Editorial

FG’s New Deal For Private Refineries

Published

15 years ago

September 19, 2009

Recently, the Federal Government announced the removal of the $1 million mandatory refundable deposit slammed on investors wishing to establish private refineries in the country. Making this public in Abuja last week, Minister of State for Petroleum Resources, Odein Ajumogobia, explained that government took the decision, having become convinced that the measure was a gross disincentive to would-be investors in the refining sub-sector of the petroleum industry.

Ajumogobia acknowledged that the current refinery capacity is low, and that the nation requires massive investment both in small and higher capacity refineries to be able to meet domestic sourcing requirements for refined products, and de-emphasise importation.

The Tide commends this bold step to kick-start construction of private refineries through the removal of that stumbling block. Our position is hinged on the fact that the establishment of private refineries would not only create employment for the youths but also stimulate the economy especially through its multiplier effects, of encouraging competition, increasing capacity utilization and productivity as well as discouraging capital flight.

However, we note with concern, the federal government’s desire to commence full deregulation of the down-stream sector of the petroleum industry with effect from November, 2009. Our concern derives from the fear that government’s recent action is only a precursor to full deregulation.

While we applaud government for the waiver, which we believe, would facilitate the realization of the dream of emergence of private refineries across the country, The Tide urges the government not to rush the implementation of full deregulation of the sector. We insist that the removal of subsidies on petroleum products should be phased so as to reduce its negative effects on the populace.

We say so because of the fear that complete removal of subsidies on products in one swoop would cause social and economic dislocations in the country, and thus, threaten the basic foundations of our democracy. That, we know, is not the goal of government. And many well-meaning Nigerians also think along these lines.

The Tide must place on record the fact that all the problems with Nigeria and Nigerians can not be addressed completely by the hurried removal of subsidies on petroleum products.

Instead, Nigeria’s economy, and indeed, the greater majority of Nigerians can only witness growth and sustainable development, peace and stability, if the twin forces of mismanagement and corruption are tackled. But as long as these two monsters maintain their high index on the nation’s governance equation, full deregulation can only worsen the poor living condition of people while, a few relish in opulence.

Perhaps, the time is right to make government realize that it does not need to force full deregulation down the throats of already impoverished Nigerians, who are still groaning under the weight of the prevailing high prices of essential commodities. Common sense tells discerning minds that if the 14 private refineries so far granted approval to construct and operate refineries, come on stream and competitively operate at their installed capacities, prices of the products would naturally crash. That way, removal of subsides would not be felt by the masses.

The Tide reckons that it does not make sense for the government to spend more than N1.8 trillion between 2006 and 2009 on products subsidies when that huge chunk could significantly address the dire infrastructure needs of Nigerians, especially those in the Niger Delta. Even so, The Tide favours gradual deregulation. This is our stand.

Editorial

Fubara’s 2025 Budget Of Inclusive Growth

Published

1 day ago

January 17, 2025

The Tide

On December 30, 2024, Rivers State Governor, Sir Siminalayi Fubara, unveiled an ambitious budget proposal amounting to N1.188 trillion for the year 2025. This proposed budget, aptly termed the “Inclusive Growth and Development Budget,” seeks to address the socio-economic needs of the state while simultaneously fostering sustainable growth and development. This marked the second budget cycle under Governor Fubara’s administration. Fubara signed the budget into law on January 2, 2025, after the House of Assembly had passed it.

The 2025 budget builds upon the framework established by the previous year’s appropriation, which was themed “Renewed Hope, Consolidation, and Continuity.” That 2024 budget projected a total revenue of N800.392 billion, aiming to perpetuate the administration’s agenda focused on economic recovery, infrastructure development, and the enhancement of social welfare programmes. Moreover, it sought to stimulate economic growth, uplift the quality of life for citizens, and facilitate the overall sustainable development of the state.

The 2024 budget was a resounding success, surpassing both its revenue and expenditure targets and achieving its objectives concerning performance, expectation management, and project delivery. Remarkably, this was accomplished in the face of macroeconomic challenges, including prevalent high inflation rates, the devaluation of the naira, and a backdrop of political instability. Notably, this budget was financed without resorting to loans, achieving full implementation with a success rate of 100%. The growth in the Internally Generated Revenue (IGR) was especially impressive; by the end of November 2024, the IGR surged to N282.557 billion, surpassing the projected figure of N231.057 billion by more than N51 billion.

