By Peter Egwuatu
Rivers State Government has explained that it is putting appropriate infrastructure in place in order to attract both foreign and local investors to set up productive entities that will engender growth and development of the state and the economy in general.

To this end, the state government in its quest to provide the basic infrastructure, is about to conclude the process of floating a total of N250 billion bond, with the commencement of N100 billion as first tranche, after it had earlier in the year intimated the indigenes on the need to float bond through the capital market.

It will be recalled that the state government in collaboration with the Securities and Exchange Commission (SEC) organised a public enlightenment on the benefits of floating bond through the capital market.

The state government said this has become germane as its Internally Generated Revenue (IGR) and facilities from banks cannot finance the projects it wants to deliver to the people, and which made the state standout among its peers in terms of infrastructure development.

But the Governor, Mr. Rotimi Amaechi who appears to be adverse to loans from  institutions, seems to have finally given up owing to the pressing need of developmental projects in the state begging for attention.

The Rivers State Commissioner for Finance, Mr. Chamberlain Peterside said issuing the bond has become critical to the development of the state.

In his paper titled: Rivers State N250 billion Bond programme:critical issues at stake, Peterside said the bond was necessary to continue investment in infrastructure that is highly critical to the state’s development.

He said with an Internally Generated Revenue (IGR) rising from N19,9 billion in 2005 to N58.4 billion in 2010, with all the infrastructure and developmental projects in place, the state is capable of meeting its obligation in the bond issuance.

Peterside noted that there is need to reposition the state for further capital formation to address the perennial problem of the state. He added that with the state’s Fiscal Responsibility Act, Public Accounting Modernisation and Management of Infrastructure Assets  in place “ the bond is  further positioned to take care of building key governance institutions – Public Procurements Office, Diversifying the Economic and Revenue Base – Grow IGR to 50 – 70 per cent  of aggregate revenue, power generation, focus on non-oil sector and develop agricultural value chain, employment generation; stem youth restiveness and ease social tension by creating job opportunities.

It should be noted that apart from oil, Nigeria is blessed with other mineral resources and arable land good for agriculture. But effort has not been made to diversify the economy as governments at all levels depend on revenue from oil to survive.

However, economic analysts have commended the good move by Rivers State to champion the diversification of its economy. Despite accounting for 40 per cent of crude oil produced on-shore in the country and 100 per cent of the liquefied natural gas exports from Nigeria, Rivers State organised an investment forum to expose the many investment opportunities in the state and its environs to investors.

Tagged: Change that Works, the investors’ forum, which took place in Port Harcourt from November 16 to 18, 2011 was in collaboration with a group of entrepreneurs and concerned stakeholders of Rivers State. Explaining the rationale behind the forum, Chairman of the Organising Committee, Mr. Atedo Peterside  said that Rivers State and its environs were strategic to the economic well-being of Nigeria and it is therefore,  important that the area developed into a robust and secure commercial hub.

“It is believed that developing the region into a robust and secure commercial hub would help diffuse threats to the energy security of the world and should be a catalyst for the development of oil and gas activities around the Gulf of Guinea in a safe and environment-friendly atmosphere.

According to him, the collaboration would help boost economic activities in the state and its environs and also facilitate a turn-around nationally that would help Nigeria attain and surpass the Millennium Development Goals (MDGs).

The forum focused on agriculture and rural development; infrastructure (with emphasis on power and roads); oil and gas; services (including finance); industry, trade and investment climate; development of the Greater Port Harcourt City (GPHC) among others.

The forum got tremendous support from the Federal Government with three ministers attending. They are Coordinating Minister for the Economy and Finance, Dr. Ngozi Okonjo-Iweala; Minister of Agriculture, Dr. Akinwumi Adesina and his Power counterpart, Prof. Barth Nnaji.

Besides, Governors of the neighbouring states of Delta, Emmanuel Uduaghan and Anambra, Peter Obi were also in attendance. Perhaps, the biggest guest at the forum was former British Prime Minister, Gordon Brown. The former British prime minister declared that the forum was ighly symbolic as it showed the readiness of Rivers State to develop other areas of business other than oil and gas.

Brown said, “Rivers State is one of the great oil producing states of the world and it has demonstrated its readiness to diversify into other areas. This is another success story of Africa. From the figures I have seen, I know that in the next 20 to 30 years, Nigeria will surpass Italy, Spain and some other European countries.”

But he believed there was urgent need for the state and Nigeria as a whole to develop its youths through adequate training.   Responding to Brown’s emphasis on the  need to develop youths through adequate training and skills acquisition, Governor of Rivers State, Chibuike Amaechi, said  that  his administration had realised this and was already  making serious progress.

According to him,  the state has already invested massively in education and health systems.  “The construction of modern schools, health centres and hospitals have been one of the hallmarks of this administration. However, we realise that the construction of structures alone does not guarantee quality education. We are therefore also investing in teaching and learning materials, as well as in the training and supervision of our teachers.”