why is nigeria · 2020-02-26 · at this stage, nigeria was poised to become an economic giant, but...

Why is Nigeria Rich In Oil, yet Poor In Wealth?

I have chosen to focus my project specifically on oil wealth because addressing all forms of resources will be excessive. This is the same reason as to why I chose to cover a natural resource in one African country, rather than many; as most African countries are rich in certain natural resources and they have all faced similar problems, (e.g. government corruption, bad health care), meaning that Nigeria’s oil experience can be extended in principle to other parallel countries. This project will cover the negative, positive and potential impacts of Nigeria’s abundance in oil on the Nigerian economy.

For many decades, wealth in natural resources has seemed to generate fortunes for many countries that are rich in them; Norway and Australia’s living standards are built on a platform of natural resource exploitation. However Nigeria has not seen its fair share of these fortunes but rather countless misfortunes, even though its reserves of crude oil stand at 28.2 billion barrels . Nigeria is Africa's largest oil producer but 1

struggles to take advantage of the income earned from it. 2

The postcolonial country gained independence from the British in 1960. Post-independence, more Nigerians started moving from subsistence agriculture; as many felt that working in the newly established oil sector was more profitable. Following the discovery of the oil - in 1956 by Shell Darcy - and its exploration and exportation in commercial quantities, the fortunes of agriculture gradually diminished while crude petroleum replaced it as the dominant source of revenue and export earnings . 3

At this stage, Nigeria was poised to become an economic giant, but the potential was never fulfilled, leading the Independent news to observe that if you “Ask most forecasters which countries will own the 21st century and they will point to the likes of China, India, Russia and Brazil. Fewer will mention Nigeria, and yet it could plausibly be argued that this African powerhouse has the most potential of all.” 4

WHO IS TO BLAME:

NNPC, ‘Oil Production’, Nigerian National Petroleum Corporation <http://1

www.nnpcgroup.com/nnpcbusiness/upstreamventures/oilproduction.aspx> [accessed 24 October 2017].

‘Buhari’s battle to clean up Nigeria’s oil industry’, BBC News <http://www.bbc.co.uk/news/2

world-africa-35754777> [accessed 15 December 2016].

L. N. Chete, J. O. Adeoti, F. M. Adeyinka, and O. Ogundele, ‘Industrial Development And 3

Growth In Nigeria’, Lessons and Challenges, No. 8, pp. 1.

‘Nigeria is an African powerhouse - but it is being held back by failing policies’, 4

Independent <http://www.independent.co.uk/voices/editorials/nigeria-is-an-african-powerhouse-but-it-is-being-held-back-by-failing-policies-a7063966.html> [accessed 7 December 2017].

A) The Nigerian Citizens

Section 1.00 – Overview

Between the years 2007 and 2011, Omolade Adunbi – who at the time lived in Oloibiri, Bayelsa State, east Niger Delta, Nigeria – carried out an interview, in Oloibiri, on Chief Moses, one of the elders who had once welcomed Shell-British Petroleum in 1954 . In pidgin English, (the Nigerian local version of the English 5

language), Moses said: Pidgin English: “My son, dem sit for dat place wey you dey in 1954 when our chief

come call everybody, say oyinbo [white] people wan see us. Na, so I come waka go the village center, come see three oyinbo wey dey with our chief. Dem come say dem dey do one survey and the survey come show say oil go dey our land. We come give them permission to do the survey after sometime, dem come report back say dem don do am and say oil plenty for the place. Dem come tell us say the thing dey different from palm oil and dat im dey bring money well well.” 6

My translation: “My son, they sat on that place that you are now in 1954 when our chief

called everybody, saying white people want to see us. That was how we walked to the village centre, and saw three white people that were with our chief. They said they wanted to do a survey and the survey showed that there was going to be oil on our land. We then gave them permission to do the survey after sometime, they then reported back saying that they had done it and found plenty of oil in that place. They then told us that it was different from palm oil and that it brings a lot of money.”

Omolade Adunbi, Oil Wealth And Insurgency In Nigeria (Indiana: Indiana University Press, 5

2015), p. 40.

Moses, Chief, (2007, 19 June). Personal interview.6

Chief Moses also went on to express how chiefs, children and women in that community danced around the town, celebrating the discovery. This is because like 7

with many others like Moses, it would have “reinforced the promise of their ancestors that their land and life would blossom in wealth”. Even till present day, many Nigerians still have strong faith in the country’s oil wealth; that is still yet to be seen. Niger Delta populations’ recognition of the wealth-generating capacity of oil has become a tool for creating what [Omolade Adunbi calls] “oil consciousness” among them. Oil consciousness is a process whereby communities realize that oil can produce importance and material wealth . 8

Many of this generation of Nigerians, including myself, will never quite understand the happiness felt by “The Discovery”, the same way elders like Chief Moses did. This is because all “The Discovery” has seemed to do so far is aid more misfortunes than fortunes.

Nigerians have been very patient in the wait for the wealth, which our ancestors assured our scarce natural resources would provide to us. I decided to do some research on some of the locals like Chief Moses - that were present in Oloibiri during that time - on how their views on the matter have changed since the day of discovery. During an interview with BBC News’ Andrew Walker, Chief Sunday Inengite, (right), a citizen of the Niger Delta, expressed his great regret to the way in which he reacted when the foreigners had initially discovered the oil in his village. He said “[the foreigners] made [them] happy and clap like fools, dance as if [they] were trained monkeys….I was trying to know why they were all here, going

Moses, Chief, (2007, 19 June). Personal interview.7

Omolade Adunbi, Oil Wealth and Insurgency in Nigeria (Indiana: Indiana University Press, 8

2015), p. 16.

Figure 1 - Chief Sunday Inengite

into the forests and into the swamps.” This statement helps to validate of Chief 9

Moses’ version of the story; as they both express the happiness they and the other villagers had felt on that day. Chief Inengite and Chief Moses’ statements are two of many others’ that commonly express the same disappoint they have felt over the years as they continue not to see the wealth they were once, and still are, promised.

Furthermore, Chief Sunday Inengite and Chief Moses are only two of many Nigerian citizens that strongly believe that oil automatically equals wealth. This mentality can be seen all across the majority of the Sub-Saharan country. Land and oil have come to represent an ancestral promise of wealth to many, if not all, of the Niger Delta. A long time ago, a Nigerian Dramatist, Wole Soyinka once said, “I am convinced that Nigeria would have been a more highly developed country without oil. I wished we’d never smelled the fumes of petroleum.”

After finding this out and seeing that the discovery of oil has, evidently, not generated significant wealth amongst the average Nigerian; I began to develop a hypothesis stating that: ‘Nigeria being abundant in oil alone will not generate its wealth, but rather the

proper use/management of the oil and the money generated from it will’ To test the truthfulness of my hypothesis, I carried out a survey on non-Nigerians.

Section 1.10 – My survey (part I)

[For this section refer to, APPENDIX 2, the survey]

370 non-Nigerians completed the survey – this included respondents from the United Kingdom, United States of America, United Arab Emirates, Ghana and China. I wanted to collect a fairly large sample of data in order to increase the reliability of my results. In order for this survey to help approve my hypothesis, there should be clear, significant results on the topic.

Question 1 - states, ‘Do you think a country’s abundance in oil automatically causes it to be wealthy (e.g. the UAE)?’ 27.87% of 366 non-Nigerians answered this question with a ‘No’, while 58.74% of them answered with a ‘Yes’. The remaining 13.39% answered with it depends.

The majority of the 13.39% of respondents that answered with ‘it depends’ said that a country’s wealth being generated from its abundance in oil would highly depend on how the revenue generated from it is managed. I did not find this response particularly surprising because the 370 respondents/non-Nigerians were mainly from countries that are not only significantly more developed than Nigeria, (e.g. the United

Andrew Walker, ‘The day oil was discovered in Nigeria’, BBC News <http://news.bbc.co.uk/9

1/hi/world/africa/7840310.stm> [accessed 17 March 2016].

Kingdom, United States of America, United Arab Emirates), but have much lower government corruption and therefore they are bound to see the world in a completely different perspective to an average Nigerian like Chief Moses or Chief Sunday. I still believe that this is very significant though, because their response can almost be added to one of the big changes the Nigerian government have to make, (manage the revenue generated from the oil better), in order to enable the country to be wealthy.

The most striking part of this set of results for this question was the 30.87% difference between the amounts of, the 366, non-Nigerians that believed a country’s abundance in oil automatically causes it to be wealthy and those who did not believe so.

Although these sets of results for this question have supported my hypothesis, it still has not necessarily proved it. This is because majority of the respondents that answered this question are from countries that are not abundant in oil, like Nigeria is, and neither had their ancestors and foreign-explorers promised them wealth, from the abundance, like the Nigerians were.

Also, the use of the word ‘think’, in this question, enables the true views of the non-Nigerians to be seen; which have been proven to be different to that of Nigerians.

Therefore, the reliability of the results from just this one question alone had now evidently proven to not be sufficient enough to prove my hypothesis. However, with the accounting of the remaining questions in upcoming parts in this project, this might change.

Section 1.20 – Problems caused by Nigerians

Many citizens of Nigeria have failed to see that they have actually contributed to Nigeria’s prolonged development; instead, they have always seemed to blame the government and foreign explorers/exploiters for all of Nigeria’s misfortunes and prolonged development.

The state has accused military groups of oil bunkering - “hacking into pipelines to steal crude then refining it or selling it abroad” . Nigeria’s Finance Minister, Dr. 10

Ngozi Okonji-Iweala indicated that Nigeria loses more than $1 billion a month to oil bunkering alone. 11

Akintunde Akinyele, ‘As oil ‘bunkering’ rises in Nigeria, thieves say they have no choice’, 10

The Globe And Mail <https://beta.theglobeandmail.com/report-on-business/international-business/african-and-mideast-business/as-oil-bunkering-rises-in-nigeria-thieves-say-they-have-no-choice/article7435665/?ref=http://www.theglobeandmail.com&> [accessed 5 November 2017].

William Wallis, ‘Nigeria losing $1bn a month to oil theft’, Financial Times <https://11

www.ft.com/content/61fb070e-bf90-11e1-a476-00144feabdc0> [accessed 5 November 2017].

