57 Years Of Contribution To National Dev …Rivers Journey Through Time

No doubt, Rivers State remains the hub of oil and gas industry in the West African subregion. The economic value of Rivers State to the economic, social and infrastructural development of Nigeria cannot be downplayed hence its appellation, “Treasure Base of the Nation.  This sobriquet of Rivers State speaks volumes of her enormous natural resources that abound  and the contributions of the State to the socio-economic development of Nigeria. It is in commitment to sustain the invaluable role of Rivers State to national development that the Executive Governor of the State, Sir. Siminalayi Fubara initiated the first Rivers State Economic and Investment Summit held at the Obi Wali International Conference Centre on 22nd and 23rd May, 2024. According to the Governor, the summit was aimed at fostering the informal and the Organized Private Sector participation in growing a sustainable robust economy by investing and extracting the rich natural resources in the State.
Driven by passion to make the State regain her original economic estate, Gov. Fubara  said, “Historically, Rivers State, especially Port Harcourt, was an established commercial centre in Nigeria. The Trans-Amadi Industrial Layout hosted several thriving commercial and industrial concerns that created income, jobs, and prosperity for our State and people. “Sadly, all that is now history as most of the industrial ventures in that estate have either closed shop or become moribund. The industrial estate is now characterised by abandoned factory buildings and warehouses.  We have since lost our rating as one of the industrialised States and competitiveness as a preferred destination for domestic and foreign direct investments resulting in the continuous posting of low economic growth, high unemployment rate, and slow development. For decades, the Rivers State Government had continued to depend more on allocations from the federation account to fund its expenditures because tax revenues had remained low due to low investments and economic growth.
For us, building a resilient, robust, and diversified economy holds the key to sustainable peace, security and progress of our State and the spiritual, social, and physical well-being of our people. “We therefore commit to the re-industrialisation of Rivers State in partnership with the informal and organised private sectors through necessary policy, legal, and other support measures, and systems. This was why we approved the Rivers State Economic and Investment Summit 2024 as the first of several measures to unveil the economic potential of the State to both local and foreign investors and markets” and expressed hope that Rivers State will emerge from this summit and position itself as a premier investment destination, offering boundless economic opportunities for domestic and global investors.
As a State,  blessed with enormous human and natural resources, including oil and gas, fertile soil, solid minerals, and an extensive coastline with great water bodies, the State is the centre-point of the oil and gas industry in West Africa. Rivers State accounts for over 40% of crude oil production onshore in the country and 100% of liquefied gas that the country exports. The State also is the second largest economy in Nigeria, and with a nominal Gross Domestic Product  (GDP) of over $28.4bn, the State’s economy ranks in the top 25 economies in Africa comparable to countries like Botswana, Rwanda, and Gabon. The State has a relatively robust infrastructure, including good roads, two seaports, an international airport, and a free trade zone, and with a population of over seven million indigenously diverse, educated, highly hospitable people, and a business-friendly environment, Rivers State stands at the centre of diverse economic opportunities.
Rivers State has vast crude oil reserves among among other natural resources and remains a foremost creator of wealth of Nigeria accruing from export revenues. Aside from Lagos, which was a former capital of Nigeria, Rivers contributes the highest Gross Domestic Product to Nigeria’s Economy. It accounts for about 65 of the revenue of Nigeria and 88 percent of Nigeria’s foreign exchange earnings.  Rivers State provides several investment opportunities across diverse sectors of our economy, including oil and gas, agriculture and agro-processing, manufacturing, hospitality and tourism, education, ICT, and healthcare, infrastructure development, glass products, and garments production, and power generation and transmission.  With over 40% of fertile cultivable landmass, Rivers State has the potential to make a significant contribution to national food security with commercial investments in mechanised agriculture and the agro-processing industrial value chains.
Additionally, Rivers State presents lucrative opportunities for the commercial production of highly valued cash crops for the export market. To drive robust economic growth  the Rivers State Government signed a development agreement with TAF Nigeria Limited for the construction of 20,000 mixed houses in the Greater Port Harcourt City;  signed another development with Gosh Nigeria Limited for the construction of an international spare parts market. The State government provided hundreds of land as its equity and work has since started at both sites. The Governor disclosed that the Apache Aluminium LLC of America has started the acquisition of land to establish a multi-billion-naira aluminium rolling mill (plant) in the Ogoni axis of Rivers while  discussions have been opened with Imagine Adama Agricultural and Technology of Israel to support the State in developing her huge agricultural potential, including reviving abandoned agricultural projects and infrastructures such as the Rivers Songhai Farm, the School-to-land farms, fish farms, feed mills, oil palm estates and poultry farms across the State. About 10 million USD was earmarked for this project this fiscal year.
