Declaration Of State Of Emergency & The Unintended Negative Consequences On Direct Foreign Investment In Rivers State, By Emeka Ugwu-Oju
A few weeks ago, I was involved with the visit of an important foreign investor to Abuja, Port Harcourt, and Lagos. During the joint review of the visit with his local partners before his departure from Nigeria, the investor who is keen in investing in the non oil and gas sector in Nigeria was very impressed with the separate meetings he held with officials of Rivers and Lagos State Governments, and the assurances they gave on the security of investments in their States and was looking forward to the next steps.
Fast forward to today, the focus of the foreign investor with regards to possible investments in Nigeria is now only on Lagos State because of the current absence of a State Government recognized by the Nigerian Constitution in Rivers State. From our previous interactions with the Rivers State Investment Promotion Agency since the Fubara led administration came into office, we gather there have been similar visits from foreign investors and their local partners as a result of the State Government’s drive to attract private sector investment in order to diversify the State economy.
NOW, the present reality is that no genuine foreign investor will enter into an agreement to invest in Rivers State today with the Rivers State Government headed by an Administrator that is not recognized by the Nigerian Constitution. The implication is that as long as their is no constitutionally recognized State Government in Rivers State, there will be No More New Foreign Direct Private Investment To The Non-oil & Gas Sector With State Government Facilitation In Rivers State.. That is indeed very bad news.
With the current push by many local investors in South East and South South Regions to jumpstart another corridor of development from Port Harcourt to Maiduguri, comprising the South East, South South, North Central and North East Zones, with Rivers State playing a key role, to compete and complement the current Lagos to Kano Corridor of development in Nigeria, I believe that it is not the intention of the Presidency and the National Assembly to drive away direct foreign private investment in the non oil and gas sector of the Rivers State economy, but unfortunately that is the situation that has been created by the current anomaly in Rivers State.
It is our patriotic duty to point out this unintended consequence which is already happening if not reversed. We all are witnesses to what happened during the militancy era when companies left Port Harcourt in droves to Lagos and never returned to Port Harcourt to date. Any intended direct foreign private investment to Rivers State which is withheld or diverted to Lagos State because of the present anomalous situation in Rivers State is gone forever and this will be very injurious to the Rivers State economy, and by extension, the proposed Port Harcourt to Maiduguri Economic Corridor. Is that really what the Presidency and National Assembly want ? I don’t think so.
It is now up to the Presidency and the National Assembly to urgently do what is right for the Rivers State people and economy by ensuring the elected Governor and Deputy Governor, and the elected members of the State Assembly, of Rivers State are not prevented from carrying out their constitutional suites. The good people of Rivers State should not be made to unduly suffer because of any perceived quarrels amongst very few politicians in the State. Most non partisan Nigerians are of the view that whatever political crisis that exists in Rivers State should be peacefully resolved without the “suspension” of the elected State Governor and Deputy Governor, and the elected members of the State Assembly.
God bless Nigeria !
Emeka Ugwu-Oju, is the chairman, Board of Trustees, BoT, South East-South South Professionals of Nigeria, SESSPN.
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