Governor Siminalayi Fubara’s declaration of a significant surge in Rivers State’s monthly Internally Generated Revenue (IGR) is an achievement that resonates deeply within the economic landscape of Nigeria. The IGR’s rise from a humble estimate of N11 billion to a staggering N26 to N27 billion – a boost of over one hundred per cent – presents a laudable financial milestone. Fubara’s strategic and proactive revenue generation endeavours are attributable to this impressive accomplishment.
The declaration was made during the Governor’s address to the members of the House of Representatives Committee on Public Accounts, who visited him at the Government House in Port Harcourt to commend his government for hosting their retreat. Led by its Chairman, Hon. Busayo Oluwole Oke, the House commended the Governor for his commitment to fiscal responsibility and prudent financial management.
A report by Economic Confidential, quoting official statistics, shows that six states of the federation are insolvent, highlighting the unfortunate reality of Nigeria’s second tier of government. It is the most recent confirmation that many sub-nationals have become economic parasites, unable to sustain themselves without federal allocations. This is why the Governor’s remarkable achievement in doubling the IGR is praiseworthy.
Fubara’s success in boosting the IGR is a testament to his understanding of the importance of diversified revenue sources for sustainable development. The increase in revenue will enable the government to fund critical infrastructure projects, enhance public services, and improve the overall well-being of the people of Rivers State.
To ensure the prudent and effective utilisation of funds, it is imperative to invest in infrastructure projects that have the potential to generate employment opportunities and stimulate economic growth. By focusing on critical projects such as transportation, energy, and water systems, the government can create a multiplier effect that benefits the entire state. These projects not only provide employment opportunities but also lay the foundation for long-term economic development.
Governor Fubara’s decision to publicly disclose the monthly receipts is a testament to his unwavering commitment to transparency and accountability in governance. By making such information accessible to the public, he has set an exemplary precedent that should be emulated by all those entrusted with public funds. His honesty and integrity are laudable, as he could have easily concealed these funds without facing any consequences. His actions manifest his belief that the people he serves have a right to know how their funds are being utilised.
This disclosure is a vital step towards building trust between the government and its citizens. It clearly shows that Fubara is unafraid of scrutiny and is willing to take responsibility for his actions. His transparency has established a space where the public can engage in overseeing the use of public funds, guaranteeing their efficient allocation and preventing corruption. This sets a positive precedent for other government officials, inspiring them to embrace similar principles of transparency and accountability.
In addition to Siminalayi’s candour, residents of the state will feel more motivated to pay their taxes, knowing that the funds will be used for the overall development and progress of the state. This heightened trust and confidence in the government’s management of public funds will benefit everyone. The Governor is effectively promoting a culture of civic duty and cooperation among residents by demonstrating dedication to accountability and responsible financial management.
At a time when governors like Fubara are thinking outside the box to double their IGR, most of the sub-nationals have become economic parasites that cannot survive on their own without relying on federal allocations. For the country to overcome poverty and joblessness, the states must revert to productive, self-sustaining units.
According to figures from the National Bureau of Statistics and the Federation Account Allocation Committee, the report identified Lagos, Ogun, Rivers, Kaduna, Kwara, Oyo, and Edo as the most financially viable states in Nigeria for 2022. However, Bayelsa, Akwa Ibom, Katsina, Taraba, Yobe, and Kebbi States were unable to generate at least 10 per cent of the total allocations they received from FAAC and were declared insolvent.
In 2022, the internally generated revenue of the 36 states totaled N1.8 trillion, slightly higher than the N1.76 trillion generated in 2021. Lagos alone generated N651 billion, surpassing the combined revenue of 30 other states. The situation appears even more concerning when considering that the seven most prosperous states generated N1.5 trillion internally, nearly double the total IGR of the remaining 29 states, which amounted to about N650 billion.