However, the 2025 budget reveals a more refined and methodologically sound financial strategy that places emphasis on both immediate operational needs and forward-thinking long-term investments. The breakdown shows Recurrent Expenditure totalling N462,254,153,418.98 alongside a Capital Expenditure of N678,088,433,692.03. Additionally, the budget establishes a planning reserve of N35.688 billion and anticipates a closing balance of N12.931 billion. In this way, Fubara’s administration reaffirms its unyielding commitment to expedite the development of Rivers State.

An important element of this budget is the ratio of Recurrent to Capital Expenditure, which stands at a notable 44:56%. This metric illustrates the administration’s deliberate allocation of funds, directing a substantial portion towards capital projects — vital components for fostering infrastructure and facilitating developmental goals. This balanced approach indicates a strong recognition of the need for investment in both immediate operational efficiency and sustainable long-term growth strategies.

Considering the contemporary economic complexities and pressing policy priorities, the 2025 appropriation estimate is a carefully calculated reflection of the state’s economic landscape. The budget’s stable assumptions and its intrinsic flexibility are designed to address the various financial challenges the state faces, thereby ensuring its ongoing relevance to current and future economic scenarios. These elements demonstrate a realistic and reliable approach in the projections of the N1.188 trillion budget, thereby enhancing the effectiveness of its implementation.

The estimate further acknowledges the complicated dynamics of the current economic climate and adjusts strategic plans to navigate unforeseen disturbances. By incorporating a degree of flexibility, the budget is designed to anticipate and mitigate potential economic shocks stemming from an array of domestic and international influences. This proactive posture enables the state to respond efficiently to economic downturns and explore avenues for growth.

In the allocation of funding, Governor Fubara emphasizes critical sectors such as infrastructure, health, education, agriculture, and social development, showcasing an understanding of the core challenges faced by Rivers State. The largest portion of the budget, amounting to N195.074 billion, has been specifically earmarked for infrastructure development, followed closely by allocations for health (N97.750 billion), education (N63.275 billion), agriculture (N30.954 billion), and social development (N15.477 billion).

The government’s commitment to infrastructure development is particularly commendable. Key projects such as the Port Harcourt Ring Road and the Trans-Kalabari Road remain essential drivers for economic expansion. The allocation dedicated to social development is a commendable move towards empowering the youth population. Investments in youth initiatives are integral for laying the groundwork for a more inclusive and equitable society.

Recognising that food security is a non-negotiable priority, the administration’s substantial commitment to the agricultural sector deserves praise. By supporting interventions aimed at agricultural development, the government is creating employment opportunities, fostering economic growth, and achieving necessary diversification and rural development. Moreover, the initiative to roll out a comprehensive agriculture transformation support programme geared towards youth in the upcoming fiscal year stands to tackle the challenges of youth unemployment, poverty, and food insecurity effectively.

In parallel, the budget emphasizes the administration’s intent to fortify health and educational institutions. It is paramount that primary healthcare systems and general hospitals receive the necessary investments to drive transformative outcomes, alongside substantial renovations of public schools. The government must remain focused on bolstering foundational sectors within the education system. Furthermore, the planned establishment of a college of education in Opobo is a welcome initiative that aligns perfectly with the need to enhance educational opportunities in the area.

In recognition of these concerted efforts, the Opposition Coalition, alongside the All Progressive Congress (APP) and the Human Rights Writers Association of Nigeria (HURIWA), has lauded Governor Fubara as an astute economic tactician whose leadership has seen Rivers State’s IGR increase by N100 billion. They further commended his administration for achieving the 2024 budget’s objectives without incurring debt, despite the ongoing attempts by various disgruntled elements to disrupt governance in the state.

A statement from the opposition emphasized, “This remarkable achievement is a testament to the economic acumen of Governor Fubara, who, despite distractions and provocations, has maintained his focus on the economic rejuvenation of the state following years of mismanagement. It is both reassuring and inspiring that even while the Federal Government grapples with domestic and foreign borrowings to fund its operations, the Rivers State Government has succeeded in financing the 2024 budget without resorting to borrowing.”

Governor Fubara’s pragmatic approach to fiscal management presents a remarkable opportunity to transform governance at the state level in Nigeria. If effectively executed, the 2025 budget could serve as a model for leveraging state governance to propel economic growth and enhance the quality of life for Rivers people. The successful implementation of the budget could redefine the role of state governments in Nigeria’s overall development trajectory, thereby paving the way for a more prosperous and inclusive future for all.