“Militants blew up strategic gas and crude pipelines belonging to Shell and Agip … in an increasingly fierce campaign that has chopped Nigeria's oil production in half, militants and residents said. ” – These militants call themselves the Niger Delta 12

Avengers. The Avengers, who have threatened oil firms to leave the state, say they want independence for the Delta . 13

� Figure 2 - An image of vital oil and gas assets in Delta State that were blown up by suspected militants

These militants, and many other Nigerians, have been tainted by the media and judged by many people to look like the ‘bad guys’.

Let’s take an average non-Nigerian for example - someone who has little to no knowledge of the developing country. This person would take a glance at all this violent behavior and be quick to judge the people of Nigeria as the sole cause of their country’s downfall. This is because all this average foreigner can see is the country being given the privilege of a having foreign explorers and businesses willing & wanting to put Nigeria’s natural resources to good use. Therefore, the need for such violence behavior is of no understanding to this foreigner. What I would say to such a person is that ‘there is more than what meets the eye’. This is because we are comparing firms like Shell, that have tirelessly tried to keep a clean profile, to some Nigerians that have been associated with many cases of violent behavior. Therefore,

Associated Press, ‘Nigerian oil production halved as militants blow up pipelines’, The 12

Telegraph News <http://www.telegraph.co.uk/news/2016/05/28/nigerian-oil-production-halved-as-militants-blow-up-pipelines/> [accessed 3 November 2017].

Tife Owolabe, ‘Nigeria militants blow up gas, oil pipelines: community leader’, Reuters 13

<http://www.reuters.com/article/us-nigeria-oil-attacks/nigeria-militants-blow-up-gas-oil-pipelines-community-leader-idUSKCN0YI0YG> [accessed 4 November 2017].

in this situation, of course the Nigerians will look like the ones in the wrong. This is not to imply that I agree with/promote such violent behaviors; as I do believe that the militants could have addressed their point in a better/more peaceful way. But, we must not forget that these are citizens with opinions and views that have evidently been neglected since Nigeria’s colonial years. Therefore, since they have no real platform for expressing their views of what goes on in their own country, they must see no other way but to exhibit such violent behaviors in order to get the attention. In support of this, one of the Niger Delta Avengers publically told Chevron, (one of the oil companies in Nigeria), that “if you continue to undermine us and go ahead with the repair works [of the blown pipelines] you won't see us coming but we are coming for you." 14

� Figure 3 - An image of Chevron's main pipeline that was bombed by Niger Delta Avengers

Section 1.30 – My blueprint to Nigerians

To Nigerians: As a Nigerian myself, I truly understand the reasons for your anger. But violent actions will not enable Nigeria to develop; instead, it causes the country to retrogress. Therefore, you have to make actions in the most sensible but most effective way.

‘Chaos In Delta State As Niger Delta Avengers Bombs Chevron’s Main Electricity 14

Pipeline’, Gistmania <http://www.gistmania.com/talk/topic,295938.0.html> [accessed 7 December 2017].

For example, not only do we have the power to choose our president, in general elections, but we also decide who governs our states as well. This is a very significant task that we are given as citizens; therefore, we must use this power for the greater good by determining who runs our country. You should never be discouraged to vote; even if you feel like your vote will not make a difference or that the electoral system is not legitimate.

In addition, the Independent National Electoral Commission of Nigeria (INEC) has promised a clean ballot for future elections . As citizens, we can contribute to the 15

successful continuation of this proposal by doing something similar to what

Transparency International Slovenia produced. To monitor local elections, Transparency International Slovenia produced an interactive map that the public populated with pictures and reports of potential irregularities in the election. As a result, cases of public funds being misused to support certain candidates were spotted. I’ve emphasized on the word ‘public’ to show what a massive impact we 16

can make to our economy without the need of violent behaviors. Also, this way, we are showing our prospective governors and/or president that we take the ruling of our country very seriously; which should then leave little/no room for corruption to occur. Finally, the use of this interactive map would also be an effective way for us to ensure that our ballot is ‘clean’/to make it ‘clean’ – and in turn this should produce the same/similar results that Slovenia has seen with the use of its public funds.

B) The Nigerian Government

Section 2.00 - Overview

According to The Embassy of Nigeria, “Nigeria is a federal republic with a presidential system. The constitution provides for separation of powers among the three branches of government. ” These three distinct branches include Legislative, 17

Executive and Judicial. Each one of Nigeria’s 36 states has a designated governor.

Also, in order for someone to become a governor, they need compete with other prospective governors by undergoing an election; which the public will carry out.

‘How Nigeria’s presidential election works’, BBC News <http://www.bbc.co.uk/news/15

world-africa-31111572?> [accessed 5 November 2017].

‘How To Stop Corruption: 5 Key Ingredients’, Transparency International <https://16

www.transparency.org/news/feature/how_to_stop_corruption_5_key_ingredients> [accessed 5 November 2017].

‘Government & Politics’, The Embassy of Nigeria <http://www.nigerianrome.org/about-17

nigeria/government-politics> [accessed 30 November 2017].

The government plays a key role in Nigeria’s oil and gas industry especially because it is one of the most successful industries in the country and they also own all the oil & gas reserves in Nigeria.

The Nigerian government have had a long reputation of being very corrupt. This is definitely true. But in this part of this project, I hope to show Nigerians that this prejudice view of the government does not apply to all members of the government; as some are not corrupt – but rather, they try and help the country and achieve what they promised during their election period.

Section 2.10 – My survey (part II)


Question 4 – states, ‘How do you think a country could use its oil wealth to generate significant economic growth?’ The response that really stood out to me was that of the ‘refining/purifying the oil within the country before trading (decreases costs)’ - 24.04% of the 366 non-Nigerians made this their answer to the question. I was surprised at how only a fairly small percentage of the respondents/non-Nigerians, relative to some of the other responses, agreed to this solution for generating a significant economic growth in an oil wealthy country. This is because I strongly believed that if an oil rich country were to be refining its own oil, then the country would be better off; as it creates opportunities like jobs.

In addition, after noticing that the majority of my respondents did not respond to this question the same way that I did, I began to realise that maybe it was because of the vast difference in countries that we grew up in. This is because, as mentioned in Section 1.10, some of these respondents are from countries like the United Arab Emirates; that have always refined their own oil, but I am not. Therefore, one conclusion is that they might be underestimating the importance and benefit of them being able to refine their own oil.

Furthermore, I decided to see if another Nigerian, like myself - who hasn’t grown up in a country that refines its own oil - thought the same as I did. The Independent Petroleum Marketers Association of Nigeria (IPMAN) President, Mr. Chinedu Okoronkwo, once stated, “I don’t know if there is any country that produces the kind of oil that is produced in Nigeria that refines its products outside its own shores. For me, it is kind of illegal. This is most inexcusable because we have turned this nation into a laughing stock…Why is it that we can’t refine this oil here? ” 18

Sylvester Ugwuanyi, ‘It is shameful for Nigeria to refine locally produced crude oil abroad 18

– Dogara’, Daily Post <http://dailypost.ng/2015/07/14/it-is-shameful-for-nigeria-to-refine-locally-produced-crude-oil-abroad-dogara/> [accessed 9 December 2017].

� Figure 4 - IPMAN National President, Chinedu Okoronkwo

Question 6 – states ‘If you were the president of a country that had recently discovered its oil, what would you do? (Please answer truthfully)’. The results from this question enabled me to see whether the views of the respondents about what the president of Nigeria should have done at that time, compared to what the president actually did. 318 out 367 respondents/non-Nigerians answered this question by saying that they would ‘Seek professional advice’.

During the time of the oil discovery, (1956), Nigeria was still colonized by the British and there was not a title as president. The alternative of a president today in that era had a title as Governor-General of Nigeria.

When oil was first discovered in Nigeria in 1956, the Governor-General of Nigeria at the time was Sir James Wilson Robertson; who represented Queen Elizabeth II. He was the second and last British Governor-General of Nigeria; as Nigeria gained independence, (from the British), in 1960.

I completely agreed with the action that majority of respondents answered to question 6 of the survey, (to ‘Seek professional advice’); as I thought it was the most sensible way to benefit the country as a whole. I hoped to find that this was the actual action that was executed by Sir James Wilson Robertson during the time in which the oil was discovered. During the day of discovery, Sir Robertson did contact the Queen and informed her of the news and was advised by her and her supervisors on what action

Figure 5 - A picture taken of Queen Elizabeth and Sir James Wilson Robertson on the same month in which Shell D’Arcy discovered oil in Oloibiri, Nigeria (January 1956)

he should take next. This could be seen as him seeking professional advice.

According to the book titled ‘The Politics of the Global Oil Industry: An Introduction’, by Toyin Falola and Ann Genova, the British had already owned substantial shares in Shell and BP , (multinational oil and gas companies), before the 19

discovery even occurred. They also sponsored Shell-BP’s exploration in Nigeria and 20

granted an exploration license to Shell D’Arcy in 1937.

Section 2.20 – Problems caused by the Nigerian Government

I believe that the government definitely plays a key role in the oil industry of Nigeria, even Chief Ingenite - who was introduced in Section 1.00 of this project - agrees. This is because in that same interview with BBC News, he said “I don’t only blame the whites that came here, what about the government?...People in the government get nearly all the money from the economy.” 21

One on the best ways to see if a developing country is actually progressing/developing is to compare it with other countries that are already developed.

Let’s take a look at the ownership of the natural resources in the United States of America. I found out that both land and the natural resources, (like oil, gas, coal, and other minerals found below the surface), can be owned by private individuals and corporations, as well as federal, state, local and tribal governments . However, 22

according to Thomas Reuters Practical Law, the “federal government [of Nigeria] owns all oil and gas reserves in Nigeria.” This may be one of the many reasons why 23

some Nigerian Government officials have the opportunity to be very secretive/not transparent with their transactions regarding crude oil and the revenue generated from it.

