07 July, 2008

THE NIGERIAN PARADOXES

by Marina Forti
http://www.ilmanifesto.it/ricerca/ric_view.php3?page=/Quotidiano-archivio/01-Luglio-2008/art13.html&word=nigeria

English translation by: Chukwubike Okey Charles

The Nigerian president, Umar, YarAdua, a couple of weeks ago declared that the energy infrastructure of his country is so dilapidated and fragile to the extent that soon he would declare “a state of emergency”. This seems a paradox, for the 8th world largest producer of petroleum. Nigeria produces 1.8million barrels of crude oil daily, and exports most of it. It is also true that the potential production level should be 2.8million barrels daily. The “missing” one million barrels remain under the soil because of social and political conflicts at the Niger delta area where the petroleum products enriches mainly the petroleum companies and the little that gets to the government in form of royalties are redistributed. The most bitter paradox is that the refined products are too expensive for the great majority of the population to buy.

Surprising is the statement for a group on Nigerian environmental experts ; who opined that to satisfy the local energy demand in Nigeria and salvage what is remaining of the country’s forests ; Nigeria should return to mining coal. Why should the coal mines save the forest? Simple; because today the great majority of the 140 million Nigerians cook and illuminate their homes with fire wood and charcoal locally produced from wood, thereby burning 40million tonnes of wood and vegetal coal (CHARCOAL) yearly, (according to the estimate made by an NGO of environmental experts-Green Shield of Nations)

Some years ago the FAO warned that from the rate of deforestation by the year 2020 there will not be a single (bush) forest in Nigeria………….
Nigeria has one of the greatest coal reserves in the world ; about 2 billion tonnes . A low sulphur quality coal that are light and dirty less…..

Coal mining for the energy in the country will be less harmful to the country according to the environmental experts. That could be, but the coal industry is not a light or easy one neither on the person (mining is one of the most dangerous jobs in the world) nor as it regards pollution, and it requires high investments also………

Paradox for a great producer of energy that is not capable of supplying energy to her citizens.

http://www.ilmanifesto.it/ricerca/ric_view.php3?page=/Quotidiano-archivio/01-Luglio-2008/art13.html&word=nigeria
(link to original article)

'BABA-GO SLOW'......

Nigeria's 'Baba-go-slow' one year on
By Andrew Walker BBC News, Abuja

Mr Yar'Adua vowed to carry out reforms
Some critics of Umaru Yar'Adua have given the Nigerian president a new nickname: "Baba-go-slow".
Most people called his predecessor Olusegun Obasanjo "Baba" - in reference to his fatherly style of governing.
Mr Yar'Adua has inherited a less-than respectful name after a year of seemingly little progress.
But is that really fair?
When he came to power in a flawed election last year, President Yar'Adua promised reforms, and lots of them.
The electoral system would be revolutionised, peace would be sought in the oil-rich Niger Delta, the murky oil industry would be reformed as well as the woefully inadequate power industry.
'Topsy turvy'
"He's not really done anything of substance this year," says Mahmud Jega, editor of the Daily Trust newspaper.
All this criticism is just small boys' talk
Kanti BelloSenator for Katsina North
"He's helped calm down what was a cantankerous political atmosphere, and he's not making enemies left, right and centre.
"But progress has been very slow. He's not a very vigorous person."
Peter Esele, the president of the Trade Union Congress, says this year has been a "topsy turvy" one for the Nigerian president.
"On the one hand there has been a marked departure from the ways of the past. A lot more is being done properly," he says.
But, he adds, powerful people in government are still interfering in business to benefit their own interests, damaging Nigeria's economy.
And this corruption does not look like it will be stopped.
"There is no political will to do so, and we're going round in circles."
'All talk, no action'
In the oil-producing Niger Delta, where poverty surrounds the pipelines carrying Nigeria's crucial revenue, criticism is stronger.

The main militants have said no to talks
"I don't see any sincerity in government," says Obulabo Inko-Taria, editor of the Port Harcourt newspaper Hard Truth.
The government has reached out to some armed groups and persuaded them, reportedly with cash payments, to stop blowing up oil pipelines.
A peace conference is due to be held in the next two months, but Mr Inko-Taria says he is not impressed.
"All the government is talking about is discussions and conferences. Conferences to discuss what?" he says.
"The issue at the centre of this is clear. We in the Niger Delta need to control more of our resources. But they won't address inequality in the Delta."
The most publicly visible militant group, the Movement for the Emancipation of the Niger Delta, has not stopped its attacks on oil facilities and says it will not attend any peace conferences.
In the power sector the president is still saying he is about to declare a "state of emergency" on the industry - one of his campaign promises.
Nigeria's electricity facts
Currently generates 3500MW
Would need 100,000MW to become an industrialised economy, according to the ex-president
Six power stations begun under the last administration have not been completed
$16bn (£8bn) has so far been spent on the power sector since 1999
Obasanjo denies power graft
In the meantime, a parliamentary investigation has uncovered that turbines worth billion of dollars are rotting away in ports because there is no way of getting them to where the power stations are meant to be.
The previous administration had promised to generate 10,000 megawatts (MW) by this year; although Mr Obasanjo admitted last month that 10 times that amount was needed for Nigeria to become an industrialised country.
Right now Nigeria's electricity company barely manages to provide 3,500MW.
In comparison, South Africa generates 40,000MW, and it is struggling to supply its population - roughly one third of Nigeria's size.
A presidential-appointed committee of experts set up to reform the industry has recommended immediate action to prevent costs on unfinished power projects from growing.
Nigeria has already spent a reported $16bn (£8bn) on them.
'New wives'
But supporters say all this criticism is unfair.
Effective solutions to Nigeria's problems require proper planning, they say.
There is progress, its just very slow
Razia KhanStandard Chartered Bank
Views on anniversarySenator Kanti Bello, who represents part of President Yar'Adua's home state of Katsina, says criticism is "small boys talk".
"What do they want us to do, start spending money? That is how we got into this mess, spending without proper planning."
The first year of President Yar'Adua's administration has been about working to ensure fiscal responsibility, that state governments spend oil revenues in the way they are supposed to, he said.
According to the constitution, oil revenues - currently $12bn (£6bn) - have to be shared out among state governments.
And governors are lobbying hard for the cash to be released.
But if it does the government risks driving up inflation.
"We want them to spend the money on power, schools on hospitals but we know if we release it without being able to say: 'This is what you will spend it on,' they will go and buy new cars for themselves and get new wives," Sen Bello said.
Razia Khan of Standard Chartered Bank agrees that progress has been made in Nigeria's fiscal responsibility.
"There may not have been progress in the headline-grabbing reforms but there have been encouraging signs," she told the BBC.
'Quality not quantity'
Dubious privatisations signed by Mr Obasanjo have been reversed by his successor.

Most people do not have access to electricity despite the country's wealth
Two ministers alleged to have fraudulently shared out budget money they were meant to return have been arrested.
"I don't get the sense that people feel they're going backward in Nigeria. There is progress, it's just very slow," Ms Khan said.
The president himself has promised more will be done.
"The quality of your planning, the quality of your programmes, determines the nature of their achievements," he said in an interview with the UK newspaper Financial Times.
"What we have to learn to know is that you cannot achieve anything without planning, and planning is a long-term process."
Both critics and supporters agree that top of his bulging in tray remains sorting out the power supply.
"You can't have anything without electricity," says Sen. Bello.
How long it takes Nigerians to get a regular supply, will be the real test of Mr Yar'Adua's planning.