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 higher at 31.1%, while the underemployment rate came in at 24% for the same period. Despite these figures, Delta State had the second lowest poverty rate in Nigeria in 2020 and the ninth lowest rate in the NBS’ Multidimensional Poverty Index published in November 2022.
Performance & Size
One of nine states that comprise the Niger Delta, its economy has been driven by oil and gas revenue ever since hydrocarbons were first discovered in the region in the 1960s. However, following a recent push for economic diversification, Delta has seen an expansion in other industries, with the non-oil and gas sector accounting for 52.5% of state GDP in 2020, compared to 41.9% in 2013.
Several economic sectors have increased their share of state GDP in recent years. For example, agriculture and services accounted for 13.2% and 29.7% of GDP in 2020, respectively, compared to 9.5% and 18.8% in 2013. Although oil and gas bring in the most revenue, the agriculture and services sectors continue to provide the most jobs.
Key Segments
The state accounted for around 21.5% of Nigeria’s oil output as of March 2023, making it the country’s second-largest producer of petroleum products, with an estimated production capacity of roughly 350,000 barrels per day. Several local government areas produce oil, including Warri North and South, Burutu, Isoko North and South, Ughelli North and South, Okpe, Ethiope East and West, Sapele, Ndokwa East and West, and Ika South and North East. Nigeria’s natural gas reserves were estimated at more than 200trn cu feet as of November 2022. Indeed, in February 2022 a natural gas gathering and injection facility with a capacity of 300m standard cu feet per day was commissioned in Kwale in the south-west.
The state’s main food and industrial crops are cassava, rubber, palm oil, cashews and cocoa. The livestock subsector covers mainly fish, poultry and pork, while the River Ethiope supports a thriving fishing industry. Although manufacturing is largely underdeveloped, the government’s initiatives to diversify the economy have supported the sector’s expansion, and additional investment may prove beneficial.
Delta State is home to a variety of mineral resources, including silica, tar sand, clay and limestone. These materials can be used in a range of industries, such as brickmaking, and the manufacturing of ceramics, bottles, glass and chalk. Given these segments’ nascent stages of development, there are opportunities to increase capacity, as well as facilitate the growth of the state’s industrial base.
Investment
According to the Nigerian Investment Promotion Commission, Delta State’s primary growth potential is in its agri-business, light manufacturing, health care, tourism, energy and mining sectors. The Delta State Investments Development Agency (DIDA) strives to increase the competitiveness of the state’s industries in order to promote both local and foreign direct investment opportunities, and to reduce bureaucratic bottlenecks for investors. One of the key objectives of the DIDA is to attract financing in agriculture, aquaculture, oil and gas, maritime resources and tourism, while supporting economic diversification and reducing the dependence on oil and gas revenue. These goals are in line with Delta State’s SMART Agenda development framework to build a knowledge economy and create job opportunities. The DIDA works in tandem with the state’s Ease of Doing Business Unit to realise these objectives.
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