Nigeria has been ranked very low, in several corruption indexes, compared to the United States of America. An example of one of these indexes would be Transparency International’s 2016 Corruption Index; sections of it are shown in Table 1 and 2 on the

Toyin Falola and Ann Genova, The Politics Of The Global Oil Industry: An Introduction, 19

(Westport, Connecticut: Praeger Publishers, 2005), p. 199.

Toyin Falola and Ann Genova, The Politics Of The Global Oil Industry: An Introduction, 20

(Westport, Connecticut: Praeger Publishers, 2005), p. 199.

Andrew Walker, ‘The day oil was discovered in Nigeria’, BBC News <http://21

news.bbc.co.uk/1/hi/world/africa/7840310.stm> [accessed 7 December 2017].

‘Ownership’, Revenue Data <https://revenuedata.doi.gov/how-it-works/ownership/> 22

[accessed 30 November 2017].

Soji Awogbade, Kofoworola Bamgbose and Otasowie Izekor, Aelex Legal Practitioners and 23

Arbitrators, ‘Oil and gas regulation in Nigeria: overview’, Thomson Reuters Practical Law <https://uk.practicallaw.thomsonreuters.com/5-523-4794?transitionType=Default&contextData=(sc.Default)> [accessed 3 December 2017].

following page. Table 1 shows Nigeria’s 2016 ranking at 136 (the higher the number, the higher the level of corruption is perceived to be). Even though 136th place is not the lowest on the index, it is still a very high number compared to that of countries further above Nigeria like the United States of America. Table 2 shows the United State of America’s 2016 ranking at 18. Again, 18th place is not the highest on the index, but it is still a very low number compared to that of countries below it like Nigeria.

Furthermore, to check the reliability of this information provided by Transparency International’s Index, I looked at another index to see if they ranked Nigeria and the United States of America the same way that Transparency International did. I found that Trading Economics’ ranking for Nigeria and the United States of America’s agreed with Transparency International’s.

Table 1 - A section of Transparency International's 2016 Corruption Perceptions Index table

Table 2 - A section of Transparency International's 2016 Corruption Perceptions Index table

Not only does the Nigerian government own all the oil and gas reserves in the country, but they also get tax and royalties on the oil in which the oil companies produce. According analysts at Standard Bank, the Nigerian Government is also “a majority shareholder in Nigeria’s oil industry and [have] made over $1.6trillion in revenue over the last 50 years”. The government being a majority shareholder in Nigeria’s oil industry is not a good thing. This is because it automatically causes the government to be very reliant on the revenue generated from the trading/transactions involving the oil. This is proven as Nigeria depends on exports of crude oil for approximately 70 percent of government revenue . Omolade Adunbi has approved 24

the reliability of this statistic; as he stated that oil exports accounted for 70.9% of 25

the government’s revenue, in 2011 alone. In addition, the Nigerian government being highly dependent on oil revenue is very risky; as if anything happens to the country’s oil revenue, then the government will be heavily impacted and – in turn – the economy will suffer even more. This was evident in Omolade Adunbi’s book, ‘Oil Wealth And Insurgency In Nigeria’ - Adunbi

‘Nigeria – Executive Summary’, Export.gov <https://www.export.gov/apex/article2?24

id=Nigeria-Executive-Summary> [accessed 7 December 2017].


2015), p. 44

mentioned how after the 2007 election, some militants were contacted to put an end to the Niger Delta conflict. He also went on to say that “oil revenue was already low 26

because militancy had drastically cut production [due to blowing of the pipelines addressed in Section 1.20 of this project]; therefore, the only way for the state to guarantee itself access to spaces of wealth was to find a way to end the conflict. ” In 27

my opinion, a government is meant to be one of the most powerful authorities in a country, but the Nigerian government’s sole dependency on the country’s oil has caused/is causing them to be prone to ‘bowing down’ to militants’ demands.

According to BBC News, “most Nigerians live on less than $2 a day” and the 28

government does not seem to be doing anything about it – or rather, their efforts have not been significant/effective enough. This can be very upsetting for those Nigerians, especially because their government has made over $1.6trillion since the oil discovery but they – as the citizens – do not seem to significantly benefit from this large sum of money. Therefore, it is evident that the government definitely does have the money to provide aid to such people, but they have not. The oil industry is still yet to make a significant impact on the country’s Economic Development – by improving the living standards of the average Nigerian. A recent World Bank Report (2007) on the country said, “At present, petroleum remains a typical enclave industry whose contribution to the Nigerian economy is limited largely to its contribution to government revenue and foreign exchange earnings” (Chris 2009, p.16). 29

Section 2.30 – My blueprint to the Nigerian Government

To the Nigerian Government:

I acknowledge that out of all of the government officials, there are some genuine officials who have done nothing but work tirelessly in order to fulfil the promises they made during their elections – usually to improve Nigeria and the lives of the people in it. However, their positive actions seem to have been overshadowed by the dominance of the actions performed by the corrupt government officials.


2015), p. 211.


2015), p. 211.



Chris, C. I. 2009, ‘The Effects of Oil Revenue on the Nigerian Macro-economy: The 29

Nigerian Curse!’, M.A. dissertation, The University of Aberdeen, viewed 9 December 2017, <https://www.slideshare.net/ChrisIbekwe/the-effects-of-oil-revenue-on-the-nigerian-macroeconomy>.

In agreement with journalist Jasmine Buari, I believe that one of the most genuine and significant governors that Nigeria had the opportunity of having was Mr. Babatunde Raji Fashola; who was the governor of Lagos State, Nigeria from 29 May 2007 – 29 May 2015. One of his accomplishments that was highly praised by Jasmine Buari, was his impact on Nigeria’s rural sector. He helped to construct access roads to link up villages and finished over 110 rural development projects under rural water and sanitation structure . Ever since the country’s oil discovery, the citizens in rural areas 30

have particularly become worse off as the country moved away from subsistence agricultural; since the oil sector appeared to be more profitable . Therefore, this good 31

deed in which Fashola performed will open up opportunities for those citizens - who are still in the agricultural sector - to transport their trade more easily.

As a government, you need to come together to help and empower each other to improve Nigeria and the living standards of its people. Even though Fashola is no longer a governor, there are still many others in power like him and that can not change the country completely on their own – but if you all partner together in legitimate actions, there will be a drastic change in the country; which will be recognised and gratified worldwide. When Fashola was in power, he did help make transportation of harvest a lot easier, but there were still other problems associated with the transportations of agricultural goods. For example, in many rural areas of Nigeria, illegitimate police officers set up checkpoints to try and extract money from people driving by, (traders in particular). A woman once told Omolade Adunbi that “the police knew when traders use the road, so they set up checkpoints to extort money from them, thereby reducing our profit margins.” This just proves that even 32

though Fashola’s input on the construction of roads significantly helped trading, it still was not enough. This just comes to show that a country in desperate need like Nigeria will only benefit from a united legitimate government system; in which each governor’s input will make a significant change to the country and the living standards of its people.

As well as my advice for governors to support one another in your legitimate actions, I also think that it will be very beneficial for them to empower the citizens as well to help our country. For example, Aliko Dangote, (the richest man in Africa), is a Nigerian citizen who is currently building a refinery in Lekki, Lagos Nigeria; which is planned on being completed by 2019. According to Dr. Ibe Kachikwu, Minister of State for Petroleum Resources, the Federal Government will support Dangote through

Jasmine Buari, ‘5 Achievements Of Babatunde Fashola As Lagos Governor’, Naij.com 30

<https://www.naija.ng/318626-5-achievements-of-babatunde-fashola-as-lagos-governor.html#318626> [accessed 11 December 2017].

L. N. Chete, J. O. Adeoti, F. M. Adeyinka, and O. Ogundele, ‘Industrial Development And 31

Growth In Nigeria’, Lessons and Challenges, No. 8, pp. 1.


2015), p. 98.

policies that will liberalise the market. Nigeria will heavily benefit from this 33

refinery; as the country currently spends a lot of money exporting its crude oil in order for it to be refined abroad and then having to import the refined products back into the country. In the past, when the Federal Government is said to be supporting its citizens, it happened to be only a small minority of government officials that did so. But the more of these governors that come together and support the citizens, the more likely positive things - like the construction the Dangote refinery - will occur.

� Figure 6 - Babatunde Raji Fashola (right) and Aiko Dangote (left)

C) Multinational (And Domestic) Oil Companies

Section 3.00 – Overview

“Multinational companies in Nigeria spread across various platforms and lines of production from Oil and Gas…and they boast some of the highest paid workforce in Nigeria. Multinationals also allow the opportunity of career expansion for employees and a very constructive working environment. ” These oil and gas companies include 34

Shell, Chevron, Mobil, Addax, ENI (Sapiem), Baker Hughes, Schlumberger, Total

‘Kachikwu assures Dangote’s $18bn refinery of govt. support’, Vanguard < https://33

www.vanguardngr.com/2017/07/kachikwu-assures-dangotes-18bn-refinery-govt-support/> [accessed 11 December 2017].

‘Multinational Companies in Nigeria: The Ultimate List’, Nigerian Finder <http://34

nigerianfinder.com/multinational-companies-in-nigeria/> [accessed 11 December 2017].

and Halliburton Energy.

Out of these multinational companies, I will be mainly targeting Shell in this project. This is because Shell, in particular, has made the most impact to Nigeria (both positively and negatively); especially because they were the ones who discovered the oil in Nigeria in the first place.

Section 3.10 – My survey (part III)


Multinationals choosing to legally trade with a country’s natural resources appears to be a good thing for the country. However, this is not always the case; as Nigerians evidently show in Section 1.00. With the aid of my survey, I wanted to see if people from other countries thought the same.

Question 7 – states, ‘Do you think Oil Wealth in a country can be a bad thing?’ I was not sure how the majority of the respondents would answer this question. This is because; some of the respondents are from the United Arab Emirates whom I would expect not to say that oil wealth in country could be a bad thing; as it has drastically benefited the development of their country. However, it turned out to be that 271 out of 368 the respondents that answered said ‘Yes’. This result may be due to many of the respondents’ knowledge the drawbacks an abundance in resources has done to many countries, especially those in Sub-Saharan Africa.

