Opinion
Govs, FG And Niger Delta Development
The creeks and streets in the Niger Delta region have been relatively calm and safe in recent times. The isolated case of five youth corps members, who were kidnapped and released a few weeks ago, does not substantially subtract from this fact. Of course, the new found peace is attributable to the amnesty programme, which has so far, reined in the hitherto restive youths of the region. How long this tenuous peace will hold is a matter of conjecture. However, it would help if the post-amnesty programme is pursued with greater vigor and urgency. In this wise, development projects meant to create jobs and fully engage the youths must be executed with dispatch to prevent any resurgence of violence.
The political leaders of the region seem to have read the ominous signs and are frantically raising the red flag. The apparent unease among the elite stems from the sluggish way the development challenges of the region are being confronted. This tardiness manifests in one of the star projects, the East-West road, which traverses most states in the South-South zone. At the rate the construction is going, it may take another ten years for it to be completed.
This fear is confirmed by Mr. Michael Hachenberg, the Managing Director of Setraco, one of the contractors working on the East/West Road. He told the South-South caucus of the House of Representatives last year that it would take 10 years to complete this very important road link. Reason? The Federal Government is not releasing funds as and when due. This nonchalant attitude of the government if not seriously addressed will have dire consequences for the region.
Perhaps, determined to ensure that the gains of the amnesty programme were not eroded, governors of the six states of the South-South zone, converged in Port Harcourt recently to chart a new way forward. They met under the aegis of BRACED, an acronym for the states; Bayelsa, Rivers, Akwa-Ibom, Cross River, Edo and Delta tates, and signed an agreement for the take-off of a Regional Economic Cooperation Commission. According to the Governor of Cross Rivers State, Senator Liyel Imoke, who is the chairman of the group, they also agreed to conduct feasibility studies on regional economic projects.
However, the immediate concern of the governors was the execution of projects that would hasten the development of the Niger Delta. Apparently, the people they represent must have been putting pressure on them to rev up action on tangible projects that would impact positively on their lives. So, the governors turned the heat on the Federal Government, asking it to quicken the pace of work on the East-West road as well as kick-start, the actual construction of the coastal road and the East-West railway.
Now that the rains have started, the road between Port Harcourt and Warri, two main cities in the Niger Delta, is almost impassable. There are several gullies that make life unbearable for commuters. Serious accidents and avoidable deaths are common occurrences. Though Setraco is on site, the withdrawal of Julius Berger from participation has adversely affected the speed. What now calls for urgent attention is to fill the gullies and pot holes while the main work continues. The Federal Government should give strong directives to Setraco to immediately fix these death traps. Niger Deltans cannot wait for the East-West road to be completed before they can move from one part of the region to the other.
Last year, it took the intervention of the Niger Delta Development Commission, NDDC, to save the road from total collapse. All the while, neither the Federal Roads Maintenance Agency (FERMA) nor the Federal Ministry of Works lifted a finger to help. Isn’t that the height of negligence? Today, we are back to square one and those using the road in this horrible condition are cursing and swearing.
As if to douse the rising tension, the nation’s number two citizen, Architect Namadi Sambo, quickly put in a word for the President when he attended the convocation ceremony of the University of Port Harcourt just five days after the governors gave their warning signal. He re-assured the governors and leaders of the region that extensive work (the designs) had already been done on both the coastal road and the East-West railway.
The leaders of the region have continued to advise that there should be more action and less talk. Thank God that during his inaugural speech President Goodluck Jonathan acknowledged the dangers of further delay. He said: “The time for lamentation is over. This is the era of transformation. This is the time for action.” The president had in the course of his campaigns said that the lofty plans captured in the Regional Development Master Plan, facilitated by the NDDC would be pursued with renewed vigour.
“Let me assure you that I am irrevocably committed to the development of the Niger-Delta. We must develop the region to restore confidence and hope among our people and children. To this end, let me assure you that the Niger-Delta Master Plan for development is on course and we will assist the NDDC and all the state governments to faithfully implement it,” the President said.
