Biofuels, palm oil and youth empowerment in Nigeria's volatile Delta State

The socio-economic situation in Nigeria's volatile delta region is tragic: the abundance of oil and gas has brougth immense wealth to a small corrupt elite and Western energy companies, whereas the vast mass of ordinary citizens has become impoverished. An economic crisis fueled by demographic changes (rapid population growth, urbanisation, the abandonment of agriculture) has triggered an enviromental crisis which makes things worse. Especially the younger generation of Delta inhabitants has become totally disillusioned and tilts towards using violence to express its frustration over this state of affairs.

Felix Ayanruoh, writing for the Vanguard, thinks biofuels may offer an opportunity to turn this situation around, by involving the youth in their production. Biofuels can bring local employment, income security and local energy independence. Ayanruoh refers to Dr. Emmanuel Uduaghan, governor-elect, who recently said that his mission for Delta State is "To use our human and natural resources to launch an era of rapid and sustainable social and economic development that will transform us into the most peaceful and industrialized state in Nigeria...". Biofuels development is seen as one of the strongest opportunities to achieve the above stated mission, especially when they are based on palm oil, the industry of which has entirely collapsed. Green fuels could revive this once thriving agro-economic sector.

Ayanruoh makes some good points that are close to our own view on how biofuels may contribute to socio-economic development in the South. In a crisis region like the Niger Delta, local economic development is the absolute priority, and locally available natural resources, if kept in the hands of the communities who own them, can make an important contribution to this aim. With permission, we reprint parts of his essay:

The emerging market in biofuel is another opportunity to transform Delta State into a more peaceful and industrialized state. Delta State has one of the largest untapped palm oil potentials in the world. The export of palm kernels began in 1832 and by 1911, British West Africa alone exported 157,000 tonnes of which about 75 per cent came from Nigeria - the region encompassing Delta State being the major producer. As of today, palm oil production in our state has been ignored by the relentless focus on crude oil. The total output has fallen drastically, denying the state billions of dollars in potential revenue. Palm trees proliferate throughout the state with well known production centers in such towns as Ajagbodudu, Agbarho, and Otegbo, for example. The revitalization of this production sector is, therefore, well within reach.

One of the problems facing the Niger-Delta region today is youth restiveness, notes Ayanruoh:

It is therefore incumbent on the Uduaghan administration to address this problem by developing and improving palm oil production as a means of empowering our youths and at the same time, achieving his mission of transforming Delta State into a more peaceful and industrialized state.
At a symposium about youth restiveness organized by the Concerned Deltans, at the Petroleum Training Institute Effurun, in Delta State, the youth leaders in attendance stressed the need for vocational training in the area of farming among other trades. The past is clear enough and offers a framework for the future. There is the need for partnership among the state, business, labour, youth, and communal organizations, emphasizing human and technical development of palm oil production.

In conjunction with other vast natural resources of Delta State, the advancement of palm oil production will be of seminal importance to the overall development of the state, says Ayanruoh:
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He concludes that this initiative will drive revenue growth as a result of exports, increase employment for our youths, and generate electrical energy to power local industries and biofuels for transport.

Even though Ayanruoh is right about the potential palm oil holds for his State, there are a huge number of barriers that must be overcome: from the creation of a safe investment climate and the requirement for good governance to the question of ownership, labor rights and participation, to the need for investments in infrastructures and biofuel processing facilities. It is not enough to have a natural resource at hand. Its exploitation can just as well strengthen the injustices one is trying to overcome. The palm oil industry in this part of Africa has its roots in a colonial plantation system, and the risk exists that these old traditions based on a fundamental logic of inequality (producers/land owners versus powerless plantation laborers) are revived. Biofuel production based on palm oil can only succeed over the long term if smallholders are given enough means to participate in the sector.

With this in mind, the Biopact has been cooperating with a local NGO to study the feasibility of creating a cottage ethanol industry based on the exploitation of Nipah fruticans, a sugar rich palm that has colonised much of the Delta. Even though many problems arise that limit the potential of such a project, the small-scale approach to biofuel production based on local ownership is worth pursueing at the expense of potential profits, because the social advantages of employment creation, political stability and youth empowerment far outweigh mere commercial gain (earlier post).

The most important point to remember is that local farming communities in the South are becoming increasingly aware of the fact that biofuels offer them an unprecedented opportunity at diversifying their crop portfolio and to tap a new, lucrative and rapidly globalising market. Whether biofuels are used locally to replace fossil fuels or exported to bring in foreign currency is of lesser importance. The fact remains that the South has the social, economic and agronomic conditions that give it a competitive advantage over the North when it comes to green fuel production. The wealthy countries should look into strengthening this industry in the South, which offers a unique chance to alleviate poverty and to spur social development.

Image: armed Ijaw militants in the Niger Delta.