Nigerian academic Dayo Kayode has stated that the country's poverty and insecurity issues are a result of the mismanagement of its natural resources. According to Kayode, Nigeria's abundance of crude oil, gas, and lithium should be sufficient to ensure the economic well-being of its citizens. However, despite having these resources, Nigerians are still wallowing in poverty. Kayode attributes this to the lies and deceitful narratives of successive governments regarding the extraction, management, and distribution of these resources.
Kayode points out that the global economy is primarily driven by energy and currency protection, and nations with an abundance of energy resources tend to develop their economies and protect their currencies. He notes that Nigeria has three strategic energy resources: crude oil, gas, and lithium. However, despite this, the country is still struggling with poverty. Kayode claims that governments have been using deceitful narratives to justify the high cost of fuel, citing factors such as international price increases and OPEC production ceilings.
The academic also questions the former NNPC policy of Direct Supply Direct Purchase (DSDP) and the intentional ineffectiveness of national refineries despite huge budgets. He argues that if these refineries were working, the price of PMS would have been significantly lower. Kayode presents data showing that if 1 million barrels of crude were refined domestically, the total product value would be N180.51 billion, compared to N100 million from exporting crude at $69/barrel.
Furthermore, Kayode disputes the claim that Nigeria's fuel is being smuggled to neighboring countries, asking who controls the borders and has the financial and institutional capacity to engage in such activities. He also questions the whereabouts of other variants and derivatives of Nigeria's crude, such as diesel, kerosine, and aviation fuel. Kayode argues that if these by-products were efficiently managed, the PMS pump price could be reduced by half.
The academic also links the high level of insecurity in Nigeria to the leadership's involvement in the illegal extraction of valued mineral resources. He cites a conclusion by Amman Pore of CNN and late Gen. Sani Abacha that any government that cannot resolve security breaches within 24 hours should be considered an accomplice. Kayode questions why insecurity issues in Nigeria have persisted and worsened over the years.
Kayode also highlights the issue of illegal mining of resources, which has led to the displacement of citizens. He asks if anyone has been arrested, prosecuted, or punished for the reported cases of lithium smuggling in the northern parts of Nigeria. The academic argues that Nigerians are poor and insecure due to a lack of knowledge about the mismanagement of their country's resources.
Finally, Kayode criticizes the government's handling of the gas sector, citing the country's embarrassing performance compared to other gas-producing nations. He argues that Nigerians should understand the reasons behind their poverty and insecurity and calls for citizens to take responsibility for their civic duties.
Key points
- Nigeria's poverty and insecurity stem from the mismanagement of its natural resources.
- The country's abundant resources, including crude oil, gas, and lithium, are not being utilized effectively.
- Successive governments have used deceitful narratives to justify the high cost of fuel and have been involved in the illegal extraction of valued mineral resources.
