Nigerian oil

Press, Volume CXI, Issue 32522, 4 February 1971, Page 10

Nigerian oil

Nigeria’s chief delegate to the Commonwealth Prime Ministers’ conference, Dr Arikipo, took a strong line against the sale of British arms to South Africa. Although the arms issue appears to have been deftly shelved, at least for the time being, the possibility of African sanctions against Britain is a reminder of Nigeria’s new importance as a supplier of oil. Nigeria is not yet a major source of oil for Britain; but the general upsurge in the demand tor oil in western Europe, and the tough bargaining position adopted by oil-supplying countries in response to this demand, lends Nigerian oil a strategic importance. The prospects of enlarging the world’s oil supplies from relatively new finds in the North Sea, Alaska, and Nigeria are still uncertain. Oil companies will be able to draw on these to meet the growing demand; but there is no reason to discount the importance of the Arabian oil reserves or the continuing value of North African production to Western markets. Nigeria’s oil output has risen to 1.5 million barrels a day. Although this would be sufficient for about 70 per cent of Britain’s daily consumption, only a fraction of that production is now going to Britain. Nevertheless, Britain cannot afford to view lightly the possibility that it would be denied access to this oil.

In fact, there are signs in Nigerian politics that the Government in Lagos is more interested in enlarging trade than in upsetting it by imposing sanctions against a trading partner. Senior public servants who are entrusted with the execution of the country’s 1970-74 development plan are keen to promote a high rate of economic growth in Nigeria. Curiously enough, one major project has been postponed to the next planning period: the iron and steel plant which was to have been developed by the Soviet Union. Only preliminary surveys are being undertaken now. The development plan for many industries emphasises Government control or State participation. The oil industry is no exception; there is to be a Nigerian oil corporation, which will work with private enterprise. The Nigerian Government is being challenged by several political groups—in spite of the ban on political parties—and a struggle for power continues within the army. But so far there are no signs that the country’s oil will be withheld from the Western markets.