The nine oil-producing states received additional allocations as their share of the 13 per cent derivation revenue, bringing their total receipts to about N869.09 billion. The stark reality is that without federal allocations and oil resources, many states would be insolvent. This is due to the extreme laziness and lack of creativity demonstrated by the states in boosting revenue generation for impactful development. In the First Republic, the regions were the driving force behind Nigeria’s development. They led in agriculture, mining, industrialisation, infrastructure, and social services, making them self-sufficient.
Yet, no state is inherently poor. In addition to advantages in agriculture and human capital, each state possesses rich deposits of various mineral types. These resources can be utilised to generate revenue, stimulate production, generate employment, and enhance their tax base. Agriculture and mining present opportunities to supply raw materials for industrial growth and attract investment.
As Rivers State’s Internally Generated Revenue (IGR) continues to grow, it is necessary for Sir Fubara to address leakages and reduce the cost of governance. Implementing comprehensive economic policies is essential to sustain this growth and reduce the state’s dependence on federal sharing. Capitalising on the liberalised power sector to attract investments and stimulate productive activities is key. The state should focus on improving rural infrastructure, education, health, and agriculture, while promoting private sector-led economies with Micro, Small, and Medium Enterprises (MSMEs) and start-ups at the centre.

Penultimate Friday, a devastating fire incident occurred, leaving a trail of destruction and unspeakable tragedy. A tanker transporting premium motor spirit (PMS) collided with a heavy duty truck, triggering an inferno that engulfed the area. Motorists and commuters were caught in the conflagration, their lives extinguished in the relentless flames. The fire’s intensity left many victims unrecognisable, while their bodies charred beyond identification.
The vehicles in the vicinity were reduced to smoldering wreckage, their once-pristine exteriors twisted and consumed by the relentless heat. The fire raged uncontrollably, leaving a scene of utter devastation in its wake. Emergency responders fought valiantly to contain the blaze, but the damage had already been done. The incident sent shockwaves throughout the state and beyond, leaving residents reeling from the magnitude of the loss. Families were torn apart, lives cut short in an instant.
The event reportedly occurred between Indorama gate and Aleto bridge on the popular and ever-busy Eleme section of the East-West Road, now undergoing major reconstruction by the Federal Government. The State Governor, Sir Siminalayi Fubara, visited the scene and expressed pain and anguish upon sighting the gory spot. It was a devastating sight that left him visibly shaken, as he consoled the victims and their families.
Nigeria’s infrastructural state has been a scourge for many years, with roads being one of the most glaring examples of neglect. Sadly, that portion of the East-West Road, which has been neglected for more than 17 years, connects the Eleme-Onne oil and gas industrial hub as well as hundreds of other related industries like the Indorama Petrochemical, Port Harcourt Refineries, Onne Oil and Gas Free Zone and the two seaports, the Federal Light Terminal and Federal Ocean Terminal, all in Onne. The road equally leads to the entire Ogoni axis, and some South-South states like Akwa Ibom and Cross River.
The deplorable condition of the road connecting the Ogoni Local GovernmentAreas of Khana, Gokana, Tai, and Eleme, as well as Ogu\Bolo, Okirika, Andoni and Opobo, has made access to the areas difficult. The road had deteriorated so severely that motorists would endure agonising journeys of up to seven hours to navigate a mere 20-minute stretch. The treacherous highway had claimed numerous lives, leaving behind a trail of shattered families and broken dreams.
Recognising the urgency of the situation, the Rivers State Government and several multinational companies operating in the area took the initiative to rehabilitate that portion of the expressway in 2015. Their collaborative effort focused on a six-kilometre stretch from Eleme Junction in Port Harcourt to the Onne exit point. The project, estimated to cost around N3 billion, aimed to address the dilapidated condition of the roadway, which had become a major impediment to economic activities and transportation.
