ECONOMIC EVALUATION OF RIVERS STATE: INDUSTRIALIZATION AND ITS EFFECT ON RESIDENTS.

Rivers state

Consumption of energy products in Nigeria has been reasonably low compared to the volume of produced energy resources in the country. This is so due to government decision to utilize energy resources as a direct source of revenue rather than a source for energy to support industrialization and economic development in the country. As such, low rate of economic development is experienced in Nigeria.

Amongst energy products that are being consumed in Nigeria, Automotive Gas Oil (AGO) is majorly used for power generation and industrial machines while Premium Motor Spirit (PMS) is majorly used in vehicles for transportation which can also be used as a measure for activeness of her residence.

For the purpose of this paper, Lagos state, Rivers state and the Federal Capital Territory (FCT) are being considered and the comparison is carried out to determine industrialization and its effect on residents.

Table 1 shows consumption volume of Automotive Gas Oil (AGO) and Premium Motor Spirit (PMS) for Abuja(FCT), Lagos state, and Rivers state.

Table 1. CONSUMPTION OF ENERGY PRODUCTS BY STATE
Time Automotive Gas Oil (AGO) Premium Motor Spirit (PMS)
Rivers Lagos Abuja Rivers Lagos Abuja
Units liters liters liters liters liters liters
Jan 2015 51671337 122706343 2376002 66136266 273522647 128232485
Feb 2015 44847250 125721292 2543995 64235335 256113082 108378013
Mar 2015 43139169 136851128 3547972 67653389 338785183 155790879
Apr 2015 37763019 116351434 2808059 64569212 344018288 115251564
May 2015 46767605 109853692 2902000 76678011 256708229 103368828
Jun 2015 36970931 125290088 3273918 59673795 248677367 136007195
Jul 2015 39123688 118564405 3093739 57081950 240707972 123927233
Aug 2015 36513055 143251402 1323987 53398182 276352403 149808618
Sep 2015 38039349 89171845 1472995 67317386 243512244 104661858
Oct 2015 37946300 133904835 3133998 60413106 292437266 124777750
Nov 2015 45909816 112279414 4110255 54090656 286313743 152631046
Dec 2015 24616066 122378935 540019 58789225 355050828 157031526
Jan 2016 23643228 91852073 3151553 55603388 279340559 149182757
Feb 2016 26379404 110617324 1847034 42795188 265419946 154448783
Mar 2016 18118830 138297149 2538000 46728345 334516647 192606314
Apr 2016 19009866 142390181 3250317 40333918 324184265 196244574
May 2016 21051440 134906777 4425760 49801782 236525069 157081309
Jun 2016 19877358 138864653 1796875 52441820 228770460 114987506
Jul 2016 18828570 118922712 2998724 42128247 223354395 100621152
Aug 2016 27233463 118539792 5659122 42322778 210841871 99649928
Sep 2016 28608761 94079160 3395548 44921829 215788257 96990597

Source: NBS 2017

Table 2 shows the average population for Lagos, Abuja (FCT) and Rivers states. According to world data Atlas, Nigeria population growth rate was at a level of 2.6% in 2016, unchanged from the previous year (2015). Nigeria population census for 2006 as recorded by the National Bureau of Statistic (NBS) is being used to project average population based on the 2.6% annual growth rate for the states in 2016.

Table 2. AVERAGE POPULATION OF STATES AND DEGREE OF CONSUMPTION

STATE POPULATION CONSUMPTION
CENSUS 2006 EXPECTED IN the YEAR 2016 PMS AGO
ABUJA 1406239 1817744 MEDIUM LOW
LAGOS 9113605 11780502 HIGH HIGH
RIVERS 5198716 6720007 LOW MEDIUM

Figure 1 describes the consumption of Automotive Gas Oil (AGO) between January 2015 and September 2016 for Abuja (FCT), Lagos state and Rivers state. From the trend shown amongst the three states being considered, Lagos state has always been the highest consumer of AGO followed by Rivers state and least being Abuja (FCT). Consumption of AGO is associated with industrialization as it is majorly used for power generation and industrial machines. As such, this translates that amongst the states being considered, Lagos state is most industrialized and Abuja (FCT) is least industrialized.

Figure 1 showing consumption trend of AGO by state.

Figure 2 describes the consumption of Premium Motor Spirit (PMS) between January 2015 and September 2016 for Abuja (FCT), Lagos state and Rivers state. From the trend shown for states being considered, Lagos state maintained top in the consumer of PMS followed by Abuja (FCT) then Rivers state the least consumer of PMS. Consumption of PMS is associated with mobility of people, as such has the highest mobility of her residents followed by Abuja and Rivers state having the least mobility of her residence.

Figure 2 showing consumption trend of PMS by state.

In conclusion, it is observed from Table 2 that Lagos state is highly industrialized and income is averagely shared relative to their population strength and mobility of her residence. Rivers state is considered as highly industrialized with the low mobility of her residents relative to her population and average consumption of PMS. Abuja, the Federal Capital Territory (FCT) is observed to have the least population of 1,817,744 residents but has a reasonably high consumption of PMS and low industrialization relative to AGO consumption. Abuja can be termed, home for the elite. The federal government of Nigeria and Rivers state government should look into budget implementation for Rivers state as the residents are not benefiting from her industrialization which means high internally generated revenue (IGR).

Source: KEGOZ

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