By Jennifer M. Haralambides
Impunity Watch Reporter, Africa

ABUJA, Nigeria – As promised, the Nigerian government has proposed a deal to transfer a portion of its oil and gas revenue to the residents of the Niger Delta.

Earlier this year, the Movement for the Emancipation of the Niger Delta (MEND) declared an “oil war” on the national energy sector in protest against the lack of wealth sharing of incoming oil revenue.

The Nigerian government promised rebel groups amnesty and reform in the energy sector in return for a cease fire.  During the final moments of the amnesty offer many MEND leaders laid down their arms.  Many of the MEND leaders remained very skeptical of the governments ability to fulfill their promise to reform the energy sector.

On Monday MEND ended the 90-day cease fire and warned the oil industry to expect new attacks if they did not fulfill their end of the bargain.

In response, the government has said it has plans to transfer 10 percent of the national oil and gas revenue to Niger Delta residents as part of a broader effort to reform the energy sector.  This would allow the local residents to receive cash benefits from a version of a trust fund.

President Umaru Yar’Adua’s advisor on the oil sector, Emmanuel Egbogah, told the Financial Times that they are aiming to pass a serious of reform, which the government hopes will promote peace in the war torn area.

“Every community, whether blind or deaf or dumb, every citizen will say: ‘I own a part of this business,'” assured Egbogah.

In addition, the State-owned Nigerian National Petroleum Corporation (NNPC) confirmed that discussions were being held to find ways to give a share of the oil wealth to the nine oil-producing Delta states.

In the first quarter of 2009 the oil revenue fell by 50 percent due in part to the militant activity targeting the energy sector in the Niger Delta.  Recent reports have shown that since the cease fire, the oil production is rising.

For more information, please see:

AFP – Nigeria to Offer Oil Money Back to Delta People: Report – 19 October 2009

BBC – Nigeria “To Give 10% of Oil Cash” – 19 October 2009

UPI – Nigeria in Deal with Niger Delta Residents – 19 October 2009