Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule...

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Nigeria

Transcript of Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule...

Page 1: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Nigeria

Page 2: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Key Institutions

• 45 years of independence – 16 year of it ruled by

citizens • Current rule 1999

– Rest under military rule • Under 6 different Generals

• Brutal and greedy

• Unstable – Tendencies to fall apart– Military waiting in the wings

to take over

Page 3: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

The U.S. Model

• Progressively increases states– 12-36 states– Redraw map lines:

ease ethnic issues– When violent occurs

• Create a new state• Worked? There is less

violence now

Page 4: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

The U.S. Model

• 1991: – Military dictator

Ibrahim Babangida– Moved capital from

Lagos to Abuja• Move to open the

interior• Designated Federal

Capital Territory• Costly and inefficient

Page 5: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

The U.S. Model

• British set them up under the Wesminster model– Includes a prime minister– One party winning maj. Of

seats in Commons – Fragmented: easily get a

vote of no confidence

• 1979 constitution: looks more like U.S. – President can govern with or

without support– Term limit: 2-four year terms

• Olusegun Obasanjo – 1st president of Fourth

Republic Election day

Page 6: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Branches of Government

• The Executive – Most powerful political force

• The Legislature– Tend to serve at the will of leader

• The Judicial – Tend to serve at the will of the leader

Page 7: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

The Executive

• President is elected by popular vote – Head of state, government, and commander in chief– Four years terms (serve only two terms)– Perform

• Ceremonial duties of leadership• Overseeing the day to day administration of the government• Coordinates and overseeing the country’s armed forces• Appoints government ministers (must come from all 36 states)

– Federal Executive Committee (president and ministers)• Enact laws

– Not allowed to serve in the National Assembly• Vice President

– Assist president– Nominated by the presidential candidate

Page 8: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

The National Assembly

• Bicameral National Assembly– Senate:

• 109 seats• Each 36 states = 3 representatives• One for the Federal Capital Territory

– House of Representatives• 360 seats • 10 for each state • Represent single member districts

– Both elected for four years terms at the same time• Pass laws • Either house can originate legislation

– Must be passed by both house– Assented by the president

Page 9: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

The National Assembly

• Appeasement of smaller ethnic groups• Equal seats in both houses• Like U.S. having two senates

• Danger is hyperfederalism:– A system that tries to hard to represent ethnic

groups.– May lead to a country falling apart

Page 10: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Judiciary

• Responsible for interpretation of the laws in accordance with the constitution

• Supreme Court – Highest court of the land

• Court of Appeal and Federal High Courts

Page 11: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

• First parties were ethnically based– Did not reach out beyond ethnic group

• Caused Ethnicizing and regionalizing the national process

Nigeria’s Parties

Page 12: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Nigeria’s Parties

• 2003 elections were flawed– Registration favored

parties– Missing ballots– Stuffed boxes– Intimidation

– See page 297 in your book

Page 13: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

• “Two-party Plus” system• PDP (Peoples Democratic Party)

– Centrist party– Personalistic vehicle of President Obasanjo– Well-organized and funded– Nationwide party– Draws votes from all ethnic groups (including

Muslims)– Most Northern Muslims do not support (vote for

relgionalist and Islamist parties)

Nigeria’s Parties

Page 14: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Nigeria’s Parties

• ANPP (All Nigeria Peoples Party)– Strongest following Mulsim North– Supported the dictatorship of Sani Abacha

• AD (Alliance for Democracy)– Yoruba party– Southwest;

• Other parties

Page 15: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

State Government

• Governor is elected by popular vote– Serve one four year term

• Unicameral State House of Assembly– Popular elected representatives from local govt.

areas. – Members = 3 times the number in House of

representatives

• 774 local governments • Deal with local administrative matters

– Construction and maintenance of public roads

Page 16: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Military

• Looms over like an intimidating shadow• Operate on behalf of sectarian interest in legislative

process• Discipline organization

– Capacity to make decision • National in character

– People of all regions– ethnic groups – religious predilections– Representative of the people – Use to assume and keep power

• Cleavages do exist and influence military officers in and out of power

Page 17: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Elections

• Embraced by the victors; contested by the losers

• Military officers– Bypassed elections– Choose to rely on

guns and violence

Mashood Abiola

Page 18: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

• 1999 and 2003– Olesugen Abasanjo: wins 60% of votes– ANNP: Muhamad Buhari received 32% in

2003– Five other parties – Only one received 3 percent of the votes; rest

received less than 1 percent– Both contested legitimacy of elections– Abasanjo: led since 2003 and terms will end

in 2007

Elections

Page 19: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Constitutions

• Post World-War II colonial period– Series of constitutions– Offered self-rule and regional autonomy– Served to guide the content and to form and

independent Nigeria– Suspended and rendered obsolete under

military rule• Promised transitions back to civilian rule• Est. new ways to write the constitutions

Page 20: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Bureaucracy

• Source of employment for large number of people

• After independence– Replaced the British and Indians who

dominated – Exacerbating north/south tensions

Page 21: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

• Problems: – Proliferation of states= grew rapidly– Oil revenue– Political instability– Lack of accountability– All leads to corruption – Hard to reverse!!!

