Resent events surrounding the House Community on Subsidy Committee Chairman's fall from grace to grass and the shocking revelations at the erstwhile sittings paints a very disturbing but educational snapshot into the inner workings the NNPC and the Nigerian Government.
One thing is clear, Nigeria has become a nation of 2 economies. This economic schism came into being as a result of the Military incursion into Nigeria's politics. The Military seperated the Oil industry unto themselves and , the first one is better described as the CRUDE OIL Economy, this economy is defined by its single greatest contributory product (Crude Oil), it is a closed economy that completely depends on the sale price of Nigeria's Light Sweet Crude to the international market, its an Export dependant economy, the key players in this economy are The Federal, state and local govts, all other arms of govt, the federal, state and LG civil service and all the Minitries, parastatals and MDG's in Nigeria.
The peculiarity of this economy is that it is totally bereft of any form of Productivity, the Crude is not produced by Nigeria, all the production takes place within strong foreign multinational institutions who have entered a joint venture pact with the Govtn thus all the Govt does is to collect royalties and spend accordingly.
The above arrangement ensures that every month, there is billions of naira to spend and share amongst all the different arms of Govt.
This economy lacks, innovation, productivity, entrepreneur ship, a deep belief in any mix of positive core values, institutional integrity, a positive culture of work ethic and diligence and any other factor that can be mentioned to indicate a strong, vibrant and productive economy, the reasons for these obvious deficiencies is not far fatched; strong,productive, institutions that generate a culture of positive values and produce honest, skilled and ethical leadership is usually borne out of a combination of Vision, Values and Necessity.
This economy is simple (like a single celled organism) it is not populated by strong institutions (a basic and paramount prerequisite for a strong, productive economy) it is made up of institutions whose sole purpose is to spend money that it didn't produce, thus all the institutions in this economy continue to seek ways to create contracts that can be inflated, shared amongst entrenched interests and replicated whithin the next budget cycles, in the place of business plans we have budget plans, revenue generation is replaced by expenditure and strategy is replaced by agenda.
There is no need to create a strong positive corporate culture as people come and go within these institutions by virtue of political, sectional, religious and ethnic search and selection criteria, these are institutions without a soul, no shared corporate core values, no vision of the future, no clear institutional objectives, no talent to manage no desire to achieve anything other than to collect entitlements and create bogus contracts.
These are the sorts of institutions that make up Nigeria's Crude Oil Economy, and thus no amount of money how ever large can pass through these institutions and serve any productive purpose. These institutions are driven by anti-values: corruption, distrust, greed, nepotism, Hate, Entitlement and. Oppression.
stay tuned for part 2...it gets better.
One thing is clear, Nigeria has become a nation of 2 economies. This economic schism came into being as a result of the Military incursion into Nigeria's politics. The Military seperated the Oil industry unto themselves and , the first one is better described as the CRUDE OIL Economy, this economy is defined by its single greatest contributory product (Crude Oil), it is a closed economy that completely depends on the sale price of Nigeria's Light Sweet Crude to the international market, its an Export dependant economy, the key players in this economy are The Federal, state and local govts, all other arms of govt, the federal, state and LG civil service and all the Minitries, parastatals and MDG's in Nigeria.
The peculiarity of this economy is that it is totally bereft of any form of Productivity, the Crude is not produced by Nigeria, all the production takes place within strong foreign multinational institutions who have entered a joint venture pact with the Govtn thus all the Govt does is to collect royalties and spend accordingly.
The above arrangement ensures that every month, there is billions of naira to spend and share amongst all the different arms of Govt.
This economy lacks, innovation, productivity, entrepreneur ship, a deep belief in any mix of positive core values, institutional integrity, a positive culture of work ethic and diligence and any other factor that can be mentioned to indicate a strong, vibrant and productive economy, the reasons for these obvious deficiencies is not far fatched; strong,productive, institutions that generate a culture of positive values and produce honest, skilled and ethical leadership is usually borne out of a combination of Vision, Values and Necessity.
This economy is simple (like a single celled organism) it is not populated by strong institutions (a basic and paramount prerequisite for a strong, productive economy) it is made up of institutions whose sole purpose is to spend money that it didn't produce, thus all the institutions in this economy continue to seek ways to create contracts that can be inflated, shared amongst entrenched interests and replicated whithin the next budget cycles, in the place of business plans we have budget plans, revenue generation is replaced by expenditure and strategy is replaced by agenda.
There is no need to create a strong positive corporate culture as people come and go within these institutions by virtue of political, sectional, religious and ethnic search and selection criteria, these are institutions without a soul, no shared corporate core values, no vision of the future, no clear institutional objectives, no talent to manage no desire to achieve anything other than to collect entitlements and create bogus contracts.
These are the sorts of institutions that make up Nigeria's Crude Oil Economy, and thus no amount of money how ever large can pass through these institutions and serve any productive purpose. These institutions are driven by anti-values: corruption, distrust, greed, nepotism, Hate, Entitlement and. Oppression.
stay tuned for part 2...it gets better.
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