Rivers State 2022 Budget: The Pros and cons
Nigeria’s oil-producing states have long struggled to diversify their economies. But a few are making progress. In the latest ranking by OYO Insight, Rivers State jumped from 17th to 7th among Nigeria’s oil-producing states. Rivers is now one of only five Nigerian states that have successfully diversified their economies beyond oil. Since being elected governor in 2015, Nyesom Wike has implemented a series of measures to diversify the state economy and drive job creation. One of his most important policy innovations was the Rivers State 2022 budget, which outlines a clear strategy for economic diversification and job creation across different sectors.
What is the Rivers State 2022 budget?
The Rivers State 2022 budget is a long-term vision for economic growth, job creation, and sustainable development in the state. The plan is built on six strategic pillars: agriculture, energy, education, public health, public transportation, and tourism. These pillars are then broken down into specific sectoral goals, targets, and policies. The 2022 budget helps state planners to see how all the different sectors interact, and how policy changes in one area can affect others. It also gives investors a clear picture of how the state government plans to achieve its economic goals. The 2022 budget has been credited with helping to drive economic diversification and job creation in Rivers State.
Revealing insights into the Rivers State economy
The state Gross Domestic Product (GDP) has been increasing steadily since 2015 when Wike became governor. This means that the contribution of non-oil sectors to the state’s economy (as measured in GDP) has been increasing, while that of oil has been declining. The graph also shows that while the state’s non-oil sectors have been growing steadily, they remain far smaller than the oil sector. Agriculture, forestry, and fisheries contribute less than one percent to state GDP. Mining and quarrying is slightly higher at 3.5 percent. State industries are responsible for 8.5 percent of GDP, while services account for 67 percent.
Economic diversification and job creation
The Rivers State 2022 budget outlines specific policies for boosting economic diversification and job creation in the state. These include:
Key measures to boost job creation in the state
The government has implemented a range of measures to boost job creation in the state. Key among these are: The state government has also partnered with the federal government to implement the National Youth Employment and Entrepreneurship Scheme (NYEES) in the state. NYEES is a government program that aims to create 5 million new jobs by 2023.
Limitations of the plan
The government’s progress in achieving its economic goals has been mixed. While it has created jobs in some sectors, it has made little progress in others. Agriculture, forestry, and fishing continue to lag behind other sectors. Mining and quarrying has seen some progress, but it remains far less significant than oil. As the graph above shows, non-oil sectors account for less than a quarter of state GDP. The sector would need to grow significantly to make a significant contribution to job creation in the state.
Conclusion
Rivers State has made significant progress in diversifying its economy and boosting job creation. The 2022 budget has clearly played a role in this achievement. The state government should now focus on implementing the plan fully. Meanwhile, other oil-producing states should learn from Rivers’ experience, and adopt similar strategies to diversify their own economies.