Bureaucracy

Page 22: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

1st Republic 1960-1966

• Adopted Westminster model• Northerners dominated government

– Due to census in 1952-1953• Turned into Northern only group

– Northern People’s Congress (NPC)– Set out to redistribute resources – Political Policy “Northernization”

• Conflict with south • Yoruba AG (Yoruba Action Group)• Igbo NCNC (National Convention of Nigerian Citizens formerly

Council of Nigeria and the Cameroons)• Internal Western crisis = NPC seized opportunity to sub-divide

the Western region– Diluted Yoruba power

Page 23: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

• Violence escalated in the West– NPC engaged in extensive corruption

• Fraudulent census• Falsified ballots in general elections• Widespread violence• Intimidation of supporters and candidates • Victory in 1965• Absolute majority in parliament

1st Republic 1960-1966

Page 24: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

1st Republic 1960-1966

• Approaching the Military– Nnamdi Asikiwe,

NCNC leader and president

– Tafawa Balewa, NPC prime minister

– Both asked for support if violence broke out

– Inadvertently gave military political power

Page 25: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Civil War and Military Rule:1966-1979

• Group of largely Igbo officers seize control– January 1966– Aguiyi Ironsi, head of

state )highest ranking officer

• Aim was to end violence in Western region

• Stop political corruption • Stop abuses of northern

dominated government• Replaced federation with

unitary state – Second coup

• Killed General Ironsi; Yakubu Gowon, Middle Belt Christian

Page 26: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Civil War and Military Rule:1966-1979

• Igbo were persecuted in the north

• Ethnic violence sent Igbo’s fleeing

• 1967: – Igbo tried to secede to form

own independent nation: Biafra

– Believed that north lock other regions out of power

– General Gowon built a military led govt. in rest of Nigeria

Page 27: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Civil War and Military Rule:1966-1979

• Three-year war – Starvation tactics– Attrition – Defeated Biafra by

January 1970

• Heavy toll on Nigeria’s populace– Million deaths

Page 28: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

• Post-war– Gowon presides over policy of national reconciliation – Growing oil revenues– Break/dilute three major ethnic groups

• Broke down in 12 states (19 states) • Increased the armed services from 10,000 to nearly 250,000

in 1970• Corruption was widespread (oil boom)• Gowon opts not to return to civilian rule • Gowon was overthrown in 1975 by Murtala Muhammad

Civil War and Military Rule:1966-1979

Page 29: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Civil War and Military Rule:1966-1979

• Murtala Muhammad – Committed to transition

program – 1976 he was assassinated

• General Olusegun Obasanjo – 2nd in command– Peacefully ceded power to

elected civilian government in 1979

– Retired but later returned in 1999

Page 30: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Second and Third Republics1979-1999

• 1979-1983– President Shehu Shagari

• National Party of Nigeria (NPN)• Did little to reduce the mistrust between parts of the federation; stop

corruption

– Regional and ethnic polarization continued– Economy deteriorated rapidly– Four year

• Fractional infighting• Weak leadership• Declining public services• Chronic economic mismanagement • Steady parade of corruption scandals• Growing political violence increased

Page 31: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Second and Third Republics1979-1999

• 1983:– NPN captures majority

in state and national elections

• Fraud • Violence

– A few month later Major General Muhammadu Buhari seized power

Page 32: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Second and Third Republics1979-1999

• General Buhari– Refused to pledge

rapid return to democratic rule

– Failed to revive the economy

– Popular support wavered

• August 1985 General Ibrahim Babangida

Page 33: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Second and Third Republics1979-1999

• Ibrahim Babangida– Announced program transition

to democratic rule– Stalling tactics were used to

extend tenure in office– Annulled the presidential

election in 1993• SHOULD HAVE preceded full

withdrawal of military

• 1993 election– Claimed as fair – Despite military influence and

limitation – Yoruba businessman Chief

Moshood Abiola won

Page 34: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Second and Third Republics1979-1999

• Annulment provoke angry reactions from people– Postponed transitions– Lingering military rule– Deception of rulers

• Ibrahim Babangida– Under pressures to

resign– Hand picks successor:

Ernest Shonekan

Page 35: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Second and Third Republics1979-1999

• General Sani Abacha – Defense minister– Seizes power in 1993– Prolonged military

dominance – Combines repression/public

promises to restore constitutional democracy

– Announced transition to civilian rule

• Delayed steps• Cracked down on political

opposition • Constricted civil liberties

and political rights• Corruption at its best

– Sudden Death in June 1998 • Saved the country?

