Business
Rivers: The Wheel Propelling Nigerian Economy
The economic importance of Rivers State to national development has never been in contention. It is easy to discern, even by the blind. It was not by happenstance that the state was christened the ‘Treasure Base of the Nation’. The state earns the sobriquet on account of its contributions to national development. What is rather in contest is the benefit accrued to the people of the state from the huge natural deposits the state is endowed with.
Generally known as the hub of oil and gas industry in the country, Rivers State accounts for 40 per cent of Nigeria’s crude oil production. It is also the largest economy in Nigeria after Lagos. It has vast crude oil reserves among other natural resources, and remains a leading supplier of the nation’s wealth with associated export revenue.
Apart from Lagos, Rivers State contributes the highest Gross Domestic Product (GDP) to the nation’s economy. It accounts for about 65 per cent of government revenue and 88 per cent of Nigeria’s foreign exchange earnings. As at 2010, Rivers State was contributing US$21,073 next only to Lagos with US$33,679 as GDP.
Despite its relatively low industrial base, the State has two of the nation’s four petroleum refineries at Eleme, two major seaports in Port Harcourt and Onne, an international airport at Omagwa, an oil and gas free zone, and a petrochemical and fertilizer plant in Onne, an industrial estate at Trans-Amadi, a gigantic liquefied natural gas plant in Bonny and tens of petrochemical related companies.
There is no gainsaying the fact that the aggregate growth of the Nigerian economy weighs heavily on the natural resources of Rivers State. For over five decades, the oil and gas sector has remained the mainstay of Nigeria’s economy till date. Little wonder that happenings in the oil and gas industry tend to have serious impact on the other sectors of the nation’s economy.
In the area of oil and gas which creates the wealth that sustains the nation, Rivers State ranks the highest contributor. Apart from playing host to two of the nation’s four petroleum refineries, the state also hosts major oil companies such as The Shell Petroleum Development Company (SPDC), Nigerian Agip Oil Company (NAOC), Total Exploration & Production Nigeria Limited (TEPNL), Nigeria National Petroleum Corporation (NNPC) and tens of petrochemical related companies. Added to these is the existence of a multi-billion naira Liquefied Natural Gas plant in Bonny which produces a million tones of gas per year.
It is, however, regrettable that in spite of Rivers State’s status as the hub of oil and gas in the country, these multinationals are reluctant to move their headquarters to the state citing insecurity and restiveness as excuses. It was even recently that NLNG relocated its head office to Port Harcourt.
Meanwhile, the new spate of development from marginal oil fields by the multinational oil giants has also created a vent for the participation of indigenous firms in the nation’s oil and gas sector. These firms include Minipulo, Nestoil, Belema Oil and Sahara Energy, among other upstream operators.
The import of this is that in spite of marginal neglect of the state by the Federal Government in terms of infrastructure and human development, Rivers remains the epicentre of Nigeria’s oil and gas activities, contributing a significant percentage of government’s revenue. That Nigeria was able to prosecute the three-year civil war successfully without borrowing a kobo was courtesy of the oil wealth. The oil boom of the 1970s also led to the mass importation of foreign manufactures, salary reviews and arrears payment, oversea scholarship and training of workers, among others.
Also given its position as a natural seaport and railway terminus, Rivers State has long established itself as an investor’s haven, with the bulk of its tenants in Trans-Amadi Industrial area of Port Harcourt.
Before now, there were several companies scattering around the state, such as Michellin, Pabod Breweries, Port Harcourt Flour Mills, Nigeria Engineering Works (NEW), West African Glass Industry (WAGI), Slumberger, Halliburton, Metalloplastica, Rivers Vegetable Oil Company (RIVOC), Riversbiscuit, Flag Aluminium, Indorama Eleme Fertiliser &Chemicals Limited, NAFCON, now Notore, among others.
Although a good number of these companies which once contributed to the economic growth of the state and Nigeria at large had since closed shop or relocated outside the country due to a number of factors ranging from poor electricity supply, general infrastructural decay resulting in high operational cost, multiple taxation and insecurity; a handful of them that are still in existence in the state make significant contributions to the nation’s economy in terms of employment generation and wealth creation.
Not too long ago, Pabod Breweries which was once moribund was revived by South Africa’s SAB Miller through a partnership that appears to be yielding good dividends to both the state and national economy, alongside Indorama Group.
Meanwhile, Rivers State also plays host to the second busiest seaport after Lagos. It hosts two of the nation’s seaports – Nigeria Port Authority (NPA), Rivers Complex and Onne Port. This suggests that the state constitutes a major commercial centre in the country. The state’s proximity to Aba in Abia State and Onitsha in Anambra State – two notable destinations for containerised imports, adds impetus to the commercial status of Rivers State, and also contributes in no small measure to the economy of the country.