Question 10 – states, ‘If the oil in a country is located in a sparsely populated village, surrounded by locals who believe the oil belongs to them, what should eager companies like Shell (a multinational oil and gas company) do to get the oil?’ Many of the respondents, (143/368), said that Shell should ‘bribe the locals’. I, on the other hand, do not think that this method is most long-term effective way of getting the oil. Yes, bribery of locals was undoubtedly executed by Shell when the first successful extraction of the oil in Oloibiri, Niger Delta - in January 1956 by Shell D’Arcy – occurred. This made the locals happy for some time, (in the short term). However - as years went by, because the wealth in which they were promised was not seen - they began to feel betrayed and therefore, this resulted in violent behaviors occurring; like those described in Section 1.20 of this project. Therefore, even though the majority of my respondents and Shell felt/feel that bribing the locals was/is the best way to get the oil - from the land of the locals; in which it lies below – it actually is only effective in the short run and problems will arise in the long run if the locals do not see the wealth that they should be receiving.

Section 3.20 – Problems caused by Shell

Shell has contributed to many of Nigeria’s fortunes, like increased in government revenue and provided lots of job opportunities, but Shell also caused the country and its people many misfortunes; such as the oil spills and gas flares.

Bradford Houppe, Vice-President of the Ethical Affairs Committee at Shell, publically made an apology to the people of Niger Delta at a conference in 2010. In the apology, on behalf of Shell, he said:

“I’m proud to say that we make a symbolic new start by saying to the people of the Niger Delta we are sorry. We are sorry for the oil and gas spills that have made your rivers toxic. We are sorry for the gas flares that stink up your villages. We are sorry for the fact that you cannot eat your fish that you grow on your land and that you cannot drink your water…[in] Shell’s annual general meeting on Tuesday May 18th [2010] in The Hague, we will begin [the] programme there by presenting a comprehensive plan of action for the Niger Delta. ” 35

This was a very good way to move forward, better the company’s reputation as well, as well as making the Niger Delta environment better. However, even after this apology in 2010, the problems that were addressed in it seem to have been magnified in the Niger Delta region, rather than resolved.

There have still been many oil spills in the Niger Delta region; in which Shell are still not willing to take responsibility for. For example; in 2014 VOA News did a report on how Shell blames thieves for an oil spill that happened in the region. In the same report, Jurgen Janzen - assistant manager of the Trans Niger Pipeline - said that thieves cracking open 24-inch pipe in an attempt to syphon off the oil caused the leak and he also went on to say that this wasn’t the first time that this has happened. 36

Shell is also associated with a policy known as the ‘revolving door policy’. The “revolving door” of politics is a means by which government officials leave office to become lobbyists, and by which lobbyists become government officials – presents problems for modern democracies that largely go unrecognized and unaccounted. Majority of these lobbyists include those who would have worked within the government’s upper ranks. “Ministers from the UK’s Foreign Office (FCO) also 37

agreed to lobby the Nigerian Government to protect Shell’s oil interests in the Niger

[shellapologises]. (2010, March 28). Shell: We are sorry [Video File]. Retrieved from 35

https://www.youtube.com/watch?v=zciWUOrIUqo

Chris Stein, ‘Shell Blames Thieves for Recent Oil Spills in Nigeria’, VOA <https://36

www.voanews.com/a/shell-blames-thieves-for-recent-oil-spills-in-nigeria/2550403.html> [accessed 18 January 2018].

‘Top Industries’, OpenSecrets <https://www.opensecrets.org/revolving/top.php?display=I> 37

[accessed 18 January 2018].

Delta despite the company’s poor human rights and environmental record in the region ”. 38

This is almost like a mind control game in which Shell indirectly gets the highly ranked government officials to do things like passing laws that are in the company’s best interest. This is why John Donovan describes these government officials as “puppets” in an extract titled “Kiobel Writ: Shell and the murderous Abacha regime 39

operated in tandem”.

Section 3.30 – My blueprint to Shell

Dear Shell,

I know that you strongly believe that you have helped Nigeria grow in many ways since the day you discovered the oil there. However, it just appears to be that you are benefiting more than they are and therefore many Nigerians have become rebellious and show hatred towards you because of it. Also, many Nigerians - especially those in Niger Delta - feel like they trusted you with their resources and the only people that seem to be benefiting from the oil revenue are you and the Nigerian government.

Your company has been accused of destroying a large part of Niger Delta’s environment/farmland with the help of gas flaring and countless oil spills. According to The Guardian, you have also been accused of “breaches of safety, human rights abuses, destroying lives, hiding information and blaming locals for oil pollution in Nigeria. ” Peter de Wit, Shell Holland’s president at the time, denied these 40

accusations and instead argued that you had provided “thousands of well-paid jobs, brought know-how, education and technology and had launched numerous

Chloe Farand, ‘Nigeria’s Government to Protect Oil Giant Shell’, DeSmog UK <https://38

www.desmog.uk/2017/01/24/revealed-uk-ministers-lobbied-nigeria-government-protect-oil-giant-shell> [accessed 18 January 2018].

John Donovan, ‘Kiobel Writ: Shell and the murderous Abacha regime operated in tandem’, 39

Royal Dutch Shell Plc .com <http://royaldutchshellplc.com/2017/07/31/kiobel-writ-shell-and-the-murderous-abacha-regime-operated-in-tandem/> [accessed 18 January 2018].

John Vidal, ‘Shell: Clean-up goes on for Niger Delta – and oil company’s reputation’, The 40

Guardian <https://www.theguardian.com/business/2011/feb/03/shell-nigeria-analysis-environmentalist-criticisms> [accessed 16 January 2018].

community projects in the West African nation. ” I choose to believe the 41

contributions to the country in which Peter de Wit said Shell has made. However, I do believe that many the accusations against your company is true but not all of them because there has been evidence found that many Nigerians, (particularly the locals and Niger Delta Avengers that were introduced in Section 1.20 of this project), have illegally stolen some oil and sold it on black markets. Your head of exploration at the time - for sub-Saharan Africa - Ian Craig agreed with me by acknowledging that “[you] do bear some responsibility, but [you] cannot bear it entirely ”. 42

I believe that the best way for you to better your reputation across the country is to help clean up the damages that you have contributed to. I acknowledge that you have made some efforts to, but it appears not to be significant enough since more accusations are still being made towards you day by day.

Also, in 2011, Peter de Wit mentioned that your company has generated thousands of well-paid jobs to the country. To check the reliability of this information, I decided to look for data - during periods around 2011 - that back up his statements. Figure 6, (on the following page), is a graph from the Researcher and it shows the trend of unemployment by states in Nigeria. The graph shows that unemployment in Niger Delta had actually increased drastically between 2010 (10%) and 2011 (45%).





!

Figure 6 – Trend of Unemployment by States in Nigeria. Source: Researcher.

The graph, (above), Chief Inengite and Chief Moses (from Section 1.00) are all evidences that the thousands of well-paid jobs in which Peter de Wit says that you created definitely did not go to the locals of Niger Delta – but instead must have gone to Nigerians that were already educated and probably financially stable in bigger cities like Lagos and Abuja. This was not what the Nigerian ancestors envisioned; they promised the wealth to everyone in the country – but instead, it appears to be that the rich are getting richer and the poor are getting poorer.

To amend this, the locals need to be provided with more job opportunities by you. I acknowledge that many of them do not have the right qualifications/skills you might require for most jobs that you provide. However, you can help to train/educate them to enable them to be fit for the job. You might disagree with this as it will increase your costs, but you must remember that you are operating on their land, contributing to the destruction of it and causing them to be unable to farm on it and earn an income. Therefore, to avoid social unrest like those mentioned in Section 1.20 of this project, you should try to provide the locals of Niger Delta with training and (fairly well-paid) jobs.

Section 3.40 – My interview

[For this section refer to, all of APPENDIX 1, a transcript of my interview with

Unemployment (%)

Years

Seplat]

One of my intensions for this project was to find out the whole economy’s view on the oil industry in Nigeria. Therefore, after evaluating the views and actions of a multinational companies like Shell and that of the locals of Niger Delta, I decided that it would be a good decision to find out what a domestic oil firm like Seplat also thought about the oil industry in Nigeria; how it has affected them and how they have also impacted the country. Seplat is a domestic Nigerian-based upstream exploration and production company whose focus is on Nigeria . 43

My interview, with Olusegun Okindoye (a staff at Seplat), covered many areas of Nigeria’s oil industry; from the discovery of the oil to the depletion of it. One of the most striking parts of this interview is the significant amount of references to the Nigerian government, even during times when the question asked did not directly refer to the government. This shows that the government does play a key role in the Nigerian oil industry; especially because they own all the oil and gas reserves in the country.

An extract of the interview, from APPENDIX 1, is shown on the following page. Okindoye (the interviewee) answers the question with ways in which he believes the oil in Nigeria could potentially cause wealth across the entire country. He says that “its our attitude towards it” and that “the way we spend that wealth does not translate to development”. I completely agree with him, in the sense that money/revenue management is key to a developing country like Nigeria; as the country needs to use the money very carefully/effectively in order to help with its development. This is where the role of a legitimate government comes in – but many corrupt government officials do not appear to have this objective for the country in mind.

The most striking part of his answer to this question is his comment on the fact that “now the wealth is going away, we need to do things differently: we need to be prudent in our budgeting, we need to be prudent in the project execution, we need to be prudent in our expenditures so that the wealth will not finally go.” This is very important, as a large proportion of Nigerians believe that the wealth is always going to be there. This is not true, because the country’s natural resources will undoubtedly

‘About us’, Seplat <https://seplatpetroleum.com/about-us/> [accessed 18 January 2018].43

become used up in the future. Therefore, it is of high importance for us to manage the wealth properly and not misuse it. However, there is a comment - in this extract of the interview below - which Okindoye made that is not a positive thing about the country’s oil:

He mentions the fact that “the Nigerian economy is dependent on oil, for now, and it is an easy way to make wealth.” This can be a good thing because wealth can be generated quickly from the sales of the oil. But it can also be a bad thing. This is because a country being dependent on one sector for wealth means that they are highly at risk; as, in Nigeria’s case, if anything happens to the oil reserves then the country will greatly suffer and the low-income groups will experience poverty at a more magnified level.

