Political Crisis Threatens Investment Confidence in Rivers State

Rivers State, long regarded as an economic powerhouse in Nigeria’s Niger Delta, now faces growing investment uncertainty due to political instability. Known for its oil wealth and strategic location, the state once attracted major players in oil, real estate, construction, and banking. However, the ongoing feud between Governor Siminalayi Fubara and his predecessor, Nyesom Wike, is shaking investor confidence and disrupting business activities.

This political crisis began shortly after Fubara took office in May 2023. Although he emerged as Wike’s handpicked successor, Fubara has struggled to establish control. Tensions escalated from subtle disagreements into public confrontations, impeachment threats, parallel state assemblies, and divided loyalties within the civil service. These developments have weakened governance and created an atmosphere of instability.

Prominent voices across the country have expressed concern. Senior Advocate of Nigeria, Femi Falana, described the situation as a “dangerous constitutional crisis” that threatens democratic principles and economic progress. Professor Pat Utomi added that no serious investor would commit funds where the rule of law is unstable and government policies can shift overnight.

The oil and gas sector is particularly vulnerable. Multinational companies such as Shell, TotalEnergies, and Agip rely on political stability to operate efficiently. Former Minister of State for Petroleum, Dr. Ibe Kachikwu, warned that any disruption could lead to reduced operations or relocation of investments.

Other sectors, including real estate and hospitality, are also feeling the impact. Hotel occupancy has dropped, construction projects have stalled, and capital inflows are slowing. Mrs. Nike Akande, former Minister of Industry, noted that Rivers is becoming a textbook case of how political instability chokes economic growth.

Beyond investor concerns, small business owners like Emma Nweke in Mile 3 Market report reduced customer traffic and lower sales. As companies leave or scale back, unemployment may worsen, fueling insecurity and social unrest.

While stakeholders like Comrade Joe Ajaero of the NLC call for swift resolution, federal intervention remains weak. President Tinubu’s earlier peace efforts unraveled, and many view Wike’s federal position as enabling interference.

Despite the chaos, hope remains. In March 2025, Rivers State launched a One-Stop Business Registration Center to attract new investors. At the forum, Engr. Innocent Akuvue assured investors that the state remains open for business and committed to good governance.

Still, political maturity is essential. Without it, Rivers risks losing its status as the South-South’s economic hub. Investors don’t invest in chaos—they invest in certainty.