In 2021, hundreds of youths under the auspices of the Ogoni Youth Federation (OYF), took over the Eleme-Onne axis of the East-West Road in a peaceful protest against the Federal Government’s alleged neglect of that fraction. The youths were said to have mobilised trucks to barricade the Akpajo and Refinery junction stretch, making it impossible for thousands of workers who journey through that route to get to their offices.
The tragic incident could have been prevented if Reynolds Construction Company (RCC), the firm handling the project, had taken adequate measures to manage traffic flow at the construction site by opening up alternative routes. The company’s negligence in this regard bears compelling responsibility for the unexpected event and the subsequent loss of lives. Consequently, RCC should be held accountable and face appropriate sanctions for its failure to plan out public safety.
In addition to holding the establishment responsible, the Federal Government has an obligation to provide compensation to the victims who suffered injuries and losses. This indemnity should not only cover medical expenses and loss of property but also provide for the emotional trauma and suffering endured by the affected individuals. The provision of financial assistance would demonstrate the administration’s commitment to supporting those who have been impacted by the adversity.
Furthermore, the federal authorities should reimburse the families of the deceased victims. Losing a loved one in such a senseless and devil-may-care manner is an immeasurable loss that deserves adequate financial recognition. The Nigerian government should acknowledge the pain and hardship experienced by these families and help them navigate the difficult road ahead by offering some sort of settlement.
Following that Friday’s tanker combustion, the Nigerian Governors’ Forum (NGF) released a statement, seeking safer methods of transporting petroleum products across the country. During a visit to commiserate with Governor Fubara, Chairman of the Forum, AbdulRahman AbdulRazaq, said that discussions were ongoing among the 36 state governors and strategic federal agencies in the oil and gas industry to achieve the objective.
We agree no less with the Forum. Petroleum exploration has revolutionised transportation across various sectors of human activity. The sheer volume of oil produced necessitates efficient and large-scale transportation methods, making rail and maritime freightage indispensable. The economic significance of oil transportation by these modes cannot be overstated, especially considering the potential risks and impracticalities of transporting vast quantities of petroleum via road.
Rail and maritime means of conveyance offer far more efficient and cost-effective solutions. Trains possess the capacity to transport large volumes of oil over long distances, while ships enable the haulage of even greater quantities across oceans. These modes provide a safe, reliable, and economically viable means of distributing petroleum to various regions of the world, meeting the demands of industries and individual consumers alike.
Finally, this catastrophe has highlighted the urgent need for the Rivers State Government to revitalise its inactive fire service. This can be achieved through the recruitment of qualified firefighters, extensive training, and the provision of modern firefighting equipment and vehicles. Besides responding to emergencies, a functional fire service would also carry out fire safety inspections and educate the public on preventing fires. Moreover, there should be an emergency management team to mitigate future disasters in the state.

It is not surprising that organised labour is pushing for a wage review, as President Bola Tinubu’s economic reform has negatively impacted Nigerian workers. Since taking office last May, the economy has been in turmoil, leading to hardships for many employees. The need for a wage increase is vital as workers continue to bear the brunt of the economic downturn.
The implementation of minimum wages in Nigeria has historically faced several obstacles. Despite the government’s mandate to set and enforce a minimum wage for all workers, many employers, particularly state governors and in the informal sector, fail to comply. This widespread non-compliance undermines the objective of protecting workers from exploitation and ensuring a basic standard of living.
Numerous factors contribute to the challenge of implementing minimum wages in Nigeria. One major issue is the lack of effective enforcement mechanisms. The National Salaries, Incomes and Wages Commission (NSIWC) is responsible for enforcing the minimum wage, but its powers are often limited. Employers who violate the law often go unpunished due to weak enforcement and the high cost of legal proceedings for workers.
In the negotiations between the federal and state governments, a critical factor that must be considered is finding the right balance amidst the challenges posed by the country’s double-digit inflation rate, the growing national debt profile, and the pressing issue of ensuring timely payments from both state and federal authorities. Both levels of government must collaborate to address these economic concerns and come to a mutually beneficial agreement that prioritises the financial stability of the nation.
