Deepening Revenue Transparency in the Niger Delta
Executive Director of ANEEJ, Mr. David Ugolor
Abimbola Akosile examines the various moves made by the African Network on Economic and Environmental Justice (ANEEJ) to monitor and ensure transparency in governance in the Niger Delta area of the country
Many would argue that the inhabitants of the Niger Delta have no business being poor and denied, for several reasons.
The major point for this observation is simple: the states in the region receive extra revenue from the federation account in form of the 13 per cent derivation based on the source of the nation’s major revenue earner, crude petroleum.
However, despite the efforts of some states in the region like Rivers, Delta and Akwa Ibom to improve the livelihoods of the communities and their inhabitants, there is still a deep feeling that the resource found in the region has been more of a curse than blessing.
Concerned oversight
Given the poverty scenario and the deprivation still existing in sections of the Niger Delta, the African Network on Economic and Environmental Justice (ANEEJ) initiated and commenced a project titled Niger Delta Strengthening Revenue Management project, which is in two phases.
The project, funded by EED Germany and Norwegian Government, has Phase 1 from 2008 to 2011 and Phase 2 from 2013 to end in 2015, and its scope of activities were extended to all nine Niger Delta States.
According to a summary of the project, provided by the Executive Director of ANEEJ, Mr. David Ugolor, the project is reacting to the lack of progress in the sustainable development of local communities in the nine Niger Delta States, and in particular to the management and expenditure of the 13 per cent derivation of Federal oil revenues.
The derivation, the report noted, has been in place since 1999 and although figures are not freely available, 13 per cent of petroleum exports can be estimated to total approximately $22 billion (1999 – 2005) and $6 billion in 2006.
According to Ugolor, “It is quite clear that this finance has not had any significant impact on development in the region or in improving the socioeconomic opportunities of the people. This can be attributed to mismanagement of these oil revenues and a mismatch between policy imperatives and the ability to deliver on the ground.”
Under the first phase of the project, ANEEJ engaged with Oil & Gas Commissions, State Assemblies and the Executive, Local Authorities, the Niger Delta Development Commission (NDDC), the Nigerian Extractive Industries Transparency Initiative (NEITI) and non state actors (including the private sector) in transparency, accountability and good governance through a strategic capacity building Programme.
The project worked with five groups within five Delta States – the Oil & Gas Commissions, State ministries & Legislatures, local authorities and local communities/civil society organisations (including the private sector) and the media.
It also encouraged actors in Commissions, State ministries and the NDDC to collaborate in the delivery of revenue and expenditure plans, in consultation with local authorities, communities and civil society organisations (including the private sector).
Specific training on strengthening the oversight role of the State Assembly Legislators in holding the Oil & Gas Commissions and the Executive to account were undertaken to underpin the work conducted with the other groups (stepping down the NEITI to the sub-region: EITI++).
The project design has been informed by the report ‘Mapping Political Commitment to Transparency in the Niger Delta’, which has identified five States where actors in all four groups have responded positively to the concept of building technical capacity and knowledge in transparency in revenue management and the extractive industries.
Activities Update
The situation in the oil-producing Niger Delta region has remained a source of concern to stakeholders and development actors. Variously referred to as the ‘Resource curse’ or the ‘Paradox of Plenty’, the region generates some 80 per cent of Nigerian exports and 90 per cent of government revenue, yet remains one of the least developed and poorest regions of Nigeria.
Government efforts at addressing the Niger Delta issues has led to huge resources flowing to the oil and gas producing states through guaranteed statutory monthly allocations and the 13 per cent oil and gas derivation revenue since 2004, following advocacy by ANEEJ for the setting up of the Commissions.
Several other initiatives have been under taken to address the situation by the government, private sector, international development agencies and civil society – some genuine, some half-hearted and others cosmetic.
In 2008, ANEEJ undertook a comprehensive mapping study of Niger Delta States to evaluate the political commitment of Government within the region to the issue of transparency and accountability.
Based on the outcome of that mapping exercise, the “Strengthening Oil Revenue Management in Niger Delta Project” a three-year capacity building Programme focused on state executive arm of government and legislatures, civil society, media practitioners and local authorities was developed.
Performance Indicators
Key indicators of the success of the project included the collaboration among the four target groups; more open and transparent processes around budget management and project delivery, including expenditure, tendering, issuing contracts, monitoring and evaluation.
Others were access to information: publication of related documents on revenue and expenditure, tenders and contracts, etcetera; and engagement with the local communities (the beneficiaries) through town hall meetings resulting in evidenced based advocacy.
The desired project outcomes included maintaining the political momentum in support of good governance and transparency; effective delivery of social services and economic empowerment of local communities; and robust State Legislatures more active in oversight and holding the Commissions and the Executive to account; and mobilisation of communities in public campaigns.
Second Phase
The implementation of Phase 1 of the project ended in December 2012 and has provided invaluable experience for the ANEEJ team and collaborating partners. This experience, together with the project outputs and outcomes have informed the development of Phase 2 of the project, which is now aimed at deepening and building on the work undertaken in the first three years.
The project targets State Executive, as well as Oil and Gas Commissions; State Assembly legislators; Local Government Authority; Civil Society Organisations (targeting Women and Youth, and the Physically challenged as well as the Private sector); Media including social media; Local Communities.
The purpose of the project is to strengthen cooperation between stakeholders and help provide mutually reinforcing improvements in the democratic process, revenue management, transparency and energy security by building capacity within seven Niger Delta States.
The specific objectives of the project include: enforcement of existing ‘Good Governance’ laws, including Fiscal Responsibility and Procurement, and Freedom of Information Act as well as advocate for Nigeria signing on to the Voluntary principles on Human Rights; and build the capacity of benefiting state government institutions; including Oil and Gas Commissions and help develop community relations with the commissions.
The project also seeks to improve civil society and Local Community engagement with key government agencies; and increased legislative and CSO oversight capacity to monitor revenue allocations/budget implementation and development projects in the benefiting states.
Another area of focus is to strengthen citizens’ knowledge on regional development agencies such as NNDC, the South-South Regional Economic Commission, the state governments, the Ecological fund, Sovereign wealth fund and National Emergency Management Agency (NEMA), State Emergency Relief Agency (SEMA), where they exist.
The project will feature Research, Media outreach, Budget monitoring and tracking, Advocacy/Campaigns, consultations with governors and key government officials in the benefiting states, workshops, seminars, town hall meetings (among other activities) in seven Niger Delta states (Edo, Delta, Bayelsa, Ondo, Rivers, Akwa Ibom and Cross River).
It will also seek to build the capacity of state government and agency officials (specifically and especially the Oil & Gas Commissions), in transparency and accountability in revenue management with a particular focus on procurement, participatory budgeting and public access to information;
State legislators in their oversight role and responsibilities in holding the executive and agency officials to account; It will also be used to canvass for the establishment of disaster management agencies in states where they do not exist currently.
Capacity of civil society organisations will also be built in public expenditure tracking and participatory project monitoring and evaluation as well as advocacy for enforcement of existing legislation's and need for state endorsement of voluntary human rights principles; while the role of the media in the reporting of budgetary issues, governance and their monitoring and reporting on the oversight role of the State Assemblies would be strengthened.
Local communities would also be trained in holding government to account on existing legislation's to guarantee their welfare and good governance and adaptation to climate change and disaster management.
The entire project involves building the capacities of weak institutions within the selected states to deliver on basic services to the people and putting in place appropriate legislation, fiscal governance and public accountability mechanisms that can support and strengthen good governance as well as focus on enforcement of existing laws to free more resources for development.
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