The NDDC on its part is working through its Partners for Sustainable Development [PSD] Forum to get all the stakeholders fully involved in the development process and also use the body to harmonize projects in the region as enunciated in the plan.
Indeed, the first official assignment of the present NDDC Managing Director, Mr. Chibuzor Ugwuoha was the attendance of a workshop by the PSD Forum in Port Harcourt. His remarks at that occasion underscored the importance he attached to partnership. He said: “We know that the task of developing the Niger Delta is enormous. We cannot do it individually but together we can do it.” Ugwoha’s emphasis on the PSD Forum as a platform for collaboration is in line with his desire to engender further buy-in and commitment of all stakeholders to the Master Plan.
It is encouraging that the state governors in the region are beginning to take keen interest in the affairs of the commission which drives the master plan process. Recently, the hitherto dormant Advisory Committee of the NDDC, which comprises the governors and the principal officers of the commission, sprang into life after many years of in-action. The advisory committee intervened in the internal challenges that have confronted the interventionist agency of late. The long expected meeting of that moderating body also deliberated on how to aggressively implement the master Plan.
It is good to have the governors on the same page with the NDDC in the onerous task of bringing rapid development to the long-neglected people of the Niger delta. They should also work in synergy with the Ministry of Niger Delta Affairs. Such cooperation of all main stakeholders is imperative for the rapid socio-economic transformation of the oil-rich region.
The governors of the region should show more commitment to the development of their various states. With prudent management of their resources, they would make by far more impact on the lives of their people. True, a few of them have done creditably well. Others are, however, laggards because there is no comparison whatsoever between the revenue they have received and the development on ground. None of them should use the implementation of the N18,000 minimum wage as an alibi for dissatisfactory performance.
There is no doubt that there is a justification in the governors’ demand for an adjustment in the revenue allocation formula to put more money in the coffers of the states to enable them pay living wages and provide more basic infrastructure which would spur development in their states.
The Federal Government currently takes 52.68 per cent of the centrally collected revenues, leaving the states and local governments with 26.72 and 20.60 per cent respectively. Meanwhile, the states and the local governments are saddled with more responsibilities like paying teachers and funding health care services. Redressing the badly skewed allocation formula should engage the attention of the National Assembly as it settles down to business. In the meantime, the Federal Government, which takes the lion share of our collective wealth must rise to the occasion and respond immediately to the infrastructural deficit in the Niger Delta.
Ifeatu Agbu
From all indications, Nigeria possesses enough human and material resources to become a true economic powerhouse in Africa. According to the National Population Commission (NPC, 2023), the country’s population has grown steadily within the last decade, presently standing at about 220 million people—mostly young, vibrant, and innovative. Nigeria also remains the sixth-largest oil producer in the world, with enormous reserves of gas, fertile agricultural land, and human capital.
Yet, despite this enormous potential, the country continues to grapple with underdevelopment, poverty, unemployment, and insecurity. Recent data from the National Bureau of Statistics (NBS, 2023) show that about 129 million Nigerians currently live below the poverty line. Most families can no longer afford basic necessities, even as the government continues to project a rosy economic picture.
The Subsidy Question
The removal of fuel subsidy in 2023 by President Bola Ahmed Tinubu has been one of the most controversial policy decisions in Nigeria’s recent history. According to the president, subsidy removal was designed to reduce fiscal burden, unify the foreign exchange rate, attract investment, curb inflation, and discourage excessive government borrowing.
While these objectives are theoretically sound, the reality for ordinary Nigerians has been severe hardship. Fuel prices more than tripled, transportation costs surged, and food inflation—already high—rose above 30% (NBS, 2023). The World Bank (2023) estimates that an additional 7.1 million Nigerians were pushed into poverty after subsidy removal.
A Critical Economic View
As an economist, I argue that the problem was not subsidy removal itself—which was inevitable—but the timing, sequencing, and structural gaps in Nigeria’s implementation.