Things are not looking good. The organised labour, represented by the Nigeria Labour Congress and the Trade Union Congress, has proposed an astronomical jump from the current N30,000 per month to N650,000. While it is undeniable that the current rate of N30,000 is insufficient, the drastic increase to N650,000 is simply not realistic and may not be feasible for the government to implement. Both parties should find a middle ground that is fair and sustainable for all stakeholders involved.
The challenge before the minimum wage committee, which Tinubu inaugurated recently, is to find a realistic rate for all the parties concerned, including the private sector. This task is not an easy one, as there are various factors to consider when determining a fair minimum wage that benefits both workers and employers. The committee will need to take into account the cost of living, the current economic situation, as well as the financial capabilities of businesses, especially small and medium-sized enterprises.
Incidentally, the Nigerian economy is facing multiple challenges at the moment. With inflation at a staggering 29.90 per cent, a debt stock of N87.9 trillion, a high lending rate of 18.75 per cent, and a grossly devalued naira at N1,300 per $1, the cost-of-living crisis has worsened. The recent surge in food inflation, jumping to 35.41 per cent in January from 23.75 per cent the previous month has added to the economic woes. Moreover, the rapid price increases in petrol and diesel, essential for the economy, have further burdened the already distressed population.
Hence, the demand by labour for an upward wage review is justified given the rising cost of living and inflation. However, the government faces a dilemma in determining the appropriate rate of increment. Nigeria’s economic situation is dire, with debt servicing consuming a staggering 99 per cent of its revenue in the first quarter of 2023. Balancing the need to improve workers’ welfare with the constraints of the economy is a delicate task. The government must engage in constructive dialogue with labour to find a compromise that addresses their legitimate demands while ensuring the long-term sustainability of the economy.
If the government succumbs to labour’s demands and borrows more to fund the wage increase, its financial stability will be further compromised. This could lead to a debt crisis, with severe consequences for the economy. The governing authorities must explore alternative revenue sources and implement prudent fiscal measures to address labour’s concerns without jeopardising the nation’s financial health.
Retrospectively, an excessively high minimum wage can pose challenges for states. When the wage was raised to N18,000 during the Goodluck Jonathan era, many states struggled to meet their salary obligations. As of October 2023, BudgIT reported that 15 states were still failing to pay the N30,000 minimum wage set by the Muhammadu Buhari administration in 2019. This situation has dire consequences for workers, who rely on their wages for sustenance.
The inability of states to pay the minimum wage is often attributed to their limited economic viability. Data from Economic Confidential indicates that only seven states are economically viable without federal allocations. This means that the majority of states rely heavily on federal support to meet their financial obligations. When the minimum wage is raised too high, states with weak economies may find it difficult to balance their budgets and fulfil their responsibilities to both workers and other sectors.
Any minimum wage that will be agreed upon should be sufficient to meet the needs of Nigerians. Unfortunately, many state governors have failed to implement the wage award approved by the Federal Government for civil servants, despite the high cost of living. This lack of action is unacceptable and shows a lack of appreciation for the struggles that public sector workers face. State governors should prioritise the well-being of their employees and ensure that they are able to make ends meet with the wages they receive.
We firmly advocate for the autonomy of state governments to streamline their workforce by retaining only those workers who demonstrate productivity. An example of this would be questioning the necessity of hiring typists in the era of advanced technology. Additionally, the rationale behind employing 20 drivers within a government agency deprived of operational vehicles may also be subject to scrutiny.
Many governors overlook the importance of paying their workers properly, which can have a positive impact on the overall productivity and economic growth of their states. States should have thriving industries that can create employment opportunities. Governors need to understand that low consumer demand can hinder the growth of businesses in their domains. They have to consider implementing efficient wage systems to ensure fair compensation for workers and foster economic development.