Rivers Loss N152.76 Billion To 'Oil War'

Rivers Loss N152.76 Billion To 'Oil War'

ACTS of insurgency by armed youths in the Niger Delta, who claimed to be crusading for a better deal for the oil and gas region under their ''Oil War'' operations, cost Rivers State a revenue loss of N152.76 billion before the end of 2009.

Before the President Umaru Yar'Adua amnesty deal, the Niger Delta has been an axis of low-intensity war since 2005. Frontline insurgent groups like the Movement for the Emancipation of the Niger Delta (MEND), and the Ateke Tom-led Niger Delta Patriotic Force (NDPF) generallt paralysed socio-economic activities in the oil region.

In 2009 for instance, Rivers state estimated a toal revenue of N328.28 billion. But in the first three quarters of the year (January-September, 2009), the actual revenue realised was N175.52 billion.

The state Governor, Chibuike Amaechi, is attributing this shortfall to a drop in the federation account, which he claimed, was due to ''under performance'' of the oil sector and the state's internally generated revenue. Analysts say the oil sector under performed due to disruption of oil producing activities by militants.

He is also attributing the revenue loss to disputed oil wells between the state and her neighbours. Rivers is locked in an unresolved oil wells dispute with Abia and Akwa Ibom states.

However, as at last September, Rivers collected N149.16 billion from the Federation Account against an estimated projection of N171.96 billion for the same period. This represents a performance of 86.74 per cent. With regards to internally generated revenue, while the amount of N99 billion was projected for the year, as at the end of September, 2009, only N26.37 billion was collected, showing a performance of 35.52per cent.

Apparently uncomfortable, the state sats it produces about 40 per cent of Nigerian crude and 100 per cent of her gas export. Coupled with her marine and rich agricultural potentials, she is in resources richer than many countries in the world.

But there is a paradox which has continued to remain a challenge to the state government:. High level of contribution to the country’s Gross Domestic Products and foreign earnings not reflected in the domestic economy.

''Our economy is still at the subsistence level; income is low and characterized by high unemployment. Most of the economic activities are still at the informal sector and mostly centered on rural agriculture'', the governor said in his 2010 budget speech to the state House of Assembly.

By this seeming anomaly, Nigeria appears to be operating two parallel economies as the oil and gas sector is yet to be linked with the domestic economy with the citizenry as active participants.

According to Amaechi, ''the reason is that the oil business is technology driven and our youths lack the requisite skills to be integrated into the oil and gas economy. In order to reverse this trend, Government is sponsoring over 1500 Rivers youth in top institutions abroad, in key areas of science and technology. This is part of our scholarship scheme aimed at aggressive human capacity development. This administration will strive to integrate oil and gas business to the local economy. Besides the integration of our economy, we will explore the economic advantages of modern agriculture which offers the brightest hope for rapid economic transformation''. ENDS

ENDS

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