Rivers State is not lagging behind either in the area of hospitality industry. Apart from the popular Hotel Presidential located along Aba-Port Harcourt Road, which has been in existence since the days of the Eastern Nigeria, there are several other hotels scattering around Port Harcourt and its environs. Prominent among them are Meridian Hotel at Old GRA, Port Harcourt; Landmark Hotel at Waterline area of Port Harcourt, Sasun Hotel at Trans-Amadi, and a host of others. The avalanche of these hospitality industries in the state does not only boost the economic base of the state, it also attracts and facilitates investment in the country.
Added to this impetus is the NEW vision of the present administration in the state led by Governor Nyesom Wike, which has led to a deluge of social infrastructures, thus attracting investments to both the state and the country at large.
It is, however, a painful irony that despite the avalanche of wealth tapped from crude oil sale and other economic opportunities in the state over the years, there has been a complete neglect of the state by the Federal Government in the area of basic infrastructure. For instance, the two major roads that link Rivers State with other parts of the country, namely, the Eleme section of the East West Road that leads to Onne industrial hub, and the Oyigbo section of the Port Harcourt-Aba Road have been in a state of disrepair for years without attention from the Federal Government.
Worst still, the multinationals that operate in the state and Niger Delta as a whole, and who ordinarily should be a propeller of development have only succeeded in adding to the sufferings of the people. They do not only devastate the environment with their oil activities and leave their host communities with destroyed farmlands, polluted air and deteriorating marine life, they also subject the indigenes to a second class citizens in terms of employment.
One of the most disturbing paradox is that crude oil for export is transported to Bonny and Forcados through a network of pipeline stretching across 6,000km over communities and living quarters approximately the distance between Cape Town in South Africa and Cairo in Egypt. Yet, little or no measure is taken to ensure the maintenance of the pipes which often corrode and burst, leading to oil spill, killing people and devastating environment, water and farmlands. Worst, the Federal Government that is supposed to be a regulator appears helpless and complacent as it lacks the political will to rein in on these oil conglomerates to stop the criminal environmental pollution in the state. This obviously accounts for occasional pockets of unrest and restiveness in Rivers and other Niger Delta states.
Many analysts and keen observers have decried the criminal neglect of Rivers State by the Federal Government. Piqued by the aberrant, incongruous structure of the Nigerian federation, especially the iniquitous disposition of the Federal Government in robbing Peter to pay Paul, a professor of Economics, Willie Okowa, had in a seminar presentation on Rivers State since 1967 said, “The use of oil resources derived largely from Rivers State in the creation of the infrastructure basis for development in other parts of the country while denying the same treatment for the territory in which oil is found speaks of a callousness that is numbing to the mind and an outrageousness that is a challenge to the ethics of civilised behaviour”.
The Rivers State governor, Chief Nyesom Wike himself has, at several fora, complained about the inequities and apparent lack of visible federal presence in the state despite the state’s contributions to the nation’s economy. He believes the state deserves a special status and consideration from the Federal Government given its contributions to national growth.
Presenting a paper on ‘Institutional Weakness and Challenges of Development in Rivers State in Abuja in 2016, Wike observed that, “the state has suffered sustained neglect, marginalisation and injustice from successive federal governments and its agencies”.
The governor continued: “Even as no new development project has been initiated in the state for decades, what is most distressing is the failure of the Federal Government to adequately maintain some of the critical federal infrastructure in the state.
“I am referring to the Port Harcourt Terminal building, the Port Harcourt seaport, as well as the East West Road, particularly the section that leads from Eleme junction to the Onne industrial hub that has remained broken for years without attention from the Federal Government.”
Five years after Governor Wike made this cursory observation, has anything changed? Perhaps not. Apart from the Port Harcourt International Airport Terminal building which was constructed recently, all other critical federal infrastructure listed by the governor for attention in 2016 have remained unattended to by the Federal Government. It took the intervention of the state government under Wike to fix two of the federal roads in the state: the Industry Road that leads to the NPA, Port Harcourt seaport and the Igwuruta-Chokocho Road.
Indeed, this disturbing irony of an oil state wallowing in poverty and squalor speaks of an utter insensitivity and indifference that is not only numbing to mind, but also strange to all ethical conducts.
But how long will this criminal neglect and deliberate marginalisation continue? When will the Rivers people get a fair share of the national cake? When will the Federal Government realise that Rivers State is the the wheel that propels the nation’s economy and should be accorded honour and respect? Who will rescue the Treasure Base of the Nation from the oppressive claws of national inequities? Questions. Endless questions.