Last week, the State Government  also approved the proposal by Rainbow Heritage Group to build the New Port City in the State on about 1000 hectares of land in collaboration with the Greater Port Harcourt City Authority.  Arrangements have also been concluded for the signing of a Memorandum of Understanding with Planet One Holding Limited of Dubai for a 10,000,000 USD Mangrove Forests Conservation and Carbon Capture Project under the Private Public Partnership arrangement. Rivers State created on May 27, 1967 by the  military administration of General Yakabu Gowon by Decree No. 14 has two of the nation’s four moribund refineries, 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 multi train and multi-billion  naira Liquified Natural Gas plant at Bonny and several other Petrochemical related companies.
The aggregate growth of the Nigerian economy predominantly depends on the natural resources of Rivers State. Since oil was struck in commercial quantity in Oloibiri (now in Bayelsa State) in 1956 the oil and gas sector has remained the mainstay of Nigeria’s economy and the major foreign income earner.Rivers State with an approximate population of 9,567,892 according to the Nigerian Informer and with an average annual population growth of 2.95 percent, making it the fifth most populous State in Nigeria, is also the undisputable highest contributor of oil and gas which creates the wealth that sustains the nation. Apart from being landlord to two of the Nation’s refineries,  ranking it the second in Gross Domestic Product with a per capita income of $3.965, making it the second largest economy in Nigeria, Rivers State also hosts major oil companies such as  Shell Petroleum Development Company (SPDC), Nigeria Agip Oil Company (NAOC), Total Exploration and Production Nigeria Limited (TEPNL), Nigeria National Petroleum Company (NNPC), its allied companies and several Petrochemical related companies.
A multi-billion naira and multiple train Liquified Natural Gas plant which produces a million tonnes of gas every year is also one of the several companies in Rivers State that offers pecuniary benefits to Nigeria. Rivers State is the economic oxygen, the epicenter of Nigeria’s oil and gas activities, bedrock and live wire of Nigeria’s  economy, hence it is said that when Rivers State sneezes, Nigeria catches cold. As the goose that lays the golden egg, a crisis situation in the State has the capacity to cripple the economy of the Nigeria. The moribund National Fertilizer Company of Nigeria (NAFCON) in Onne was a major foreign earner for the nation even as it provided direct and indirect job opportunities for Nigerians, irrespective of State of origin. According to the legendary Akaso Cultural Group, NAFCON was “just sited in Rivers State for the good of the nation”.
The new spate of development from marginal oil fields by multinational oil giants has  also created window for indigenous firms to tap the dividends accruing from the oil and gas sector. Firms like Belema Oil, Monipulo, etc have contributed invaluably to human capacity development as well as partnered with government to proactively drive positive change in society through the award of education scholarship, provision of homes for the poor elderly, sponsorship of medical programmes for vulnerable people. By virtue of its position as a natural seaport and railway station terminus, Rivers State is an investor haven and a home for Nigerians.Recall that before the 1990s, there were several companies in the Rivers State many of which were sited in the designated industrial zone-the Trans-Amadi Industrial Layout. But today most of the companies have closed down operations and the State and Nigeria no longer benefit from their enormous contributions to development. The Trans Amadi Industrial Layout is now characterised by abandoned factories that were catalysts of the hustling and bustling of economic and social activities in the State.
Speaking on the pathetic situation of the Industrial Area at a two day Economic and Investment summit, the Rivers State Governor, Sir Siminalayi Fubara said, “We have since lost our rating as one of the industrial States and competitiveness as a preferred destination for domestic and foreign direct investments resulting in the continuous posting of low economic growth, high unemployment rate and slow development.”As stated by Governor Fubara, although many of the companies which contributed to the economic growth of the Rivers State and Nigeria have since become either  moribund or relocated outside the country because of investments unfriendly climate such, inadequate power supply, multiple taxation, insecurity, some of the companies still operate and making significant contributions to the nation’s economy in the areas of wealth creation, employment generation. Rivers State also hosts the second busiest seaport in Nigeria after Lagos. It is home to two of the nation’s seaports-Nigeria Ports Authority (NPA) Rivers Complex and Onne Port which makes a commercial and an economic hub of Nigeria.
Rivers State carved out of the defunct South Eastern region; located in the South South Geopolitical zone of Nigeria with a total land mass of approximately 11,077 Square Kilometres or 4.277 Square metre and ranking 26 in size of the 36 States of Nigeria, and having  23 Local Government Areas, also has several  hospitality industries. Every urban area in the State has attractive hotel services while Port Harcourt, the State Capital, is home to several five stars hotels of international standards. However, the crux of the matter is despite the enormous contributions of Rivers State to the socio-economic development of Nigeria it is neglected in terms of distribution of Federal Government amenities. The apparent neglect has more often than not created unrest between host communities and oil companies operating in the State. The goose that lays the golden eggs does not get commensurate proportion of its share in appointments, infrastructural distribution, job opportunities and pecuniary benefits.
Several oil and gas communities  such as Bukuma in Degema Local Government Area, Ogoni, Okomoko, the Etche etc have suffered losses of lives and properties following unrest occasioned by neglect by oil companies. The Federal Government should be proactive in addressing the anormaly for the enhanced economic and infrastructural development of the nation, Rivers State and the communities that bear the brunt of oil exploration activities.

Igbiki Benibo