Title Page--------------------------------------------------------------------------------- i

Certification------------------------------------------------------------------------------ ii

Dedication-------------------------------------------------------------------------------- iii

Acknowledgement----------------------------------------------------------------------- iv

Table of Content------------------------------------------------------------------------- vi

List of Tables--------------------------------------------------------------------------- viii


CHAPTER ONE: INTRODUCTION-------------------------------------------------1

1.1 Background of the Study------------------------------------------------------------1

1.2 Statement of Problem-----------------------------------------------------------------3

1.3 Objective of the Study---------------------------------------------------------------4

1.4 Research Hypothesis------------------------------------------------------------------4

1.5 Significance of the Study------------------------------------------------------------4

1.6 Basic Assumption -------------------------------------------------------------------5

1.7 Research Methodology---------------------------------------------------------------5

1.7.1 Sources of Data-----------------------------------------------------------------------6

1.7.2 Method Of Data Collection-------------------------------------------------------------6

1.73 Techniques of Data collections-------------------------------------------------------6

1.74 Data Analysis---------------------------------------------------------------------------6

1.8 Scope/Limitations of the Study--------------------------------------------------------6

1.9 Operationalization of Term ------------------------------------------------------------7

1.10 Organisation of Chapter -------------------------------------------------------------10



CHAPTER TWO: LITERATURE REVIEW----------------------------------------12

2.1 The nature of the Nigeria Fiscal Federalism----------------------------------------17

2.2 Theory of Fiscal Federalism----------------------------------------------------------19

2.3 The synopsis of revenue commissions and allocation formula in Nigeria: 1946-88----22

2.4 Revenue Mobilisation Allocation And Fiscal Commission And The Politics Of

Revenue Allocation------------------------------------------------------------------------25

2.5 Oil Revenue formula-------------------------------------------------------------------34

2.6 Remote and Immediate Causes of Niger Delta Crisis-----------------------------35

2.7 Socio-Political And Economic Impact Of Niger Delta On The Nigerian Economy--------41

2.7.1 Economic Impact --------------------------------------------------------------------41

2.7.2 Security implication of the Crisis -------------------------------------------------42

2.8 Theoretical Framework----------------------------------------------------------------44



3.1 Historical overview of the Niger Delta Conflict---------------------------------------46

3.2 Federal government intervention and crisis resolution in the Niger Delta------------48

3.2.0Niger Delta Master Plan-------------------------------------------------------------51

3.2.1 The Niger Delta Development board (NDDB) ----------------------------------51

3.2.2 Presidential Task Force (PTF)-----------------------------------------------------52

3.2.3 Oil Mineral Producing Areas Development Commission (OMPADEC)-----------52

3.2.4 Niger Delta Environmental Survey (NDES)-------------------------------------55

3.2.5 The Niger Delta Development Commission (NDDC)--------------------------56

3.3 Recent and Current Programmes and Projects in the Niger Delta -------------59

3.3.1 National, State and Local Government ------------------------------------------60

3.3.2 International Agencies and Non – Governmental Organisation (Ngos)-----------61

3.3.3 Other Organisations ----------------------------------------------------------------63

3.3.4 Oil, Gas and Servicing Companies-----------------------------------------------64



4.1 The concept of Amnesty and its imperative----------------------------------------69

4.2 Amnesty Initiatives in the Niger Delta----------------------------------------------70

4.3 The Presidential Amnesty Programme and Niger Delta Militancy------------- 72

4.4 Niger Delta Amnesty Programme Under Goodluck Jonathan Administration---78

4.5 The impact of Amnesty programme on national development ----------------80

4.6 The Federal government Amnesty programme; the success so far-------------83

4.7 Failure and Criticisms of the Federal government Amnesty programme -----84



5.1 Summary--------------------------------------------------------------------------------86

5.2 Conclusion------------------------------------------------------------------------------88

5.3 Recommendations----------------------------------------------------------------------90




Table 1History Of Revenue Allocation In Nigeria------------------------------------27

Table 2.The report of the revenue sharing formula------------------------------------33

Table 3 Oil revenue Formula--------------------------------------------------------------34

Table 4 Potential Financial Resources---------------------------------------------------68







The Niger delta region of Nigeria, reputed to be one of the most richly endowed delta’s in the world, contributes about 80% of Nigeria’s national wealth. Years of political and economic marginalization, environmental degradation, bad governance and policy inconsistency by the government, and the divide and rule policy of the oil companies led to emergence of militancy in the Niger delta in the early 2006. The various activities of militants have created a state of general insecurity in the region.