By: Boye Salau
Shipowners in Nigeria have called for the prosecution of officials of the Nigerian Maritime Administration and Safety Agency (NIMASA) over the failed ?50 billion floating dock project.
This call follows years of inactivity and mounting concerns about the dock’s operational status which has remained idle for years despite huge investments in it.
The floating dock, acquired over a decade ago with the promise of reducing the cost of dry-docking Nigerian vessels abroad, has instead become a liability, incurring massive port charges while remaining non-operational.
Stakeholders in the maritime industry are now demanding accountability, describing the situation as an economic sabotage that has cost the nation billions of naira.
In a chat with our correspondent, a prominent shipowner, Otunba Sola Adewunmi, stated that the entire transaction was fraudulent from the onset.
He lamented that instead of being used for the benefit of Nigerian shipowners, the floating dock has become a symbol of government waste and mismanagement.
“The floating dock acquired by NIMASA was just a joint wastage. Normally, it was just funding for something that we didn’t really need.
“It has been draining the government’s purse all this while. We have wasted so much money on that dock. They will tell you tomorrow that they have found a solution, but nothing happens.
“Go and investigate how much the government is losing. They are paying heavy charges every month for an asset that has never worked”, he said.
Shipowners have expressed outrage over the continuous financial burden imposed on them, blaming the government for failing to create an enabling environment for indigenous operators.
Also, the current DG of NIMASA, Dr. Dayo Mobereola, while meeting with Journalists few months after his appointment in August 2024 had assured that the agency is working on putting the N50 billion modular floating dock to good use.
Mobereola, who spoke during a chart with the media in Lagos, said the management team had visited the site of the floating dock at the Continental Shipyard, Apapa, as part of the efforts to put the facility into good use.
He said: “The initial plan for the floating dock was not the right one. We are going to put the Modular Floating Dock to very good use so that once it’s in operation, it will benefit the economy, seafarers, and NIMASA itself.
“We need to place the modular floating dock in an appropriate location. It is just a matter of time. We will soon get that done”.
Despite these assurances, the floating dock has remained largely inactive, leading to widespread skepticism among industry players.
Speaking further, Otunba Sola Adewunmi said “The time for excuses is over. NIMASA must either operationalize the floating dock immediately, or face legal consequences for their negligence and mismanagement”.
He emphasized that those responsible for the floating dock’s failure must be held accountable, insisting that criminal prosecution was the only way to deter future financial recklessness.
“If those behind this scam were tried and sent to prison, it would serve as a deterrent. But in Nigeria, absurdity thrives because there are no consequences.
“This is a crime against the Nigerian people. The officials who sanctioned this deal should be arrested, tried, and jailed for economic sabotage”, he declared.
Speaking also, another experienced shipowner and Chief Executive Officer of Peacegate, a maritime services provider, Prince Ayorinde Adedoyin, described the floating dock debacle as part of a larger systemic failure where Nigerian authorities refuse to support local shipowners while enabling foreign interests to dominate the sector.
He stressed that the level of wastefulness surrounding the project was unacceptable and called for a full-scale investigation into the acquisition and management of the facility.
“This floating dock issue has been ongoing for about 10 years. Every year, there’s a new excuse. They move it to Marina, then they move it somewhere else.
“This is part of what we call wastefulness. It’s a disgrace. Between NIMASA and NPA, they couldn’t find a way to put the floating dock in use?
“They couldn’t build a docking pit for it? Instead, they allow it to remain idle while Nigerians suffer. This is taxpayer money—our money—being wasted”, he fumed.
He further explained that the failure to operationalize the dock has resulted in unnecessary financial burdens for shipowners, citing his personal experience of having to dry-dock one of his vessels in Cameroon, initially quoted at $180,000 but eventually costing close to $500,000 due to corruption and mismanagement in foreign dockyards.
“This is what Nigerian shipowners go through. Meanwhile, our own floating dock is rotting away because of the greed of a few people”, he added.
The shipowners also accused the government of deliberately frustrating the development of local capacity in the maritime industry.
They stated how Nigerian shipowners struggle with high-interest rates on loans while foreign vessel operators enjoy lower rates and government incentives.
“Foreign vessel owners have a field day in Nigeria. They get loans at 3% interest rates, while Nigerian shipowners are forced to borrow at over 30% interest.
“How can we compete? The government gave a bailout to the airline industry, but nothing for maritime. Meanwhile, shipowners are going bankrupt, and jobs are being lost”, Ayorinde said.
He also alleged that certain officials were benefiting from the floating dock’s continued non-utilization through port charges, legal battles, and consultancy fees, while Nigerian shipowners continued to suffer.
NIMASA has remained largely silent on the issue, with no concrete plans to operationalize the dock despite years of public outcry.
