Delta State
From The Report: Nigeria 2024
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Situated at the epicentre of the petrochemicals industry, Delta State has the third-largest economy among Nigeria’s states, accounting for around 21.5% of the country’s oil output as of March 2023. While its internally generated revenue is predicated on oil and gas proceeds, the state has seen an expansion in other areas of the economy, with the non-oil and gas sector accounting for 52.5% of GDP in 2020 following a recent push for economic diversification, compared to 41.9% in 2013. In that vein, Delta State’s primary growth potential is in agri-business, light manufacturing, health care, tourism, energy and mining. Given the levels of unemployment, maximising support to foster this potential is set to play a crucial role in accelerating the diversification drive, as well as in consolidating its poverty reduction gains and attracting foreign direct investment.

This chapter contains an interview with Ifeanyi Okowa, Former Governor, Delta State.

Articles from this Chapter

Overview

Laying the groundwork: A focus on human capital development offers a path to economic expansion and industrialisation
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Delta State is one of six states that make up Nigeria’s South-South geopolitical zone. Situated on the Niger River delta, the state is one of the country’s main oil-producing regions and has contributed significantly to its GDP growth in recent years. History Nigeria was under British and French rule in the 20th century before achieving independence in October 1960. Therefore, Delta State’s borders have been redrawn several times due to colonisation and civil war. On August 27, 1991 the present-day…

Analysis

Diverse opportunities: Boosting the potential of the non-oil sector for sustainable growth
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Delta State has the third largest economy in Nigeria, valued at roughly $14.5bn-15bn, according to a report published in November 2022 by the then-governor’s office. However, the report indicated that the state has experienced significant levels of unemployment, citing a rate of 31% in 2020. Nigeria’s National Bureau of Statistics’ (NBS) “Labour Force Statistics: Unemployment and Underemployment Report” for the fourth quarter of 2020 put the unemployment rate for Delta State fractionally…

Analysis

Building bridges: Transport linkages and public-private partnerships form the twin keystones of regional urban redevelopment plans
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Delta State has undergone significant urban renewal and infrastructure development in recent years. This has manifested in the construction of roads and bridges, linking rural areas and riverside communities with urban centres, and thus stimulating intra- and inter-state trade. Ensuring metropolitan areas are designed to accommodate growth is another priority. Improvements have been made to urban centres, including the construction of the Asaba Leisure Park  and Film Village, the Stephen Keshi Stadium,…

Analysis

New horizons: Developing capabilities is a key goal of diversification efforts
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Although Delta State’s overarching economic aim is to diversify away from hydrocarbons, its well-established oil and gas sector provides a strong frame-work to bolster industrial growth. Combined with the state’s agriculture output, road network and large deposits of raw materials, its industrial potential bolsters its non-hydrocarbons growth prospects. Given the state’s historical focus on oil and gas, the industry and manufacturing sectors are still in relatively early stages of development.…

Analysis

Maximising yields: Reform-driven transformation is helping to optimise productivity and bolster agri-business performance
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Agriculture is central to Delta State’s economy, comprising 13.2% of GDP in 2020, up from 9.5% in 2013. The diverse landscape of the state provides favourable conditions for a wide variety of crops, including food staples such as rice; fruits and vegetables such as yams, cassava, mangoes, pawpaw, capsicum and tomatoes; and industrial crops such as rubber and palm oil. The north of the state features well-drained sandy soil, while the southern coastal area is characterised by water-logged silky…

Analysis

Sustainable plans: Renovations to local oil refineries expected to help meet demand and roadmap offers potential for diversification
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Delta State’s energy sector has historically been dominated by hydrocarbons due to its position in the oil-rich Niger Delta. The Nigeria Extractive Industries Transparency Initiative, the country’s oil industry auditor, estimated that Nigeria earned $741.5bn from oil and gas between 1999 and 2020. In recent years the Delta State government has been working to diversify away from its reliance on oil and gas, as well as develop a renewable energy roadmap to support the green transition. Sustainable…

Analysis

Expanded access: Improved infrastructure is expected to extend health coverage and bridge the labour skills gap throughout the state
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The path to universal health care coverage in Delta State began in February 2016 with the establishment of the Delta State Contributory Health Scheme (DSCHS) under the oversight of the Delta State Contributory Health Commission (DSCHC), which aims to help the state achieve its long-term goal of reaching universal health coverage. As of March 2023 some 1.3m residents were covered by the DSCHS – or around 20% of the state population including roughly 1.2m pregnant women, young children and elderly…

Interview

Conditions for success: Ifeanyi Okowa, Former Governor, Delta State, on how public-private collaboration is advancing diversification objectives
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Interview: Ifeanyi Okowa What factors are improving the international investment outlook for Delta State? IFEANYI OKOWA: The level of security that Delta State has enjoyed since 2015 remains central to our development agenda. The Peace Building and Advisory Council as well as the Advocacy Committee Against Vandalism of Oil and Gas Facilities – convened in August 2015 and May 2016, respectively – have been instrumental in coordinating efforts of law enforcement agencies to maintain stability.…