The persistent neglect was to result in unrests by the people of the area, which eventually almost got out of hand. Long years of neglect and conflict have promoted, especially among youths a feeling of a bleak future, and thus see conflict as a stratagem to escape deprivation. The paper argues that the methods of operation of the militants, which includes kidnapping and hostage taking, blowing/shutting down of oil installations and facilities, setting off of car bombs, and illegal oil bunkering has negatively impacted Nigeria’s economic development.

The government not able to bear the embarrassment and the drop in daily oil production, coupled with the substantial loss of revenues devised the amnesty programme in 2009 as solution to the quagmire. The paper is aimed at examining the circumstances causing the crisis situation in the area, and the attendant consequences to the people of the areas and to the global community, the various effort and programmes of the government in curbing the situation, it attempt the critical analysis of the amnesty programme initiated by the Federal government, its impact at ensuring and restoring durable peace back to the region, it discusses some of the challenges to amnesty programme, it drives out appropriate recommendations as to how the crisis will be given a permanent rest and peace be fully restored to the region of Niger Delta.

The study adopted the Marxian political economy approach as its theoretical construct, and used it, in the content analysis of the secondary data on the subject matter. Materials for this paper has been drawn mainly from secondary sources found in libraries and archives in Nigeria, in general and in the Niger Delta in particular; academic and other resources available in the internet, local and international publications.









Background of the Study

Nigeria, the most populous country in Africa, is indisputably one of the most richly endowed countries on the continent. It boasts of immense resources (human and material) which provides opportunity for national development (Oyakorotu, 2008:1). A disconnection between the economic advantage of the Niger Delta and the quantum of resources disbursed for the development of the region has given rise to structural imbalances in Nigeria. Consequently, the Niger Delta of Nigeria is increasingly famous due to massive oil deposits and constant violence in the region. Estimates show that the

Nigerian government generates over 90% of its revenue from the region, which is characterized by crisis of underdevelopment (Ikein, 2009). The region remains underdeveloped despite the huge revenue it provides for the privileged social class including the public figures, public servants and beneficiaries from multinational oil corporations. The Nigerian government and multinational corporations are principal beneficiaries of the massive oil deposits in the region, while the majority of the people there battle against squalor occasioned by exploitative oil exploration, environmental degradation, climate change, inadequate infrastructure, unemployment and poverty.

This has precipitated various forms of incessant and/or sporadic ethno-religious conflicts or what the Freedom House calls “simmering tensions” among the country’s about 350 ethnic groups, as well as between religious communities. Augustine Ikelegbe rightly observes that, “these conflicts do not only constitute the main threat to the nation’s fledgling democracy, national stability and security but also consistently and stubbornly throw up the issue of the national question.” The challenge of peaceful and effective management of violent communal, ethno-religious and political conflicts in

Nigeria contributes to the country’s classification as a collapsing, if not fragile state. In fragile and collapsing states there are indications of poor governance and the citizens are bound to retreat into ethnic shelters for succor and their solidarity and sense of patriotism deplete. In illuminating the instability of the Niger-Delta, an oil-rich region enmeshed in various forms of communal and resource conflicts, a number of descriptions have ensued. The history of oil in the Niger-Delta is often traced to 1956, when the Anglo-Dutch oil giant, Shell discovered oil, the high grade ‘Bonny Light’ crude in Oloibiri in present day Bayelsa State. This culminated in Nigeria’s first export of crude cargo in 1958. Media reports succinctly describe the growth of Nigeria’s oil industry, with a current potential of producing three million barrels of crude oil daily, in spite of the Organization of Petroleum Exporting Countries (OPEC) limit on production of crude oil.


