By Abisola THOMPSON
Renowned journalist and author, Michael Owhoko has written an open letter to President
Muhammadu Buhari, advising the president to direct the international oil companies and their
indigenous counterparts to relocate their headquarters to their operational areas in the Niger
Delta in order to boost the economies of the host states and communities.
He said this is the fastest way to open up the economies of the region which have suffered
years of degradation and neglect resulting from the activities of oil exploration. He said, this
was important drawing from the example of how Abuja was developed.
Justifying the move, Owhoko said, “Mr. President, this is the fastest ways and means to develop
the Niger Delta. Imagine when Abuja was identified as the new capital territory, and the
Ministries, Departments and Agencies (MDAs) of government were not directed to relocate
from Lagos to Abuja, there was no way Abuja would have transformed to the level of
development it has attained today.
He added, The 13 percent derivation of oil proceeds being enjoyed today is a product of
struggle. The Niger Delta people struggled to achieve the initial 1.5 percent, 3 percent and the
current 13 percent derivation. Why should the people of the Niger Delta be subjected to a life
of struggle? They struggle for everything, perhaps, because of their weak numerical strength.
So, who will come to their aid? This is an opportunity, Mr. President for you to identify with the
Niger Delta people to end their struggle.
“It is also of interest to remind Mr. President that the people of Borno and Yobe states which
have suffered devastation from the impact of Boko Haram insurrection, did not put up struggle
for their territories to be rehabilitated. It is only important for the destroyed territories to be
restored so that life can return back to normal. After all, most of the people are victims and
innocently found themselves in that predicament.
Thus, when the Federal Government through the Nigerian National Petroleum Corporation
(NNPC) and its subsidiary, the National Petroleum Investment Management Services (NAPIMS)
directed the oil companies to make budgetary provisions for the rehabilitation of destroyed
territories in Borno and Yobe states, there were no objections. The NNPC and the oil
companies are today funding the construction of houses, schools, hospitals, roads, and so, in
the war torn areas. These rehabilitation and reconstruction ideas are commendable, but
imagine if these were also replicated in the Niger Delta where the resources of the nation are
generated, how populist this would have been.”
Below is the full text:
AN OPEN LETTER TO PRESIDENT MUHAMMADU BUHARI
Dear Mr. President
I congratulate you on your re-election at the recent concluded presidential polls. This has
thrown up another opportunity for you to serve Nigerians for another four years. Since this will
be the last lap of your administration, it is therefore imperative to remind you of the need to
pay attention to the pains of those from whose territories revenue for oiling the nation is
derived.
I am writing this open letter to you as a citizen of Nigerian who is concerned about the current
plight of the Niger Delta people. As a citizen who is from the area, I am particularly moved by
the current frustration of the people whose troubles have been made worse by the termination
of their natural means of livelihood. The people of the area are predominantly fishermen and
farmers, and today, the rivers and land are toxic due to activities of oil exploration.
Unfortunately, what should have accrued to the people have been severed by the laws of the
land.
As a way out of these plights, I am recapping a solution which had earlier been suggested. I
believe it has the capacity to improve the livelihood and, alleviate the suffering of the people of
the Niger Delta.
My Appeal:
Let the international oil companies (IOCs) and the indigenous oil and gas companies relocate
their headquarters to their operational bases.
Though this has been canvassed by several prominent persons from the Niger Delta, and
prominently endorsed by the Vice President, Prof. Yemi Osinbajo, who had said he was not
averse to the relocation of the head offices of the oil and gas companies to their operational
areas, my focus here is the attendant numerous benefits and value additions that have not
been fully accentuated.
If Mr. President is generous enough to give approval to this suggestion, he would have sealed a
date with history by putting his name on the sand of times, as the first Nigerian President to
take a singular measure that evidently translates to improved living conditions of the Niger
Delta people.
Your Excellency, I believe the presence of the oil companies will trigger unprecedented
economic boom that will ultimately transform the region. Since this has not been fully
addressed in previous postulations, I have opted to highlight some of the benefits that will
accrue from the relocation of these oil companies to the Niger Delta, for your consideration.
