Nigeria Law
Oil Boom — Failures & Good Spending

Murtala/Obasanjo1975Documented failure· Demurrage scandal· Chapter I · Money

FESTAC Cement Armada

1,627 cargo vessels carrying cement arrive at Lagos port, severely congesting Apapa and Tin Can Island. Demurrage claims and oversupply collapse cement market.

In 1975 the Federal Ministry of Defence ordered 16 million tonnes of cement against Lagos port capacity of about 1 million tonnes/year. By mid-1975, 455 ships were anchored off Lagos demanding $4,100/day demurrage. The Federal Government paid demurrage on undelivered cement for years; the subsequent commission of inquiry documented at least $2bn in losses.

Sources

  • · Federal Tribunal of Inquiry into Cement Importations (1975)

What it cost — political & economic reality

The political and economic reality

Nigeria in 1975: who was in charge, the cabinet of the day, the GDP, and the crises that defined the period.

Head of State · Military

Gen. Yakubu Gowon

1966–1975

National reality

Counter-coup of July 1966, Biafran War (1967–70), then the oil-boom expansion. Twelve-state structure (1967) replaced the four regions. Three Rs (Reconciliation, Reconstruction, Rehabilitation) and indigenisation began.

Crises of the period

  • Biafran Civil War 1967–70 (1–3 million dead)
  • 1973 OPEC oil shock + boom
  • FESTAC '77 preparations

GDP (World Bank)

$12.5 bn (1970) → $27.7 bn (1975, oil boom)

Cabinet (selected portfolios)

  • Finance (Commissioner)

    Chief Obafemi Awolowo (1967–71)

  • Education (Commissioner)

    A.Y. Eke (c.1967)

Federal Executive Council of commissioners; full roster being compiled.

Source: Federal Military Government records; World Bank WDI

Head of State · Military

Gen. Murtala Muhammed → Gen. Olusegun Obasanjo

1975–1979

National reality

Murtala assassinated 13 February 1976; Obasanjo completed the transition. Universal Primary Education launched 1976. Land Use Act 1978. 1979 Constitution and handover to the Second Republic.

Crises of the period

  • Dimka coup attempt + Murtala assassination (1976)
  • 'Ali Must Go' student protests (1978) — students killed over a 50-kobo fee increase

GDP (World Bank)

$28 bn (1975) → $47 bn (1979)

Cabinet (selected portfolios)

  • Education

    Col. Ahmadu Ali (1975–78)

  • Education

    J.O.J. Okezie (1978)

Source: Federal Gazette; Constitution Drafting Committee records (1976–78)

Methodology

Tier 1 · primary

Courts. Gazettes. National archives.

Tier 2 · corroborating

OCCRP. HRW. BudgIT. TheCable.

Redline

Wikipedia is never a source.