“Interviewer:Do you feel that oil could have potentially caused a lot of wealth in Nigeria, like it has in other countries like the UAE?

Interviewee:It’s our attitude toward it. The Nigerian economy is dependent on oil, for now, and it is an easy way to make wealth. But the way we spend that wealth does not translate to development. The amount of money we’ve realised from the oil, we can’t see the same trend in terms of infrastructure. So we have the wealth, we have the resources. Nigeria is even richer in gas than oil, Nigeria is more of a gas country than an oil country but yet our interest in the gas is still very low because the legal framework to get it viable has not been put in place. So we like quick money, and the oil is giving us quick money; which is also wealth. But we need to see that translate into the life of common Nigerians.So it is the oil that is responsible for our wealth from the 60s to 70s & 80s. But as of today, now that the oil prices have fallen, you can see the recession that we’ve just finally found ourselves.So now the wealth is going away, we need to do things differently: we need to be prudent in our budgeting, we need to be prudent in the project execution, we need to be prudent in our expenditures so that the wealth will

not finally go. ”

MY ANSWER:

After researching the three main obstacles that I feel have prolonged Nigeria’s development with its oil industry- the Nigerian Citizens, the Nigerian Government and the Multinationals – I strongly believe that the Nigerian Government is the main obstacle, because a government is meant to be one of highest authorities ruling a country and they are of high importance. Therefore, if they do not use their power effectively - or rather – abuse their power in any way, then the country will feel the collateral damage in high magnitude, (especially if the country is a developing country, like Nigeria).

Abuse of Power & Ineffective Use of Power: The evidences described in Section 2.20 are only some examples of bad governance that has been exhibited by the Nigerian Government on the Nigerian economy. With all other factors being stable (e.g. violent Citizen behaviours), any corruption made by the government will harm the country. This shows how important good governance is for a country.

In Nigeria, in order to become a governor of a state or a President, you would have to be voted in by the general public. The public know that they cannot fix the country on their own, especially with such high levels of corruption by the government going on behind their backs (Nigeria’s Corruption Perception Index is 136 according to the table in Section 2.20). However, even with such high levels of corruption, each state must have a voted governor by law. Almost all the governors that were voted in have not kept to their word/what they proposed during elections to the public. Therefore, over the years, this has caused more and more people to be discouraged to vote; as they believe that either their vote does not count and/or they do not believe what prospective governors propose during election periods anymore; as they have been betrayed too many times before already by other government officials.

One of my main reasons as to why I think the Nigerian Government is mainly to blame for the poverty seen across the country is because of their abuse of the power in which the public have trusted them with (this also applies to the any President that contributed/contributes to the negatives in the country). For example - Nigeria’s

current President (in 2018) - Muhammadu Buhari once said at a conference in Washington DC that constituencies that gave him 97% votes cannot be treated equally with those that gave him 5% votes. This statement did not make that election appear 44

to be very legitimate; as out of fear, many people voted for him whom may not have even wanted to. Buhari is a former military dictator who had already ruled the country (from 31 December 1983 – 27 August 1985) and now resumed office on the 29th of May 2015 “as Nigeria’s democratic saviour ”. During his first time ruling, Buhari 45

tormented and sent hundreds of innocent people to prison. This is an example of abuse of power.

My other main reason as to why I think the Nigerian Government is mainly to blame for the poverty seen across the country is because of their ineffective use of power. A good example of this is the President’s inability to control the high levels of corruption/theft taking place by government officials below him. I have always made the judgment that the President is the most powerful authority in the country; therefore he should have the power to control governors. However, the Daily Maverick disagrees as they state that “in some ways, given Nigeria’s immense size and population, state governors are more powerful than the president himself, especially when it comes to issues that directly impact on the daily lives of citizens – such as infrastructure development and service delivery. In Nigeria’s federal system, governors are primarily responsible for implementing policy, which gives them huge leeway to develop and interpret it as they wish” . Even with this new learned 46

information, I still believe that the President can still do something to stop at least some of the corruption/theft being executed by government officials.

Another example of ineffective use of power by the Nigerian government was seen by the removal of fuel subsidies in the country by Buhari’s government. One of their reasons for doing so was because “Nigeria [had] spent an excess of $5billion (4.3 billion euros) on keeping fuel subsidies… [and]… the process of subsidizing the petroleum industry was corrupt and hugely inefficient” This caused prices of fuel at 47

petrol stations to increase rapidly and many citizens and businesses that required

[chidinma onyejuwa]. (2015, July 23). Muhammadu Buhari Says He Will Treat Nigerians 44

Who Did Not Vote For Him Unequally [Video File]. Retrieved from https://www.youtube.com/watch?v=ZYUBTU2ZgFY

Monica Mark and David Smith, ‘How a former military dictator was reborn as Nigeria’s 45

democratic saviour’, The Guardian <https://www.theguardian.com/world/2015/apr/01/nigeria-reacts-to-muhammadu-buharis-election-win-lets-hope-he-does-the-people-proud> [accessed 15 January 2017].

Simon Allison, ‘Nigeria: Are state governors more powerful than the president?’, Daily 46

Maverick < https://www.dailymaverick.co.za/article/2015-04-20-nigeria-are-state-governors-more-powerful-than-the-president/#.WlwXJ0IVxFI> [accessed January 15].

Temitope Omolade, ‘Five reasons why Nigeria ended fuel subsidies’, DW <http://47

www.dw.com/en/five-reasons-why-nigeria-ended-fuel-subsidies/a-19255388> [accessed 15 January 2017].

transportation were greatly affected. Aside from this, now that the subsidies have been removed, I believe that such large sums of money, ($5 billion dollars), can now be used by the government to improve different sectors in the economy, (e.g. the education and heath sectors). However, sadly, this does not seem to be the case. Therefore this is an ineffective use of power, because if the money does not appear to be going towards improving the quality of life across the country – “with most Nigerians live on less than $2 a day” – then where is it actually going? 48

In accordance to some time of evaluation and research, my answer to this project question (“Why is Nigeria Rich In Oil, yet Poor In Wealth?”) is The Nigerian Government. For decades, generations after generations of Nigerians have been brought up with the mentality that the Nigerian Government is always to blame. My main aim for this project was to show these Nigerians that some of them are also to blame – not just the Nigerian Government and Multinationals – and that not all government officials are to blame/corrupt. Even though other people like The Citizens and The Multinationals mentioned in this project are still to blame, in my opinion, the Nigerian Government still holds the largest share of causation of Nigeria’s: misfortunes, prolonged development and poverty.



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APPENDIX 1

An interview with Olusegun Okindoye, a staff at Seplat Petroleum Development Company Plc, by Sharon Afebuameh.

Interviewer:What role do you play in this company and what do you do?

Interviewee:Okay, my name is Olusegun Okindoye. I am the Nigerian manager for eastern assets’ operation of Seplat. I manage a group of engineers who work on the facility of the oil and gas production for Seplat [...].

Interviewer:How would you describe the performance of the oil industry as a whole in Nigeria, do you feel like we have made lots of since the discovery like countries like the UAE?

Interviewee:[...]We are actually a bit developed but in another way, if you take it politically, we still have a long way to go. Let me take it one by one, for the involvement of Nigerians in the business of oil and gas industry in Nigeria, we have actually moved far from what it used to be since 1956 when oil was discovered in the Delta region in Oloibiri.Today we have Nigeria engineers that are doing things that were not done by Nigerians in Nigeria, it used to all be done by the whites: The Germans, The Dutch, The Americans but today we have Nigerian engineers that are actually managing engineering aspect of the business, even in drilling, in studying. For example, here in Seplat, all our engineers as of today are Nigerian […] So we can conclude that we have gained better insight into the business and even the running of the business the economical aspect of it is being run by Nigerians […] so we have moved a bit upward in the business of the oil and gas but if you look at it politically: Have we developed politically as related to oil and gas? No, because we still have some legal framework that is not working; which has caused the Nigerian oil and gas sector to be retrogressing.

Interviewer:What about the refinery in Nigeria, we don’t refine our own oil?//

APPENDIX 1

Interviewee:We do have our own refineries. Sadly, none of them are working

Interviewer:Okay, so we have to export?//

Interviewee://Yes, we export the crude and

import the refined product//

Interviewer://Okay//

Interviewee://So you can say that that is

the aspect of political way that I am talking about. The government doing the business of refining in Nigeria is making it not to work. The business of the government should not be enrolling the business of the refinery because it will not work. Whether the people hired by the government refine the oil in Nigeria or not, they still get paid. The Nigerian government needs to privatise that industry or sell it off or reduce their influence in the running of that sector [...] so that is what they need to do for Nigerian refineries for it to work.

Interviewer:Do you feel that the corruption form the government has caused Nigeria not to achieve a significant economic growth for years?

Interviewee:It’s a known fact that corruption is a being of Nigeria and its clear in almost every aspect of our economy. In oil and gas, there is a lot of corruption […] some government of officials would rather give contracts to their relatives, their political patronage and they don’t have the capability, those who do are not given the job […] In Nigeria, we depend on oil and so when there is a problem in the oil and gas, then the revenue of Nigeria drops significantly.Look at it today, […] a lot of billions of dollars has been allocated to Niger Delta’s resources; Niger Delta Development Commission. Yet, you cannot see any physical development and the locals get agitated and today, there is hostility in the region, production is not going –shut down, bombing of pipelines, kidnappings; all caused by

APPENDIX 1

corruption. So corruption has actually affected the development of Nigeria’s oil and gas industry.

Interviewer:How do you feel the government can help the oil and gas industry in Nigeria? Is there a way they can help significantly? Is there anything you think they should do?

Interviewee:Yes.One of the things they should do is to overhaul the oil and gas laws – liberalise it - and diverge so much power, that they are presently influencing on the oil and gas industry, away; giving room for public private partnership. What do I mean? The legal framework of oil and gas industry should be overhauled – should be rebranded. Petroleum industry bill should be passed so that more people – more private people – will come into the business and run it very well.NNPC [Nigerian National Petroleum Corporation - The Nigerian National Petroleum Corporation is the oil corporation through which the federal government of Nigeria regulates and participates in the country's petroleum industry] should be unbundled should be run as an enterprising entity, not a government ministry. This is because the country almost 80% of Nigeria’s revenue and yet they are not being run enterprisingly. We have a board that doesn’t know how to take the company form where it was, to the greater height.

