The Failures of Nigeria's Presidents

On paper, Nigeria should be an economic powerhouse. Its abundant natural resources, remarkable unity, and strong economic relationships with other wealthy nations should have resulted in a nation as wealthy per capita as many Western European nations. Unfortunately, it has not been immune to the plague that has debilitated so many African nations--corruption. Nigeria's endemic political corruption has only now begun to wane in the last ten years. Its past presidents were oftentimes nothing more than military strongmen or civilians who saw one of the richest nations in Africa as their own personal piggy banks. This, then, is the tragic story of Nigeria's corruption.

"Public Power for Private Profit"

Nnamdi Azikiwe, the first President of Nigeria after its independence, was no stranger to enriching himself off the public dime. When he was first elected to a regional post prior to independence, he retained his holdings in the African Continental Bank, though it was illegal to do so; nonetheless, due to his importance in the nationalist movement, he was never challenged on this. Therefore he predictably governed in such a way as to grow the bank's wealth and his own along with it. Obafemi Awolowo, the chief member of the opposition in the first Republic, was no better: he oversaw the taking out of millions in loans, without ever paying back more than a fraction of it, and even that after he had been ousted from power. Aviation Minister KO Mbadiwe stole enough from the public to build himself a lavish mansion in his hometown. Ahmadu Bello, the prime minister, flaunted his wealth obtained with ill-gotten funds. Eventually, the military acted and launched a coup, assassinating most of the embezzling members of the First Republic's executive.

The False Promise of Reform

The coup started a long chain of military strongmen who would overthrow whoever was in power because of the incumbent's corruption, promise reforms, and then not only fail to prevent the looting of the public's money, but somehow make it worse. The spike in oil prices during the 1970's and early 1980's meant that there was plenty of money for public works projects, but this money would get diverted into the pockets of governors, contractors, and overseas investors. During Yakubu Gowon's administration, the bribery and kickbacks regarding public works was so endemic that the port of Lagos was inundated with 5 times as many ships laden with concrete bought at ten times the going rate, with many of the ships rotting as they waited to be unloaded. Four years later, during the Shagari administration, government officials found a way to become even more corrupt, with widespread unapologetic looting of the public funds. When oil prices crashed in the early 1980's, and the country lost its main source of revenue, there was yet another regime change on the promise of reform, followed by even more exacerbated corruption. British newspaper The Daily Mail pointed out in 2013 that Nigerian officials had embezzled $380 Billion dollars since independence--nearly equaling the $400 Billion that Nigeria has received over the same time period in foreign aid. The corruption continues today, with the average Nigerian citizen forced to live on $730 a year, which equals $2.00 a day, while the standard pay for a government official is an astounding $191,000 a year.

Nigeria's ruling class has proven to be among the least honest and most blatantly corrupt in the world. The countries it tried to model itself after--the U.S. and Britain--have long traditions of paying government workers far less than they would receive in the private sector, as a way to verify that those working "for the people" are truly doing so. Until everyday Nigerians demand the same, it is unlikely that the thievery will ever stop. 

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Crude Oil Politics in Nigeria

Nigeria is a fairly small sized African country but it is the continent's richest nation. Nigeria is not a popular African state and many tourists would not choose to visit this country. However, Nigeria has one thing that makes it stand out from the rest; this nation has an abundance of oil.

Nigeria's oil reserve makes it wealthy and gives it the ability to be a major player in world affairs. The country exports at least 40% of its sweet oil to the U.S. This helps to provide oil and gas to America's economy. They also supply many other nations in Europe with their crude oil. Many nations that are oil dependent have a vested interest in Nigeria because of its oil reserves.

While the country of Nigeria has grown rich because of its oil exporting industry; many of its citizens still remain poor and the country (as a whole) lives in a culture of corruption, chaos and poverty. The nation's primary problems stem from oil production and political corruption. These two negative forces are keeping Nigeria from becoming an African state which could rival the western world.

Nigeria was once a vassal state of the British Empire. Once the nation gained its independence during the 1950s, it started on a positive course of growth and development. The country primarily exported agrarian products and the early rulers were competent governors. The people started to slowly prosper under their new found freedom.