Page 36: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Second and Third Republics1979-1999

• General Abdulsalami Abubakar– Successor– Est. new transition program– Promptly handed over to

an elected civilian government

• President Olusegun Obasanjo – People’s Democratic Party

(PDP) – May 1999

Page 37: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

The Fourth Republic1999 to present

• Obasanjo – Called out of retirement– Yoruba’s felt they had been

cheated over the years– Many did not trust Yoruba

leader– Handed over power to

military head of state in 1979

– North: candidate they could trust

– Ex-military leader could better manage the thorny task of keeping armed forces in the “barracks”

Page 38: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

• Obasanjo:– Unpopular among his own people

• Irregularities at the poles• Reform the State and economy• Retired all military officers who held political positions

– Economy• Oil sector targeted for new management • Lobby others to forgive Nigeria’s debt• Increased minimum wage• “truth and reconciliation” commission• Civil Society groups thrived

The Fourth Republic1999 to present

Page 39: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

• Media:– Exposed corruption – Forced Speaker of the House and two

Senators to resign– Proliferation of Newspapers, radio, and

televisions stations– Radio still main source of information – All 36 states have their own radio stations– Over 100 privately owned newspapers

The Fourth Republic1999 to present

Page 40: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

• Obasanjo:– Political debts– 1st cabinet corrupt politicians

• Brought down previous republics

– Newcomers lined their pockets with public funds

– Anticorruption???? • Needed support for re-election • Agenda???

– Faced National Assembly and impeachment

The Fourth Republic1999 to present

Page 41: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

• 2003 elections– Re-elected Obasanjo

• Political accommodations• Election rigging • Overall the election was questioned• Secured the PDP’s dominance• Legitimacy??

– Acceptable in Nigerian politics

The Fourth Republic1999 to present

Page 42: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Obasanjo Administration

• 1st six months– Reform the armed forces– Revitalize the economy– Address public welfare– Improve standards of governance

• Praised for clean management and contracting policies• Clientelism and financial kickbacks for oil licenses

resurfaced• Proposed and anti-corruption commission

– Powers to investigate – Prosecute public officials– Had little impact– “political tool” of the presidency– 2nd one founded in 2003: The economic and Financial Crimes

commission (EFCC)

Page 43: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

• Peace and Reconciliation Commission (1999)– Did not have the power to grant amnesty– Ensured testimony would be accurate– Reported findings to President who did not

make the document public

Obasanjo Administration

Page 44: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

• PDP– Supported Obasanjo in 1999 – He filled his cabinet with these “political

kingpins” – 2003: “fixers” delivered him victory again

• Accomplished through fraud

– Allegations of corruption at the highest level surfaced

Obasanjo Administration

Page 45: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

• Niger Delta– Proposed Niger Delta Development Commission (NDDC)

• Disburse the 13 percent of oil revenues constitutionally mandated to return to the delta states

– States took Obasanjo to court• Youth militias harassed police, stole oil, kidnapped workers for

ransom

– Nov. 1999: • Attacked killed several policemen• Military units destroyed the village of Odi = massacre

– NDDC was slow to take shape and had little affect– Ethnic groups grew bolder and more restive – Violence in the region has shut down nearly 40% of the country’s

oil exports

Obasanjo Administration

Page 46: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

• Legitimacy– Problems in Niger Delta– Plateau State

• Governor elections• Christians and Muslims

– Demonstrate deficits of legitimacy for the government as well as democracy

– Patronage, coercion, and personal interest will drive politics

Obasanjo Administration

Page 47: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Democracy

• 2000 poll: 81% of the people support

• Division of tribe and religions – Might have achieved stable democracy– Fails under tribal and religious animosities,

corruption, and military power grabs

• Intercivilizational disunity:– Two civilizations rarely living in peace

Page 48: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Political Economy

Page 49: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.
Page 50: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Political Economy

• Dependent on Oil Reserves

• Predominately agriculture– Represent a small

faction of the total earnings

Page 51: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.
Page 52: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Political Economy

• Positioned to be an economic leader

• 1950’s self sufficient with food

• Developed transportation infrastructure

• Produced and exported agricultural products – Palm oil – Cocoa

Page 53: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

• 1970’s oil price surged– Oil exports grew quickly – Rapid increase in government revenue