So they [the government] need overhaul the legal framework, NNPC should be unbundled and set up to run effectively; like a business orientated company. Also, make sure that the Petroleum Industry bill is passed; to give more participation interest for other interested party of the public, not only the government.

Question:Do you feel that oil could have potentially caused a lot of wealth in Nigeria, like it has in other countries like the UAE?

Answer:It’s our attitude toward it. The Nigerian economy is dependent on oil, for now, and it an easy way to make wealth. But the way we spend that wealth does not translate to development. The amount of money we’ve realised from the oil, we can’t see the same trend in

APPENDIX 1

terms of infrastructure. So we have the wealth, we have the resources. Nigeria is even richer in gas than oil, Nigeria is more of a gas country than an oil country but yet our interest in the gas is still very low because the legal framework to get it viable has not been put in place. So we like quick money, and the oil is giving us quick money; which is also wealth. But we need to see that translate into the life of common Nigerians. So it is the oil that is responsible for our wealth from the 60s to 70s & 80s. But as of today, now that the oil prices have fallen, you can see the recession that we’ve just finally found ourselves.So now the wealth is going away, we need to do things differently: we need to be prudent in our budgeting, we need to be prudent in the project execution, we need to be prudent in our expenditures so that the wealth will not finally go.

Interviewer: What would you say has been the biggest problem that you have had to overcome as a business?

Interviewee:The biggest problem cannot be far fetched from attitude; Nigerian government attitude to businesses. If you operate in Delta [Niger Delta] like Seplat operates, there are a lot of bad attitudes from the host community. Apparently, it has not started today; it has started since because of the neglect of the Niger Delta […] if we want to get out of this wood we are, there is need for us to be patriotic and to put the national interest above our own interest. So for Seplat Petroleum, our biggest challenge has not been only been the community because we have some good working relationship with the community. But also the generality of what is happening in the other areas is affecting us. Presently, the pipeline that is exporting for Cano [another state in Nigeria] is shut and therefore Seplat is shut down. That is not our main aim, the areas of population where we find ourselves in; we are having a cordial relationship with the community but yet from our own boundary to the other side is chaotic – now we are shut down by what is happing to other companies like Shell. Today our biggest challenge is the resilience in the Niger Delta that is causing the blow up of pipelines.

Interviewer:

APPENDIX 1

In an industry like the oil industry in Nigeria, do you feel like there is lots of competition or is it fairly moderate?

Interviewee:It’s fairly moderate because the industry is very big. You don need to strive for number 1, what you jest need is to operate efficiently and deliver value for the stakeholder. So today the industry is not actually saturated, there’s still more room for growth and each one [company] is playing at its own area. This is because the oil industry in the oil industry – each firm – has their own outreach [...], their own operating licence and area that they are operating.So you are not actually competing per say, but will make you to stand out is how much of [inaudible], how much value you are able to produce to the stakeholder. So in term of doing that, Seplat is doing fairly fine. We are the forefront indigenous oil and gas industry in Nigeria - at least number one in Nigeria – there is no doubt about it, everywhere, everybody knows. [...] Mobil, Total, Chevron, [other oil firms] they are doing their own at their own level. So actually there is no rivalry within the industry and there is no need for it because you are not striving to take number one seat.Nobody is given an award for number one. What they are given award for is: if the company is vibrant, sustainability, delivering premium value to the stakeholders, if it’s eco-friendly; are you caring for the environment. So if there is an award, there are some indices they have to use to give award to companies. Not as ‘oh, we are the number one’. Number one in what? No. It has to be number one in delivering value, number on in eco-friendliness; that means you reduce pollution, you stop gas flaring and those are the things I think they should be looking at for when they want to judge or they want to assess a producing company.

Interviewer:Recently there has been an incident with Shell and the Niger Delta community on the news. Shell has been accused of many things; such as oil spills on the local farmland and a lawsuit has been filed against them [Shell]. If you were Shell, is there any way you would have done anything differently to avoid causing any of these problems?

Interviewee:Yes. What the Shell workers operating in Delta [Niger Delta] should do is to take the issue of environment and

APPENDIX 1

safety very serious; avoid pollution, reduce gas flaring and make the environment better than how you met it.So Shell needs to step up their environmental and safety security, to put in mind the life of the people and the ecosystem within the area of their operation. Also, [Shell] should encourage the staff and take it as a very serious issue, any spillage. They need to respond to it quickly and then make sure that it is cleaned out and the environment is returned back to the original form.

Interviewer:The oil prices are high at the moment. In what way has it affected the company’s performance?

Interviewee:[...] It’s not as high as what we used to have in 2014, 2013 when we have it $80 per barrel. Today it is about $55 which a bit higher in the recent time. But yet, it’s still okay, it will make the company to break even easily and then make sure that they are not operating under loss. But yet, we could still be better because ewe have had the era of $140 per barrel, we have seen $120 per barrel, we have seen $100, we have seen $80 dollar per barrel for a long time. So we hope that, between 50 to 60, a company should be able to operate profitably. So assuming we maintain 55 upward, [the] company will be good for it.

Interviewer:Do you do a lot of exporting or importing?

Interviewee:Export, because crude oil is export and those whole are in DOWNSTREAM [a sector at the beginning of the oil and gas production process] are the ones importing petroleum product.

Interviewer:And to which countries do you sell?

Interviewee:[...] We have a signed crude trade agreement with [both companies. It is the responsibility of those companies, who signed crude trade with us, to sell to whoever may be their customer. But you know China, India, some parts of Europe are big players among the countries that are buying Nigerian oil.So those companies, that have signed trade agreement with us, may be selling to either of those countries. I may

APPENDIX 1

not be able to say that ‘ah okay, its America that our crude goes to’, No. [...] But I know that Mercury [a multinational oil and gas company based in Nigeria] is the one that is sticking up for our crude and selling to the international market. So they may be having their customers in China or India or America.

Interviewer:Are we running out of our natural resources - like fossil fuels – oil? Do we still have a lot?//

Interviewee: //No, not at the moment. We are still discovering.

Very recently Mobil [a multinational oil firm based in Nigeria] discovered more than a billion barrels of deposit; which also boomed and increased the proven reserves of Nigeria. So Nigeria is on an upward trail, we are not in a decline for now and more discoveries are still coming up [...].

Interviewer:Okay, Thank you Sir.

27.87% 102

58.74% 215

13.39% 49

Q1 Do you think a country's abundance in oil automatically causes it tobe wealthy (e.g. the UAE)?

Answered: 366 Skipped: 4

TOTAL 366

# IF IT DEPENDS, THEN PLEASE SPECIFY WHEN BELOW DATE

1 It has to be accessible/exploitable, there has to be sufficeint investment, infrastructure adn

security to be able to use the resource

6/5/2017 2:42 PM

2 depends on how the process from drilling to selling is managed 6/3/2017 10:34 AM

3 Depends whether it exploits it for itself or outsources it to other countries, depends on trade links

with other countries etc.

5/31/2017 9:05 PM

4 It is about the use that is made of that income. Is it used to develop infrastructure and secondary

industries etc. Or is it used for very short term gain that will not increase the wealth of the

country.

5/31/2017 7:59 PM

5 Depends on the quality of oil 5/31/2017 6:58 PM

6 It depends on your definition of wealth. Like houses, locked equity if you can't access or sell it. 5/31/2017 5:01 PM

7 Whether other countries cooperate with it; also if its wealth is shared fairly across society. 5/31/2017 2:50 PM

8 when the resources are applied and utilised judiciously for the development and good of its

citizenry.

5/31/2017 11:45 AM

9 Oil price and how much oil it has. 5/31/2017 9:20 AM

10 the wealth may flow aborad or to verty few people 5/31/2017 9:19 AM

11 IT DEPENDS HOW WELL THE RESOURCES ARE UTILISED 5/31/2017 8:47 AM

12 History of the country is very important. Those who industrialised first were and are amongst the

wealthiest countries.

5/30/2017 8:37 PM

13 it depends on how they decide to use it, whether they take advantage of it or not 5/30/2017 2:00 PM

14 Depends how wealth is defined. If defined simply as GDP then yes. If wealth is measured as

average incomes then accounting for corruption and wealth distribution/income inequality is

crucial. In many countries with an abundance of oil there is usually huge income distribution

inequality with huge percentages of the population in poverty so wealth as that definition is no.

5/30/2017 12:52 PM

15 When the income from oil is properly utilized. 5/30/2017 12:29 PM

Yes No If it depends, then

please specify when

below

0%

20%

40%

60%

80%

100%

ANSWER CHOICES RESPONSES

Yes

No

If it depends, then please specify when below

1 / 16

Oil Wealth in a country SurveyMonkey

16 Depends on a) how much oil abundance contributes to overall wealth and b) what other

resources they have

5/30/2017 10:52 AM

17 markets need and transport/international relationship(Iran case) 5/30/2017 9:39 AM

18 It depends on how effectively the country is able to capitalise upon the oil to develop it's other

sectors

5/30/2017 9:21 AM

19 Depends on how the oil resources are deployed for use 5/29/2017 8:48 PM

20 If it is well managed to develop the economic standard of the country and people at large 5/29/2017 6:34 PM

21 The attitude of Leadership in managing the wealth for development and common good 5/29/2017 12:21 PM

22 It depends on how the government handles the income gotten from their oil sector 5/29/2017 11:43 AM

23 political dysfunction has been the major cause of resource rich, cash poor syndrome especially

in African states

5/29/2017 11:24 AM

24 It depends on whether oil reserves are owned by the state, and how productively and efficiently

resources are managed.