However, by the mid 1960's the society and culture within Nigeria changed for the worse. Oil reserves were discovered in Nigeria during the 60s and by the year 1965 oil production was in full swing. At first, this boom in oil produces a favorable economy for the Nigerian people. On the surface it seemed like people were prospering everywhere. The poor as well as the rich had increased their income. There were jobs and people spent money freely. The mid 60's to the mid 70's was considered one of the most prosperous times in the nation's history.

Problems began to surface around 1975. Apparently, many corrupt officials were becoming too greedy with their newfound wealth. As a result, many of the nation's poorer population started to lose money. No one noticed this situation when everything was going well; but eventually it started to become widespread. A generation of corrupt officials had emerged in Nigeria during the 70's and their legacy would go on to influence the country for many years.

When oil companies found oil reserves in Nigeria; most of them were located in the Niger Delta region. This part of the country lies in the south and is bordered by the Gulf of Guinea. Many people who reside in the Delta region are poor. They have always been poorer than people who lived further north.
The people who live in this region are made up of tribes. These tribes honestly believed that they would prosper from the new wealth that oil had brought to the country. Especially, since most of the refineries were located in their homelands. This was not the case.

At first the people in this region saw their income increase but after a few years it started to wane. The government never developed infrastructure in this part of the country that would improve the plight of the people. As a result, many of them did not have the skills or knowledge to work in jobs outside of agriculture.
Many Nigerian people did not have basic society functions to improve their condition. There was little to no available electricity, very few schools and substandard hospitals. The poor were kept poor while the rich continued to increase their coffers. Eventually, people from the poorer regions of Nigeria had decided to rise up against the corruption that oil had brought to the country.

Nigeria is steeped in a culture of corruption because the people embrace it. It starts at the leadership position and works its way down to the poor. Many Nigerian people value this mindset and if they had an opportunity to engage in corrupt practices they would. This is one reason why the political and social scene in Nigeria will not change any time soon. For some reason, the people have become use to being manipulators, thieves, bribery, lying and conducting dishonest business and political practices.

Politicians at the local and federal level believe that corruption is a virtue. They will do whatever it takes to remain in power and they will even keep the masses poor if it keeps them rich. The bottom line is that the leadership in Nigeria is so debauched that it will probably never change.

Oil is the most important product in the world. Nigerian politicians understand this truth. Since they do, they realize that they can manipulate and sway the public to follow their rules and live under their control. Many do not care about the plight of the average person. They might build a school or a hospital just to appease the masses but they will not try to make serious changes. Changing the social climate in Nigeria would mean that they would have to share their wealth and power. Truth is, many leaders just do not want this to happen.
In closing, Nigeria probably will not experience any major changes until its people no longer view corruption as a value. They also must figure out a practical way to implement changes for the poor people who are living in the oil rich portions of their nation. If they do not make these changes then this country will continue to experience social instability.

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Renewable Energy is Important for the Oil and Gas Industry

The development of renewable energy is one of the key strengths of the oil and gas sector. There is the availability of technology utilization, energy market insight, and community engagement. The creation of energy is a high-cost process. Renewable energy offers a way to easily diversify and provide a means of protection against peaking oil demand. Another factor with renewable energy is political capital which will come from decision makers and climate-conscious community members.

Key financial partners of the oil and gas sector are banks, insurers and institutional shareholders. These partners are beginning to demand aggressive carbon management policies. Oil and gas companies need to find profitable and cost-effective ways to reduce carbon as a business expense. This means there is a need and available opportunity to invest in new types of renewable energy.

The oil and gas sector has been involved in various types of renewable energy for many years. This involvement was first seen when the oil-shock occurred back in the 1970s. There was an increase in businesses targeting geothermal, wind, and solar energy. One of the biggest producers of geothermal power is Chevron.

One of the key components for any renewable energy venture is government involvement. Many of the public incentives for renewable energy were eliminated in the 1980s after the oil-shock subsided. Most oil and gas companies began to abandon renewable energy investments and returned to fuel production from petroleum.

