Opinion
N’Delta Ministry, NDDC And Mega Projects
At last, the big ticket projects that would change the fortunes of the long-suffering people of the Niger Delta region are beginning to leave the drawing board. Just last year, 45 mega projects worth about N180 billion rolled out of the “pipelines” to spread development across the region. Significantly, this has prepared the grounds for even bolder initiatives.
A few years back, the talk about a coastal road appeared utopian and distant. That is no longer the case as it has since left the realms of idealism. In fact, the design for the road, which is about 650 kilometers, is almost ready and the Federal Government is willing to pick up the bills.
According to Mr. Chibuzor Ugwoha, Managing Director and Chief Executive Officer of the Niger Delta Development Commission (NDDC), the coastal road, which will traverse the deltaic region, will soon be a reality. “NDDC has done the design of the coastal road running from Calabar to Lagos. Before the end of the year, the final design will be ready,” he said.
Without doubt, the NDDC would have loved to execute this lofty project if it had the necessary financial muscle. Unfortunately, it couldn’t shoulder the enormous burden on account of the limited funds available to it. In this year’s budget, for instance, it has only N240.5 billion to spend on both projects and overhead costs. Certainly, that will not scratch the surface for a mega road project estimated to cost about Nl.8 trillion.
However, NDDC’s loss is the gain of the Ministry of Niger Delta Affairs. Not that it matters though, since the common objective is the rapid development of the oil-rich region, using the Niger Delta Regional Development Master Plan as a compass. It is no surprise, therefore, that the Federal Government has transferred the responsibility for executing the project to the Niger Delta Ministry.
The Vice President, Mohammed Namadi Sambo offered a justification for this when he said: “The Federal Government, in its quest to complete all major projects in the Niger Delta, has directed that the coastal road construction be transferred to the Ministry of Niger Delta since the money needed for its construction is over N1 trillion and is beyond the capability of the NDDC.”
In any case, the ministry was established to play such pivotal roles in the quest to actualise the government’s objective to fast-track the development of the Niger Delta. It is expected to lead and co-ordinate the infrastructural and environmental development, as well as the youth empowerment programmes in the region.
The perennial violence in the region has made it imperative for the government to accord the Niger Delta a special treatment that goes beyond mere tokenism. It is no longer sufficient to hide under the cover of an interventionist agency that is under-funded. Obviously, the country needs to do what the United States of America did for Europe at the end of the Second World War using the Marshall Plan.
The Regional Development Master Plan, accepted by all stakeholders as the way forward, provides the platform for the massive injection of funds to quickly transform the long neglected region that produces the oil that sustains the nation. This widely acclaimed roadmap for the region would require trillions of naira to actualise.
The Master Plan, which all agree is a worthy compass for the development of the region, needs to be adequately funded in order to translate the lofty plans into tangible projects and programmes.
There can’t be a better time than now to take concrete steps to accelerate the development of the Niger Delta region, to at least convince the indigenes about the commitment of the Federal Government to the socio-economic transformation of the nation’s honey pot. Visible development projects must now be embarked upon before the peace won through the amnesty programme is lost.
The Ledum Mittee-Ied Technical Committee did a thorough job, synthesizing the reports and recommendations of previous committees. Sadly, the report is yet to be fully utilized. Moreover, the Master Plan facilitated by the NDDC is another document that should be seen more like a Bible by the ministry.
Spear-heading the implementation of the Technical Committee’s report and the Master Plan will be the best strategy for the ministry, which is intent on making an enduring impact in the shortest time possible. For this to happen, though, there must be a robust funding of the Master Plan, which is a product of elaborate and intensive collaborative efforts of various stakeholders in the Niger Delta. Although the NDDC facilitated its production, it was, indeed, a product of all the stakeholders who spent over four years jointly in putting it together.