- Structural Miscalculation
Nigeria’s four state-owned refineries remain nonfunctional. By removing subsidies without local refining capacity, the government exposed the economy to import-price pass-through effects—where global oil price shocks translate directly into domestic inflation. This was not just a timing issue but a fundamental policy miscalculation.
- Neglect of Social Safety Nets
Countries like Indonesia (2005) and Ghana (2005) removed subsidies successfully only after introducing cash transfers, transport vouchers, and food subsidies for the poor (World Bank, 2005). Nigeria, however, implemented removal abruptly, shifting the fiscal burden directly onto households without protection.
- Failure to Secure Food and Energy Alternatives
Fuel subsidy removal amplified existing weaknesses in agriculture and energy. Instead of sequencing reforms, government left Nigerians without refinery capacity, renewable energy alternatives, or mechanized agricultural productivity—all of which could have cushioned the shock.
Political and Public Concerns
Prominent leaders have echoed these concerns. Mr. Peter Obi, the Labour Party’s 2023 presidential candidate, described the subsidy removal as “good but wrongly timed.” Atiku Abubakar of the People’s Democratic Party also faulted the government’s hasty approach. Human rights activists like Obodoekwe Stive stressed that refineries should have been made functional first, to reduce the suffering of citizens.
This is not just political rhetoric—it reflects a widespread economic reality. When inflation climbs above 30%, when purchasing power collapses, and when households cannot meet basic needs, the promise of reform becomes overshadowed by social pain.
Broader Implications
The consequences of this policy are multidimensional:
- Inflationary Pressures – Food inflation above 30% has made nutrition unaffordable for many households.
- Rising Poverty – 7.1 million Nigerians have been newly pushed into poverty (World Bank, 2023).
- Middle-Class Erosion – Rising transport, rent, and healthcare costs are squeezing household incomes.
- Debt Concerns – Despite promises, government borrowing has continued, raising sustainability questions.
- Public Distrust – When government promises savings but citizens feel only pain, trust in leadership erodes.
In effect, subsidy removal without structural readiness has widened inequality and eroded social stability.
Missed Opportunities
Nigeria’s leaders had the chance to approach subsidy removal differently:
- Refinery Rehabilitation – Ensuring local refining to reduce exposure to global oil price shocks.
- Renewable Energy Investment – Diversifying energy through solar, hydro, and wind to reduce reliance on imported petroleum.
- Agricultural Productivity – Mechanization, irrigation, and smallholder financing could have boosted food supply and stabilized prices.
- Social Safety Nets – Conditional cash transfers, food vouchers, and transport subsidies could have protected the most vulnerable.
Instead, reform came abruptly, leaving citizens to absorb all the pain while waiting for theoretical long-term benefits.
Conclusion: Reform With a Human Face
Fuel subsidy removal was inevitable, but Nigeria’s approach has worsened hardship for millions. True reform must go beyond fiscal savings to protect citizens.
Economic policy is not judged only by its efficiency but by its humanity. A well-sequenced reform could have balanced fiscal responsibility with equity, ensuring that ordinary Nigerians were not crushed under the weight of sudden change.
Nigeria has the resources, population, and resilience to lead Africa’s economy. But leadership requires foresight. It requires policies that are inclusive, humane, and strategically sequenced.
Reform without equity is displacement of poverty, not development. If Nigeria truly seeks progress, its policies must wear a human face.
References
- National Bureau of Statistics (NBS). (2023). Poverty and Inequality Report. Abuja.
- National Population Commission (NPC). (2023). Population Estimates. Abuja.
- World Bank. (2023). Nigeria Development Update. Washington, DC.
- World Bank. (2005). Fuel Subsidy Reforms: Lessons from Indonesia and Ghana. Washington, DC.
- OPEC. (2023). Annual Statistical Bulletin. Vienna.
By: Amarachi Amaugo