Editorial

Opobo And The Proposed Higher Institution

Published

3 days ago

January 15, 2025

The Tide

Rivers State Governor, Sir Siminalayi Fubara, has recently taken an important step by unveiling plans to establish a new institution of higher learning in the historic Opobo Town. This forward-thinking initiative is designed not only to enhance educational opportunities but also to stimulate sustainable academic and economic growth in the region, thereby addressing some of the long-standing needs of the community.

The Governor made this important announcement during the inauguration ceremony for the 7-kilometre Opobo Town Ring Road, which stands as a testament to the government’s unwavering commitment to infrastructure development within the state. The proposed institution will serve as a vital educational resource, providing local students from Opobo and its surrounding areas with access to quality education. This initiative seeks to empower learners with the skills and knowledge necessary to actively contribute to economic prosperity and community development.

Additionally, the new institution is envisioned as a hub for research and innovation. It aims to promote sustainable practices and develop solutions tailored to the specific challenges faced by the local community. By investing in education, the government acknowledges the transformative power of learning as a crucial component in shaping the future of Rivers State and empowering its citizens.

The announcement has sparked a wave of enthusiasm among the native and resident population of Opobo Town, who eagerly anticipate the realisation of this promise to establish a higher educational institution in their community. This momentous development brings a renewed sense of hope and relief to a town that has historically been deprived of access to quality tertiary education.

For many years, the youths of Opobo have faced the daunting challenge of leaving their hometown to pursue higher education elsewhere. The emotional strain and financial burdens associated with this necessity have proven overwhelming for numerous families. However, the establishment of this institution is poised to transform the landscape of educational opportunities, allowing countless individuals — sons and daughters of this ancient kingdom — to attain affordable and accessible education right within their own community.

The gratitude expressed by the natives and residents of Opobo is truly palpable, with many extending heartfelt appreciation to the Governor for his steadfast dedication to fulfilling their educational aspirations. This strategic investment not only aims to empower the local population but also seeks to invigorate the economy through job creation and increased civic engagement.

The Tide commends the Governor for his initiative to establish a world-class educational institution in this historic town. Education is not merely a means of acquiring knowledge; it serves as the cornerstone of societal advancement. By equipping individuals with critical skills and the tools necessary for navigating the complexities of modern life, this initiative will undoubtedly foster a more informed and engaged citizenry. Furthermore, it would be prudent for the Governor to consider replicating such initiatives in other deserving riverine communities, extending the benefits of higher education throughout the region.

Looking ahead, it is imperative that the Rivers State Government ensures that this higher institution is adequately funded and supported. Prioritising the development of students, staff, and curriculum, as well as providing state-of-the-art research facilities, will be essential in guaranteeing that the institution meets international quality standards.

It is noteworthy to mention that, apart from a previous attempt to locate the Faculty of Law at what was then known as the Rivers State University of Science and Technology (UNITECH) in Degema during the administration of the late Chief Melford Okilo, the proposed higher education institution at Opobo marks the second concerted effort by a Governor of Rivers State to enhance academic opportunities in the area.

Governor Fubara’s initiative has effectively dispelled the notion that the riverine areas of the state are unsuitable for accommodating momentous projects due to land scarcity. His administration sets a precedent for future leaders, encouraging them to view riverine areas as viable and valuable locations for launching economic projects.

Undoubtedly, this transformative project will not only enhance the potential for human settlement in that portion of the state but also mitigate the ongoing trend of rural-urban migration. This higher learning institution will draw industrialisation and provide vital job opportunities, serving as a symbol of hope for the many unemployed young individuals in the area while unlocking fresh prospects for growth and advancement.

