Fall in Oil Prices: What alternatives for state governments?

THE fall in the revenue accruable to state governments in Nigeria, occasioned by the falling crude oil price, has raised questions about the capacity of state governments at handling the multiplier effects of the fall.

When the Delta State government under Governor Emmanuel Uduaghan, conceived the Delta Beyond Oil,DBO, initiative, it meant so many things to different people across the country. To some, particularly those outside government, it was a conduit pipe to be used for the exploitation of the state’s resources, while others saw it as an initiative designed to bring about economic development with a framework of multi dimensional investment strategies.

Those, who were not so much informed about DBO,  thought it was a physical structure, but the DBO is far from that. As gathered by Vanguard Features,VF, the DBO which is the brainchild of Uduaghan, is a vision to prepare the state for the inevitable, drying up of hydro-carbon deposits.

It primarily seeks to diversify the economy from total dependence on oil revenue, so as to ensure that the state is not caught napping when the era of oil boom ends.

The DBO essentially is to ensure that in the absence of oil, the state would remain self-sufficient and be able to cater for the needs of its people.

Three key enablers

To achieve the vision, VF gathered that three key enablers were identified. They are; adequate infrastructure; good governance and adequate security of lives and properties.

Interestingly, the initiator of this programme has not failed to tell all that the initiative is a template for Nigeria’s mono-product economy.

‘’The ultimate goal of Delta Beyond Oil is to provide employment for our teeming population. Specifically, we are concentrating on agriculture, culture, tourism, solid minerals to achieve our Delta Beyond Oil. We have pursued these agenda with great zeal and determination to make Delta State a peaceful place, conducive for investment. Our human capital and infrastructure development agenda have also produced measurable results,” Uduaghan stated at an award ceremony in recognition of the DBO initiative.