TITLE PAGE AND DECLARATION Oil, Politics and Regional Development In Nigeria: A Comparison of The South- South And The South-West Regions Submitted by EGHWEREE Ogheneruonah Charles to the University of Exeter, School of Social and International Studies (SSIS), Department of politics, October 2015 as a thesis for the degree of Doctor of Philosophy of Politics (Ph.D. Politics). This thesis is available for Library use on the understanding that it is copyright material and that no quotation from the thesis may be published without proper acknowledgement. I certify that all material in this thesis which is not my own work has been identified and that no material has previously been submitted and approved for the award of a degree by this or any other University. i ACKNOWLEDGEMENTS My profound gratitude goes to God almighty for His provision, grace and power that saw me through this eventful academic journey. From where it all began to this glorious ending, it was and will always be my unfailing God that made this possible. Take all the glory Baba God. I equally hold a debt of gratitude to my ever supportive and dynamic supervisors. From Professor Jack Vowles who I started with in 2012 to Dr Matthew Eagleton- Pierce who upon his exit, took over and Dr Duncan John Russell who saw me to the end of the study, I am indeed grateful that great minds like you, were my supervisors. Dr Duncan, I have learnt a lot from your dynamism and huge wealth of academic knowledge, thank you and God bless. I cannot wish to have any better supervisors than academic giants like you people who opened your academic fountain for me to drink transforming knowledge. I am indeed grateful. My sincere appreciation also goes to my darling wife and adorable daughter, Mrs Rita Onajite Eghweree and Miss Oghenefejiro Esther Erhuvwusah, for the support and prayers. Coping with my absence from home while the study lasted, is to say the least, highly and deeply appreciated. Miss Oghenefejiro came to complete my joy and I thank God for the special grace that brought you and will sustain you in Jesus’ Name. Amen. I love you guys dearly. To my parents, Mrs Baby Amajikpa Eghweree and Chief Dr Duncan Ewhere, thank you for your prayers and unquantifiable support throughout my studies. Chief Duncan, it’s only God that will appropriately reward you for the huge investment you have made in me since I was born. God alone will appropriately reward you for the labour of love and sacrifices you have made to see me succeed in life. Thank you so much sir. I pray for good health and long life for you my parents to enjoy fruits of your labour. I also want to deeply appreciate my invaluable elder sister, Mrs Tivere Helen Bobi and husband, Mr Ufuoma Bobi for their wonderful support. My nephew, Pastor Frank Afieghe and wife Daniella, thanks for the prayers and spiritual support, God bless you. My brothers, Festus Eghweree, Engr. Tenu Sheriff Eghweree, Godfrey Eghweree and my eldest sister, Mrs Janet Afieghe as well as my niece, Mrs Elohor ii Emudianughe and my in-law, Mr Bright Jakpor, I am grateful for your supports and prayers. I can’t thank you people enough, God bless you. In no particular other, I am indebted to the following persons. Ovie Morris Akpodonor, Theophilus Akpojiyovwi, Samuel Onatefe Ganiga who housed and feed me for months in London and his wonderful landlord Mr Adewale Dairo. I am equally grateful for the support of Mr and Mrs Vincent Arierhi Ighomuaye, Chief Hope Abijor, Chief Emmanuel Ganiga, Dr Dere Otubu, Ike Felix and Chike Mbadechie. Others are Uncle Samuel Adegbuyi, Mr and Mrs Patrick Mordi, Brother Toriola Wale and Mama Anidi Akpodonor (Mama UPU, UK), Samuel Irabor (A1 Digital, Benin), Gabriel Ozekhome Igechi, Seun Moses, Benson Idje, Bernard Ogunde as well as Eke Vincent, thank you all for your supports. To my colleagues at the University of Benin, I am grateful for the support and prayers. Of note, are Professors Andrew Oronsaye, Ikelegbe Augustine, Sylvanus Ebohon, Isike Christopher and Otoghile Aiguosatile for the moral supports, Dr Andrew Tonwe and Dr Emmanuel Okonmah for both moral and financial supports as well as Mr John Osazuwa. Others include Abbot Oghenekaro PhD, Oghenemise Abirhire, Miss Cynthia Okocha, Uncle Monday Edemenya as well as Patience Henry. Thank you all for the prayers and invaluable support. My special thanks and appreciation also goes to the Delta State government for the part funding of my studies. I am indeed grateful for the funds that aided timely completion of my studies. Thank you Mr Amromanor, the Executive Secretary of the Delta State Bursary and Scholarship Board, Mr Goodluck Akoko who went out of his comfort zones to ensure I am paid promptly. Others are Gloria Gajah, Judith Akpojabor and Daniel Ikpolo. Thank you