Editorial

A New Dawn For Rivers’ Workers

Published

1 month ago

December 13, 2024

The Tide

Workers in the Rivers State civil service have been eulogising Governor Siminalayi Fubara for delivering on his promise to implement a new minimum wage of N85,000, which was reflected in the salaries paid for November. This increase is N15,000 higher than the national minimum wage of N70,000. This represents not only an enhancement in the financial welfare of civil servants but also a recognition of their hard work and dedication to public service. The raise has been met with widespread jubilation among the workforce, who have long advocated for a better wage to cope with rising living costs and economic challenges.
As the news spread, offices filled with laughter and sigh of relief, as employees exchanged stories of how this financial boost would positively impact their families and dependants. The new minimum wage is not just a number; it symbolises the government’s commitment to improving the standards of living for civil servants and fostering a more equitable workforce. Many workers expressed their gratitude for the governor’s timely intervention, highlighting how important it is for public servants to feel valued and adequately renumerated.
Governor Fubara’s decision is expected to reinforce morale within the civil service, fostering greater productivity and dedication among employees who contribute significantly to the state’s development. With the new wage in place, there is a renewed sense of optimism among civil servants, who now feel more empowered to serve the government and the citizens with greater enthusiasm and commitment.
The Governor had declared an increase in salaries for state workers, emphasising that this adjustment is not only a reflection of the government’s commitment to improving the welfare of its employees but also a strategic move fueled by the state’s enhanced Internally Generated Revenue (IGR). He assured workers that the financial backing for this increment is sustainable, stemming from the state’s focused efforts to bolster revenue through various initiatives, including tax reforms and enhanced efficiency in public service delivery.
Furthermore, the governor’s promise of funding the increment solely through increased IGR signifies a commitment to fiscal responsibility and transparency. It reassures the people that the government is proactively managing resources while investing in their future. As the state continues to explore opportunities for revenue enhancement, Fubara’s administration remains focused on ensuring that these initiatives translate into tangible benefits for the workforce, ultimately fostering a more motivated and dedicated public sector.
The decision by Fubara to be the first in Nigeria to implement the new national minimum wage is a commendable step that reflects a proactive approach to governance and an understanding of the pressing needs of the workforce. In an economy where many families struggle to make ends meet, especially in the face of rising living costs, this enterprise will improve the quality of life for workers and also set a precedent for other states to follow.
In recognising the various drives and support provided by Fubara’s government, it is necessary that the workers reciprocate by embodying a spirit of productivity and commitment to the current administration’s goals. They should align their daily operations with the administration’s objectives to enhance effectiveness and foster an environment of collaboration and trust. This reciprocal relationship can lead to innovative solutions and efficient service delivery, ultimately benefiting the state and strengthening public trust in government institutions.
Surprisingly, despite the political challenges the government has been navigating, alongside the myriad of ambitious projects it is embarking on, it has managed to raise funds to implement a minimum wage of N85,000 This achievement reflects a commendable level of resilience and resourcefulness within the government’s fiscal strategies. In a nation often marred by economic volatility and political discord, finding a way to sustain and even elevate the livelihoods of its employees is no small feat.
Workers in the state have truly found themselves in a remarkably advantageous position under this administration, especially when compared to the previous regime. The immediate past government’s blatant refusal to implement the minimum wage of N30,000 left many employees disheartened and struggling to meet their basic needs. What was even more disconcerting was the absence of meaningful negotiations with labour representatives, leaving workers feeling unheard and undervalued. In contrast, the present administration has prioritised dialogue and engagement with labour unions, recognising the importance of fair wage for workers’ contributions to the state’s economy.
With the current government’s commitment to improving wages and working conditions, it is clear that a major shift has taken place. This renewed focus on the welfare of workers empowers them and instils a sense of hope and optimism for the future, as they can now look forward to a more equitable and supportive work environment. Ultimately, the ongoing trajectory suggests a promising era for labour relations in the state, one where workers are valued and their rights upheld.
Siminalayi Fubara has consistently demonstrated his dedication to workers’ welfare since taking office in May last year. Unlike his predecessor, who left many employees feeling overlooked and unsupported, Fubara wasted no time in addressing the longstanding stagnation of promotions that had plagued the workforce for eight years. He took further steps towards financial justice by initiating the long-overdue payment of gratuities that were neglected during the last administration.
Similarly, we urge the governor to take another step forward by reviewing the stipends received by pensioners. The current pension amounts have become woefully inadequate, leaving many of them who dedicated their lives to public service struggling to make ends meet. These dedicated individuals who have contributed to the development of our dear state now find themselves in a precarious financial situation, receiving stipends that are alarmingly low and insufficient to cover basic living expenses. The rising cost of living has rendered their pensions nearly meaningless. Therefore, a comprehensive reevaluation of these stipends is a required measure to ensure that those who have served our state with honour can live their remaining years with dignity and security.