Challenges in the Era of Globalization - iaabd

Proceedings of the 12th Annual Conference © 2011 IAABD
intervention. There was also a demand for compensation of N38million from the federal
government for oil exploration and exploitation that had devastated the area. The Itshekiri, Ijaw and
Urhobo rioted and killed due to oil related matters. The Kaima declaration of 1998 was geared
towards safeguarding and control of the Ijaw and Niger Delta in general. The governors of the
Niger Delta states of Rivers, Delta, Abia, and Akwa Ibom had severally made presentation for
increased oil revenue allocation to at least 10 percent for the development of Niger Delta region,
but only three percent was granted by the federal government on June 1992.
Corruption and Weak Institutions
The abuse of political power for private gain deprives Nigeria vital public services, which oil
income could fund if properly managed. There is favoritism in government decision-making even
in allocating oil blocs, an insufficiently independent judiciary, and security costs associated with
high levels of crime and corruption. Oil businesses in Nigeria are associated with uncertainties
stemming from weak institutions, corruption and crime, favoritism, easily influenced judiciary and
a weak property rights regime. Nigeria lack genuine credibility and convincing acceptability by
majority of the people. The private sector in Nigeria as in most African countries has serious
misgivings about the independence of the judiciary and the administration of justice. Legal redress
in Nigeria is not expeditious and not transparent. It is expensive and such environment cannot
provide veritable business atmosphere for investors and government to utilize and consolidate oil
revenues. Odozi explains that Nigeria is prone to corruption arising from the pressures and
opportunities associated with the huge flows of revenue.
Environmental Impact
The environmental impact on Nigeria of Western development is alarming. The clearing of forests
for timber exports increases vulnerability to erosion, river silting, landslides, flooding, and loss of
habitats for plant and animal species are examples. In particular, gas flaring from oil production,
where unusable waste emissions are burned off, pumps large amounts of carbon dioxide into the
atmosphere in the Niger Delta. The environmental and social impact of extractive industries is
already acknowledged as a key factor in conflicts in Sudan and Nigeria. It is estimated that flaring
in the Niger Delta emits 70 million tones (68.8 million tons) of CO2 a year. The environmental and
social impact of extractive industries is already acknowledged as a key factor in conflicts in Sudan
and Nigeria. Indeed, non-governmental organizations fear that access to natural resources will fuel
the kind of violent conflict seen recently in Sierra Leone, the Democratic Republic of the Congo,
and Liberia in Nigeria. The corporate responsibility and the operating standards of the oil
companies and other businesses in the region are below the internationally acceptable standards.
The situation has been that oil companies and other businesses of oil exploration and exploitation
for over four decades are done without a standard environmental impact assessment. Niger Delta
region is the only oil zone in the world where the people are subjected to cope with oil spillage. It is
argued that the Federal, state and local governments in Nigeria act as catalysts that provide
production covering to the oil companies’ lack of the social responsibility.
Ailing Economy and Policies
The benefits of oil resources can not be counted in Nigeria because oil revenues are not judiciously
used as foundations for a widespread economic development. Nigerian economy should have
become considerably competitive and reasonably viable, but oil resources is not channeled to
86