SAN Advocates for Customary Owners’ Control Over Natural Resources

Introduction

The issue of control and ownership of natural resources in Nigeria has been a long-standing point of contention. A Senior Advocate of Nigeria (SAN), Mohammed Ndarani, believes that in order to fully tap into the taxing potential of the country, the Nigerian constitution should be amended to grant customary owners of natural resources the ultimate control over their assets. Mr. Ndarani emphasized the need for a review during an interview in Abuja, highlighting the current restrictions placed by Section 44 (3) of the Constitution. In his view, the current provisions of the constitution restrict the rights of landowners and grant excessive power to the Federal Government in exploiting mineral deposits. This article delves into Mr Ndarani’s propositions and arguments for a more equitable distribution of resource control.

The Call for Change

Mr. Ndarani argues that Section 44 (3) of the Constitution grants the Federal Government exclusive rights to exploit, produce, and dispose of all mineral deposits in Nigeria, marginalizing the customary owners of the land. This has resulted in increased agitation from oil-producing areas and hindered the growth and development of these regions. He suggests the removal of legal and political barriers that prevent host communities from fully benefiting from their mineral resources.

Abolishing Restrictive Laws

The senior lawyer strongly advocates for the nullification of Section 44 (3) of the Constitution, the Land Use Act of 1978, and the Petroleum Act of 1969 to pave the way for resource control. By granting customary owners overriding control of their natural resources, Mr. Ndarani believes that a fairer distribution of wealth and resources can be achieved.

Ensuring Fair Partnerships

With oil deposits now being discovered in various parts of Nigeria, Mr. Ndarani proposes a partnership between the Federal Government, states, and regional governments for the exploitation, production, sale, and sharing of resources. This collaborative approach would mirror the relationships between the government and international oil companies and promote equitable resource management.

Addressing Conflict and Militancy

The current monopolization of mineral resources by the Federal Government has contributed to conflicts and militancy in the Niger Delta region. By allowing owners to become shareholders and partners in resource exploitation, Mr. Ndarani believes that many of these issues can be resolved, leading to a more harmonious and sustainable approach to resource extraction.

A Return to Fair Taxation

Harkening back to the days of the First Republic, Mr. Ndarani advocates for a system where owners of natural resources pay taxes to the Federal Government while retaining control over their assets. This model, commonly practiced in other countries, would ensure a more equitable distribution of wealth and enhance the country’s revenue generation capacity.

Redefining Revenue Allocation

In line with the recommendations of the Louis Chick Commission of 1954, Mr. Ndarani suggests a revised revenue allocation formula that allocates 50% to regions of origin, 20% to the Federal Government, and 30% to a distributive pool based on population, regional responsibilities, and the need for balanced development. This new formula would promote more localized control and decision-making in resource management.

In conclusion, the call for enhanced resource control by customary owners is not just about economic empowerment but also about rectifying historical injustices and fostering sustainable development. Mr. Ndarani’s call for granting customary owners control over natural resources represents a significant shift towards a more equitable and sustainable management of the country’s wealth. By revising existing laws and adopting new revenue allocation strategies, Nigeria can harness the full potential of its resources while fostering greater collaboration and harmony among all stakeholders. It’s time for the Federal Government to heed this call and work towards a fairer and more prosperous future for all Nigerians.