The 1990s and 2000s saw increased momentum by oil and gas companies due to awareness of changes to the climate. However, the economic crisis in mid to late 2000s saw many renewable energy projects, such as wind and solar, shuttered or sold off by oil and gas companies. One interesting aspect occurring today is the mandates by the U.S. E.U. and Canada for ethanol blending. The addition of ethanol to existing fuels is a new opportunity for oil and gas ventures. Shell is the lead supplier of bio-fuels in the entire world.

There are also existing barriers to the development of renewable energy by oil and gas companies. The challenges to oil and gas companies include economics and political involvement. A major factor is the high capital costs of renewable energy projects in relation to the low prices for natural gas. There will not be a significant rate of return for investments in renewable energy projects. Another barrier is a lack of political involvement towards renewable energy and setting a price for carbon emissions. However, the oil and gas industry may not be tapping the most profitable renewable energy options available. 

More on renewable energy news in Nigeria.

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The Oil and Gas Industry Needs Sustainable Energy

The heart of the global energy market is the oil and gas industry. This is one of two industries providing the majority of the energy being used by society. There is a growing demand for energy which is expected to continue due to higher standards of living and population growth. However, there are many factors that can affect energy consumption. This includes economic and political turmoil.

The transportation sector is a main consumer of fuels being provided by oil and gas companies. This is the main reason for the growth in demand that is expected from expanding car markets. Transportation today is about one-quarter of total energy use globally. This is expected to increase to to almost 50 percent by 2030 and to over 80 percent by the year 2050. However, these projections are subject to change if there are new regulations put in place.

The oil and gas industry is in a position to be at the forefront of significant change for the use of newer renewable energy solutions. There are three areas of importance when solutions for renewable energies are being considered. This includes cooperation with regulators and policy makers to develop plans for national energy, increasing energy-efficiency for operational needs, and investments which are made in renewable energy generation and fuels.

One of the key components of the business model for oil and gas companies is evaluating activities for development and investment over a long-term timeline. This is how oil and gas companies will be able to help governments optimize existing energy plans or create new energy plans. Oil and gas companies will be seen as an important partner for long-term strategic planning for renewable energy.

There are many new supplies and sources of renewable energy that continue to grow each year. Global production of bio-fuels in one of the largest sources of liquid energy production growth. This is the main reason why oil and gas companies are a key component to continued growth and diversification.

Most large companies in the oil and gas industry are seen as energy-producing companies. The goal of energy companies is to be in a position to develop and bring renewable energy and various products to market. The most common sources of renewable energy producing profits for many energy companies include offshore wind farms and geothermal energy.

Low-carbon fuels, such as natural gas, will also be important to creating sustainable energy. There will need to be new developments in technology to reduce carbon and create new renewable energy. 

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The Nigerian Power Crisis

Power generation in Nigeria is a constant problem. This is because the Nigeria power sector is straining to keep up with the demands for electricity in Nigeria. As a result, there’s certainly a lot of room for the Nigeria power industry to grow. 

One of the most recent series of news stories in Nigeria has to do with the power supply situation in the city of Lagos as well as other cities nearby. Just recently this situation has gone from bad to worse, with many areas experiencing blackouts that happen for hours at a time daily. 

The situation doesn’t exist in a vacuum either. Because of the power shortage, people are going to the gas stations in the area to ill up on gasoline at an accelerated rate. The gas stations are running out quickly as people buy gas in order to power their generators.

This happens especially in areas and times where major events happen. For example, the World Cup had a lot of people seeking power even during blackouts due to the fact that they really wanted to be able to watch games. 

Recent shut downs have been as bad as dropping from thousands of megawatts all the way down to under 3000. Nigeria power generation is becoming serious in terms of there being a gap, and one of the biggest symptoms that illustrates this is the fact that Nigeria has recently shut down two major gas plants.

There are drains all over the system, and the inability of the Nigerian government to properly handle plant maintenance is a big reason for these continual shutdowns. This means that there are plenty of opportunities for people to break into this sector and cause some innovations to happen that will not only help to transform Nigerian infrastructure, but also increase profits for all involved.

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