From Boom to Bust: Rivers Battles to Reclaim Investment Appeal

Governor Siminalayi Fubara of Rivers State expressed deep concern over the state’s decline from its former status as an industrial hub and a preferred destination for investments.

Speaking at the inaugural Rivers Economic and Investment Summit in Port Harcourt, Governor Fubara highlighted the state’s challenges and outlined plans for revitalizing its economy.

Governor Fubara pointed out several key issues contributing to the state’s economic downturn:
– Low Economic Growth: Persistent slow growth has hampered development.
– Low Tax Revenue: The state has relied heavily on allocations from the federation account due to insufficient tax revenues.
– High Unemployment Rate: A lack of investment and industrial activity has led to significant unemployment.
– Slow Development: Infrastructure and industrial activities have stagnated, leading to economic underperformance.

The governor noted that Port Harcourt, once a thriving commercial center, now struggles with abandoned industrial ventures and dilapidated infrastructure, particularly in the Trans-Amadi Industrial Layout.

The summit, themed “Rivers Emerge: Advancing Pathways to Economic Growth and Sustainability,” aimed to:
– Explore investment opportunities in the state.
– Facilitate discussions with experts on economic and investment challenges.
– Showcase Rivers State’s potential to both local and international investors.

To regain its industrial status, Governor Fubara outlined several initiatives and policy reforms:
– Land Allocation and Titles: Streamlining the process for issuing land titles and certificates of occupancy to attract investors.
– Tax Moratorium: Implementing a moratorium on state taxes and levies for new businesses.
– Development Agreements: Partnering with TAF Nigeria Limited and GOSH Nigeria Limited for major housing and commercial projects.
– Industrial Projects: Collaborating with Apache Aluminium LLC for an aluminum rolling mill and Imagine Adama Agricultural and Technology for agricultural development.

The state has committed $10 million to revive agricultural projects, and discussions are underway with Planet One Holding Limited for a $10 million Mangrove Forests Conservation and Carbon Capture Project.

Governor Fubara emphasized Rivers State’s strategic importance:
– Oil and Gas: Accounting for over 40% of Nigeria’s onshore crude oil production and 100% of liquefied gas exports.
– Agriculture: Potential for significant contributions to national food security with commercial investments in mechanized agriculture.
– State-Owned Enterprises: Opportunities for private investors to revitalize moribund companies and farmlands, including oil palm estates and fish farms.

Former Deputy Governor of the Central Bank of Nigeria, Prof. Kingsley Moghalu, stressed the importance of good governance in economic transformation. He noted that foreign investment requires skillful human capital and robust infrastructure. Former Cross River State Governor, Donald Duke, highlighted the need to focus on economic growth rather than inflation control, emphasizing the importance of sustainable interest rates for attracting investment.

Governor Fubara expressed optimism about the summit’s outcomes, aiming to position Rivers State as a premier investment destination. He announced the establishment of the Rivers State Investment Promotion Agency and the launch of a N4 billion matching fund loan scheme with the Bank of Industry to support small and medium-scale businesses.

The governor also highlighted the state’s initiative to harmonize state and local government taxes to eliminate double taxation and enhance the investment climate.

The summit included presentations and panel discussions on opportunities in oil and gas, energy, property development, and other sectors, aiming to set the stage for Rivers State’s economic resurgence.