Thursday, February 24, 2011

Paying Crude-Oil Tithes to Ghana’s Western Region

Battle lines over revenue. Ghana. Ten regions. Oil in Western Region. Western Region chiefs want ten percent. Politicians not giving. Chiefs angry. If Western gets ten percent, do other nine regions get ten each too?


  1. And what would be left for national development. I believe they deserve something as food production would be affected. I envisage a situation where food security would become affected through reduced availability (through smaller surface area for fishing and selling of agricultural land for infrastructural development) and poor accessibility (due to the high standard of living that's going to arise as a result of the oil find--people have started tripling their house rents). Thus, they would need to be compensated someway to avoid this famous Dutch Disease whose realisation only seems to happen in Africa.

    However, may I ask who would receive the royalties: the Chiefs or the DCEs? and what would it be used for? Development or for sharing amongst the denizens. These are more important than what they are quarreling over.

  2. I agree with you (NFA) for the most part: Of course all 10 regions can't get 10% each. :-) That being said, the oil revenue should go towards the betterment of the entire country. I do feel strongly that the western region should receive a cut of the revenue - i don't know whether 10% is too high or too low (my expertise does not extend to econ), but it's really important that it's not a negligible amount so they don't feel exploited. Unless the WR benefits significantly and has a vested interest in protecting oil production machine/companies, we'll see the conflict of the Niger delta replicated in the region. [shudder!]

    ps. "Dutch disease" - cool, first time hearing this.

  3. A little ambiguous, this on NY. Do the Chiefs want the loot for themselves or are they looking to ensure that Westerners get some form of compensation for their sooon to be destroyed livelihoods?

  4. @ Nana Fredua-Agyeman:

    I agree with everything you have said. I suspect that the Chiefs would like to receive the 'compensation' themselves because they believe that they are 'closer' to the people than the local government officials. You may or may not know my own personal views about chieftains.

    No money should go to the chiefs.

  5. @ Anon:

    I'm sorry about the ambiguity, although the comment thread explains everything.

    The chiefs do not claim it for themselves. They claim it for the people of the Western Region.

  6. Kwame Mensa-Bonsu26 February, 2011

    Well, someone promised and has destroyed his clutch, break, gear box and engine reversing!

  7. Thanks for clarifying.

    At first glance it would seem as if politicians have no reason to deny compensation to Westerners for oil drilling activities in their area. We do not want a Niger Delta on Ghana'a Cape.

  8. I think the western chiefs deserve the 10% the asked for n the other chiefs should be giving 5% or something..Everybody goes home smiling but it seems the issue here is Uncle Atta has a huge development task which is on the way n so if he hasn`t decided what to give who then i guess all the revenue has gone into creating a better Ghana...If U have questions about what i mean by a better Ghana,look around u and u will see..from road constructions to investing into the education...


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