In doing this, reference is deliberately played down on the contributions of the oil companies to
the Nigerian economy through foreign exchange earnings and gross domestic product (GDP).
Instead, emphasis is on the extent to which the presence of the oil companies will impact the
economies of their host communities.
Mr. President, just consider the following benefits that will accrue to the people of the Niger
Delta if the oil and gas companies are directed to move their headquarters in Nigeria to their
operational areas:
- Revenue of host state governments will be boosted through taxation. Workers in the
employ of these companies will remit their taxes (PAYE) to their host state
governments, and this will enable them meet their financial obligations. Imagine if Your
Excellency assents to this proposal, how robust the economies of these states would be.
Infrastructural gaps, including health care and educational facilities, salaries and other
obligations will be addressed as appropriate.
- Youths will be productively engaged. Unemployment will be reduced as jobs will be
available to keep the youths away from the streets. In other words, direct and indirect
jobs as well as contracts will be created for indigenes with enhanced purchasing power.
Even where most of those jobs are lowly and unskilled like cleaning, gardening, and so
on, at least, money earned will go a long way in robbing off on the relatives and
dependants of these employees.
- Multiplier effect cannot be quantified as this will generate fresh demands for goods and
services, leading to various chain reactions on the local economic front. For example,
employees of the oil companies will rent accommodation, patronize the local market for
foodstuffs and confectionaries, and as a result, the landlord and market woman are
empowered, translating further into reinvestment in the local economy.
- Besides, some of the employees of these oil companies may buy land from the host
communities or locals to build their houses. In the process, the locals are empowered,
the town or village or city is developed and, adjourning communities will open up.
These little towns can transforms into mega and metropolitan cities with concomitant
business opportunities.
- Inter- marriages and attendant social relations are also added values that will occur in
the area which may further promote the desired unity in the country.
Mr. President, this is the fastest ways and means to develop the Niger Delta. Imagine when
Abuja was identified as the new capital territory, and the Ministries, Departments and Agencies
(MDAs) of government were not directed to relocate from Lagos to Abuja, there was no way
Abuja would have transformed to the level of development it has attained today.
Abuja is the youngest city in Nigeria, yet, it is only second to Lagos in terms of development.
This has been made possible because of the presence of the MDAs. Thus, Mr. President, the
people of the Niger Delta will appreciate it if you can direct the IOCs and the indigenous oil
companies to relocate to their areas of operations.
Your Excellency, recall that the Niger Delta is an area that had hitherto enjoyed control of the
oil resources up to 50 percent based on derivation principle under the 1963 Constitution.
Unfortunately for the region, this was then abrogated to enable the Federal Government have
absolute control of the entire natural resources and revenue, so it could prosecute the civil war.
The war ended in 1970, yet government refused to revert to status quo, opting instead to
expropriate all petroleum resources to itself through the Petroleum Act of 1969.
The 13 percent derivation of oil proceeds being enjoyed today is a product of struggle. The
Niger Delta people struggled to achieve the initial 1.5 percent, 3 percent and the current 13
percent derivation. Why should the people of the Niger Delta be subjected to a life of struggle?
They struggle for everything, perhaps, because of their weak numerical strength. So, who will
come to their aid? This is an opportunity, Mr. President for you to identify with the Niger Delta
people to end their struggle.
It is also of interest to remind Mr. President that the people of Borno and Yobe states which
have suffered devastation from the impact of Boko Haram insurrection, did not put up struggle
for their territories to be rehabilitated. It is only important for the destroyed territories to be
restored so that life can return back to normal. After all, most of the people are victims and
innocently found themselves in that predicament.
Thus, when the Federal Government through the Nigerian National Petroleum Corporation
(NNPC) and its subsidiary, the National Petroleum Investment Management Services (NAPIMS)
directed the oil companies to make budgetary provisions for the rehabilitation of destroyed
territories in Borno and Yobe states, there were no objections. The NNPC and the oil
companies are today funding the construction of houses, schools, hospitals, roads, and so, in
the war torn areas. These rehabilitation and reconstruction ideas are commendable, but
imagine if these were also replicated in the Niger Delta where the resources of the nation are
generated, how populist this would have been.
