MEND & Berger - An Analysis

The Movement for the Emancipation of the Niger Delta (Mend) took on Julius Berger, a subsidiary of German construction giant Bilfinger Berger, saying it had built its Nigerian empire on the back of the country’s crude oil profits. It further accused it of making profits through corrupt dealings with government officials who awarded it lucrative contracts in return for free mansions and other incentives. The company is a household name in Nigeria, a market it has exploited for decades, mainly through close ties with successive governments.


Mend took issue with the fact that Julius Berger stopped operations in the delta after two of its workers were kidnapped by militants. The group gave the company a deadline to withdraw its staff from operations in the capital, Abuja, or it would remove them itself.


The government intervened on the company’s behalf, saying Mend would meet severe force if it carried out its threat to invade Abuja.


Mend told journalists the government had offered it a $20m bribe to prevent it from shifting the theatre of battle from the delta to Abuja. The rebels declined the bribe, so they said, but the story went remarkably quiet after that.


The corruption that has bedevilled development in Nigeria is most pervasive in the oil sector. But it is not just about that sector; it is also about the uses to which oil revenues have been put in the broader economy and who they have benefited. This, loosely, is the point Mend seemed to be making, albeit crudely.


But corruption is infectious and it is becoming common cause that the militants fighting for a better deal for communities in the delta are themselves becoming corrupt, thus making resolution of the problems more intractable.



In Nigeria, successive governments have, by ignoring the plight of communities in oil producing areas, created by default the rebel movement they now cannot control. Attempts by the Yar’Adua administration to tackle the problem have been constrained not just by the complexity of the problem but by the slippery nature of their opponents.



These groups, notably Mend, appear to be gaining in strength and influence and, some say, they are getting quite rich in the process.



As well as the alleged $20m bribe, Mend has been offered money to stop attacking oil pipelines and to allow those they have damaged to be repaired. The opportunities for extortion are endless.


Mend is not asking for development as much as it is asking for money, more specifically a much larger share of oil revenues for the oil-producing states so they can effect their own development.


That may sound simple but the oil-producing states have consistently been the most corrupt of Nigeria’s 36 states. Staggering sums given to state governments for development over the years have been siphoned off by officials.


Giving money direct to communities would sidestep official corruption but create other channels for corruption as there are no community development plans in place, nor local capacity, to absorb large revenue streams sustainably.


While the government wrings its hands over the issue, the situation is deteriorating. Violent clashes between soldiers and militants are becoming more common and increased security threats have led oil companies to relocate their staff and operations to Lagos. Production has been cut by about 20% after repeated attacks on oil pipelines, hitting government revenues.


But the push for all parties to act in good faith to resolve the problem will only happen when the money runs out and opportunities for corruption are removed. That is not likely to happen for some time.


So the delta communities may as well hunker down. Any light at the end of their tunnel is most likely to be an approaching train.

(Business Day)