5/29/2017 9:15 AM

25 It depends how the revenue from oil is managed. Oil doesn't mean wealth. 5/29/2017 7:42 AM

26 If it's manager reasonably managed by the country of ownership 5/29/2017 6:39 AM

27 It depends on the leaders or the stake holders 5/29/2017 6:25 AM

28 If the coin rn processes it themselves 5/29/2017 2:23 AM

29 It depends on how the country uses the oil and the revenue they get from it. 5/28/2017 11:25 PM

30 It depends on how they exploit the resources. 5/28/2017 11:09 PM

31 It will cause the country to increase its wealth if the government knows to use it and trade it

correctly

5/28/2017 10:38 PM

32 How prudent the nation is. The vision of its leaders and desire of the people to protect common

wealth

5/28/2017 10:28 PM

33 Political stability and less corruption 5/28/2017 9:48 PM

34 Venezuela is extreamly oil rich and has the ability to be as wealthy as UAE but becuase it is a

socialist government it has a very poor economy

5/28/2017 9:46 PM

35 It may not be abe to sell the oil so no. 5/28/2017 9:36 PM

36 If the proceeds and applied to the development of the country and other sectors of the economy

creating more revenue streams

5/28/2017 9:07 PM

37 depends where the wealth will be concentrated and how it's distributed 5/28/2017 8:57 PM

38 how successful the use of that abudance in oil is by the country 5/28/2017 8:26 PM

39 It depends on how they manage the wealth generated from the oil. 5/28/2017 8:16 PM

40 It depends on what wealth signifies as Nigeria falls into one of those oil rich nations yet had

being lagging in many areas that money could solve, for instance, payment of salaries, basic

infrastructures and so on. It can automatically enrich any nation but it depends on how it is

utilised, as well as having the right people to manage the system

5/28/2017 8:14 PM

41 It's suppose to make her wealthy, if the resources is well managed. In the case of Nigeria, the

resources is not well managed

5/28/2017 8:02 PM

42 If people in power don't mismanage the resources 5/28/2017 8:00 PM

43 Depends on the corruptness of the state, the ability of the country to specialise in oil production

and the global price of oil

5/28/2017 7:59 PM

44 If you put it to good use it will 5/28/2017 7:30 PM

45 It depends on how resourceful they are with the oil 5/28/2017 7:20 PM

46 Nope, according to economic theory, a country's economy must diversify (produce a larger

variety of products) in order to create "wealth." I disagree that abundance in oil brings "wealth as

there are a number of factors that affect the wealth of the economy. You need to define what

wealth is, as the question you are asking is too broad.

5/28/2017 7:18 PM

47 Depends on the way they market their oil around the world 5/28/2017 7:16 PM

48 It depends on the political situation of the country eg in times of war 5/28/2017 7:15 PM

49 I guess it depends on our need of oil, hopefully in a few years this won't be assumed anymore 5/28/2017 7:05 PM

2 / 16


75.14% 275

24.86% 91

Q2 Do you think that the earlier a country discovers its oil, the earlier itseconomic growth will occur?


TOTAL 366

Yes No

0%

20%

40%

60%

80%

100%


Yes

No

3 / 16


16.71% 61

27.95% 102

55.34% 202

Q3 In what order do you think the top 10 most oil abundant countriesare in (starting from the most to the least abundant)?


TOTAL 365

Venezuela,

Saudi Arabia...

Saudi Arabia,

Nigeria, Ira...

United Arab

Emirates,...

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Venezuela, Saudi Arabia, Canada, Iran, Iraq, Kuwait, United Arab Emirates, Russia, Libya, Nigeria

Saudi Arabia, Nigeria, Iran, Iraq, Venezuela, Russia, Libya, United Arab Emirates, Kuwait, Canada

United Arab Emirates, Nigeria, Russia, Libya, Canada, Iran, Venezuela, Iraq, Saudi Arabia, Kuwait

4 / 16


38.80% 142

30.05% 110

1.09% 4

0.82% 3

24.04% 88

2.19% 8

3.01% 11

Q4 How do you think a country could use its oil wealth to generate asignificant economic growth?


TOTAL 366

# IF YOU CAN THINK OF ANY OTHER WAY THAT IS NOT MENTIONED ABOVE, THEN

PLEASE SPECIFY BELOW

DATE

1 by both trading the crude oil and also refining locally for both local and foreign consumption. 5/31/2017 11:45 AM

2 Many of the above in conjunction. Government intervention to buy oil and sell to domestic firms

for lower price will help competitiveness as cost are lower which stimulates domestic industrial

growth. Along with refining/purifying within the country adds value to the oil (cuts out the middle

man) and this will aid economic growth.

5/30/2017 12:52 PM

3 The proceeds from oil exploration should be chanelled towards diversifying the economy away

from total dependence on oil

5/30/2017 11:57 AM

4 Investing in other non oil sectors of it's economy because oil is a diminishing asset and

therefore won't last for far too long.

5/29/2017 8:39 PM

5 Using revenues collected from this to make injections into the circular flow of income, by way of

government expenditure. If their aim is to increase long term economic growth, they could use

oil revenues to invest in education etc

5/29/2017 9:15 AM

6 The first and third choice 5/28/2017 10:38 PM

Trading on

world markets

Only trading

within the...

With the help

provided by...

Trading with

only...

Refining/Purify

ing the oil...

Refining/Purify

ing the oil...

If you can

think of any...

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Trading on world markets

Only trading within the country

With the help provided by government intervention

Trading with only neighbouring countries

Refining/Purifying the oil within the country before trading (decreases costs)

Refining/Purifying the oil outside of the country before trading

If you can think of any other way that is not mentioned above, then please specify below

5 / 16


7 Investing in other sectors 5/28/2017 9:07 PM

8 Nationalising the oil industry and use profits from it to boost government investment within the

country

5/28/2017 8:57 PM

9 Form a cartel. 5/28/2017 7:59 PM

10 The UAE already traded oil globally, so that will be the competition. For you to trade globally

you need to do something that can beat your competitor. And if you're to trade within the

country you have to find away to profit from it

5/28/2017 7:30 PM

11 Nigeria is fuxken stupid they like to export the oil and buy the refined 5/28/2017 7:04 PM

6 / 16


82.34% 303

3.53% 13

3.80% 14

6.52% 24

3.80% 14

Q5 What factor do you think can limit an oil abundant country from asignificant economic growth the most?


TOTAL 368

# IF THE FACTOR YOU ARE THINKING OF IS NOT MENTIONED ABOVE, THEN PLEASE

SPECIFY BELOW

DATE

1 domination of the leading oil countries and the USA 5/31/2017 9:19 AM

2 Warfare and other civil unrests 5/30/2017 11:48 AM

3 the extent of poverty within the country, and the size of the gap between the poorest and the

richest

5/30/2017 9:46 AM

4 international relationship with the big power like the US/Russia 5/30/2017 9:39 AM

5 Dependency on oil such that price fluctuations can cripple the economy if they are unfavorable 5/30/2017 9:21 AM

6 Corruption and gross mismanagement of resources 5/29/2017 8:48 PM

7 Government and citizens corruption 5/29/2017 10:05 AM

8 When there is no good relationship between a government and its citizens in relation to the oil.

This is what causes riots and corruption of the citizens.

5/28/2017 11:25 PM

9 Communism/ far socialism 5/28/2017 9:46 PM

10 Illiteracy 5/28/2017 8:19 PM

11 If it has problems shipping things out e.g. War or lack of technology 5/28/2017 7:22 PM

12 Only trading oil in the international market. A country simply cannot depend on one resource to

remain sustainable in the LONG RUN

5/28/2017 7:18 PM

13 Without corruption I Naira will be 1 pound 5/28/2017 7:04 PM

Government

Corruption

Riots (e.g.

resulting in...

Corruption

from the...

How trust

worthy the...

If the factor

you are...

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Government Corruption

Riots (e.g. resulting in explosion of pipelines)

Corruption from the citizens

How trust worthy the country is perceived to be by other countries (e.g. its credit rating)?

If the factor you are thinking of is not mentioned above, then please specify below

7 / 16


14 Business regulations 5/28/2017 7:03 PM

8 / 16


86.65% 318

3.81% 14

9.54% 35

Q6 If you were the president of a country that had recently discoveredits oil, what would you do? (please answer truthfully)


TOTAL 367

# IF WHAT YOU WOULD DO IS NOT MENTIONED ABOVE, THEN PLEASE SPECIFY BELOW DATE

1 be corrupt for like a year then start seeking professional advice 6/3/2017 10:34 AM

2 Ensure oil revenues are kept in a sovereign wealth fund and the interest used for free education

and health for the citizens

6/2/2017 12:53 AM

3 Seek advice and suggestions from a range of experts, including economists but also scientists,

etc.

5/31/2017 2:50 PM

4 I would first put the development and economic welfare of my citizens first, which will then

dictate the most prudent ways to utilise the resources (whether by professional advice or

adopting strategies that have worked elsewhere.

5/31/2017 11:45 AM

5 Seek professional advice AND enquire how production/refining can be done with minimal

environmental impact.

5/31/2017 9:38 AM

6 seek a deal that refines/purifies the oil at home and use the profits to invest in infrastructure,

education etc

5/31/2017 9:19 AM

7 It depends on how developed the country is. If it is industrialised already I would protect it to

reduce carbon emissions. If not I would sell the oil to another country to fund development in my

own country.

5/30/2017 7:27 PM

8 If I were the president of an LEDC then I would subsidies oil for domestic firms, lowering costs

and provides incentives for firms to locate in your country. Additionally, I would try and persuade

firms to refine the oil to add value and then trade abroad.

5/30/2017 12:52 PM

9 Seek professional advice and consult w members of govt to see how to generate income and

prevent corruption

5/30/2017 10:52 AM

10 Develop a twenty years developmental framework based on the projected revenue expected

from oil revenues as well as to develop local capacity to manage oil resources

5/29/2017 8:48 PM

11 Invest in other sectors of the economy like agriculture, tourism, solid minerals etc 5/29/2017 8:39 PM

12 Work towards economic growth and seek professional advice 5/29/2017 6:34 PM

Seek

professional...

Find a way to

keep as much...

If what you

would do is ...

