Seen as the gateway to the north-east of Nigeria, Gombe State has strong economic development potential. The region has a strong agriculture sector, and there is potential for further development of its agro-industry, mining, manufacturing and energy sectors to accelerate economic growth.
Performance
In 2021 and 2022 Gombe State ranked first in Nigeria’s subnational ease of doing business survey conducted by the Presidential Enabling Business Environment Council. This reflects the rapid development of the state’s business environment, which has attracted a significant number of micro-, small and medium-sized enterprises (MSMEs).
By 2021 there were 527,230 micro-, 1043 small and 65 medium-sized enterprises registered in the region. The Gombe Enterprise Development and Promotion Agency regulates businesses and promotes MSMEs.
Size
The state’s primary economic activities focus on agriculture, public services and trade. The private sector is dominated by informal activities, mainly trade, transport, farming, agro-processing, meat production, and local arts and crafts. The formal private sector is much smaller and concentrated in urban areas.
The state’s Ministry of Finance oversees financial and economic policy. Funding for the state budget comes from the Federation Account Allocation Committee. Gombe State’s debt was estimated by the federal Debt Management Office (DMO) to be N139bn ($331m) as of September 2022; however, the Gombe State Development Plan 2021-30 unveiled in February 2021 projects GDP growth to more than double over the next decade, and the state’s debt was already below 25% of its GDP as of April 2023. For comparison, as of June 2022 the DMO estimated that the ratio of Nigeria’s total public debt to its GDP was roughly 23%.
Gombe State’s development plan is expected to boost employment by improving access to quality education and job creation across several sectors, with the unemployment rate anticipated to halve from 27% in 2019 to 14% by 2030. Based on the state’s current economic output and the development plan’s projected population growth, per capita income could double by 2030.
Challenges
Despite significant growth in recent years, Gombe State continues to face challenges. According to the National Bureau of Statistics’ Multidimensional Poverty Index published in November 2022, Gombe State was among the top-10 poorest states in the country, scoring 0.38, with 0 being zero poverty and 1 being universal poverty and deprivation. Rural and river-adjacent communities are most affected by poverty, with many rural regions cut off from the state’s economic hubs and without sufficient access to health care, education and trade. The development plan focuses on enhancing economic equality by developing human, social and physical resources, as well as by including local populations in economic policy-making.
Investments
Economic growth is a core part of the state’s 10-year development plan. Concerted efforts are required to position Gombe State as the centre of economic activity not only in north-east Nigeria, but also across the country in general, using a multi-sector approach to support economic and social development. One of its main investment areas is infrastructure, with plans to develop industrial activities through initiatives like the 1000-ha Muhammadu Buhari Industrial Park, as well as by building roads to improve connectivity. In the 2023 state budget, nearly 15% of the N176bn ($419m) total was slated for infrastructure work, making it the largest area of public investment.
In January 2023 the state’s Executive Council approved the allocation of N38bn ($91m) to 17 different projects to build roads and bridges across the state, all of which were expected to be completed within six to 12 months. Such initiatives are expected to reduce poverty by providing greater access and shortening travel times between rural and urban communities, offering rural populations greater opportunities and supporting the development of the state’s agro-industry segment.
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