By Zik Gbemre

We have repeatedly noted that the reawakened talks about restructuring the Nigerian State, especially by the Presidential candidates for 2019 general elections, is purely political and laden with deception – to get support from top political stakeholders and Nigerians. But we all know that this is a ‘PROMISED LIE’ that will never be implemented. Even if any of the Presidential aspirants really intends to restructure Nigeria, those in the National Assembly and other political big wigs in the country, will never allow that reality see the light of day. And this is simply hinged on the fact that the restructuring exercise will be killed before its birth by Nigerian politicians from the North, South-West and may be South-East. This is what makes the whole restructuring talks a ‘PRETENTIOUS SONG’ OF POLITICS. Let us be honest with ourselves, there are certain factors and things that need to be corrected and readdressed in the different sectors of the Nigerian economy, particularly in the oil and gas sector, which once done, we do not even need to restructure Nigeria as it is. Have we bothered to ask ourselves as a people, why all the major oil and gas technical services companies are racing up to Lagos? It is simply because the two major subsidiaries of the Nigeria National Petroleum Corporation (NNPC), which are: the National Petroleum Investment Management Services (NAPIMS), and the Department of Petroleum Resources (DPR), that were established under the Federal Ministry of Petroleum Resources, have their both Headquarters cited in Lagos. NAPIMS and DPR, are the bodies that are respectively regulating the commercial aspect of International Oil Companies (IOCs) and the operational aspect of the oil and gas business for International Oil Companies (IOCs) and Indigenous companies as well. DPR is the only organ that has the authority to regulate the operational activities in the extractive industry, while the NAPIMS is the only legal establishment that has the authority to regulate all the commercial and contracting activities of oil and gas companies operating in the country. So, every oil and gas company and servicing/contracting company that wants their businesses to be ‘SAFE’ AND ‘SECURED’, are automatically expected to stay close to those who regulate and manage the industry on behalf of the Federal Government. Hence, they would want to remain in Lagos. This is what has made Lagos State what it is today. In fact, about 90 percent of the Internally generated revenue in Lagos State is from the major oil and gas companies and other oil/gas service-related companies.

That is why Lagos State can practically survive on its own for some time, without the Federal Government’s monthly allocations. Not to mention the concentration of the Maritime industry in Lagos, with the over-chocked and overutilized Lagos Ports. With this ‘UNBALANCED ECONOMIC ACTIVITIES’ in the polity, which of course only favours the West more, the South-West politicians will not WHOLEHEARTEDLY WANT TO SUPPORT A ‘PROPER RESTRUCTURING OF NIGERIA’. Whereas, what people do not know, and many do not want to embrace and acknowledge, is the fact that all the aspects of the oil and gas sector – from exploration, production and export – take place in the Delta region. It is only from the region that our neigbouring African countries are fed with oil and gas through the West African Gas Pipeline (WAGP), as well the feeding of domestic industries, including the nation’s Power Stations. This is the ‘big business’ – that brings in the big chunk of the nation’s revenue – actually takes place in the Delta region. However, with a proper restructuring, it automatically means that places like Warri (Delta State), with its Ports Complex, and Port-Harcourt, will become the most important ‘BUSINESS HUBS’ of the oil and gas industry in the country. if a proper restructuring should be carried out, it would require that all the IOCs and domestic companies in the industry will have to move their Headquarters and major operations to the Delta region – where we have several Sea Ports in Delta State for instance, that have not been utilized to their fullest. The North too, squarely depends on the oil and gas wealth from the Delta region. Same too with the Eastern parts. So, “MAJORITY” of the Nigerian politicians and elites from the South-West, North and South-East, are not really sincere and completely honest with their ‘PRETENTIOUS RESTRUCTURING SONG’ because they know very well that it will not favour them as expected. The whole thing is aimed at winning elections.

Agreed that there are very good Nigerian elites in each of these major tribes, who are genuinely in support and interested in seeing that Nigeria restructures as it ought to. But the fact still remains that ‘MAJORITy’ of the politicians are not being truthful with this sensitive issue. Out of the 36 States plus Abuja, about 35 of them and the FCT depend on the monthly allocations from the federation accounts, which of course is earned from the export of crude oil and natural gas.

The States across the country know very well that they won’t be able to pay workers’ salaries and embark on other projects without this ‘monthly salary called Federal allocations.’ So, if the said restructuring is done with an open heart, the States that heavily depend on the crude oil and natural gas wealth will crumble economically. The lawmakers elected into the National Assembly are aware of this fact, that they will not be able to carry themselves about in their “Agbadas” (native attires) speaking to impress their supporters, if the oil and gas wealth is cut off as a result of restructuring. All the wealth they claim to own are money stolen from the oil and gas revenue. That is the same money used in paying for all government activities, funding of their foreign trips, and what have you. All the Federal Government Departments/Agencies, the Military, the Nigerian Police, Universities, State Government activities, etc., are carried out with the money from the sales of crude oil and natural gas exports. They are just used to this free monthly salary called Federation allocation to the States. So, the Restructuring campaign song is nothing but deception. Those shouting restructuring are not being sincere with the issue. There is also the issue of tribal sentiments, or tribal favouritsm and superiority complex – where every tribe (especially the major tribes) feels they are superior than the other, and as such, they always want to out-do and out-win one another across political and economic lines. This tribal domination mentality is the reason why former President Olusegun Obasanjo, cleverly relocated the Nigerian Ports Authority (NPA) Head Office from Abuja to Lagos, and donated the Abuja NPA building known as the “SHIP HOUSE” to the Nigerian Defence, with the excuse that the NPA has no business being in Abuja since it has no sea Ports, unlike Lagos. But the same Obasanajo, and others after him, have refused to also relocate the NNPC Headquarters, especially its subsidiaries like NAPIMS and DPR, to the Delta region, where their oil and gas business activities and operations are predominantly located. What do we call that? Whereas, in advanced countries like the US, the Headquarters and Operational Offices of oil and gas companies in the US are located in Houston, Texas, and not New York or Washington D.C, not even in Austin city in the Texas State capital. The cities we hear of in advanced countries when it comes to such things, are not Capital Cities and State headquarters.

Amsterdam is the capital city of the Netherlands but most of their Government offices are in THE HAGUE. Houston is the oil city in the US. Calgary is the oil city of Canada. In other words, most of the cities we know of in advanced countries when it come to the oil industry, are not even in their State capital. Calgary and Toronto are more known than Ottawa in Canada. If this is the situation in these advanced countries, why can’t we have same in Nigeria? Why are all the sensitive Government companies in the nation’s oil and gas industry, made to be crowded in Lagos, instead of Warri? This, alone should tell us that these political leaders and aspiring political leaders are not being honest with all their talks on restructuring Nigeria.

Zik Gbemre.
December 27, 2018

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