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Seek professional advice

Find a way to keep as much of the money generated from it as possible for yourself (be corrupt)

If what you would do is not mentioned above, then please specify below

9 / 16


13 Attempt to savour the amount for the well being of the society 5/29/2017 4:53 PM

14 Ensure refineries are working efficiently, and processes are transparent for international trade 5/29/2017 11:28 AM

15 Use the income to develop other aspects of the economy e.g infrastructure and tourism 5/29/2017 10:05 AM

16 Leverage on global best practice. No need reinventing the wheel. 5/29/2017 7:42 AM

17 Try to invest and multiply the gains so that it's beneficial for everyone 5/29/2017 1:55 AM

18 I would see how best to source out the oil in the most efficient and less polluting way and create

refineries to create jobs and export the oil to earn more revenue which will be channeled back

into the ecnomy and all it's other sectors.

5/28/2017 11:25 PM

19 Prudent use of the money. 5/28/2017 10:28 PM

20 Invest in other sectors 5/28/2017 9:07 PM

21 Generate enough money to make the economy better 5/28/2017 8:59 PM

22 Nationalise the oil industry and use all the money to put back into the economy to boost growth

and improve peoples lives

5/28/2017 8:57 PM

23 I would gladly work on it full potential of how it will help boost my country's economy . I will

carefully implement laws that can make the officials look away from corrupt practices. I would

make sure I also have refineries in place so as to reduce or not import finished product from

crude oil in to the country, economically this will help reduce foreign exchange economic

hazards as the will also balance the almost likeable to happen flunctustion marginal difference ,

it will help appreciate the country's currency

5/28/2017 8:37 PM

24 mksy likely trade and use it to develop the country mainly to increase gdp and improve balance

of payments

5/28/2017 8:32 PM

25 I will refine the oil in my country and ensure there is no scarcity for my citizens before I decide to

trade.

5/28/2017 8:14 PM

26 Trade globally 5/28/2017 7:47 PM

27 Sell it n build vegas 2.0 5/28/2017 7:45 PM

28 Set up organizations which can invest in the new discovery first before sharing with

international countries

5/28/2017 7:32 PM

29 Keep it then sell it when oil is less common and is worth more 5/28/2017 7:22 PM

30 Sell land property to the private sector in order to boost business activity in the economy 5/28/2017 7:18 PM

31 I would slowly stop importing from other counties and start producing with the oil in the country

and I will encourage the selling of the oil abroad (exporting) to be able to bring money into the

country and build its economic to something better. but this could also depend on the type of

country on whether its economically developed. if not I will seek professional advise from a

country that already exports oil like Saudi Arabia since its uses its oil for more that exporting and

uses it to build its country economic.

5/28/2017 7:17 PM

32 Attempt to establish a sovereign wealth find like Norway (on a large scale) or East Timor (on a

much smaller scale)

5/28/2017 7:16 PM

33 Hide it and claim it 5/28/2017 7:04 PM

34 Seek professional advice and consider the needs of the country's citizens 5/28/2017 7:04 PM

35 Copy a succesful oil-rich country 5/28/2017 7:03 PM

10 / 16


73.64% 271

26.36% 97

Q7 Do you think Oil Wealth in a country can be a bad thing?


TOTAL 368

Yes

No

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Yes

No

11 / 16


24.93% 92

63.69% 235

11.38% 42

Q8 How many oil wealthy countries are you aware of?


TOTAL 369

0 - 5

6 - 10

11 or above

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


0 - 5

6 - 10

11 or above

12 / 16


50.82% 187

29.62% 109

13.86% 51

5.71% 21

Q9 About how long do you think it should take an average country toobtain a significant economic growth after it has discovered its oil?


TOTAL 368

0-5 years

6-10 years

11-15 years

16 or more

years

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


0-5 years

6-10 years

11-15 years

16 or more years

13 / 16


38.86% 143

1.63% 6

1.09% 4

5.71% 21

24.18% 89

17.39% 64

11.14% 41

Q10 If the oil in a country is located in a sparsely populated village,surrounded by locals who believe the oil belongs to them, what shouldeager companies like Shell (a multinational oil and gas company) do to

get the oil?


TOTAL 368

# IF YOU HAVE ANY OTHER ADVICE THAT YOU COULD GIVE TO SHELL TO SOLVE THIS

PROBLEM, THEN PLEASE MENTION IT BELOW

DATE

1 Develop the village, empower the village youth , orientate the villagers on the benefits of the oil

to the nation as a whole etc.

6/6/2017 10:21 AM

2 Negotiate a partnership with the locals so that the locals could receive long term benefits suited

to their needs.

5/31/2017 7:59 PM

3 Take better care of the environment and locals avoid corruption and be more ethical as an

irganisation

5/31/2017 5:52 PM

4 Negotiate a fair fee and percentage, in discussions involving locals, government, the company

and independent experts.

5/31/2017 2:50 PM

5 pay the locals a small percentage and vigorously provide them with infrastructure and the basic

needs of life, shelter, health and educational facilities.

5/31/2017 11:45 AM

Bribe the

locals

Steal the oil

from them

Forcefully

extract the ...

Persuade the

locals

Pay the locals

a small...

Pay the locals

a large...

If you have

any other...

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Bribe the locals

Steal the oil from them

Forcefully extract the oil from them after bribing the (corrupt) government

Persuade the locals

Pay the locals a small percentage of the profits earned from the trading of the oil

Pay the locals a large percentage of the profits earned from the trading of the oil

If you have any other advice that you could give to Shell to solve this problem, then please mention it below

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6 Pay the locals a small percentage AND invest in the local infrastructure, schools, farming, etc

AND ensure pollution/disruption is minimal.

5/31/2017 9:38 AM

7 stage a coup d'etat if necessary (they are all suitably immoral options) 5/31/2017 9:19 AM

8 Use the money to make life better for the locals through social enities and employment. 5/30/2017 6:08 PM

9 The firm should bring developmental projects to the community and also be mindful of the

environmental pollution from spillage and gas flaring

5/30/2017 4:28 PM

10 Plough back a greater percentage of the income from the oil into the human and infrastructural

development of the area

5/30/2017 12:29 PM

11 The locals should be involved in the management of the oil wealth. 5/30/2017 11:57 AM

12 Discuss with the locals, see how they feel about it and then gauge the right decision to take 5/30/2017 10:52 AM

13 they can be relocated to a more conducive place and also pay them part of the proceed to

develop their community.

5/30/2017 9:41 AM

14 Engage in developmental projects with a view to improving the standard and quality of living of

the locals to international standards with special emphasis on housing, roads, healthcare and

education

5/29/2017 8:48 PM

15 Developing the village at large by building of infactructure to promote the standaard of lives will

off more

5/29/2017 6:34 PM

16 Pay a reasonable profitable amount to whomever your trading with to have a fair trade but that's

is not always the case unfortunately

5/29/2017 4:53 PM

17 Engage and develop the local communities through infrastructure and Human Capital. 5/29/2017 12:21 PM

18 try to get a sharing formular with d locals were social amenities n infrastructure wud be built for

them as part of there devident n also there shud be a MOU that can be change wen any of the

party involved is not ok with

5/29/2017 11:41 AM

19 Reach an arrangement with locals, in cash payments or by ensuring that living conditions are at

best. Amenities e.g roads, potable water, good schools, etc should be made available. Locals

around must 'feel' the dividends of the wealth of the land being explored, to avoid a feeling of

exploitation

5/29/2017 11:28 AM

20 The locals should be paid a small percentage and also employed by the company 5/29/2017 10:05 AM

21 Obtain the oil through legal means, and offer locals employment 5/29/2017 9:15 AM

22 collaboration with community and government to jointly exploit the oil 5/29/2017 9:10 AM

23 Develop the area, provide basic amenities & infrastructural facilities. Encourage education of the

locals through scholarships

5/29/2017 8:40 AM

24 Development should be championed by the government of the land. The oil company pays

taxes and royalties. It's for the government to do it's bits. This doesn't mean oil CO.panies

shouldn't help with CSR but the onus is on the govt via good regulations, rule of law and

consequence management.

5/29/2017 7:42 AM

25 If the land belongs to the local then the company will have to come up with some sort of

agreement with the locals.

5/28/2017 11:09 PM

26 Pay the locals an equal percentage of the profits earned from the trading 5/28/2017 10:38 PM

27 Create infrastructure in that area. Create jobs for the locals. 5/28/2017 10:18 PM

28 Have a mini civil war as it is cheapest 5/28/2017 9:36 PM

29 The multinational oil companies should look for oil elsewhere. E.g. In Chicago 5/28/2017 9:28 PM

30 Engage in social responsibility and. Minimise environmental degradation 5/28/2017 9:18 PM

31 Create jobs for the locals and must partake in social responsibility 5/28/2017 9:13 PM

32 Help in developing the community 5/28/2017 9:07 PM

33 Pursuede the villagers by saying they will get a small percentage of the money to them 5/28/2017 8:59 PM

34 There should be an aggressive social responsibility agenda embarked upon for the growth and

advancement of the locals. Education, infrastructural development and social economic

activities should be in place. It is critical that the exploring company should be environment and

sustainability policy that governance that ensures that environmental degradation doesn't result

from oil exploration or refining activities

5/28/2017 8:58 PM

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35 I think oil belongs to a Nation and not a particular tribe of locals.... truth is the country's leaders

should be in charge of how the wealth derived in oil is properly utilised . Security and building of

infrastructure for the locals should be the government main target to at least create wealth

enabling environment for the locals

5/28/2017 8:37 PM

36 Discuss other modalities 5/28/2017 8:30 PM

37 The oil does not belong to the locals. But a fracking company like shell can improve

infrastructure in the locality, give employment quotas, sponsor good scholarships and

apprenticeships. These privileges should be enjoyed by the locals.

5/28/2017 8:19 PM

38 Negotiate a fair price with the locals, give them priority for jobs on the oil well 5/28/2017 8:01 PM

39 Shell in a multinational company, it can't just simply take land from a foreign country. If the

locals are not using the land to their advantage to extract the oil, the government of that

domestic country can sell land rights to Shell

5/28/2017 7:18 PM

40 Attempt to involve the locals in the development of the resource so that you get buy in 5/28/2017 7:16 PM

41 Court case 5/28/2017 7:03 PM

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