In a three part report by Sunny Dada, National Point explores the paradox of Rivers State, which presents as the second richest state in the country after Lagos State from Federal allocations, Internally Generated Revenue, IGR and 13% derivation, but whose population of multi dimensionally poor populace grows in leaps and bounds.
Rivers State is the second richest state in Nigeria, with a Gross Domestic Product (GDP) of $51.529 billion and a per capita income of $5,949 (PPP) according to Budget ‘State of States 2022 Edition.’ The state is also credited with providing more than 40% of Nigeria’s output of crude oil and gas resources.
Living up to its profile, the state raked in over a trillion naira between 2019 – 2022 through internally generated revenues and statutory monthly federal allocations. However, despite its rich potentials in oil and gas and other mineral resources, 62% of the indigenes are ranked as multi-dimensionally poor according to the National Bureau of Statistics (NBS).
A summary of the indicators attributable to the development include; high rate of unemployment and underemployment, low living standards, low life expectancy, high maternal & infant mortality rate, and inadequate public infrastructure. The state also grapple with low-level militancy and escalating cultism menace as a result lack of gainful employment for the young population and the absence of social security mechanisms to protect vulnerable segments of the population.
National Point analyzed the year end reports by the Rivers State Accountant General which covered the periods of 2019 – 2022. The reports showed total earnings by the state, expenditure profile and allocations and priority projects within the period. This is to ensure or ascertain if citizens were better served with their resources. The period under review was under the administration of Chief Nyesom Wike who took a 2nd oath of office on May 29, 2019, to complete an 8 year tenure as governor of Rivers State. Our calculation according to data obtained from official Rivers State portal show that state earned a total of N1, 370,133,237,315.48.
Between the four year period, the state received no less than six hundred and forty three billion, four hundred sixteen million, two hundred and thirty seven thousand and one hundred and eighty one naira, four kobo (643,416,237,181.4) as statutory allocation from the federation account. Within the same period the state also recorded almost twice the same amount in internally generated revenue, including grants from bilateral organizations and fines and dividends from investments in corporate entities.
The accruals do not however include funds received or generated by the state in the last five months of the former administration.
An analysis of the poverty profile of the state however shows that the accruals made little or no impact on the life of the average Rivers man or those who live and do business in the state. This is as latest data from the National Bureau of Statistics (NBS) indicates that 62.4% of rivers people are multi-dimensionally poor. This development has been linked to the general poor performance of the state across critical sectors on the national multi-dimensional poverty index (MPI). A look at the summarized performance of the state across relevant sectors also shows that health related deprivations significantly contributed to the multi-dimensional poverty in the state.
The last administration prides its major areas of achievements in agriculture, infrastructure, and health. In a report titled: ‘Report of the Auditor-General, Rivers State of Nigeria on the Accounts of the Rivers State Government of Nigeria for the year ended in 2019, 2020, 2021, and 2022; the administration listed nineteen priority areas for administrative attention between 2019 – 2023. The major areas of priority include: security of life and property, administration of justice, education, healthcare delivery, agricultural development, infrastructure, housing development, and provision of water, Jobs, wealth creation and economic empowerment. Other areas areas are: women and youth development, environmental protection, social welfare services and Urban and rural development.
At the twilight of the of the administration, the state government listed sixteen projects it described as signature projects. These projects the government said preoccupied its attention for the period under review. The projects include: Rebisi flyover, reconstruction of Igwuruta- Chokocho Federal Road, Centre for Arts and Culture, Garrison-Akpajo – East west Road, Second Nkpogu Bridge, Woji-Akpajo Road, Abuloma- Woji Roa, Sakpenwa-Bori Dual Carriage Way, Eagle Island Bridge- Agip, Aluu-Rupokwu Road, Nkpolu-Rumuigbo-Rumuagholu-Obiri, and Ikwere Road. Others are Inauguration of Real Madrid Football Academy, Remodeling of Bonny/Bille Jetty, Rivers State Government House Clinic and Administrative Block, Okoronuodu flyover and Isiokpo Internal Road.