Given the volatile nature of the oil-bearing communities, it is only wise that the government takes urgent measures to address their age-old grievances. Unlike in the past when communities were contented with freebies, the ministry should aggressively provide basic infrastructure and human capital development that can guarantee long term benefits for majority of the people of the region.
Good enough, the NDDC has set the ground rules, many of which have worked very well in bringing succour to the people. The ministry should do well to take a cue from the commission. In all, quick execution of tangible projects in the Niger Delta is the enduring solution to the lingering crises in the region. The ministry should, indeed, call the meeting of all the major stakeholders – the state and local governments, the oil companies, the NDDC and the international donor agencies – to agree on the specific roles each of them should play in the faithful implementation of the Master Plan with definite timeframe.
It is obvious that no meaningful economic progress can be made unless the crisis in the Niger Delta is comprehensively addressed. The President Goodluck Jonathan administration has a chance to make history by fast-tracking the development of the region. With an established blueprint in its hands, the government has all it takes to succeed.
Undoing the damage wrought by decades of neglect and injustice requires partnership and synergy. The ministry and other relevant agencies should serve as rallying points for harnessing the energies and ideas needed for the comprehensive development of the region.
Virtually all the stakeholders agree that there is high level of poverty and underdevelopment in the Niger Delta. To give effect to the urgent task of transforming the region, several strategies and options should be adopted. In all, however, funding remains the most critical factor. Even now, the Federal Government is yet to release a balance of N500 million owed the NDDC. One can only hope that the funding situation will improve henceforth.
Apart from the critical issue of funding, it is also important that all stakeholders collaborate to lift the region from the abyss of underdeve1opment. It is, ostensibly, in response to this need that the NDDC set up a clearing house called the Partners for Sustainable Developmen [PSD] Forum. This important organ brings together representatives of federal and state governments of oil-bearing states, youth and women leaders, traditional rulers as well as the organized private sector, civil society, the mass media and international development agencies such as the UNDP and the World Bank. Their main function is to ensure that the developmental activities in the Niger Delta by all stakeholders are synchronized. This important organ should be more alive to its responsibility and the ministry will do itself a lot of good by making use of the forum.
All the stakeholders are agreed that what the region needs is rapid and holistic development that will banish the era of militancy. A coordinated approach and a faithful implementation of the Master Plan will ensure a faster delivery on projects that would make profound impact on the lives of the people. The nation cannot afford a resurgence of armed conflicts in the Niger Delta.
Agbu is a Port Harcourt-based journalist and media consultant.
Ifeatu Agbu
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Fuel Subsidy Removal and the Economic Implications for Nigerians
From all indications, Nigeria possesses enough human and material resources to become a true economic powerhouse in Africa. According to the National Population Commission (NPC, 2023), the country’s population has grown steadily within the last decade, presently standing at about 220 million people—mostly young, vibrant, and innovative. Nigeria also remains the sixth-largest oil producer in the world, with enormous reserves of gas, fertile agricultural land, and human capital.
Yet, despite this enormous potential, the country continues to grapple with underdevelopment, poverty, unemployment, and insecurity. Recent data from the National Bureau of Statistics (NBS, 2023) show that about 129 million Nigerians currently live below the poverty line. Most families can no longer afford basic necessities, even as the government continues to project a rosy economic picture.
The Subsidy Question
The removal of fuel subsidy in 2023 by President Bola Ahmed Tinubu has been one of the most controversial policy decisions in Nigeria’s recent history. According to the president, subsidy removal was designed to reduce fiscal burden, unify the foreign exchange rate, attract investment, curb inflation, and discourage excessive government borrowing.
While these objectives are theoretically sound, the reality for ordinary Nigerians has been severe hardship. Fuel prices more than tripled, transportation costs surged, and food inflation—already high—rose above 30% (NBS, 2023). The World Bank (2023) estimates that an additional 7.1 million Nigerians were pushed into poverty after subsidy removal.
A Critical Economic View
As an economist, I argue that the problem was not subsidy removal itself—which was inevitable—but the timing, sequencing, and structural gaps in Nigeria’s implementation.
