Editorial
Address Rivers’ Revenue Denial By RMAFC
Last week Thursday, Rivers State Governor, Chibuike Rotimi Amaechi voiced discontent over what he considered manipulation of revenue of oil-bearing states, and pleaded with the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) to perform its duties according to law, good conscience and reason.
Stopping short of accusing RMAFC of compromising its expected impartiality and integrity in the allocation of federal revenue, Governor Amaechi lamented the re-allocation of 86 oil wells originally belonging to Rivers to Akwa Ibom State, 45 to Abia and others including Soku Gas Plant to neighbouring Bayelsa.
The state governor, who made these disclosures, also wondered why revenue allocation involving oil wells could now be used to polarize oil-bearing states, and urged the federal revenue body to appraise its obvious missteps with a view to earning the confidence of all stakeholders.
These are very strong allegations that require urgent Federal Government attention, and in the National Assembly, careful probe, with a view to ensuring that the complaints do not degenerate into more serious inter-state acrimony.
Location of oil and gas wells ought not be subject of avoidable squabbles since every state knows or ought to know the reach and limits of its boundary, and by extension, its natural accruements. Besides, the National Boundary Commission (NBC) should be useful in conflicts of this kind and not to leave the federal revenue commission to, alone, decide who belongs to which state.
This is why the revenue commission should address the concerns raised by the Rivers State Government in a timely fashion and seek clarifications from the boundary commission, if necessary, to avoid any further heating up of the polity.
Happily, Governor Amaechi raised the concerns when he received in audience, members of the Federation Accounts and Allocation Commission (FAAC), post mortem sub-committee, an institution of RMAFC. This means, the report would have been received by the revenue commission, and thus, offers it the opportunity to purge itself of the grievous allegations leveled, and make public, the needed clarifications.
The FAAC post mortem sub-committee team “B” led by Chief Nimi Dambo-Kalabo was not known to have advanced valid reaction to the Rivers Government’s outcry, apparently because it was out of its brief. Theirs, we understand, is to critically analyse monthly returns of revenue generating agencies, with headquarters in Port Harcourt, and in course of that assignment paid the customary respects to the governor.
Now therefore, is the time to call on RMAFC to assess critically, its recent revenue allocation methods to avoid complaints of this kind in the future.
The Tide is concerned that litigations of every kind have recently attended work of the revenue commission in recent years, and makes the current Rivers protest one too many. That is why we consider it proper for other federal agencies, like the National Assembly, whose responsibilities also include raising questions on issues of this kind, to wade into the discrepancies to avert further eroding of confidence in the commission.
When Rivers State Governor, Sir Siminalayi Fubara, received the Board and Management of the Nigerian Ports Authority (NPA), led by its Chairman, Senator Adeyeye Adedayo Clement, his message was unmistakable: Rivers’ seaports remain underutilised, and Nigeria is poorer for it. The governor’s lament was a sad reminder of how neglect and centralisation continue to choke the nation’s economic arteries.
The governor, in his remarks at Government House, Port Harcourt, expressed concern that the twin seaports — the NPA in Port Harcourt and the Onne Seaport — have not been operating at their full potential. He underscored that seaports are vital engines of national development, pointing out that no prosperous nation thrives without efficient ports and airports. His position aligns with global realities that maritime trade remains the backbone of industrial expansion and international commerce.
Indeed, the case of Rivers State is peculiar. It hosts two major ports strategically located along the Bonny River axis, yet cargo throughput has remained dismally low compared to Lagos. According to NPA’s 2023 statistics, Lagos ports (Apapa and Tin Can Island) handled over 75 per cent of Nigeria’s container traffic, while Onne managed less than 10 per cent. Such a lopsided distribution is neither efficient nor sustainable.
Governor Fubara rightly observed that the full capacity operation of Onne Port would be transformative. The area’s vast land mass and industrial potential make it ideal for ancillary businesses — warehousing, logistics, ship repair, and manufacturing. A revitalised Onne would attract investors, create jobs, and stimulate economic growth, not only in Rivers State but across the Niger Delta.
The multiplier effect cannot be overstated. The port’s expansion would boost clearing and forwarding services, strengthen local transport networks, and revitalise the moribund manufacturing sector. It would also expand opportunities for youth employment — a pressing concern in a state where unemployment reportedly hovers around 32 per cent, according to the National Bureau of Statistics (NBS).
Yet, the challenge lies not in capacity but in policy. For years, Nigeria’s maritime economy has been suffocated by excessive centralisation. Successive governments have prioritised Lagos at the expense of other viable ports, creating a traffic nightmare and logistical bottlenecks that cost importers and exporters billions annually. The governor’s call, therefore, is a plea for fairness and pragmatism.
Making Lagos the exclusive maritime gateway is counter productive. Congestion at Tin Can Island and Apapa has become legendary — ships often wait weeks to berth, while truck queues stretch for kilometres. The result is avoidable demurrage, product delays, and business frustration. A more decentralised port system would spread economic opportunities and reduce the burden on Lagos’ overstretched infrastructure.
Importers continue to face severe difficulties clearing goods in Lagos, with bureaucratic delays and poor road networks compounding their woes. The World Bank’s Doing Business Report estimates that Nigerian ports experience average clearance times of 20 days — compared to just 5 days in neighbouring Ghana. Such inefficiency undermines competitiveness and discourages foreign investment.
Worse still, goods transported from Lagos to other regions are often lost to accidents or criminal attacks along the nation’s perilous highways. Reports from the Federal Road Safety Corps indicate that over 5,000 road crashes involving heavy-duty trucks occurred in 2023, many en route from Lagos. By contrast, activating seaports in Rivers, Warri, and Calabar would shorten cargo routes and save lives.
The economic rationale is clear: making all seaports operational will create jobs, enhance trade efficiency, and boost national revenue. It will also help diversify economic activity away from the overburdened South West, spreading prosperity more evenly across the federation.
Decentralisation is both an economic strategy and an act of national renewal. When Onne, Warri, and Calabar ports operate optimally, hinterland states benefit through increased trade and infrastructure development. The federal purse, too, gains through taxes, duties, and improved productivity.
Tin Can Island, already bursting at the seams, exemplifies the perils of over-centralisation. Ships face berthing delays, containers stack up, and port users lose valuable hours navigating chaos. The result is higher operational costs and lower competitiveness. Allowing states like Rivers to fully harness their maritime assets would reverse this trend.
Compelling all importers to use Lagos ports is an anachronistic policy that stifles innovation and local enterprise. Nigeria cannot achieve its industrial ambitions by chaining its logistics system to one congested city. The path to prosperity lies in empowering every state to develop and utilise its natural advantages — and for Rivers, that means functional seaports.
Fubara’s call should not go unheeded. The Federal Government must embrace decentralisation as a strategic necessity for national growth. Making Rivers’ seaports work is not just about reviving dormant infrastructure; it is about unlocking the full maritime potential of a nation yearning for balance, productivity, and shared prosperity.
