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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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NCDMB, Dangote Refinery Unveil JTC On Deepening Local Content

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The Nigerian Content Development and Monitoring Board (NCDMB) and the Dangote Petroleum Refinery and Petrochemical Company have inaugurated a Joint Technical Committee (JrefineryTC) aimed at advancing local content implementation during the operational phase of the 650,000 barrels per day  plant.
A statement from the Directorate of Corporate Communications of the Board noted that the inauguration ceremony took place at the Dangote Free Trade Zone, Ibeju-Lekki, Lagos State.
The statement also said the inauguration marks a pivotal moment in fostering strategic collaboration between the both institutions, and was a significant move to reinforce local content development in the oil and gas sector.
Presided over by the Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe, and the Group Vice President, Oil and Gas, Dangote Group, Chief Edwin Devakumar, the event featured the formal sign-off of the Committee’s Terms of Reference (ToR), a guided tour of the refinery, other critical facilities, and the official commencement of the JTC’s responsibilities.
According to the Board, the visit also featured the presentation of the certificate of the Nigerian Content Downstream Operator of the Year Award won by the Dangote Petroleum Refinery and Petrochemical Company at the inaugural ‘Champions of Nigerian Content Awards’ held recently in May.
The NCDMB’s boss made the presentation to the President of the Dangote Group, Alhalji Aliko Dangote, who expressed delight at the recognition, noting that he would display the certificate proudly at his office.
Ogbe congratulated the Dangote Group on the successful development and commissioning of the largest single train refinery in the world, as well as petrochemical and fertiliser plants, describing the projects as a historic milestone not for Nigeria alone, but for the entire continent.
He emphasized that the Dangote Refinery stands as a testament to the success of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010 and the transformative potential of Nigerian-led industrial projects.
“At an optimal daily production capacity of 650,000 barrels, this refinery will significantly enhance Nigeria’s energy security and contribute to the supply of refined petroleum products across West Africa.
“Nigerians, have to own the plant, we have to make sure that the plant works well. We have to secure it, we have to maintain it. The NCDMB would continue to collaborate with Dangote Petroleum Refinery”, Engr  Ogbe said.
Highlighting the need to ensure more value retention in the sector, as mandated by the Nigerian Oil and Gas Industry Content Development Act (NOGICD) 2010, the Board’s helmsman demanded compliance with Sections 32 and 33 of the NOGICD Act, with particular reference to local manpower utilization and requirements for NCDMB’s approval prior to the engagement of expatriates.
“The NOGICD Act stipulates that no expatriate can be employed in any organization in the oil and gas industry without the prior approval of the NCDMB. We will work with you, We’ve to protect jobs for Nigerians. It’s critical to job creation, skills development, and national capacity building in line with the ‘Renewed Hope Agenda’ of President Bola Ahmed Tinubu”, he said.
He commended the firm for training and employing Nigerian engineers, saying the collaboration will ensure that qualified Nigerians were given opportunities across all operational roles, while also urging the Dangote Petroleum Refinery and Petrochemicals to support the Board’s initiative which aims at developing oil and gas industrial parks across the country to foster local content and manufacturing in the sector.
He noted that the Nigerian Oil and Gas Parks Scheme (NOGaPS) seeks to create an enabling environment for Small and Medium Enterprises in the sector.
“NOGaPS was conceived by the Board to develop facilities close to oil fields where manufacturing of oil and gas components, as well as research and development, can be carried out.
“We would like Dangote to support one of our major activities, which is the oil and gas industrial parks scheme. The parks are aimed at creating an enabling environment for SMEs in the industry to do fabrications and create more jobs for Nigerians”, the NCDMB’S boss stated.
In his welcome address, the Dangote Group Vice President, Devakumar, highlighted that the refinery project and NCDMB have been working together, promoting local content development during the construction stages of the project.
“We can’t say we have achieved everything, because there is opportunity to do more. We’re grateful to the NCDMB for all their support and advice.  As entrepreneurs, we’re trying to optimise costs. It’s a Nigerian company, it’s also an entrepreneur-driven company. As a Nigerian company, the focus will be on Nigerian content. As an entrepreneur-driven company, it will be cost-focused”, he noted.
Devakumar underscored the long-standing commitment of the Dangote Group to national development and capacity building, saying that the Group’s vision is to grow Nigeria’s industrial landscape.
High points of the visit, according to the Corporate Communications Directorate of the NCDMB, was the inauguration of the Committee members.
The statement from the NCDMB further added that the committee is to ensure the implementation of local content in the refinery’s operations, while its core objectives include promoting the use of Nigerian skilled manpower, services, and locally sourced materials in compliance with Section 3 of the NOGICD Act.
The Tide learnt that the committee will also support Dangote Refinery in aligning its operational procedures with the Act’s requirements.
In his acceptance remarks, Director of Corporate Services at NCDMB and Chairman of the Committee, Mr. Abdulmalik Halilu, expressed gratitude to the leadership of both organizations, reiterating the Committee’s dedication to upholding the highest standards of local content enforcement and fostering measurable outcomes that will benefit the nation’s economy.
Ariwera Ibibo-Howells, Yenagoa
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Food Security: NDDC Pays Counterpart Fund  For LIFE-ND Project