guys for been there for me. I deeply appreciate all the support and prayers. I am equally grateful for the support of the following member of Staff at the College of Social Science and International Relations (SSIS) Postgraduate office for their administrative support while my study lasted. Thank you Amy Rager. Finally, to staffs and my fellow PhD students and colleagues at the department of politics; thanks for the unique opportunity to meet and work with you. Dr Andrew iii Shaap, Dr Bice, Dr Gabriel Katz. My fellow students, Jonathan Kamkhaji, Dr Adeeb, Dr Serik Beimenbetov and Ayad Benismail, I appreciate working with you guys. I wish you all well in your future endeavours. iv ABSTRACT As oil bearing country, the issue of development in Nigeria has been a complex one that has attracted attention of both the government and scholars because oil politics appears to shape resource management and the development process. While academic focus has been on the analysis of national development, there is a paucity of academic studies on the internal dynamics at the regional level that shape the development process. This study therefore aims to: “examine the effect of oil resources on Nigeria’s development and the South-South compared with the situation in the South-West”, with an explicit focus on the complex nexus between oil, politics and regional development in Nigeria. The thesis adopts both methodological and theoretical triangulation to generate data to test the main and supporting hypothesis adopted for the study: “the oil industry has had an adverse impact on the development of Nigeria, and, in particular, the Niger Delta region in which it is concentrated”. In so doing, it explores the failure of oil politics to mix effectively to engender both national and regional development; leading to a regional development disparity. The study concludes that oil wealth failed to fuel development in Nigeria but instead, led to leadership failure. This failure is particularly found to have given vent to the negative impact of oil wealth on elite behaviour that is shaped by corruption, made worse by a dis-functional federal system where those with links major ethnic groups, get resource allocation and development advantage. The study consequently recommends that elite induced oil politics and attendant corruption, be tackled to pave way for both national and regional development in Nigeria. The study also recommend replication of this study in a larger scale in other oil bearing developing nations to further explore the relationship between management of resource wealth and regional development. v TABLE OF CONTENT PAGE S/N ITEM NO 1 Title page and Declaration I 2 Acknowledgement Ii 3 Abstract v 4 Table of content Vi 5 List of Tables/Graphs and Pictures xiii 6 Definition of Terms/Acronyms and Abbreviations Xv CHAPTER ONE:INTRODUCTION 7 1.1 Introduction 1 8 Table 1.1: National Living Standards: South-South & South-West 4 9 1.2 Nature of Problem 8 10 1.3 The Argument 11 11 1.4 Theoretical Framework 11 12 1.5 Research Questions and Objectives 13 13 1.5.1 The Hypotheses Explained 14 14 1.6 Scope of The Study 15 15 Picture 1.1: Map of The Niger Delta 16 16 1.7 Methodology: Brief Introduction 16 17 1.8 Significance of The Study 16 18 1.9 Chapter Organization for The Thesis 18 CHAPTER TWO: POLITICAL ECONOMY OF NIGERIA 19 2.1 Introduction 20 20 2.2 Oil in Nigeria 21 21 2.2.1 The Nigerian Oil Industry 22 22 2.2.2 The Place of Nigerians in the Oil And Gas Industry (OGI) 24 23 2.2.3 Oil and Dual Economy in Nigeria 27 24 2.2.4 Oil and Politics in Nigeria 28 vi 25 2.2.5 Oil And The Politics Of Revenue Allocation 31 26 2.2.6 Oil, Politics and Development 34 27 2.3 OIL POLITICS AND NIGERIAN DEVELOPMENT 34 28 2.3.1 Conceptualizing Development 35 29 2.3.2 Three Visions of ‘Development 35 30 2.4 Development in Nigeria 41 31 2.4.1 Development Plans in Nigeria 43 32 2.4.2 Why Development Plans Failed in Nigeria 46 33 2.5 Centralization of Rents And Regional Inequalities 50 34 Table 2.1: incidence of poverty across geo-political zones in Nigeria 50 35 2.6 Conclusion 51 CHAPTER THREE: CONCEPTUAL AND THEORETICAL FRAMEWORK 36 3.0 Introduction 53 37 3.1 Resource Curse Theory And The Rentier State 54 38 3.2 Resource Curse And Economic Development 57 39 3.2.1 Rent Seeking 60 40 3.2.2 Rent Seeking And Development: Interest Tangle? 61 41 3.2.3 Resource Space and Corruption 64 42 3.2.3.1 Conceptualizing Corruption 64 43 3.3 Corruption In The Nigerian Context 67 44 3.3.1 Corruption In The Oil Sector 67 45 3.3.2 Administrative Corruption in Nigeria 70 46 3.3.3 Corruption, Impunity And Development: The Nexus 70 47 3.4 Elite Theory 72 48 3.4.1 The Nigerian Elite 76 49 3.5 Theoretical Framework Of Analysis 78 50 3.5.1 Synthesis Of The Two Theories 78 51 5.6