To Take Another Look At Ahmed Bola Tinubu's Manifesto Ahmed Bola Tinubu's Manifesto Two weeks ago, Bola Ahmed Tinubu, the preside...
To Take Another Look At Ahmed Bola Tinubu's Manifesto
Ahmed Bola Tinubu's Manifesto Two weeks ago, Bola Ahmed Tinubu, the presidential candidate of the All Progressives Congress (APC), had a major event at the State House in Abuja to unveil an 80-page policy manifesto. There has been very little discussion on the most pressing threat to the national economy, oil theft, and his proposed solutions. In the last decade, oil theft has expanded in both sophistication and scale to become the world's second-largest organized crime after the narcotics industry.
Due to persistent and sophisticated oil theft activities, our country's production has dropped steadily over the past two years, from 1.3 million to 1.8 million OPEC-mandated barrels per day. The country's economy will take a massive hit.
Nigeria's severe economic problem is a direct result of the country's failure to collect sufficient income to cover the budget due to significant oil theft. Consequently, the government has had to resort to massive borrowing, which has been accompanied by crippling debt service costs. The fuel subsidy would be eliminated, and crude oil production will reach 2.6mbpd by 2027 and 4mbpd by 2030, according to Tinubu's platform. Despite the fact that fuel subsidies will stop in the middle of next year when the Dangote Refinery goes into operation, growing crude oil production from 1.4 mbpd to 4 mbpd in seven years is extremely unlikely. Massive investments are needed, yet the IOCs with the funds are not making any. Rather, they are getting out of it. It is also one of Tinubu's pledges to "finish critical gas infrastructure projects, including pipeline infrastructure." … It is a poor use of resources to build gas pipelines without accompanying gas processing facilities. Gas is not created by the pipeline itself. Only gas is carried by it. Therefore, a producer is required to work in gas fields and transport gas to transmission lines. Long-term gas sales and purchase agreements with fixed prices and secure buyer payments provide the economic justification for the expenditure. The incoming government will have to find a solution to this problem.
To encourage oil firms to help host communities, the treaty also promises to "establish the Host Community Development Trust." While I applaud efforts to improve oil-dependent areas, I know from experience that giving them money or oil isn't the answer. Failed investment in local areas by federal and state governments is the root cause of the unrest. To what end, though, have these oil-related taxes and royalties been put by the government? Is the NDDC performing as hoped? Instead of just handing out cash, the government should be looking into how to best use the money it makes from oil. More fighting will result from this.
If corruption, oil theft, and insecurity in Nigeria continue unchecked, the country would eventually collapse. The next president must be unwavering in his or her commitment to slaying the beast if the country is to make any real headway.