The Oil Sector: What Ghana can learn from Nigeria

First, I must say that this discussion is not merely academic, but an issue that must be critically examined if the Ghanaian polity and economy will be sustained.

1. AGRICULTURE: The agriculture sector in Nigeria was the main stay of the economy before oil was discovered- we had the great groundnut pyramids of Kano; palm oil was so much in the East and South-South that the area was called the oil river-we had cocoa, cassava, potatoes, and many other crops that yielded good returns in the export market. Even our rubber plantations were doing very well and rubber factories were yielding good returns. But when oil came, the agric sector was so disregarded that now it is still difficult for it to find its place and make meaningful contributions to the economy.

2. THE ENVIRONMENT: The adverse effects that come with the expropriation of oil is something that may not have been conclusively anticipated and effectively planned for by the government. The soils are eroded, the waters and air are polluted and peoples’ areas of livelihood (plus their health) have come under very intense attacks. Once oil is mined, the environment will deplete. The government of Ghana must pay serious attention to this and have a system in place which will address the issue

3. Nigeria is a country with very few of its population doing white collar jobs (just like Ghana), and majority of the country’s population having not had the privilege of classroom education, still rely on subsistent farming/fishing to sustain themselves and their families-The lack of attention to them due to the oil find is one of the chief reasons the country seems to be very eager to plunge in capital intensive projects instead of labour intensive projects. And where the people get the support necessary for subsistent agriculture, the environment is polluted-so they cannot achieve much.

4. THE LAND USE LAWS: Just like Ghana, lands in the country are held in custody by the chief executive of the country (and a few by the state and chiefs) as provided by the Land Use Act. This means that any land upon which oil is found automatically belongs to the state. The process of relocation, rehabilitation and compensation of the communities/families displaced is either slow or non-existent. The government must realise that beyond generating revenue for the state, if the people that make up the state are not effectively taken care of, anarchy is imminent-it is just a matter of time. See the Niger Delta.

5. THE CONSTIUTION: In the constitution of Nigeria there is a concept referred to as the “derivative principle”, which presupposes that the communities wherein oil are found, will enjoy a certain percentage of the proceeds of the oil revenue over and above the rest of the country-This is so that funds will be made available to repair and ultimately sustain the environments being degraded by oil expropriation; and so that people whose main stay of income have been perverted by virtue of the oil, can get other meaningful activities to engage in (especially classroom education). The implementation of the derivative principle has been a very big issue and has resulted in a lot of riots and killings. “Laws are useless when they are not applied in the right situations. They are mere paper prints when they are not implemented”. The government of Ghana must ensure that the legal regime that governs the oil sector is taken seriously and they should also make provisions for addressing situations that are not immediately anticipated.

6. ENVIRONMENTAL IMPACT ASSESSMENT MUST BE TAKEN SERIOUSLY.

7. UNSCRUPLOUS AND SHARP PRACTICES: A legal regime which should take care of criminality in the oil sector must be seriously considered and addressed. One of the reasons why it looks like the impact of the oil boom in Nigeria is not felt is because the laws are so porous and the implementation is not taken seriously, so criminals are engaged in smuggling and brokerage. Smuggling is already an enigma in Ghana-this must be addressed.

I congratulate Ghana today, But I hope that the sign posts mentioned above would help the people of Ghana chat a destiny for themselves presently, and for posterity. It is interesting how whatever happens in Nigeria repeats in Ghana and vice versa. Nothing says it must happen in this case. Beware the lies of the West. Protect the Western Region. Long live the Republic of Ghana.

Posted by Darey on 5:29 AM. Filed under africa, feature, nigeria, story . You can follow any responses to this entry through the RSS 2.0. Feel free to leave a response