Political activist, UK trained Technocrat, Harvey Warmann gives panacea to NDDC challenges

Harvey A. Warmann, a former banker and Economist with particular experience in International Finance, Corporate Banking and Marketing, a native of Ahoada West Local Government Area in Rivers State, gives insight to the problems plaguing the Niger Delta Development Commission, NDDC, with some quick fixes to the problems.

In a document made available to Africa Update, titled- Niger Delta Development Commission, (NDDC): My perception and focus, the Political activist, United Kingdom trained Technocrat, and  President/ Founder of Rivers Club, London,  Warmann said the major challenges often articulated in the mid 1990s, which are still relevant up to today, in Niger Delta are ecological/environmental, particularly its endangered ecosystem and the obvious absence of human capacity development. 

He noted that “the major challenges of NDDC may be outlined as, Environmental, Agriculture, Transport, Rural/Regional planning and housing, Community development, health care, small and medium enterprise/ absence of cottage industries, water supply, Energy, vocational training, waste management/ sanitation, large scale industries, solid minerals, tourism, social welfare, sports and culture, unemployment, conflict resolution/ prevention, investment promotion and others”. 

He observed that “the responsibility for addressing these challenges fall on the State Government, The Ministry of Niger Delta Affairs, The Federal Government and Niger Delta Development Commission, (NDDC). As an interventionist Agency for mine States, NDDC responsibility must focus on major capital projects cutting across all the States in the zone and institutions that will address the execution of projects affecting the lives of all in the area.

“The proliferation of incompetent contractors in the axis need to be discouraged and replaced by an institution with competent personnel to evaluate and approve contracts for competent contractors to handle jobs emanating from the Commission. Therefore the era of hocking NDDC contracts on roads and in hotels in Port Harcourt and Abuja must be stopped. Accordingly, efforts must be made to establish institutions that will bring about sustainable economic, social and cultural development.

As a matter of urgency, we will propose the establishment of a Niger Delta Development Bank (NDDB), in line with the creation of International Bank for Development and Reconstruction (IBDR) after World war 2, in Europe. NDDB, will be under the supervision of Central Bank of Nigeria and adequately capitalized. The thrust of NDDB will be to address reconstruction of areas devastated by natural causes, militancy, etc and development of the area generally.

“The ownership structure would be proposed as follows: NDDC (On behalf of the Nine (9) State) – 45%, Federal Government (Ministry of Finance) -25%, Multinational Oil Companies (in JV with NNPC)- 20%, African Development Bank-5%, Technical / Management Partner (Foreign Bank)- 5%, which when added together will produce 100% ownership structure.

“The aim would be for the bank to drive the development of the region through provision of employment, proper investment of the Commission fund, transparent financial engineering in areas of Project financing/execution and the establishment of technical service centres, i.e. promotion of joint-venture and investment opportunities with partners from overseas. 

“NDDB will act as Banker to the energy sector, with the oil companies operating in the zone maintaining accounts with the bank to boost it’s deposit base. And having corporate clients accounts as well as high networth account holders.”It should be expected that because NDDC is an interventionist outfit, it would require funds to meet its development need. Consequently, it should strive to look into areas its activities can generate income.

” In addition to the allocation of funds from the Federal Government, State Governments and the major oil companies. NDDB, for example can invest in Treasury bills, shares, properties, manufacturing, etc throughout the Country. This will enhance the economy of the areas where such investments are to be located, while the profit generated will sustain the Commission. The strategy here is not just the profit/income target but to ensure that every part of this Country enjoys the benefit of the development of the Niger Delta thereby reducing pressure on demand on the area. 

“The Federal Government was said to be holding NDDC statutory funding contribution to the tune of N500 billion (Five Hundred Billion Naira only) between 2001 and 2005. The oil companies are also delinquent in releasing their statutory funds to NDDC. The reason for Federal Government and Multinational Oil Companies’ reluctance in releasing such sum to the Commission may be technical.

“With the NDDB thus established and functioning, such money could be released through the bank that would oversee its management and application to meet the development needs of the region. With prominent people/ institutions nationwide involved in the ownership of the Commission and its institutions, and supervised by the Central Bank of Nigeria, funds will be prudently managed and be result oriented.

“Niger Delta Region in Nigeria, like its counterparts in the Mekong Valley of Vietnam, is not only an embarrassment to Nigeria, but to the World. It therefore requires intervention from those who benefit from the region not to allow the “boat to sink.” Multilateral funding agencies like ADB, ODA of China/Japan, European Investment Bank and Exim-Bank of New York shall be encouraged to participate in the Niger Delta Development strategy as they did in the Mekong Valley.

“Funds raised from these sources shall be channelled through the NDDB and applied to address the following challenges: health, human capital development, infrastructure ( Inter state capital projects such as railway lines, and new City programmes), Agriculture, etc. All in all, NDDC is seen as a major interventionist outfit of the Federal Government to address the Developmental challenges of a region long devastated by crude oil exploration and exploitation.

“It is a Political solution to the aspirations of the struggles of our forefathers. The Commission will therefore do all it can to bring about positive changes in the values of the people and thereby make a difference from the erstwhile poor, neglected and backward region. We will promote/support Governmental Political tendencies particularly where such call for reduction and stoppage of youth restiveness/ cultism, provision of social amenities and initiations of door to door attitudes. In all of these, the Board and Management of NDDC will ensure our goals are achievable and adopt open door policy that will derive from the norms of due process and rule of law.”