The political economy of oil and the Niger Delta crisis

This study is about the burgeoning crisis in Nigeria's Oil Producing Niger Delta region. Discerning the intersecting contributive factors to the crisis, this dissertation suggests that the Niger Delta crisis is symptomatic of challenges to development in Nigeria. Due to the insidious colonial/neo-colonial practices of subjugation, and exploitation of the host communities, it is suggested that the extractive, super-profit motive of Shell, the concomitant environmental degradation, corruption of a bellicose state, ethnic conflict and suffering of the masses are outcomes of a long historically debilitating relationship with international capital which causes irreparable retardation to the host communities. From cash crop economy to a mono-oil economy resources are removed from the communities and used to enhance the colonial state and their post-colonial harbingers of misery. Hence, the indigenous people claim that the Niger Delta is in a crisis, and they are willing to confront the triple alliance of multinational oil companies like Shell, the Nigerian State and the local elite so long as these allies of subjugation continue to neglect the goose that lays the proverbial golden egg (oil that is).; Theoretically, a hybrid Political Economy approach was adopted as the over-aching framework for the study, while Dependency theory, modified by what I have called African Transformative scholarly perspective, served as the conceptual tool. Primary and secondary sources of data, including personal observation, interviews, official government documents and other publications were utilized for this analysis. In view of recommendations, it is suggested that first, the Nigerian state should assume decisive and unflinching leadership in holding oil companies responsible for their activities in the host communities; second, oil companies (like Shell) should see themselves as an integral part of the host communities; invest in their development by providing employment opportunities and adhering to humane environmental practices. Finally, I suggest that the ownership and control of all resources, including oil should be vested in those communities in which they are found. The revenues accruing to the constitutive states of Nigeria will be accordingly taxed with the revenues from the taxes utilized for the general good of the polity especially the less endowed communities.