Niger Delta
S’South States Got N9.53trn In 19 Years, NEITI Reveals
The Nigeria Extractive Industries Transparency Initiative (NEITI), yesterday, disclosed that the six states of the South-South geopolitical region received N9.53trillion from the Federation Account between 2000 and 2018.
NEITI, in a book, titled, “Perception of the Impact of 13% Oil Derivation Allocation”, launched in Abuja, yesterday, lamented that these huge allocations, and various other interventions in the Niger Delta had failed to reverse the conditions of poverty and underdevelopment suffered by the region.
The South-South states are Edo, Delta, Bayelsa, Rivers, Cross River and Akwa Ibom.
In a section of the book, titled: “Oil Revenue Management and Benefits Capture in Nigeria’s Niger Delta”, authored by staff of NEITI — Dauda Garuba, Dieter Bassi & Adaure Njoku, the transparency agency stated that the amount allocated to the six South-South states was three times the allocation to the states in the South-East region.
NEITI said: “A breakdown of the figures reveals that N9.53trillion was allocated to the six states of the South-South geopolitical region between 2000 and 2018. This is almost double of the allocation (N4.73trillion) to the second highest geopolitical zone, North-West, and over three times the allocation to South-East geopolitical region.
“The 13% oil derivation allocation to the South-South states is the major reason for the observed huge revenue disparity. Even though Abia and Imo states in the South-East region and Ondo State in the South-West region also draw from the 13% derivation funds, their shares are way insignificant – both in terms of their contribution to quantum of oil produced and the number of states that produce oil in their regions – to warrant any significant difference in the observed figures posted by these regions, let alone the figures of other non-oil producing regions.”
NEITI explained that this reality, added to the deepening social and environmental consequences of extraction, had turned the Niger Delta into an epicentre of unmatched contradictions.
On the one hand, according to NEITI, the region is home to highest sub-national revenue earners from the Federation Accounts, while on the other hand, it shows very limited impacts in terms of the real value realised from the huge revenue allocation and disbursement to its component states.
It added that the top four sub-national oil producers and revenue earners, namely, Akwa Ibom, Bayelsa, Delta and Rivers states, received N1.60trillion, N1.20trillion, N1.38trillion and N1.54trillion, respectively from 2001 to 2018, noting that despite earning so much, the four states are also among the highest indebted states in Nigeria.
NEITI said: “As at September, 2019, the Debt Management Office (DMO) puts Akwa Ibom’s debt profile at N237.4billion; Bayelsa at N127.2billion; Delta at N230.57billion; and Rivers at N266.9billion.
It added that: “Worse still is that despite being the epicentre of several development policy initiatives tailored to respond to the ecological needs and the negative consequences of oil extraction, the development outcomes from those initiatives have met only minimal expectations.
“Despite Federal Government-led initiatives, such as the Niger Delta Development Board, the Niger Delta Basin Development Authority, the Presidential Committee on 1.5% Derivation Fund, the Oil Mineral Producing Areas Development Commission, the Niger Delta Development Commission and the Ministry of Niger Delta) to sub-national governments’ use of the 13% oil revenue derivation funds, the interventions in the Niger Delta are yet to reverse or significantly improve the conditions of poverty and underdevelopment of citizens of the region.
“Put differently, the higher revenue disbursement to Niger Delta states from the Federation Accounts Allocation Committee (FAAC) on account of 13% oil derivation have raised citizens’ expectations of millions of people in the region”, it added.
News
China Alerts Rivers, A’Ibom, Abia Govs To Economic Triangle
The Mayor of Housing, My-ACE China, has alerted the Governor of Rivers, Akwa Ibom, and Abia states to what he calls an emerging ‘Economic Triangle’ within their states.
Mr China, a real estate success strategist who has won numerous local and international awards, has thus drawn the attention of the governors of the concerned states to the emerging development and has urged them to intentionally accelerate the emergence of the economic triangle.
Speaking to newsmen in Uyo, Akwa Ibom State capital at the conclusion of his business trip to the state, Mr China, who is the managing director of the Housing and Construction Mayor Limited, said the envisaged economic corridor would compete favourably with the Lagos economic hub or even better.
He said: “Talking about ‘Economic Triangle’, the only place that can wrest economic power from Lagos is Akwa Ibom, Abia, and Rivers states axis or corridor. This corridor contains more than Lagos has, if they can be interconnected with smooth roads, ports, and if their blue potentials are unlocked. They will not only wrest power from Lagos but would be more lucrative.”
The investor who is behind the emerging Alesa Highlands Green Smart City in Eleme, near Port Harcourt, said the new ‘Economic Triangle’ has a bigger potential due to massive land assets with the corridor plus blue economy and the existing hydrocarbon industry.
Explaining, Mayor of Housing said Aba (Abia State) provides the biggest fabrication capacity in West Africa to supply goods to the Gulf of Guinea; Port Harcourt provides access to the Gulf of Guinea for off-taking Aba products, and the Uyo provides deep sea port at Ibaka and international airport facilities as well as forest reserves for massive agro-economy.
He said with sea ports in Rivers State and deep seaport in Akwa Ibom, and international airports in Rivers and Akwa Ibom, Aba can focus on adequate power supply and fabrication boom to supply a new booming market around the economic triangle.
By doing this, he said, jobs would spill out in huge quantities and more manufacturers would be drawn from all over Africa to boost the fast coming African Continental Free Trade Agreement (AfCFTA). He said Nigeria would thus have two major trade nodes in West Africa; Lagos and the PH/UYO/Aba triangle.
He said goods going to or coming from Chad, Niger, and the rest of Central Africa can head to the Lagos ports or to the Ibaka/PH ports zone in the new economic triangle.
He said with power supply made stable, good roads, excellent security system, and ease of doing business enthroned in the zone, the South-South and South East would become the biggest economic nerve in the near future.
Mayor of Housing called on governors of the three states to be intentional about the new corridor, put away political differences (if any), and create this corridor by agreeing on projects each state would execute with a short period of time so the states would be linked by good roads, communication, security, trade laws, concessions to investors, etc.
He remarked that northerners were already heading to the Onne Port in Rivers State to export goods, saying creating a commission to oversee the development of the ‘Economic Triangle’ would fast-track its emergence.
He observed that people of the three states are peaceful and usually preoccupied with zeal for economic prosperity, saying that if they are linked to such huge opportunities staring at them in the emerging economic triangle, they would totally shun violence and focus on prosperity.
Mr China insisted that the emerging economic triangle would form a big node not only into the Gulf of Guinea economic zone but into Africa because AfCFTA is about production, certification, market availability, and easy transport nodes by sea and air. He said the new economic triangle boasts of all the factors.
“They can only realise this by working together, through collaboration. One state cannot do it but a triangle of the three will create it through seamless interconnection, ports, industrial park, etc. The people will be the richest and internally generated revenue (IGR) will be the biggest in the country,” he said.
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