Mr. President, it will not be out of place, therefore, if new initiatives can be launched to
develop the Niger Delta which has suffered different forms of hardship, diseases,
environmental degradation, and so on, as a result of the activities of the oil companies. Making
these companies to relocate to their operational areas is one major step that can transform the
Niger Delta and accelerate the development of the region.
Mr. President, this is not a constitutional issue like restructuring, so, it is within your purview to
effect. It requires a presidential directive or at least a memo from the Minister of State for
Petroleum to the Federal Executive Council for approval.
Sir, it should be noted that this letter is not a demand for restructuring of the country, which
fundamentally, aims at enthroning justice and equity through fiscal federalism, but a
presidential directive compelling the oil and gas companies to relocate their headquarters their
operational bases.
When compared to what obtains in foreign countries, the practice in Nigeria is an aberration.
For example in America and Canada, all of the oil and gas companies have both their
headquarters and operational bases in Texas, USA and Alberta and Quebec, Canada. No oil
companies have offices in Washington and Ottawa, capitals of the USA and Canada
respectively.
This is also applicable to the oil and gas companies operating in the United Kingdom where the
headquarters and operational bases of the companies are based mostly in Aberdeen, Scotland,
and not London. This is the pattern all over the world. So, why is Nigeria different?
Mr. President, I acknowledge the various intervention efforts of government. Specifically, I
appreciate the establishment of the Niger Delta Development Commission (NDDC), Ministry of
Niger Delta Affiars, Amnesty Programme, construction of the East-West Road, establishment of
the Federal University of Petroleum Resources, the Nigerian Maritime University and the
introduction of the 13 percent derivation. These are all geared towards the development of the
region, but not much impact has been made.
Mr. President, you will agree with me that equity requires that where resources are produced,
part of such resources should be ploughed back into that area for the development of such
area. Too little is set aside for this purpose in the Niger Delta region today.
Mr. President, there may be those who may not be disposed to my proposal. They may try to
rationalize why oil companies should not relocate to the Niger Delta. Such persons are quick to
cite insecurity as reasons.
Mr. President, though insecurity is a symptom of hunger and frustration, those who maintain
this line of thought do so out of ignorance or clandestine motive. For example, since the
relocation of Nigeria LNG Limited headquarters from Lagos to Bonny, Rivers State where its
operational base is, none of its employees have been kidnapped or reported kidnapped.
Employees of NLNG in Bonny enjoy peace and security in the area. Their presence alone in
Bonny has opened up and raised the level of business and commercial activities of the town
and its environs. The host communities are happy because of their living conditions which have
experienced a leap, arising from patronage of employees of NLNG in their local trade and
commercial activities.
Another example is the Nigerian Content Development and Monitoring Board (NCDMB) with its
headquarters located in Yenagoa, the Bayelsa State capital. Since its establishment by the
Nigerian Oil and Gas Industry Content Development (NOGICD) Act which came into effect on
April 22, 2010, they have conducted their businesses and operations under an atmosphere of
peace. There has not been any case of threat to the lives of the employees by way of
kidnapping, robbery and other forms of criminal activities.
Today, it is on record that the NCDMB has contributed in no small measure in facilitating the
development of Yenogoa, particularly through corporate (NCDMB) and individual (employees)
patronage and support of institutions and businesses.
Mr. President, it is my view therefore that the presence of oil companies in the Niger Delta will
inspire hope, restore dignity and reassure the people of the numerous opportunities and
potential commercial activities in the region.
Your Excellency, it is my plea therefore for you to direct the oil and gas companies to relocate
their administrative and operational headquarters to the Niger Delta region.
Once again, congratulations on your victory at the polls.
Michael Owhoko
April 8, 2019
Michael Owhoko is a journalist, author and public relations practitioner who has mostly
worked in the banking, oil and gas, and media industries. He is the author of The Language of
Oil and Gas; Career Frustration in the Workplace; Nigeria on the Precipice: Issues, Options, and
Solutions; The Future of Nigeria; and Feminism: The Agony of Men. He is also the publisher of
Media Issues, an online newspaper that can be found at www.mediaissuesng.com.