Business
Rivers: The Wheel Propelling Nigerian Economy
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
Business
Wigwe’s Luxury Yacht Goes For N8.74 Billion After Legal Proceedings
The daughter of late Nigerian banking executive, Herbert Wigwe has sold her father’s luxury yacht for $6.5 million which is the equivalent of N8.74 Billion following legal proceedings involving her, Otutochi Wigwe, and the company holding the vessel, Grosvenor Marine Ventures Limited.
This was contained in an online report obtained by The Tide Source in Port Harcourt recently.
The Source further clarified that $6. 5 Million dollars or N8.74 Billion was the asking price as at March this year but was unable to prove, if the said amount was exactly what the vessel went for.
The yacht, known as Chitochi, is a 2016 Custom Line 108 superyacht measuring approximately 33 metres (108 feet) in length. The transaction was handled by international yacht brokerage firm IYC, with its sales and charter consultant, Mark Elliott, overseeing the sale.
The disposal of the high-value vessel followed legal steps taken to address the corporate status of Grosvenor Marine Ventures Ltd., the company through which the yacht was held.
Otutochi Wigwe reportedly approached a court in the British Virgin Islands (BVI) to secure the restoration of the company to the corporate register, a move that enabled the necessary legal steps towards the sale of the vessel.
The proceedings were central to resolving the corporate issues affecting the company and facilitating the transaction, underscoring the legal complexities that may arise when valuable assets are held through corporate entities in foreign jurisdictions.
The sale is also significant in the context of estate administration, as luxury yachts require substantial financial commitments to maintain, even when they are no longer actively used by their owners or beneficiaries.
Such vessels typically attract considerable expenses, including crew salaries, insurance premiums, berthing charges, routine servicing and other maintenance costs, making their continued ownership a major financial responsibility.
Beyond the recurring expenses, luxury yachts are depreciating assets that may lose value over time. Their disposal can therefore form part of a strategy to preserve estate value, reduce liabilities and convert an expensive asset into liquid funds.
Wigwe, who was the former Group Chief Executive Officer of Access Holdings, died on February 9, 2024, in a helicopter crash in California, United States, alongside his wife, Chizoba; their son, Chizi; and former Nigerian Exchange Group chairman, Abimbola Ogunbanjo.
His death was widely mourned across Nigeria’s banking and business communities, where he was recognised for his contributions to the financial services industry, entrepreneurship and philanthropy.
Wigwe’s passing left behind an estate whose administration involves the management of assets and other financial interests, a process that can require legal and financial decisions to protect the interests of the estate and its beneficiaries.
The sale of Chitochi highlights the challenges associated with managing high-value assets held through corporate structures, particularly where the relevant companies and legal proceedings fall under different jurisdictions.
The $6.5 million transaction brings the yacht’s ownership chapter to a close while illustrating how legal procedures, financial considerations and estate management can intersect in the administration of the assets of a prominent business figure.
‘’We determined to get all our equipments and machinery functioning as we progress. For now we’ve about 105 workers, comprising daily paid harvesters and regular staffs. But aside these 105 staffs we also employ daily slashers who for now are about 100.
“During peak periods, hopefully on or before January 2026 we hope to increase our work force for maximum production”, the firm’s management Stated.
King Onunwor
Business
Firm Mulls Crash Down On Vegetable Oil Price …Targets Revenue Boost, Job Creation
Ariwera Ibibo-Howells, Yenagoa
Business
Traders Decry Continuous Increase In Prices Of Foodstuffs
Some traders at the Rumuwoji Market popularly known as Mile 1 Market have decried the continuous increase in the prices of food stuffs and other items in the ember season.
This was made known by the traders when The Tide visited the market recently.
The traders revealed varying changes in the prices of foodstuffs, with some commodities recording higher increase than others .
A trader Mrs Charity Obinna, at the market, said the price of yam remained the same last week and this week compared to the prices from last month to this month, adding that only a difference of about N100 to N200 was seen.
Another trader, Chukwuebuka Livinus who deals on garri, reported that the prices of some food commodities had been changing frequently.
According to him, the price of a bag of garri increased from N45,000 last week to N58,000 this week, representing an increase of N13,000.
Livinus described the increase as scary and called on the government to do something about it, especially as we get closer to the festive period.
A trader that deals on vegetables, Mrs Joy reported that a significant increase in the prices of pepper rose from N20,000 last week to N40,000 this week.
Similarly, the price of a bag of melon (egusi) increased from N420,000 toN490,000 this week.
In a separate report, Mrs Charity Obinna said that foodstuffs were generally cheaper last month than this month, with price differences ranging from N150 to N200 for some items.
Meanwhile, Giff Okoro reported a decrease in the price of tomatoes. According to her, a quantity of tomatoes that cost N45,000 last month now sells for N25,000, indicating a reduction of N20,000.
Another trader, Usman Ibrahim said the cost of transporting goods from the communities to urban areas where they are sold is one of the major reasons for high cost of goods.
He said transport cost has doubled due to the cost of petroleum products in Nigeria, adding the whole cost is part of the goods because “entrepreneurs must cover their cost and make their gains .
Ibrahim called on the government to help farmers and traders even with little capitals to expand and sustain their business.
Another trader, Mrs Choice Promise a fish retailer said a cartoon which sold at #35,000 last week now sells at #50,000 .
Promise complained that there is no gain or profit because the price has drastically increase and most people cannot afford to buy fish again.
“Mr. President’s Renewed Hope Agenda recognizes that economic ambition requires dependable infrastructure,” Tegbe said.
He added that investments in electricity infrastructure would strengthen the foundations for business expansion, employment and economic growth.
The Kankia substations comprise two 60 MVA, 132/33 kilovolt (kV) facilities designed to strengthen the transmission network serving Katsina State and neighbouring areas.
Tegbe said the infrastructure would improve the network’s ability to distribute available electricity, supporting commercial activities and household welfare.
He also urged residents to protect the facilities against vandalism and other activities that could disrupt electricity infrastructure, asking them to report suspicious activities to TCN or security agencies.
Katsina State Governor, Dikko Umaru Radda, described the project as a significant investment in the state’s electricity infrastructure.
Radda stated that improved electricity supply could support industrial development, economic growth and public service delivery.
He further commended the President, the Federal Ministry of Power and TCN for completing the project.
It would be noted that the latest projects come amid a broader government’s drive to address bottlenecks in Nigeria’s electricity transmission network, which has constrained the amount of electricity that can be delivered to distribution companies and end users.
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