You can be Sure of Shell

You can be sure of Shell – an alliteration that in the confident days after the war underpinned the sense of progress into tomorrow’s world.

Shell – the Anglo-Dutch member of the ‘oily seven sisters’ presented itself as a symbol of modernity and with Shell at our side we could happily drive into a bright future.

How happy Shell must be – by simply not being BP, the other British member of the oily seven sisters. How unfortunate BP must feel being a foreign company causing havoc to the coastline of America. But, I am led to believe by the Guardian newspaper that, more oil is spilled in the Nigerian delta every year than has been lost in the BP oil spill.

Through ill luck or negligence both oil companies have caused massive damage not only to the environment but to the well-being of people around their oil extraction sites.

Whilst it is easy to point at corruption in Nigeria as part of the problem but America has questions to answer in the cosy relationship that big oil has with the regulatory authorities. Problems that Nigeria faces on a daily basis cannot begin to be dealt with unless oil taxation is kept away from the government and passed directly into the pockets of the people. A country like Nigeria receives so much revenue directly from oil and other mineral taxes that it can broadly ignore the wishes of its people. If the Nigerian people received mineral extraction rents directly from the oil and mining companies and the government had to tax the people to get its funds then it would have to be responsive to the electorate. It would not end corruption but it would reduce it.

Countries where governments receive most of their income from mining and oil extraction find it almost impossible not to be corrupt. Only by holding mining taxes in an escrowed account – separate from national government funds – and making sure that every adult citizen receives the proceeds equally, directly, transparently, auditably and regularly can societies such as Nigeria’s begin to blossom in safety and harmony.

If Shell were to publicly state that in future it would give all adults (directly to individuals) in the region a regular income (instead of giving the money to the state) then many of the current problems would disappear. Of course, it would need the concurrence of the Nigerian and local state governments but what reason could they have to refuse? Could they send the money better – I think not.