- Structural Miscalculation
Nigeria’s four state-owned refineries remain nonfunctional. By removing subsidies without local refining capacity, the government exposed the economy to import-price pass-through effects—where global oil price shocks translate directly into domestic inflation. This was not just a timing issue but a fundamental policy miscalculation.
- Neglect of Social Safety Nets
Countries like Indonesia (2005) and Ghana (2005) removed subsidies successfully only after introducing cash transfers, transport vouchers, and food subsidies for the poor (World Bank, 2005). Nigeria, however, implemented removal abruptly, shifting the fiscal burden directly onto households without protection.
- Failure to Secure Food and Energy Alternatives
Fuel subsidy removal amplified existing weaknesses in agriculture and energy. Instead of sequencing reforms, government left Nigerians without refinery capacity, renewable energy alternatives, or mechanized agricultural productivity—all of which could have cushioned the shock.
Political and Public Concerns
Prominent leaders have echoed these concerns. Mr. Peter Obi, the Labour Party’s 2023 presidential candidate, described the subsidy removal as “good but wrongly timed.” Atiku Abubakar of the People’s Democratic Party also faulted the government’s hasty approach. Human rights activists like Obodoekwe Stive stressed that refineries should have been made functional first, to reduce the suffering of citizens.
This is not just political rhetoric—it reflects a widespread economic reality. When inflation climbs above 30%, when purchasing power collapses, and when households cannot meet basic needs, the promise of reform becomes overshadowed by social pain.
Broader Implications
The consequences of this policy are multidimensional:
- Inflationary Pressures – Food inflation above 30% has made nutrition unaffordable for many households.
- Rising Poverty – 7.1 million Nigerians have been newly pushed into poverty (World Bank, 2023).
- Middle-Class Erosion – Rising transport, rent, and healthcare costs are squeezing household incomes.
- Debt Concerns – Despite promises, government borrowing has continued, raising sustainability questions.
- Public Distrust – When government promises savings but citizens feel only pain, trust in leadership erodes.
In effect, subsidy removal without structural readiness has widened inequality and eroded social stability.
Missed Opportunities
Nigeria’s leaders had the chance to approach subsidy removal differently:
- Refinery Rehabilitation – Ensuring local refining to reduce exposure to global oil price shocks.
- Renewable Energy Investment – Diversifying energy through solar, hydro, and wind to reduce reliance on imported petroleum.
- Agricultural Productivity – Mechanization, irrigation, and smallholder financing could have boosted food supply and stabilized prices.
- Social Safety Nets – Conditional cash transfers, food vouchers, and transport subsidies could have protected the most vulnerable.
Instead, reform came abruptly, leaving citizens to absorb all the pain while waiting for theoretical long-term benefits.
Conclusion: Reform With a Human Face
Fuel subsidy removal was inevitable, but Nigeria’s approach has worsened hardship for millions. True reform must go beyond fiscal savings to protect citizens.
Economic policy is not judged only by its efficiency but by its humanity. A well-sequenced reform could have balanced fiscal responsibility with equity, ensuring that ordinary Nigerians were not crushed under the weight of sudden change.
Nigeria has the resources, population, and resilience to lead Africa’s economy. But leadership requires foresight. It requires policies that are inclusive, humane, and strategically sequenced.
Reform without equity is displacement of poverty, not development. If Nigeria truly seeks progress, its policies must wear a human face.
References
- National Bureau of Statistics (NBS). (2023). Poverty and Inequality Report. Abuja.
- National Population Commission (NPC). (2023). Population Estimates. Abuja.
- World Bank. (2023). Nigeria Development Update. Washington, DC.
- World Bank. (2005). Fuel Subsidy Reforms: Lessons from Indonesia and Ghana. Washington, DC.
- OPEC. (2023). Annual Statistical Bulletin. Vienna.
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