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Rivers: The Wheel Propelling Nigerian Economy

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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

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CBN Predicts 4.17% GDP Growth In 2025

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The Central Bank of Nigeria (CBN) has announced that the 2025 economic indices indicate a positive outlook, with the nation’s GDP expected to accelerate to 4.17 per cent for faster economic growth.

Mr Muhammad Abdullahi, Deputy Governor, Economic Policy Directorate, CBN, revealed this on Tuesday during the 11th edition of the National Economic Outlook: Implications for Businesses in 2025.

The hybrid event, convened in Lagos, was organised by the Chartered Institute of Bankers of Nigeria (CIBN) Centre for Financial Studies in collaboration with B. Adedipe Associates Ltd.

Abdullahi said the nation’s 2025 economic projections remained optimistic with fiscal and monetary reforms already paying off, resulting in the GDP anticipated rise from 3.36 per cent recorded in 2024.

According to him, the growth is anchored on sustained implementation of government reforms, stable crude oil prices, and improvements in domestic oil production.

Abdullahi also stated that stability in the exchange rate would play a crucial role in maintaining the positive trajectory, with the inflation rate projected to decline due to the impact of economic reforms.

“Achieving the targeted inflation rate of 15 per cent in 2025 will require effective collaboration between monetary and fiscal authorities, alongside private sector participation for a stable economic environment,” he said.

The keynote speaker said that the apex bank would prioritise price stability and strengthen the financial sector to support SMEs and critical sectors for businesses to thrive.

Abdullahi noted that the nation’s evolving policy landscape presented both challenges and opportunities for businesses to thrive.

“The government is making deliberate strides to diversify its revenue streams and reduce dependence on the volatile oil sector.

“Through ongoing tax reforms aimed at broadening the tax base and improving collection efficiency, the government is working to establish a more sustainable fiscal environment.

“While these reforms may present challenges in the short term, they are essential for building a more resilient and diversified economy in the long run.

“As businesses, it is crucial to adapt to these changes, understanding that they will ultimately strengthen the economic foundation for future growth.

“As we move forward on this path of exploration and collaboration, we must remain focused on the vast opportunities before us.

“Nigeria’s abundant resources, coupled with the current administration’s commitment to economic reform, offer a fertile ground for innovation, investment, and sustainable growth,” Abdullahi said.

Similarly, Prof. Pius Olanrewaju, President/Chairman of the Council, Chartered Institute of Bankers of Nigeria (CIBN), said 2024 presented both challenges and opportunities.

He noted that the GDP signalled gradual recovery amidst global and domestic pressures.

“As we move into 2025, we are presented with both the opportunity and responsibility to critically examine the economic landscape.

“This forum will help us identify the risks, harness the opportunities, and strategize for the future,” Olarenwaju noted.

He commended the collaboration of experts at the annual event, which included Dr Kabir Katata, Director, Research, Policy and International Relations, Nigeria Deposit Insurance Corporation; and Dr Henrietta Onwuegbuzie of the Lagos Business School.

Others were Akinsola Akeredolu-Ale, CEO, Lagos Commodities and Fixtures Exchange; Mr Akeem Lawal, Managing Director Interswitch (Pure pay); and Chinwe Uzoho, Regional Managing Director, West and Central Africa Network International.

 

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Minister Inspects Nigeria/Benin Republic-owned Sugar Firm … Decries Decrepit Condition

