Opinion
Kazakhstan And Safe Investment Havens
When the Union of Soviet Socialist Republics (USSR) collapsed in December 1991, the emerging fifteen new nations scrambled amidst hyperinflation to restructure their economies away from a centrally planned economy directed by Moscow to sovereign, free market ones that could attract desperately needed foreign direct investment (FDI).
The clear winners in this have been two Caspian nations, Azerbaijan and Kazakhstan. While Azerbaijan might have won the initial PR investment race, knowledgeable investors are also closely eying Kazakhstan.
Azeri President, Heydar Aliyev, realizing that his nation’s indigenous resources were insufficient to develop the country’s hydrocarbon riches, in September 1994 signed the $7.4 billion “deal of the century” with 11 Western oil companies to develop a number of sites in both onshore and offshore Azerbaijan, including the Chirag and the offshore Guneshli oil fields, with the centrepiece of the infrastructure development being the construction by an international consortium of $3.6 billion, 1 million barrel per day (bpd), 1,092-mile Baku-Tbilisi-Ceyhan (BTC) pipeline, which transmits crude from Azerbaijan’s offshore Azeri-Chirag-Guneshli fields to Turkey’s deepwater Mediterranean terminus at Ceyhan.
In a striking measure of how open Azerbaijan had become for investment, British Petroleum heads the BTC consortium and, besides operating the pipeline, has a 30.1 per cent share of the project, exceeding that of SOCAR, which owns 25 per cent. Other Western investors include, Chevron amassing 8.9 per cent, Norway’s StatoilHydro grabbing 8.71 per cent, Turkey’s Turkiye Petrolleri Anonim Ortakligi with 6.53 per cent, Italy’s Eni/Agip group and France’s Total stocking 5 per cent apiece, Japan’s Itochu having 3.4 per cent, the Japanese Inpex Corp. (2.5 per cent) and the American Hess Corp. (2.36 per cent). Accordingly, Western concerns receive a whopping 75 per cent of BTC’s revenues.
Aliyev’s son and successor, President Ilham Aliyev, created a State Oil Fund to use the massive oil revenues flooding the country.
The wisdom of such policies was shown by the fact that FDI flows to Azerbaijan increased by 600 per cent in two years, from $227 million in 2001 to $1.3 billion the following year.
But Kazakhstan has made similar, though less spectacular progress, with FDI, primarily in its energy sector, surging from a paltry $100 million in 1992, the first year of independence, to more than $118 billion by 2010. In a similar measure of the country’s reliability for foreign investors, in September 2002, Kazakhstan became the first country in the former Soviet Union to receive an investment-grade credit rating from a major international credit rating agency.
Building upon these successes, the country is actively soliciting further FDI. In October 2010, Kazakh Prime Minister, Karim Massimov stated that Kazakhstan seeks to attract up to an additional $100 billion in investments to the nation’s oil and gas sector alone over the next decade. He told journalists: “We are currently exporting 1.31 million barrels (of crude oil) a day and we aim to take it to 3 million barrels a day. KazMunaiGas (the national oil company of Kazakhstan) cannot do it alone. We are looking for partners for KMG’s projects.”
Kazakhstan has much more of its energy assets to open, as its proven oil reserves are estimated at 30 billion barrels, including both onshore and offshore fields. Oil development is currently concentrated in several major fields – the Tengiz, Karachaganak and Kashagan, the largest outside the Middle East, as well as in the Kurmangazy and Uzen fields, along with other hydrocarbon basins near the Chinese border and around the Aral Sea.
Among foreign energy companies, ChevronTexaco, ExxonMobil, BG, Total, Agip and Lukoil have already been in the country for many years, while South Korean, Indian and Chinese oil companies are also establishing a presence there. As of December 1, 2010, Kazakhstan held a total of 205 oil and natural gas contracts, including 16 Production Sharing Agreements (PSAs.)
