Opinion
Transcorp And Oyigbo Road Contract
Recently, it was reported that President Muhammadu Buhari had approved the reconstruction of the Oyigbo-Izuoma-Mirinwanyi-Okoloma-Afam Road along with several other deplorable roads across Nigeria.
The project was said to have been awarded to Transcorp Plc (owners of one of the power plants in the area) based on the federal government’s new infrastructure funding strategy known as the Road Infrastructure Tax Credit Scheme (RITCS), which allows interested corporate giants operating in the country to bid for the development of new roads or the reconstruction of dilapidated ones in return for the enjoyment of tax waivers for the period it will take to fully recoup their total project outlays.
But a keen examination of the report will reveal that while firms like MTN, BUA, Dangote, GZI and a number of the other listed companies were assigned roads measuring over 50 kilometres on the average, Transcorp got only 13.5 kilometres of the now hellish Oyigbo-Afam Road in Rivers State.
For those who may not know this, Oyigbo and its nearby Afam communities had, until lately, been caught in a web of underdevelopment occasioned by deliberate abandonment under successive central and local administrations. It was surprising to many when it was noticed that even as an area known to host the famous Afam Power Station since the early 1960s, Afam communities were only connected to the national electricity grid after President Olusegun Obasanjo took office in 1999.
The injustice is better understood when we consider the sustained bombings the area was said to have suffered on account of this critical national facility during the early periods of the Nigerian Civil War. Of course, the station was a major target for federal war planes and artillery weaponry until it switched hands and began to incur the wrath of Biafran guerilla units.
The creation of states which placed Oyigbo as a boundary area did not also help matters for the people. Until the final recommendation of the Mamman Nasir Boundary Commission which firmly situated it in Rivers State (using the Imo River as natural boundary), Asa and Ndoki people on the other side of the riparian divide had tenaciously laid claim to the town.
With the boundary issue permanently rested, the military administrations on both sides became more confident to invest in their respective parts of the previously disputed areas. On the Rivers side, for example, Monier Construction Company (MCC) was commissioned to construct a road from Oyigbo to Obete, with an extension from Umuagbai crossing the Imo River to link Akwete in present-day Abia State.
But more than four decades after its construction, the road is now worse than a death trap. And this is even as the Afam power facility has continued to expand, with the building of additional plants by Shell and the Federal and Rivers State Governments. In addition to Shell, other companies said to be present at the cluster include the Nigerian Gas Company (NGC), Transcorp, Daewoo, Alcon, TCN and PHED.
It would be recalled that at the time of Transcorp’s acquisition of the federal government’s stake in one of the Afam power plants, Oyigbo youth had protested against such move coming before the latter’s fulfilment of its agreement with the host communities. From reports, the communities had in 2017 and 2018 extracted commitments from the federal ministry of power to dualise Afam Road from Oyigbo Junction to Obete; build a cottage hospital in the area; construct a 12-classroom block; and reserve 40 employment slots for local hands. On its part, the ministry had promised to commence work on the road by January 2019, but never did. Instead, it was said to have turned around to sell the government’s share in the plant to Transcorp.
It was obviously for this reason that the Abuja authorities finally awarded the RITCS contract to Transcorp. And also for which facilitation the firm’s chairman, Tony Elumelu, literally feted Rep. Chisom Dike of Eleme/Oyigbo/Tai Fed Constituency at an unrelated event in Abuja.
All this notwithstanding, the people of Oyigbo seemed to have heaved a sigh of relief when it was recently announced that the State Executive Council, presided over by Governor Nyesom Wike, had approved for a N25 billion loan to be obtained for the execution of some projects in the state, including reconstruction of the Oyigbo-Afam Road.
Desmond Akawor is chairman of the ruling Peoples Democratic Party (PDP) in the state and an indigene of Oyigbo LGA. He most exemplified the mood of the people over this latest state gesture. The nation’s former ambassador to South Korea, while thanking the state governor profusely, recounted the present administration’s blessings to Oyigbo people. These include Mbano Camp reconstruction, Oyigbo-Agbonchia Road, multimillion naira cassava flour processing plant, construction of GSS Obeakpu, and now the reconstruction of Oyigbo-Afam Road which he claimed was abandoned by the immediate-past administration in the state.
The joy of Oyigbo people may also have derived from the Wike administration’s reputation for quality projects delivery, remarkable turnaround time and the assurance of fund availability, among other comparative ticks.
I want to believe that the said Oyigbo-Afam Road is not a federal road. So, it becomes easy to suspect that there was no attempt by the powers in Abuja to relate with the state authorities prior to awarding the RITCS contract. Nevertheless, this does not suggest that Transcorp should start singing Halleluiah over the new development. Surely, it is not yet freedom for the Nigerian conglomerate.
While we cry that the authorities in Abuja hardly consider Rivers State for schemes of this nature, it is not likely that we will miss to grab any of the very few that are flung in our direction. If Abuja conducts a proper liaison with the state government, the Transcorp contract can still be rechannelled toward rehabilitating about 13 internal roads in Oyigbo town at an average of one kilometre each. What a big relief this will bring to residents of the place!
By: Ibelema Jumbo
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Opinion
Fuel Subsidy Removal and the Economic Implications for Nigerians
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.
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