2.1 Lt. Gen. Ogomudia Report
In 2001, the President of the Federal Republic of Nigeria set up “the Special Security Committee on Oil Producing Areas” under the Chairmanship of Lt. Gen. A.O. Ogomudia (then Chief of Army Staff) with membership that included the Chief of Naval Staff, Chief of Air Staff, Inspector General of Police, Director of SSS, National Security Adviser, Group Managing Director of NNPC, Managing Directors of SPDC, Exxon Mobil, Chevron Texaco, NOAC, TotalFinaElf, etc. This Committee submitted its report (see OGOMUDIA REPORT attached) to Federal Government in February, 2002. The far reaching findings and conclusions, quoting from various parts of that Report, included;
2.1.1 “While the Primary assignment of the Committee is to look at the ways and means of instituting effective security of oil operations and installations, it became quite obvious during its deliberations that the root causes of insecurity in Niger Delta are due to the neglect, frustration and the sense of abandonment shared by the people.
2.1.2 Enduring peace anywhere, particularly in the oil producing areas, cannot be achieved by militarization or the security approach While one cannot deny the obvious criminal elements, which have to be firmly dealt with by the application of the Law, the Committee is convinced that the problems of the oil producing areas can be best solved through two broad approaches, which must be implemented simultaneously. The first approach is the development of infrastructure such as roads, housing, electricity, water, employment generation and economic empowerment of the people of the area. This approach once initiated and recognized by all the stakeholders, would make it easy for the implementation of the second one, which is effective enforcement of law and order.
2.1.3 Under Immediate or Short-Term Measures: Upward review of the minimum 13% derivation to not less than 50%, and under Long Term Measures: Repeal of Land Use Act Petroleum Act, Gas Re-injection Act, and other Laws which dispossess oil producing areas of their Land and rights to revenue.
2.1.4 The members of the Special Security Committee on Oil Producing Areas wish to thank the President and Commander-In- Chief of the Armed Forces for the opportunity to serve on such a sensitive Committee given the crucial role of oil to the national economy, and the complexity of the problem in the oil producing areas, especially the Niger Delta region. (This clearly made the distinction between the Oil Producing Areas (NDDC Area) and the actual natural Niger Delta Region of Akwa Ibom, Rivers, Bayelsa, Delta and Ondo States).
2.1.5 The oil producing areas particularly the Niger Delta region, are the main source of Nigeria’s wealth, but they are much undeveloped compared to similar regions of the emerging democracy.
2.1.6 The Niger Delta was recognized as a region for special development initiative and attention in the Independence Constitution of 1960. The Pre-Independence Constitution also recognized this requirement for the region, as much as 50% revenue derived from oil resources was paid to the Oil Producing Regions.
2.1.7 Before the civil war, the regions received more revenue as a result of the derivation principle thereby facilitating some development in infrastructure, education and social services. However, these funds were at that time being preferentially applied to larger administrative units and urban centres at the expense of rural areas and the riverine parts of the Niger Delta which, by the nature of their terrain, require capital intensive projects.
2.1.8 In reality, States are being paid only 7.8% under the revenue allocation principle of derivation as opposed to 13% stipulated as the minimum in the Constitution.
2.1.9 Arguments on onshore-offshore dichotomy are not tenable; if the territories on which the oil States are located were not part of Nigeria, then the country could not have had access to the offshore, sea or coastal areas.
2.1.10 There is a scandalous neglect of Oil Producing Communities by successive governments in Nigeria. There is generalized abject poverty endemic in the Niger Delta region.
2.1.11 The economic activities of oil producing communities have been destroyed by oil prospecting operations without provision of alternatives. There is very high unemployment, and low level of economic development in the Niger Delta.
2.1.12 There is general lack of infrastructural development in the Niger Delta.
2.1.13 By setting up of the Special Security Committee, the Federal Government appears more concerned with the security of oil pipelines and installations than human lives.
2.1.14 The Federal Government should abrogate the Oil Pipelines Act of 1959, Oil Terminal Dues Act of 1965, Petroleum Act of 1969, Land
Use Act of 1978 and Associated Gas Re-injection Act, 1979.
2.1.15 The Oil Companies pay penalty for gas flaring and none of this revenue is paid to the communities that suffered the impact of gas flaring.
2.1.16 Oil companies including refineries and oil marketing companies should be encouraged by Government to supply electricity and
water to contiguous communities (within a radius of 5km) from their major facilities. In spite of over 40 years of oil exploration and exploitation and with so much wealth taken out of the area the following basic amenities and infrastructure are largely and conspicuously absent:
- Health care facilities
- Potable water
- Electricity
- Roads, Schools and
- Communication.
Inaccessibility of the oil producing areas (by road, train or water) has added to the economic and social problems of the areas.
2.1.17 The “Abacha Two Million-Man March of 1998” which exposed the wealth transfer from oil producing areas to non-oil producing areas of the country.
2.1.18 Lack of credible demonstration of political will by government (Federal and States) to solve the problems of the area.
2.1.19 Careless and inflammatory pronouncements by not so knowledgeable public officials or other highly placed members of the society which tend to incite and encourage lawlessness.
2.1.20 In view of the magnitude of the problems observed during the field tour, and the pivotal importance of the areas to the national economy, it is our informed impression that the 13% resort derivation is inadequate. Consequently, the current revenue allocation formula should be reviewed and the derivation principle increased to at least 50%.
2.1.21 The dichotomy between the onshore/offshore oil exploration activities should quickly be resolved once and for all for sustained peace in oil producing states.
2.1.22 The Federal Government should ensure that funds meant for the NDDC are released on time and that there is transparency and sincerity in all transactions by the NDDC and other organs involved in the development of the oil producing areas”.
