Oil Revenue Must Benefit Ghanaians - Nduom

Dr. Papa Kwesi Nduom the CPP Presidential Candidate in 2008 has said at the Catholic University in Sunyani that we must understand the problems that we need to solve in Ghana as we seek to understand the impact of oil revenue in our economy. Some of the key problems we have experienced include an unstable economic environment for decades, poverty trap with low per capita income for decades and a low level of industrialisation.

In the world there is such a phenomenon as oil fright. But in Africa, the experience of Nigeria, Equatorial Guinea and others have made such “fright” a stark, negative reality.

To demonstrate how the cost of energy has made Ghanaians experience a low standard of living, he quoted petrol prices as follows:

– Average price of a gallon of petrol in the USA a week ago – about $4.00

– Average price of a gallon of petrol in Ghana a week ago – $4.88

In the USA, he said, the people are complaining so much that the Obama Administration has set up a commission to investigate why the price of petrol has gone up so high. The cost of petrol affects the cost of living & production and so Ghana is an expensive country for businesses and individuals. Yet Ghanaians have become used to high prices of fuel and electricity. An important test of progress in the world, he added, is the extent of energy – petroleum and electricity used per capita in any country.

Dr. Nduom quoted from the book, “The Prize, the Epic Quest for Oil, Money & Power” written by Daniel Yergen:

“Today, oil is the only commodity whose doings and controversies are to be found regularly not only on the business page but also on the front page. And, as in the past, it is a massive generator of wealth – for individuals, companies, and entire nations. In the words of one tycoon, Oil is almost like money”

And, “... oil as a commodity intimately (is) intertwined with national strategies and global politics and power.”

To Dr. Nduom, Ghana must learn from our experience in gold, diamond and the rest and do better in many areas. To him the difficulties experienced by Akwatia, Obuasi, Prestea and other communities should guide our actions with regard to how we treat the oil revenue. The oil revenue must be used to benefit Ghanaians in general and more specifically, the communities in the oil production area in a visible, positive and very significant way. So he suggested that we should:

- Legislate and enforce local content in the production stage to engineer oil and gas skills and expertise to support the industry in country. Ghanaian professionals and skilled workers should be in the forefront of the provision of services in all areas.

- Legislate the use of oil and gas revenue.

- Ensure the development of a petrochemicals industry in the Western Region to create meaningful jobs and secure our future so that we do not continue on the poverty path as an exporter of raw oil and gas.

- Ensure that there is effective participation – meaning ownership - of Ghanaians in all areas both upstream and downstream. Ghanaians should share in ownership so that profits can remain in the country.

He suggested that the Catholic University:

- Offer a course of instruction appropriate for the times – to build the knowledge, skills needed in the oil industry.

- Provide technology-based education to provide a foundation that will enable graduates to qualify for jobs in the new industry.

- Understand what the oil industry needs and forge partnership for practical mutually beneficial association.

To the students, Dr. Nduom adviced them to study, study, study, be curious, inquisitive and willing to learn something new.

Finally, in an answer to the question on whether or not he would contest the 2012 elections, Dr. Nduom simply demonstrated the symbol, “yeresesamu”!

He had been invited as part of the regular speaker’s series at the Catholic University to discuss current issues of national interest.

Office of Dr. Papa Kwesi Nduom

May 9, 2011

www.facebook.com/pknduom.