Scales On Nigeria’s Oil
Dear Mr. Editor,
I must admit to several mixed feelings at present events upon the African continent. Hillary Clinton, certainly new a thing or two about Nigeria and caused some expected controversy over her comments about Nigeria's top graft busters, the EFCC. She presented the view that the EFCC had "fallen off" over the last 12 months. She hit the "Nail on the head" when she said Nigeria had squandered much of its gains from the Oil bonanza to corruption. Official estimates indicate that some $300 million dollars had been lost its corruption over the last 30 years. Certainly Africa suffers from official corruption, extending to all levels of government. This is certainly one of the reasons that African countries continue to 'bump along the bottom " of the world league tables for development and poverty reduction, compared to other former colonial outposts. The myth purveyed by underperforming African Presidents that this under performance is due to The West is dishonesty of the highest order. The United States takes some 6% of its annual oil needs from Nigeria. The downside remains, the plight of the local inhabitants whose, environment has been polluted and its roads and lands destroyed or contaminated. This continues to place the region under increasing attacks from local militants whose cause is considered to be just, if their tactics are considered unreasonable. The balance here between the profits of the Multinational oil moguls and the local indigenous population remains unresolved.
Ghana, the next arena for oil extraction should learn from Nigeria's mistakes here. Ghana has some of the finest beaches and natural habitats for wild life along the West African coast. Much planning needs fair consideration from The Ghanaian government.
The claim from President Jammeh that The Gambia has Oil should be taken into context with his pre-tax hike of 10% for oil tax. This before the extraction is even begun. Even if The Gambia has commercial quantities of oil, which I doubt. The price of extracting it would be too rich for the International oil companies, under the present and foreseeable global economic climate.
It costs 22 Million dollars to establish one small on shore oil rig. It actually remains cheaper to extract oil from the North Sea, by increased drilling technology that can now extract up to 69% of oil resources from known oil fields. Advancing technology from companies like Schulumber { a company I know well from The Shetland Islands} and Apache, means that the profitable life of North Sea oil fields have been substantially upgraded to a position where up to 85% of deposits are now recoverable. This is good news for Britain. The tax revenues will fuel our lift from recession all the more easily. This is extending the life of our current oil fields for at least the next 30 to 40 years.
The good news for Nigerians and African's as a whole, is that many Nigerians are employed on Oil exploration contracts in Aberdeen Scotland, and will assure West Africa of the trained competence to extract more oil, both land and sea based for the next 40 years.
It has been announced that Britain has spent some $400 million dollars in Sierra Leone since the war. Some 50 million dollars this year alone. However the youth unemployment in the country remains unabated and the social conditions have not improved. The President of Sierra Leone was on British T.V.last week and pleaded with the International donor community to come to his countries aid. Journalists were commenting that the conditions that caused the war have not rescinded and that fear remains high that war may return to that region in the foreseeable future. This proves that pouring money into Africa will never address the underlying problem of wealth creation and relief from corruption. A new strategy of regeneration and targeted resources into commercial expansion needs to be the mainstay of International aid strategy.
It is welcomed to see that Zimbabwe has turned the corner since going over to the dollar.
The partnership between Tsangarai and Mugabe is working well, and the shops and schools have reopened. There is a strong feeling of optimism returning to Zimbabwe. Even the BBC are allowed back into the country and everyone is speaking freely. Prime Minister Tsangarai, explained the futility of witch hunts against those who perpetrated so many crimes. He explains that this would only cause the possibility of conflicts to return. They are therefore moving forward positively and with a growing confidence. Britain and America and the Intelligent African nations can take great courage and applause for this seemingly and incredible better situation. I do not have the present cost to the British tax payer for this good news and efforts.
The Gambia is therefore left in a very poor situation based on the attacks from The US state department over its human rights record and the destruction of the independent media. One can only surmise what outrage would follow if Pap Saine or Sam Sarr or poor Sarata are to fall ill or even die.
The people of The Gambia are at grave risk of falling well behind the rest of Africa if it does not address its present leadership issues and policies that will encourage International confidence to invest and support. The Gambia seriously needs to consider reducing its arms intake and the size of its army. This money would be better managed towards the relief of the poor. The Gambia is facing a growing and major economic crisis as this present Global downturn affects all commercial enterprise, not strong enough to withstand this kind of pressure.
The cost for this unfolding and never ending tragedy, to the British tax payer will be yet another burden we are increasingly finding the difficulty of confidence to support.
I remain Michael..U.K.