November 21, (THEWILL) – There are concerns that Nigeria’s worsening revenue challenge may escalate into a financial implosion, with the 36 states and the Federal Capital Territory (sub-nationals), being the worst hit. The situation is aggravated by the nation’s escalating public debt stock (now over N35 trillion). The debt stock comprises domestic and external loan obligations of the Federal Government and the sub-nationals.
With over 70 percent of the nation’s revenue committed to debt servicing annually, governments at all levels are struggling to survive. There is little left for capital budget, pay salaries and undertake other priorities to grow the economy. Moreover, there is a limit to which the people and corporates could be taxed. Yet, profligacy and waste take the centre of our governance space while frugality assumes the back seat.
As such, the sub-nationals are hemorrhaging huge resources in paying salaries and other emoluments of a bloated bureaucracy. To survive, they are urged to diversify their revenue base, embark on aggressive internally generated revenue (IGR) and depend less on the shrinking federal allocations.
The purpose of State of the States project, is to present evidence-based alternatives. These include avenues for the sub-nationals to become more viable and less dependent on the Federal Accounts Allocation Committee (FAAC) – referred to as Abuja handout.
State of the States, a bi-weekly publication, features two states per edition. It endeavours to unearth hidden treasures in each state and ascertain, through consultations and evidence-based survey, areas of comparative advantages and economies of scale. The publication will show-case, in no exaggerated terms, the socio-economic status of each state and highlight the opportunities and threats.
Furthermore, State of the States will examine existing realities that hinge on sector-specific areas of competitive advantage – Agriculture, Tourism, Transportation, Education and Skill Acquisition, Wellbeing and MSMEs. Ultimately, the project seeks to create the desired spotlight on the sub-nationals to motivate them to venture into something different for better results.
We have featured Lagos and Ogun, Kwara and Kogi, Anambra and Enugu, Benue and Taraba, Kebbi and Sokoto, Cross River and Akwa Ibom, Ekiti and Osun, Bauchi and Gombe.
This week periscopes Rivers and Bayelsa.
RIVERS STATE
Rivers State was created in 1967, its capital and commercial centre is Port Harcourt. It is bordered by Imo and Anambra states to the north, Abia and Akwa Ibom states to the east, and Balyesa and Delta states to the west. The inland part of the state consists of tropical rain forest; and towards the coast the typical Niger Delta environment features many mangrove swamps.
Rainfall is seasonal and heavily occurs between the months of March and October through November. The only dry months are January and February. Agriculture and fishing is the primary occupation of the people.
Rivers is one of the leading states in the production of yam, cassava, cocoyam, maize and rice. About 39 percent (760,000 hectares) of the state’s total land mass, particularly in the upland area, is suitable for cultivation.
Major cash crops produced are oil palm products, rubber, coconut, raffia palm and jute. Other crops grown for food include vegetables, melon, pineapples, mango, pepper, banana and plantain. The fishing industry is a thriving sector in Rivers state. Fishing is also a favourite pastime activity. There are approximately 270 species of fish existing; with many artisanal fishermen in the riverine areas. The state provides valuable seafood such as crabs, oysters, shrimps and sea snails among others.
Occupation of the people also includes mat weaving and pot making.
Tourist Sites
Rivers state has many beautiful tourist sites to behold such as the PH Cultural Centre, Finima Beach and Natural Park, PH Tourist Beach, Statue of King Jaja of Opobo, PH Zoo and Upper Orashi Forest Reserve. Others are Biseni Forest, Ikuru Atlantic Beach, National Museum and Bonny Island. Isaac Boro Garden Park, Iroko Beach and the NLNG Facility are the others. The influx of oil-related workers boosts patronage for these sites.
Natural resources
More than 60 percent of the country’s output of crude oil and gas is produced in the state. Other natural resources found within its boundaries are bitumen, silica sand, glass sand and clay.
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Boost in Agribusiness
To diversify from oil, Rivers state is engaging massively in agriculture to tap the huge potential of the state’s highly fertilized arable farmland. Rivers is among Nigeria’s top 5 cassava-producing states. In partnership with the Federal Ministry of Agriculture and Rural Development, the state has commissioned a 450 metric tons cassava processing plant in Oyigbo LGA from which 20,000 farming families will benefit. The plant will promote the adoption and use of 10 percent high quality cassava flour (HQCF) in bread and confectionery business, so as to reduce wheat importation and conserve foreign exchange earnings.
Oil palm production and processing at Oguta, Elele, Akpoku Etche and Alua clusters are under rapid development linked to the Oyigbo Market and Oil Beach retail and wholesale outlets. This is a major source of employment and income for the residents. The Oil Mill Equipment fabrication in the state facilitates business in palm oil production and processing. Investment in oil palm plantation has also received a boost. Plantain flour production and processing has become a major activity given the high population that the oil industry attracts. There is also co-operative cocoyam farmers in the upland area.
FACT-FILE:
Local government area: 23
Land Area: 4,277sq mi.
Population: 7.023 m @ 2019
Registered businesses: 7,139
Public primary schools: 1,085 circa
Public secondary schools: 60 circa
University (4): Federal – 1, state – 2, private -1
Polytechnic (4): Federal -1, state – 2, private – 1
College of Education (3): Federal -1, state-1, private-1
College of Agriculture: Federal – 1
Nursing School (5): Federal – 4, private – 1
Technical school: State -3
Total revenue: N258.37bn @ 2020
Total tax: N 110.73bn @ 2020
Total IGR: N117.18bn @ 2020 (45.36% of total revenue)
FAAC: N141,18bn @ 2020 (54.64% of total revenue)
Domestic debt: N266.93bn @ 2020
External Debt: $96.69m @ 2020
Unemployment rate: 43.7% @ 2020
Airport: Port Harcourt International Airport.
Seaports: Onne, Port Harcourt
Rivers Targets Rapid Economic Growth
The Songhai Rivers Initiative Farm (SRIF) established in the state targets rapid economic growth. It combines livestock, aquaculture and agro-tourism. The centre serves as a place of excellence for training, production, research, demonstration as well as development of sustainable agricultural practices. SRIF was set up in partnership with Songhai International Centre, Porto Novo. The project is located on 314 hectare of farm land at Bunu in Tai local government area.
There are different units through which the SRIF executes its functions. These units include:
• Administrative and hospitality centre
• Technology and industrial park
• Production
• Cow and goat ranch
• Concrete fish ponds
• Earthen pond
• Fish hatchery
• Artificial lake
• Green house maggotery
Other units are broilers production, cassava processing, feed mill, rice mill, machines production, stabilised bricks production, free range poultry, plantain farm, pineapple, vegetable garden, cassava and moringa cultivation. More units designed for future production at the centre include coconut, animal feeds, mango orange for juice and input for animal processing and snail production.
The state government is fast-tracking infrastructure to boost economic development, job creation and revenue. “Our intention is to provide basic infrastructure that would improve the economic activities of the state and make Port Harcourt among the best cities in the country,” Gov. Nyesom Wike said.
Challenging Factors: Water piracy, militancy, lack of access roads, insecurity, water pollution, poor power supply.
*** BY SAM DIALA & OLAYEMI SHABA
About the Author
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