These projects were commissioned amidst pump and fanfare in the last days of Wike in office. A gap analysis of the signature projects and the nineteen priority areas highlighted by the administration at inception of his four year tenure however reveals a lack of structural and strategic alignment. While 90% of the projects done were infrastructural interventions, other critical sectors as represented in other priority areas received little or no intervention. The lack of intervention in these critical sectors resulted in the increase of poverty rate in the state. Generally the multi-dimensional poverty was occasioned by several factors which the NBS also validated in the data released.
For instance, an analysis of the NBS data shows that over 5 in 10 (53.1%) people in Rivers State are multi-dimensionally poor and deprived of clean cooking fuel in the state. The NBS explains that “a household and all of its members are deprived of clean cooking fuels if the household cooks with dung, wood or charcoal.”
The data also stated that more than half (51.0%) of the people in Rivers State are “multi-dimensionally poor and deprived of improved sanitation facilities. Unimproved sanitation facilities include: flush to somewhere else or unknown place (not sewer system, septic tank, or pit (latrine)); pit latrine without slab; bucket; hanging toilet or latrine; and no or other non-improved sanitation facility.
Other sectors that contributed to the poor performance are food insecurity, child deprivation, unemployment and under-employment which is pegged at 43.7% and 20% respectively.
The NBS explained that about half (50.2%) of the state population are deprived of food security. The Food Insecurity Experience Scale (FIES) assesses food-related behaviours and experiences associated with increasing difficulties in accessing food due to resource constraints.
It further said that more than half of (51.0%) the children in Rivers state experience deprivation in child engagement. A household is deprived if in the past one (1) month no child was engaged by a household member older than 15 years in at least four of the following activities: reading books; telling stories; sing songs; be taken outside; play with; name/count or draw.
The NBS data and the analysis of the state financial expenditure profile in the last four years have thrown up issues around resource allocation. For instance, the four year expenditure profile reports by the office of the rivers state accountant general, shows allocation of state resources to many moribund entities.
Examples of such strange allocations include the allocation of N152m to the Rivers State Sports Institute Isaka within the four periods. The institute has been in a state of non-use due to dilapidated infrastructure and complete neglect by successive administrations since the 90’s. National Point findings from the Rivers State annual financial statement report between 2019 and 2022, indicates that the state government made a minimum of N32million annual allocation to the institute despite its non-functional state. Curiously, in spite of the allocations, the institute remains in disrepair.
The state government also made allocations to moribund agencies such as ‘Rivers State Agency for Adult/Non Formal Education, ‘Rivers State Small Town Water Supply and Sanitation Agency,’ ‘Rivers State Scholarship Board,’ and ‘Rural Water Supply and Sanitation Agency.’ The agencies when combined received not less than N1.1B allocations. The report also showed duplication of agencies performing almost the same functions. For instance, there is no clear distinction in the mandate between the Rivers State Small Town Water Supply and Sanitation Agency and the Rural Water Supply and Sanitation Agency.
The primary mandate of the agency(s) is to target hard-to-reach rural communities and provide water and sanitation services. The agency(s) is also supposed to serve as an interface between development partners and and rural communities. However reasons for creating two agencies for the same function is however not clear. A visit to the ministry of water resources for the clarification did not also help as staff within the ministry were obviously confused or not aware of the existence of such agency(s). They contended that only the office of the Head of Service can provide such clarifications.
The accountant general report also revealed huge annual allocations to the ‘Rivers State Museum’ and the ‘Rivers State Parks and Gardens’ amounting to over N500m for the period under review. The functions of the Parks and Gardens had since been taken over by private contractors to the state government. This tradition started under the Peter Odili regime when sanitation and beautification contracts were awarded to politicians and close aides of the governor; since then the agency had become moribund. However government continues to make allocations running into huge funds that should’ve been channeled to healthcare delivery and human capital development projects.
