JOHN ONYEUKWU

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RESOURCE CURSE IN NIGERIA: PERCEPTION AND CHALLENGES

by

Agwara John Onyeukwu

Abstract

This paper examines the Resource Curse phenomenon in the Nigerian socio-economic context. It then tries to situate the absence of a mechanism for the effective engagement of civil society as the primary reason why Nigeria is finding it difficult to overcome the negative consequences of its extractive sector.

It finds that the present adhoc engagement process makes it difficult for civil society and the private sector to be effective in holding government institutions and public servants accountable.

It identifies some of the impediments to a vibrant engagement process as the continuous retention of the Official Secrets Act and the absence of a freedom of information legislation, presence of hybrid civil society organisations, mutual suspicion between government and civil society, lack of capacity within civil society and the absence of an institutionalised lobby framework in Nigeria.

It considers various policy entry points provided by international initiatives such as the Extractive Industries Transparency Initiative (EITI), the local adaptation of EITI in the Nigeria Extractive Industries Transparency Initiative (NEITI), local initiatives such as the National Economic Empowerment and Development Strategy Document (NEEDS). It also took a look at what obtains in Norway and to some extent Alaska (two oil producing economies) for its comparative value, before going on to provide practical guidelines for policy interventions to create a friendly, accommodating and efficient open process that promote civil society/private sector engagement of government institutions with the primary purpose of engendering a transparent and accountable management of Nigeria’s oil resources.

The policy recommendations are primarily in the mould of international best practices as advocated in such global initiatives as the EITI and the Mining Minerals and Sustainable Development (MMSD) project and other international best practice options applied in the local context.

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©John Onyeukwu 2009. Last updated June 2009