http://www.washingtonpost.com/wp-dyn/content/article/2005/05/31/AR2005053101
602.html

 


Corruption in Nigeria



Wednesday, June 1, 2005; Page A18

ELECTED TO a second term in 2003, Nigeria's president, Olusegun Obasanjo,
has promised to clean up corruption. He has shown some signs of seriousness:
Investigations have triggered the sacking of two government ministers, the
arrest of a former police chief and the resignation of the Senate president.
But the key test of Mr. Obasanjo's commitment is oil. Nigeria pumps 3
percent of the world's crude, and oil is the source of the cronyism that has
suffocated Nigerian development since independence.

In the oil sphere Mr. Obasanjo has made the right noises. Last year Nigeria
was one of four African countries to sign up to the Extractive Industries
Transparency Initiative, an international effort to promote the publication
of payments oil and mining firms make to governments. The government has
appointed a Western audit firm to certify that its oil accounts are
accurate; the hope is that published revenue that can be monitored by
advocacy groups and the media will not be diverted into ministers' pockets.
Nigerians even suggest that their new openness will serve as a model for
Africa's burgeoning oil sector. "I rejoice greatly that Nigeria is and will
continue to be at the forefront of the continent's new transparent dawn,"
Mr. Obasanjo declared in February 2004. The quote is displayed prominently
on the transparency initiative's Web site.


 

 

Recently, however, the dawn has been looking a bit bleak. Some of Nigeria's
oil fields are shared with the tiny nation of Sao Tome and Principe, and the
allocation of exploration rights there smells bad. According to a Nigerian
press report, a firm run by a politically connected Nigerian seems favored
to win an auction over a U.S. contender that bid substantially more; several
other bidders appear to stand out for their links to the government rather
than for their knowledge of geology or engineering. The first payment
generated by this auction process has been made into a Nigerian bank
controlled (again, according to a Nigerian press report) by the family of
the recently sacked Senate president, a move that violated the
anti-corruption best practice of depositing it in an international bank.
Despite promises of transparency, an exploration contract with Chevron and
Exxon Mobil so far has not been published. The plan seems to be to release
part of it, eventually.

Sao Tome's government has protested the conduct of the bidding process and
demanded a fresh auction. But it's not clear whether Mr. Obasanjo will
listen. The president inserted himself directly into the argument this month
by visiting Sao Tome; according to one account, his message to his
counterpart was to allow the flawed auction to stand. Mr. Obasanjo is no
doubt under considerable pressure from corrupt elites at home. But if he
wants to change Nigeria's dismal development record, he should live up to
his fine rhetoric.

 



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