Poverty in Wealth

This is an excerpt from an article that's in the Feb. 2007 Vanity Fair issue called Blood Oil. I just read the full article on line. Very interesting! From what I know, most of it is accurate. He has a couple of details a bit off, but not much. The guy he refers to as being shot while in traffic - yes, that happened but it wasn't political. It was because he had made some poor personal choices relating to someone else's wife. No expat has been shot due to the political situation.

Excerpt:

As is often the case in Africa, many of Nigeria's problems come as much from wealth as from poverty. African countries that happen to have valuable resources—oil in Angola and Nigeria, diamonds in Congo and Sierra Leone—are among the poorest and most violent on the continent. Economists refer to this phenomenon as the "resource curse." The resource curse holds that underdeveloped countries with great natural wealth fail to diversify their industry or to invest in education, which leads to long-term economic decline. The per capita gross national product of OPEC countries, for example, has been in steady decline for the past 30 years, whereas the per capita G.N.P. of non-oil-producing countries in the developing world has steadily risen.

According to the World Bank, most of Nigeria's oil wealth gets siphoned off by 1 percent of the population, condemning more than half of the country to subsist on less than a dollar a day. By that standard, it is one of the poorest countries in the world. Since independence in 1960, it is estimated that between $300 and $400 billion of oil revenue has been stolen or misspent by corrupt government officials—an amount of money approaching all the Western aid received by Africa in those years. Former president Sani Abacha and his inner circle stole at least $2 billion. In a recent crackdown on corruption, the president of the Nigerian senate had to resign after accusations that he had solicited a bribe in exchange for pushing through an inflated education budget (which presumably would then have been plundered by others). A former inspector general of the national police, after being accused of stealing between $52 and $140 million, was recently sentenced to six months in prison for a lesser charge. And two Nigerian admirals were put on trial for trying to sell stolen oil to an international crime syndicate.

The list of wrongdoing continues almost without end. With top government officials so brazenly violating the social contract, everyone downstream inevitably follows suit. The Nigerian constitution stipulates that just under 50 percent of national oil revenue must be distributed to state and local governments, and that an additional 13 percent must go to the nine oil-producing states of the Niger delta. Last year that amounted to almost $6 billion for the nine delta states—plenty, it would seem, to take care of basic social services. The problem, however, is that the money goes to the governors' offices and then simply disappears. A financial-crimes commission was recently formed to investigate all of the country's 36 governors, and it wound up accusing all but 5 of corruption. The most apparently egregious case was that of Diepreye Alamieyeseigha, who was accused of embezzling hundreds of millions of dollars while he was governor of Bayelsa State. He fled to England, was arrested for money-laundering, jumped bail, and slipped back into Nigeria dressed as a woman. (The English authorities had taken his passport.) When asked how he managed to make the trip, he said he had no idea. "All the glory goes to God," he explained. He is now in custody awaiting trial.

"It's going to be tough," human-rights activist Oronto Douglas said when I asked him about reforming Nigerian politics. "Nobody who has privilege surrenders it easily. The struggle is to get people to give up power who got it illegally."