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Nigeria’s Minister of State, Industry, Federal Ministry of Industry Trade and Investment, John Owan Enoh, has inspected the Savé Sugar Company, a joint venture between Nigeria and Benin Republic, decrying the current decrepit condition of the facilities.
Inspecting the once thriving company located in Cotonou, Benin Republic recently, the Minister expressed  appreciation for the extra security measures put in place by the government of Benin Republic to secure the Savé Sugar Company which was  Established in 1975.
Special adviser to the Minister on Media, Diana Tiku Nsan, said on arrival in Cotonou,  Sen. Enoh paid a courtesy visit on his Benin counterpart, Minister He noted that during the ship’s port calls, the team engaged with the Indian diaspora worldwide.
Approximately 200 individuals received medical attention from the naval health team during the camp, and beneficiaries were also given free medications.of Commerce and Industry, Benin Republic, Shadiya Alimatou Assouman, where a meeting with both ministers resonated with shared concerns and aspirations of both countries.
Assouman said, “this visit marks a historic moment. Since the inception of the company, no Nigerian minister has visited the facility.
“Your bold step signifies a commitment not only to the sugar complex but also to the bilateral relations between our nations”.
The Minister, who proceeded on an on-site  inspection of the facility, observed that the company has experienced changing fortunes and now lies almost decrepit with the last managers, Compliant of China, having vacated in May 2023, at the expiration of a 20-year lease agreement.
After the assessment, the Minister said, “various meetings at both technical and policy levels have continued to be held, but an action is needed.
“This visit is an eye opener, and more than anything else, we seek its revival. The two countries, as a matter of urgency, need to get a worthy core investor within the shortest possible time.
“This is not just about sugar; it is about livelihoods, partnerships, and the shared future of our nations.
“However, where that is not feasible, the recommendation of the 2021 joint assessment report which submits to the selling of our equity in the company will be brought to the table for possible consideration. Action starts today”.
Nsan also said “the deteriorating situation with the Savé Sugar Company Ltd predates the exit of the Chinese. A joint assessment visitation in 2021 was quite damning and recommended that Nigeria sell its equity holding in the company.
“This was declined by the Buhari administration, which instead preferred that upon expiration of the lease agreement with Compliant of China, the two governments competitively source for new core investors.
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NGA Becomes Official Partner To 29th Gas Conference … As President Set To Address 2025 World Summit

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The Nigerian Gas Association (NGA) has been officially announced as an “Association Partner” for the 29th World Gas Conference (WGC) 2025, which will take place from May 19 to 23 in Beijing, China.
The WGC 2025 is organised by the International Gas Union (IGU) and hosted in 3-year intervals.
It is the largest and most influential event in the global gas industry bringing together thousands of industry leaders, policymakers, gas executives, specialists, and exhibitors.
The event serves as a critical platform for discussing the future of the gas sector, showcasing innovations, and facilitating high-level collaborations among key stakeholders.
President of the NGA, Akachukwu Nwokedi, will join global energy and gas leaders who will headline the event as speakers.
The conference, billed to focus on the theme, “Energising a Sustainable Future”, is projected to have over 30,000 participants from 70 countries, including 600 companies, 300 exhibitors, and 400 expert speakers.
Nwokedi will emphasise Nigeria’s critical role as a major global natural gas market player.
With over 200 trillion cubic feet of proven gas reserves, Nigeria is Africa’s largest resource proprietor and one of the top ten globally.
Nwokedi will detail Nigeria’s initiatives aimed at exploiting these vast reserves to drive domestic economic growth, secure energy supply, and contribute to international sustainability goals.
Reflecting on the upcoming event, Nwokedi said, “We are proud to have the NGA support the WGC 2025 as an Association Partner.
“The World Gas Conference is a key forum for sharing knowledge and driving meaningful dialogue on the future of natural gas, particularly as the world grapples with the need for a balanced energy transition. Nigeria has a wealth of natural gas resources that, if appropriately harnessed, can position us as a leader in global energy markets.
“The WGC will be a veritable platform for sharing updates on recent industry initiatives, which aims to showcase Nigeria as a destination for gas investments, boost the country’s domestic economic growth and the role of gas in Nigeria’s decarbonisation efforts.
“I am honoured to have been invited to speak as the leader of Africa’s leading gas advocacy group to expound on Africa’s plans to harness untapped natural gas reserves in providing energy security for its 600+ million undeserved population, and how Nigeria is at the forefront of this energy revolution.
“This is important because we understand that maximising the potential of these resources will require strategic investments in infrastructure, policy reforms, and a commitment to cleaner energy solutions”.
With more than 90 years of history, the WGC has consistently provided a platform for discussing the evolving role of natural gas in the global energy mix.
The NGA invites its members and other natural gas value chain players to participate prominently through sponsorship and inclusion in the Nigerian Pavilion at the conference in China.
As Nigeria’s largest gas advocacy body, the NGA remains steadfast in its mission to promote natural gas as a critical component of Nigeria’s energy future and advocate for policies that support its sustainable development.
Through partnerships with global organisations and platforms like the WGC, NGA aims to ensure that Nigeria maintains its position as a leading player in the energy sector.
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