The Big Problem
Nigeria faces a disruptive disparity between its northern and southern halves from oil and economic policies. Currently, the Petroleum Act of 1969 and the 1999 Constitution of the Federal Republic of Nigeria are directives issued to allocating oil revenues into the economy. These
President Buhari
reforms have led to corruption and
prebendalism in Nigeria as the oil industry has been disproportionately been under government control. Thus, the oil-rich southern part of Nigeria is given more economic resources compared to the north. These economic differences create even more struggles amongst the religious and cultural cleavages between the north and south. This struggle is caused by weak policy implementation and incentives for the richer south; regressive, undermining tax system that is inefficient; and prebendalism from government-owned oil enterprise. The current issue is continuing due to the lack of commitment President Buhari has shown in regards to the situation.
The Disparity
North and south Nigeria show varying discrepancies not only economically, but also educationally, and socially. Regionally the north consists of mainly Muslims while the south is made up of mostly Christians. This along with all oil revenues procuring from the south results in gruesome conflict. The immense money distribution in the south has created states with much higher economies, literacy rates, and social wellbeing. In fact, on average, the government proposes that northern states spend $78.10USD per citizen, while southern states are suggested to spend from $181.99USD to $294.13USD per citizen (see graphic below).
Additionally, northern states have a literacy rate of only around 15%. Southern states comparatively. have literacy rates of around 90%. Northern Nigerians also have increasingly represented more and more impoverished, showing a 73.9% poverty rate in 2010 (see chart below).
Even the latest 2019 annual budget for Nigeria’s 36 states, resonate a large majority of funding to the south. For example, the northern Niger State has issued a plan for 56.54 billion nairas, while the bordering southern state Kwara was granted 157.8 billion nairas. This is nearly a three times increase in budget for Kwara, who only has a population of 2.4 million, while Niger State has a population of 4 million. The budget proposal for all 36 states.
Moreover, these exponential variances in economy and individual income lead to many challenges. For example, over 20 million Nigerians are smallholder farmers, yet only 3.5% have accessed agricultural insurance. This leaves many hardworking families in the dust during times of need after tragic occurrences. These workers accounted for 22% of Nigeria's GDP, but employed half of its workforce. The voice
and needs of these diligent workers has been overshadowed by the petroleum industry tycoons.