The impact of effective management of resources in solving unemployment problem in Rivers state

River state is located in the south south region of Nigeria and is one of the economically viable states in the country. Created in 1966 by General Yakubu Gowon, the state in rich in crude oil and natural gas and contributes 60 percent of Nigeria’s oil production.

In order to examine the issue of management of the resources in the state, it is important to look at its economic history.

Brief history of Rivers state

Around the 19th century, the area was referred to as the Oil Rivers protectorate and was very rich in palm oil and kernel. It was a leading agricultural region with many of the inhabitants mainly farmers and fishermen. It was a hub for trading activities among the inhabitants and Europeans in agricultural produce.

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The oil River Protectorate was later merged with chattered territories of royal Niger Company to form the Southern Nigeria protectorate which paved way for colonialism and subsequently, its amalgamation with the Northern protectorate in 1914 to form Nigeria.

Resources

According to Oil Revenue Tracking Initiative, Rivers state is famous for its oil production, with vast reserves of crude oil and natural gas. It is also the chief oil-refining city in the country with two refineries in Port Harcourt. For several years Rivers State produced more oil than all the other states before being displaced from its position by Akwa-Ibom which is also located in present day Niger Delta region.

Agriculture is also one of the key resources in the state as during the colonial period, agricultural produce was the major trading commodity with Europeans.

Following the discovery of oil in Rivers state, agriculture became secondary as production of oil became the focal business. Nigeria as a whole turned to oil as the main form of export and the business of fishing and farming was fast losing its viability. With multinational companies engaged in oil production in the state, farming was seen as the occupation of the old and illiterate as many saw oil as a quick way of making money. However, the advent of oil has not been a total blessing for the people as the rate of unemployment has risen.

Here are ways with which effective management can help tackle unemployment in River state

Corruption

The issue of corruption is a huge menace in Nigeria but oil-producing states in Nigeria seem to be worse off. While these states which also include Rivers are the financial backbone of the nation, they struggle to translate the same to their citizens due to the issue of corruption. In spite of the Niger Delta Development Commission, Ministry of Nigeria Delta, 13 per cent derivatives, the region struggles to positively affect the lives of its citizens due to corruption. These developmental agencies are meant to develop the region including providing jobs for the youths but very few of them benefit from these establishments.

Security

The mismanagement of the resources in Rivers state that has created huge discord between those in the upper class and those in the lower class has shrunk the middle class. This has led to insecurity in the region that has also affected the level of unemployment among youths in the state. This has given rise to militancy and vandalism of pipelines. Also, kidnapping of expatriates and oil workers has also created tension forcing some of the oil company to relocate to Lagos and Abuja that have witnessed relative peace. The danger is that the level of insecurity recorded that has made oil companies move away to safer business haven has increased unemployment as the citizens who are supposed to benefit from the presence of the multi-national companies now see those positions being occupied by people in other region.

The presence of the oil companies in the region has a way of boosting other business to cater for the need of the oil workers and expatriates thereby reducing unemployment. The state government must address this issue in order to create an enabling environment to allow business to thrive and for companies to operate as it will benefit the citizens and reduce the rising unemployment.

Diversification of resources

One of the ways to manage the resources in Rivers state is actually to use the fund derived from it to diversify the economy. Oil has shown that its future is highly unpredictable and has the tendency to dry up. Before that happens, it is important to create other forms of businesses and engagements that can last and benefit the people.

For example, the first oil field discovered in Nigeria in 1956, Oloibiri which is located in present day Bayelsa state. In 1958, the oil dried up after 20 years of production. The area and its surrounding environment did not benefit from the discovery or production of oil as the roads are in bad shape and no infrastructures to show for it.

Rivers state must make good futuristic plans that will see to the diversification of its economy especially its human resources in other to be able to deal with its post-oil period and also allow people to be self-employed. In a situation where there are good roads and electricity, many of the youths can tap into this opportunity to create their own businesses.

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Environmental issues

The problem of oil spill and gas flaring are dangerous issues that are affecting the lives of the people in the state. As mentioned above that before the discovery of oil, the people were traditionally farmers and fishermen, oil spill has affected this trade. There have been reports of difficulty in fishing and farming due to the oil spill caused by vandalism of pipelines and leakage due to ban maintenance.

These environmental problems that are affecting other forms of engagement that would have sustained the lives of the people have the tendency to increase the rate of unemployment in the state.

Watch a NAIJ.com TV below of Nigerians speaking about the resources and whether the country should either be restructured or split.