is, I will just take some extracts that are indicative of the problems and his proffered solutions.

Now, like Dr Cole’s article, there is very little in the book about the neglect and abuse of the Nation State that one is not familiar with. But having them so graphically stated is very pungent. It says for example, ‘Nigeria should be one of Africa’s richest countries. It is the sixth largest producer of crude oil with huge reserves of mineral and agricultural riches besides manpower. A country where abundant varieties of crops grow irrespective of farming care and limitless opportunities exist. All these, unfortunately, have subjected the country to ridicule. Between 1980 and 1996, Nigeria’s poverty level rose from 28% to 66% and to 70% in 2010.

This is estimated to be over 163 million Nigerians.’ Youth unemployment has risen to 50% in 2010 which means that one in every two youths is unemployed. It also makes it extremely hard for a new entrant with unproven skills to gain employment.’ He argued that ‘the rising poverty and widening inequality have been fuelled by imprudent financial management, rising cost of governance and corruption’. He talked about social exclusion, inequality and lack of a clear policy for developing the Nation State as part of the reasons for rising poverty. He said ‘Poverty and inequality create social tension and breed mistrust. The skewed distribution of opportunities and outcomes have consigned the wealth of the Nation in the hands of an unproductive few thriving on prebedalism that in turn weaken the fabric of the Nigerian society.

‘In 2004, Nigeria entered the list of failed states among 46 countries, mostly of African origin, that were labelled fragile. Nigeria should not belong to the category of failed states given her abundant resources, opportunities and unfulfilled potential.

‘It counts little to rank among the 20 richest countries in the world if a large swathe of the population lives in endemic poverty and the society is divided. Rather than aim to rank among the 20 richest countries in the world, the Government and its leadership should aim for agenda that tackle the developmental deficit in the country. These agenda include but not limited to; raising power supply from 45watts per person to 500 watts per person in 2030. Improving security in the country. Reducing the cost of governance. Creating industrial zones with 24 hours power supply. Improving on fiscal responsibility.’

If there is any lesson we have learnt from our years of fiscal irresponsibility and the perpetuation of social and economic inequality, it is from the Boko Haram insurgency. If we must say never again, then we must lift our people out of the vicious circle of poverty and despondency.

VANGUARD

CLICK HERE TO SIGNUP FOR NEWS & ANALYSIS EMAIL NOTIFICATION