The Niger-Delta is noted for its biodiversity because of the region’s high content

of diverse plant and animal species, including many exotic and unique flowers and birds, but the region has probably turned out to be the most polluted in the world. Current literature points out the magnitude of these ecological disasters.

On assumption of office in May 2007, former Nigeria’s President Umaru Musa Yar’Adua included the Niger-Delta as part of his administration’s seven-point agenda.

The government scheduled a meeting with the stakeholders in the region, which Reuben Abati described as “an insincere attempt to keep the people talking.” The Yar’Adua’s administration also proposed a Niger-Delta summit that died on the ground of controversy, and created the Niger-Delta Ministry to focus mainly on the needs of populations in the region. To address the worrisome situation in the Niger-Delta, and considering the failure of previous efforts at resolving the conflict, the government set up the Niger-Delta Technical Committee, which was mandated to collate and review all previous reports and recommendations on ways of resolving the conflict. Thereafter, the Presidential Committee on Amnesty and Disarmament of Militants in the Niger-Delta was mandated to design a framework of disarmament, demobilization and rehabilitation or reintegration of the militants. This culminated in the presidential proclamation of amnesty on 25 June 2009, to encourage non-state combatants in the Delta to abandon violence, which lapsed on 4 October 2009, pursuant to section 175 of the Constitution of the Federal Republic of Nigeria. In the amnesty document government acknowledges the inadequacies of previous state interventions at meeting the population’s needs.

Government also noted the threat to peace, security, order and good governance and the Nigerian economy by militant agitation of certain elements of the region.

The amnesty proclamation also acknowledged the need to harness the energies of able-bodied youths for development in the region. Consequently, “all persons who have directly or indirectly participated in the commission of offences associated with militant activities in the Niger- Delta” were to surrender and hand over “all equipment, weapons, arms and ammunition” including “execution of the renunciation of Militancy Forms specified in the schedule.” The disarmament, demobilization and reintegration process was followed by a monthly stipend for the ex-militants. If anything, the Niger-Delta amnesty draws attention to the ‘no victor, no vanquished’ rhetoric that ended the Nigeria/Biafra civil war in which the discovery of crude oil and ethnic and regional tensions were major factors. The amnesty that followed the civil war can be categorized as an ‘unfinished business’, to use the words of Ade Ajayi. Against this backdrop, the core thrust of this study is to examine the socio-political effect of the amnesty programme on the Niger Delta Area of the Nigerian state.


Statement of the problems

Many political researchers have identified the Nigeria delta crisis as having a serious effect on the peace of the nation, the political system and the economic situation of the nation.

This Niger delta crisis arises as a result of their suffering from environmental degradation and pollution thought oil spillage, and gas flaring. Also the government impact and various attempts to make the people happy serves as fuel that fire more heavily the strength of the crisis as it may be associated with unfair judgment pose on the allocation of the nation revenue and resource. This among other causes of Niger Delta Crisis “greed and selfishness, deprivation, poverty and social injustice” has stood as a key infringe on the peacelessness in the region. What a paradox!

Reports note that they lack basic infrastructure- good network of roads, health care facilities, good schools and portable water. The recent sad image of the poor quality of life in the creek shown to the world on CNN (and in the newspaper) show that the oil wealth is not used to develop the area. The successive governments have collected billions of dollars from the land over the decades, but little (if any) has been invested in the area to improve the people’s living conditions. As a result of the affair mentioned causes, it is very clear so to say that the region which is home to Nigerian oil wealth remains the most impoverished community in the nation.

Therefore, the Niger delta crisis is a serious matter that requires serious policy, courageous and committed to resolve.


Purpose of the study

The objectives of this research work are:

(i) To critically assess the origin, nature and the extent of the Niger Delta Crisis

(ii) To focus on the amnesty programme initiated by the Late president Yar’adua in


(iii) To examine the significance of amnesty programme in the area.

(iv) To determine the extent to which the Amnesty programme has been achieved?




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