Obasanjo reveals military pact with Sao Tome

Nigeria’s President Olusegun Obasanjo has pledged to work quickly to conclude a military pact with the island state of Sao Tome and Principe whose president, Fradique de Menezes, was ousted briefly in July by a coup. Obasanjo said in a letter to the senate, made available to reporters on Wednesday, that the social, political and economic circumstances seized upon by the mutineers were still present in the tiny state, which has agreed to share the proceeds of any oil found in its offshore waters with Nigeria. He said there was an urgent need for Nigeria to take steps to “consolidate the security” of de Menezes, who was visiting the Nigerian capital Abuja at the time he was overthrown on July 16 by military officers complaining about poverty in the twin-island state and corruption in its government. He was restored to power a week later following mediation by government envoys from Portugal and several African countries. Obasanjo personally escorted Menezes back to Sao Tome in his presidential jet. “Nigeria and Sao Tome and Principe have a pending military agreement, which is yet to be signed,” Obasanjo said in his letter to the Senate. “I intend to hasten the process of signing the agreement, in order to put the mutual security and core national interest of Nigeria and Sao Tome and Principe on even keel,” he added. Nigeria and Sao Tome and Principe have agreed to share the proceeds of any oil found in an offshore zone where their territorial waters overlap, with 60 percent going to Nigeria and 40 percent to Sao Tome. Front end signature bonuses from the award of nine offshore blocks to international oil companies are expected to yield a windfall payment of $100 million to Sao Tome in 2004. That is equivalent to more than double the annual budget of the former Portuguese colony, which has about 170,000 inhabitants. Menezes, a 61-year old businessman who was elected two years ago, has been trying to form a new government since his return to power. His prime minister Maria das Neves, offered her resignation, but he has rejected it. Several other ministers have quit, however, including the minister of defence and the minister responsible for petroleum Menezes blamed the army rebellion on high expectations among his impoverished countrymen in the light of the expected discovery of huge oil reserves when drilling starts next year.