While the agency has occasionally made statements about finding a permanent home for the facility, industry stakeholders view these as empty promises.
“The only thing they know how to do is set up committees and hold endless meetings. No real action.
“If this dock was in the hands of a private company, it would have been operational years ago. But government officials have turned it into a cash cow for their own personal gain”, Ayorinde concluded.
The Comptroller General (CG) of Nigeria Customs Service (NCS), Bashir Adewale Adeniyi, has been conferred with Nigerian Maritime Journalists Iconic Maritime Award with a special commendation for his excellent performance since he assumed office as CGC .
Adeniyi was also hailed for convincing the Federal Government to suspend the implementation of the 4% Free-on-Board (FOB) value on imports into the country.
Speaking at the ceremony for the presentation of “Iconic Maritime Personality of the Year Award 2024” to the CGC by Nigerian Maritime Journalists in Lagos, Thursday, a maritime icon and former National President of Association of Nigeria Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu, said the suspension is a relief to importers and Customs agents.
Calling CGC Adeniyi and the CG of licensed Customs agents and freight forwarders, Shittu, who was the Chairman of the occasion, noted that the CGC was instrumental to his success when he was the National President of ANLCA as he used to guide him through advice.
He congratulated the CGC for the well deserved award coming from maritime journalists, who, he noted, are the watchdogs of the sector.
The Chairman, Customs Consultative Council, Alhaji Hakeem Olanrewaju, eulogized the qualities of CGC Adeniyi and congratulated him for being celebrated by the maritime press with the award of Iconic Maritime Personality of the Year 2024.
Olanrewaju called the attention of Customs licensed agents to the fact that things have changed and enjoined his colleagues in the freight forwarding business to have attitudinal change.
The Vice President, ANLCA, Prince Olusegun Oduntan, commended the CGC for being a grassroots leader who listens to the people, an attitude, he said, that has brought a positive change.
He promised that his association will continue to partner with Nigeria Customs under the CGC’s leadership.
In his own speech, the National President, Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), Otunba Frank Ogunojemite, described the CGC as a downright good man and a natural leader.
He stated that the CGC was his class captain in the university and later the President of the department, adding that he was a sports enthusiast who later became the leader of Man ‘o’ War.
Describing him as extremely patriotic and very humble, he said the CGC has been keeping his old friends without looking at his present status.
Speaking on behalf of the maritime journalists, Mr. Oke Ibeke, commended CGC Adeniyi for his “superlative performance” which has changed the narrative in Customs.
Ibeke commended the CGC for delivering on his mandate in areas of revenue collection, anti-smuggling activities, trade facilitation and others.
He noted that this was the first time journalists from various media houses covering a sector would agree jointly to honour a Chief Executive Officer of an agency.
Ibeke noted that the unusual agreement was not for sycophancy “but to give honour to a man who is a game changer”.
He expressed the belief that President Bola Tinubu must have seen in the CGC special qualities of an accomplished administrator before making him the CGC, adding that he has not disappointed the President for once.
Emphasizing that Customs is key to the economic development of any nation, Ibeke called on the Federal Government to give the Service more power and political support to be able to deliver better on its mandate.
The Nigeria Customs Service (NCS) has handed over 1,599 assorted arms and 2,298 live cartridges to the National Centre for the Control of Small Arms and Light Weapons (NCCSALW).
The arms, seized in 2018 in three containers at the Tin Can Island Port, were formally handed over to the NCCSALW on Thursday, 13 February 2025, at the headquarters of the Federal Operations Unit, Zone ‘A’, Ikeja, Lagos.
The Comptroller-General of Customs (CGC), Adewale Adeniyi, stated that the handover ceremony demonstrates the NCS’s commitment to protecting national borders and maintaining public safety.
“We will spare no resource in hunting down, exposing, and prosecuting anyone who attempts to compromise our national security through arms trafficking”, he said.
The CGC also commended the professionalism and courage of officers involved in the seizures and the Forensic Unit for their role in securing convictions.
He assured the public of the Service’s commitment to protecting legitimate trade while ensuring national security.
“We stand ready to deploy our full arsenal of intelligence and enforcement capabilities to protect legitimate trade as we ensure Nigeria’s security interests remain paramount”, he added.
The Director-General of NCCSALW, DIG Johnson Babatunde (Rtd), received the items on behalf of the National Security Adviser, Mallam Nuhu Ribadu.
He assured that the weapons would be handled in accordance with international conventions.
“Nigeria is a signatory to the ECOWAS Convention, and we will not do anything short of international best practice”, he said.
He urged all stakeholders to remain vigilant and to continue collaborating to ensure the country remains resilient against the scourge of illicit weaponry.
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