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The Managing Director of the Niger Delta Development Commission (NDDC), Samuel Ogbuku, says the commission has paid its counterpart fund for the Livelihood Improvement Family Enterprise Project to ensure food security in the region.
The LIFE-ND project is an agriculture intervention project sponsored by the Federal Government, the International Fund for Agricultural Development, and the NDDC to boost food security in the region.
Mr. Ogbuku disclosed this while fielding questions at the commission’s 25th anniversary world press briefing  in Asaba, Delta State.
He stated that the commission has equipped and trained farmers in the region on best practices, adding that it has also established Niger Delta Chambers of Commerce with a commitment of N30 billion, but has released N5 billion to encourage commerce and entrepreneurship in the area.
According to him, agriculture is among the next phase of the commission’s programmes aimed at addressing food security in the region.
“Our target is to use agriculture to fight criminalities in the Niger Delta region”, he said.
The NDDC boss said the commission would hold a retreat to marshal plans to enhance the cultivation of rice, oil palm, cassava, and maize for industrialisation.
He also disclosed that its fund allocation from the Federal Government has improved, adding that funding from International Oil Companies has also increased, with greater compliance.
Ogbuku revealed that although its revenue has improved, the commission had thought it wise not to borrow but to deploy the surplus to execute more projects.
According to him, the commission has gone digital in its documentation and data generation to address its human capital development projects, ensuring the even deployment of resources, which allows people to take turns being trained in their chosen profession.
He stated that the NDDC was committed to addressing environmental challenges in erosion-prone areas in Edo, Delta, and other states, contingent upon the availability of funds.
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Replace Nipa Palms With Mangroove In Ogoni, Group Urges FG, HYPREP

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A concerned group of stakeholders under the auspices of Khana Coastal Communities has made a passionate appeal to the Federal Ministry of Environment and the Hydrocarbon Remediation Restoration Project (HYPREP) to include the removal of Nipa palms which has taken over the positions of mangroves in the area as part of the ongoing Ogoni Clean Up Exercise.
The group, which decried the invasive and destructive effects of Nypa fructicans, commonly known as Nipa palms, on the ecosystem of the affected communities, made their appeal in a Press Statement issued shortly after the  inspection and survey of the creeks and coastlines of  affected communities.
The communities are Kwiri, Kereken, Kaa, Gwara, Sii, Kpean, Tehnnama, Bane, Kalaoku, and Opuoku, all in Khana Local Government Area of Ogoni, Rivers State.
Signed on behalf of the affected communities by comrades Emmanuel Goteh Bie, Raymond Nwibani, and Chief Barineka Tonwe, the statement emphasized the need for urgent intervention to clear the Nypa fructicans and replace them with mangroves which provided sustainable habitat for aquatic species in the affected communities.
The group commended the Federal Ministry of Environment and HYPREP for their commitment to the Ogoni cleanup process and urged all stakeholders involved in the process not to renege on their complementary roles.
The statement read in part: “As you have seen, the Nypa fructicans has taken over our creeks, displacing native mangroves and aquatic life. The impact on our communities has been severe, with many of our people struggling to make a living due to the depletion of fish and other aquatic resources.
“We commend the Hydrocarbon Pollution Remediation Project (HYPREP) for its efforts in restoring native mangroves in Ogoni, particularly in the Bomu Community. However, we are alarmed by the unintended consequences of removing invasive Nypa fructicans, which has led to the disappearance of fish and aquatic life, threatening the livelihoods of our coastal communities.
“We believe that the removal of Nypa fructicans and replanting of native mangroves will help revive our aquatic life and sustain the livelihoods of our people.”
The group passed a vote of confidence on the Minister of Environment, Balarabe Abbas, and HYPREP Coordinator, Prof. Nenibarini Zabbey, for what it described as their unwavering efforts in ensuring the success of the Ogoni cleanup exercise.
They  called on the Federal Government to release their counterpart funding to HYPREP without delay to sustain the pace of progress recorded in the clean up process.
“The cleanup exercise is commendable, and any delay in funding could stall the progress and undermine the efforts of all stakeholders. We urge the government to prioritize the Ogoni cleanup exercise and provide the necessary support to ensure its success”, they stated.
They also used the opportunity to caution against the antics of self-inflicted activists or bodies that might attempt to hijack the cleanup agenda and create unnecessary agitation, and assured the total support of the affected  communities to HYPREP’s activities to enhance the holistic success of the Ogoni clean up exercise.
Bemene Taneh
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