Last but hardly the least, the tax regime in Kazakhstan, while complex is comparatively more favourable than anywhere else in Central Asia and subsoil use rights are among the best in the new high growth markets while the national currency, the tenge, is freely convertible with few restrictions placed on transactions in and out of the country.
But, where does all the oil revenue go? In 2000, Kazakhstan established a Sovereign Wealth Fund to manage its energy income, the Samruk-Kazyna, whose assets now stand at $84 billion. This fund is akin to the Sovereign Wealth Fund created by the President Goodluck Jonathan administration to absorb the huge excess revenues from crude oil sales. Its existence and frugal management has raised issues of concern to many Nigerians, especially the governors who feel the excess fund should be shared between the Federal Government, and the constituent states and local governments.
The same concerns were also shared in Kazakhstan. But Kazakhstan President, Nursultan Nazarbayev , while seeking to allay concerns about the fund’s management, recently fired his son-in law, Timur Kulibayev, as Samruk-Kazyna chairman and replaced him with Umirzak Shukeyev.
In an interview earlier last week with Russia’s Kommersant business newspaper, Shukeyev elaborated the fund’s shortcomings as lack of strategic vision, excessive bureaucracy and overstaffing, stressing that, “I am personally astounded that there has been no strategy until now.” According to him, “Now, it is clearly stated that the main goal of the fund is to increase the market value of the companies that belong to it. But we only reached a level that is considered a baseline for companies listed on international stock exchanges. Our goal by 2015 is to achieve a rating of, at least, 75 per cent.”
So, with massive energy assets, a liberal tax code, few currency restrictions and a reformist bureaucracy – while Kazakhstan certainly has a number of reforms yet to make, including tackling corruption, the country’s increasing attractiveness to foreign investors should be obvious and can only increase over time.
Dr Daly, based in London, contributed this piece for Washington, DC-based OilPrice Intelligence.
John Daly
Opinion
Wike VS Soldier’s Altercation: Matters Arising
The events that unfolded in Abuja on Tuesday November 11, 2025 between the Minister of the Federal Capital Territory, Chief Nyesom Wike and a detachment of soldiers guarding a disputed property, led by Adams Yerima, a commissioned Naval Officer, may go down as one of the defining images of Nigeria’s democratic contradictions. It was not merely a quarrel over land. It was a confrontation between civil authority and the military legacy that still hovers over our national life.
Nyesom Wike, fiery and fearless as always, was seen on video exchanging words with a uniformed officer who refused to grant him passage to inspect a parcel of land alleged to have been illegally acquired. The minister’s voice rose, his temper flared, and the soldier, too, stood his ground, insisting on his own authority. Around them, aides, security men, and bystanders watched, stunned, as two embodiments of the Nigerian state clashed in the open.
The images spread fast, igniting debates across drawing rooms, beer parlours, and social media platforms. Some hailed Wike for standing up to military arrogance; others scolded him for perceived disrespect to the armed forces. Yet beneath the noise lies a deeper question about what sort of society we are building and whether power in Nigeria truly understands the limits of its own reach.
It is tragic that, more than two decades into civil rule, the relationship between the civilian arm of government and the military remains fragile and poorly understood. The presence of soldiers in a land dispute between private individuals and the city administration is, by all civic standards, an aberration. It recalls a dark era when might was right, and uniforms conferred immunity against accountability.
Wike’s anger, even if fiery, was rooted in a legitimate concern: that no individual, however connected or retired, should deploy the military to protect personal interests. That sentiment echoes the fundamental democratic creed that the law is supreme, not personalities. If his passion overshot decorum, it was perhaps a reflection of a nation weary of impunity.
On the other hand, the soldier in question is a symbol of another truth: that discipline, respect for order, and duty to hierarchy are ingrained in our armed forces. He may have been caught between conflicting instructions one from his superiors, another from a civilian minister exercising his lawful authority. The confusion points not to personal failure but to institutional dysfunction.
It is, therefore, simplistic to turn the incident into a morality play of good versus evil.
*********”**** What happened was an institutional embarrassment. Both men represented facets of the same failing system a polity still learning how to reconcile authority with civility, law with loyalty, and service with restraint.