• $400 million in 1965 to $26 billion in 1980• Invested large sums of money in large scale industrial

development• Paid little attention to agriculture• Paid little attention to other sectors• Did not invest in improving public services

– Water, electricity, telephones, transportation systems, education and health care

– Corruption emerges

Political Economy

Page 54: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Political Economy

• Oil prices drop– Inflation grew – Surpluses became

deficits– Owed money to the

World Bank and International Monetary Fund

Page 55: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

• 1985 Babangida implement measures recommended by the IMF– Privatization of government held-firms– Reductions in government subsidies on basic goods

and services– Reduction in size of government bureaucracies

• Social cost was unbearable • Result = slowed economic reform• Abacha ended this process• Balance of long-tern economic logic and

immediate social needs

Political Economy

Page 56: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

• Oil sector provides – 20% of GDP – 95% of foreign exchange earnings– 65% of budget revenues

• High population and inattention to agricultural– Import food to meet local needs

• $1 billion has been promised by the IMP – Contingent upon economic reforms

Political Economy

Page 57: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Political Economy

• External debt= $30 billion

• 60% of the people live below the poverty line

• $900 per capita

Page 58: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Selected EarthTrends Data:

Variable Value

Gini Index{1} 44

Population living on less than $1/day{2} 71%

Population living on less than $2/day{3} 92%

Poverty Gap $1/day{4} 35%

Poverty Gap $2/day{5} 60%

Access to improved sanitation 44%

Access to an improved water source 48%

Literacy rate, all adults n/a

Life expectancy, both sexes44 years

Definitions and Sources

{1} Survey year: 2003. Based on expenditure.{2} Survey year: 2003. Based on expenditure.{3} Survey year: 2003. Based on expenditure.{4} Survey year: 2003. Based on expenditure.{5} Survey year: 2003. Based on expenditure.

Page 59: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

• Obasanjo has worked with others to create New Partnership from African Development (NEPAD)

• NEPAD goal– To promote development – Encourage good governance– Ending civil war– Promoting foreign investment– Liberalizing trade– Increasing foreign aid from advanced industrialized

countries

Political Economy

Page 60: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Reforms

• Economic and Political– Need to reduce corruption – Govt. needs the revenue lost to corruption

• Increase foreign direct investment• Progress needs to be made despite the

uncompromising measures

– 60% below or at the line of poverty• Priority for the government• Quality health care and education

– Needs to nurture its growing middle class

Page 61: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Oil and Democracy

• Correlation between petroleum and non-democratic governments

• Norway is one of the few democratic oil producing countries – Russia, Mexico, Nigeria, Iran: all non-

democratic (or recently were)– Russia attempted democ. But is back to

authoritarianism

Page 62: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

• What causes oil to work against democracy?– Produces vast wealth but its concentrated

• Government hands• Seldom benefits the whole society

– Becomes the great prize of politics– Control the oil = control the power– Oil industry employs few – Wealth is squandered by corruption– Overlarge bureaucracies, showcase projects, rewards

for supporters of the regime

Oil and Democracy

Page 63: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

• What causes oil to work against democracy?– Oil allows rulers to avoid investing

• Infrastructure• Industry• Long term growth mechanisms

– Oil will run out: consequences • Elites will use their secret bank accounts• Poor will remain poor and become more poor

Oil and Democracy

Page 64: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

• Majority of the people live in Poverty

• International debt $30billion

• Niger Delta came online in 1970– OPEC assigns quotas for each member

• Keeps quotas down/prices up• One of the easiest countries to bribe officials to

produce above Nigeria’s quotas

Oil and Democracy

Page 65: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

• Oil is Nigeria’s biggest political problems• Oil is produced by:

– Foreign firms– Nigerian National Petroleum Corporation (NNPC)

• Receives most of the revenues• Corrupt (similar to Pemex)

– Nationalizing oil production • Leads to more concentrated wealth• Encourages more corruption • Only work if it is total: companies buy the oil fields

– “What? Sell Nigeria’s sacred patrimony to greedy foreign capitalist? NEVER!!!”

Oil and Democracy

Page 66: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

• Possibilities – Nigerian International board of supervisors

• Power of oversight and audit• Take oil deals out of the hands of the government• Put money into an internationally supervised bank

– Make loans for infrastructure– Education– Expanding valid enterprises – Micro-loans: encouraging small businesses

Oil and Democracy

Page 67: Nigeria. Key Institutions 45 years of independence –16 year of it ruled by citizens Current rule 1999 –Rest under military rule Under 6 different Generals.

Oil and Democracy

Oil could give Nigeria a growing economy that would use but NOT

depend on petroleum