PETER CUNLIFFE-JONES, Lagos | Thursday
THE high price of oil, which is causing a furore across the developed western world, has been a “godsend” to the poor of Africa’s most populous country, says a top official. Nigeria, home to 120 million people, 90% of whom live on under US$2 a day, depends on oil for 95% of its foreign earnings.
“The high price of oil has really been a godsend, a lifeline, for the people here,” says acting Finance Minister Jubril Martins-Kuye.
“The government has argued we need a democracy dividend – something to make people feel the benefits of returning to civilian rule. We do not have much but the high oil price has meant there is more money than we expected.”
Nigeria is Africa’s largest oil producer and the sixth largest oil exporter in the world.
The country’s production quota from October 1 has been raised by OPEC from 2.09 to 2.16 million barrels per day, and the rise in oil prices this year is expected to push earnings for the year well above the 10 billion dollar level.
Yet, after years of crushing military rule, the country is one of the world’s poorest. With a gross domestic product (GDP) of around $40 billion last year, 70% of the population survive on less than $1 a day and Nigeria stands in a lowly 179th place on the World Bank development index.
According to the Nigerian newspaper The Guardian, the western pressure on the OPEC group of oil-producing countries which led them to agree another increase in production last weekend was unfair.
The decision to increase production was a bid to ease soaring prices which have sparked worldwide concern and protests in Europe.
The protests which began in France last week have spread to much of western Europe with blockades in cities in Britain, the Netherlands, Holland, Belgium and Germany.
“It is wrong for consumer nations to blame oil production for this deterioration,” the Guardian said in an editorial on Wednesday.
Price speculation by western marketing groups and high taxes placed by western governments were major factors in the price rises, it said.
“Nigeria has earned some extra income from the favourable pricing regime,” the paper said.
“Past windfalls were squandered by corrupt (military) governments. The revenue being earned now should be wisely utilised to beef up the productive capacity of industries in order to lessen dependence on the providential wealth from oil,” it added. – AFP