In fairness, Wike has shown himself as a man of uncommon courage. Whether in Rivers State or at the FCTA, he does not shy away from confrontation. Yet courage without composure often feeds misunderstanding. A public officer must always be the cooler head, even when provoked, because the power of example outweighs the satisfaction of winning an argument.
Conversely, soldiers, too, must be reminded that their uniforms do not place them above civilian oversight. The military exists to defend the nation, not to enforce property claims or intimidate lawful authorities. Their participation in purely civil matters corrodes the image of the institution and erodes public trust.
One cannot overlook the irony: in a country where kidnappers roam highways and bandits sack villages, armed men are posted to guard contested land in the capital. It reflects misplaced priorities and distorted values. The Nigerian soldier, trained to defend sovereignty, should not be drawn into private or bureaucratic tussles.
Sycophancy remains the greatest ailment of our political culture. Many of those who now cheer one side or the other do so not out of conviction but out of convenience. Tomorrow they will switch allegiance. True patriotism lies not in defending personalities but in defending principles. A people enslaved by flattery cannot nurture a culture of justice.
The Nigerian elite must learn to submit to the same laws that govern the poor. When big men fence off public land and use connections to shield their interests, they mock the very constitution they swore to uphold. The FCT, as the mirror of national order, must not become a jungle where only the powerful can build.
The lesson for Wike himself is also clear: power is best exercised with calmness. The weight of his office demands more than bravery; it demands statesmanship. To lead is not merely to command, but to persuade — even those who resist your authority.
Equally, the lesson for the armed forces is that professionalism shines brightest in restraint. Obedience to illegal orders is not loyalty; it is complicity. The soldier who stands on the side of justice protects both his honour and the dignity of his uniform.
The Presidency, too, must see this episode as a wake-up call to clarify institutional boundaries. If soldiers can be drawn into civil enforcement without authorization, then our democracy remains at risk of subtle militarization. The constitution must speak louder than confusion.
The Nigerian public deserves better than spectacles of ego. We crave leaders who rise above emotion and officers who respect civilian supremacy. Our children must not inherit a nation where authority means shouting matches and intimidation in public glare.
Every democracy matures through such tests. What matters is whether we learn the right lessons. The British once had generals who defied parliament; the Americans once fought over states’ rights; Nigeria, too, must pass through her own growing pains but with humility, not hubris.
If the confrontation has stirred discomfort, then perhaps it has done the nation some good. It forces a conversation long overdue: Who truly owns the state — the citizen or the powerful? Can we build a Nigeria where institutions, not individuals, define our destiny?
As the dust settles, both the FCTA and the military hierarchy must conduct impartial investigations. The truth must be established — not to shame anyone, but to restore order. Where laws were broken, consequences must follow. Where misunderstandings occurred, apologies must be offered.
Let the rule of law triumph over the rule of impulse. Let civility triumph over confrontation. Let governance return to the path of dialogue and procedure.
Nigeria cannot continue to oscillate between civilian bravado and military arrogance. Both impulses spring from the same insecurity — the fear of losing control. True leadership lies in the ability to trust institutions to do their work without coercion.
Those who witnessed the clash saw a drama of two gladiators. One in starched khaki, one in well-cut suit. Both proud, both unyielding. But a nation cannot be built on stubbornness; it must be built on understanding. Power, when it meets power, should produce order, not chaos.
We must resist the temptation to glorify temper. Governance is not warfare; it is stewardship. The citizen watches, the world observes, and history records. How we handle moments like this will define our collective maturity.
The confrontation may have ended without violence, but it left deep questions in the national conscience. When men of authority quarrel in the open, institutions tremble. The people, once again, become spectators in a theatre of misplaced pride.
It is time for all who hold office — civilian or military — to remember that they serve under the same flag. That flag is neither khaki nor political colour; it is green-white-green, and it demands humility.
No victor, no vanquish only a lesson for a nation still learning to govern itself with dignity.
By; King Onunwor
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