Stakeholders berate N/Delta states over $4bn oil revenue

Martin Ayankola, Lagos - 31.01.2008

Oil industry operators on Wednsday in Abuja expressed dissatisfaction with how Niger Delta states expended the $4 billion which accrued to them from the Federation Account in the past eight years.

Although the deputy governor of Delta State, Professor Moses Ituma, who was present at one of the sessions of the Offshore West Africa Conference, where the issue of infrastructural development of the area was being discussed, made attempts to explain how the state expended its own share, the discussants were not impressed.

Manager in charge of Sustainable Development in Elf Petroleum Nigeria Limited, Mr. Anthony Abolarin, during his presentation on “Emergence of Community Development Foundations: Depth of Foundations and Degree of Sustai-nability,” disclosed that the region earned $4 billion from the Federal Government in the past eight years.

He wondered how the money was spent in view of the present high level of underdevelopment in the region. “About $4 billion went into the Niger Delta in the past eight years. Oil companies contributed less that three per cent. This is small because oil companies’ budgets are small. But where is the $4 billion? If you rely only on the oil companies, they will be drained out,” he said.

He lamented that oil companies did not do much in the past to alleviate the sufferings of the people of the area as these companies concentrated on supporting masquerade festivals and coronations.

He also stated that the Global Memorandum of Understanding (GMOU) between the communities and the companies failed to address the developmental challenges facing the region because the companies dictated the projects they would execute, instead of allowing the villages to choose their priority projects.

The Elf Petroleum manager, who is also in charge of Niger Delta Development Commission (NDDC) matters, however, stated that the emergence of Community Development Foundations would address the problem of underdevelopment in the area.