AFRICA

Kelvin Emmanuel: Nigeria’s Economy Is Structurally Skewed To Favour Lagos

Economist, Kelvin Emmanuel has criticised Nigeria’s economic structure, describing it as unjust and heavily skewed in favour of Lagos. 

Speaking during an interview on ARISE NEWS on Sunday, he questioned the federal government’s commitment to developing ports outside Lagos, citing the Akwa Ibom deep sea port as an example. 

“It is economic injustice and Nigeria is structurally skewed to favour Lagos economy, and this is the basic truth,” he said. 

“Bollore, the French company, ended up selling itself to MSC, Mediterranean Shipping Company. Mediterranean said they are doing revalidation, why is the federal government not putting as much effort in making sure that they start building Akwa Ibom deep sea port like they did for Lekki deep sea port in Lekki Free Trade Zone?”  

“How can Lagos have 3 functioning sea ports, the fourth one in the works, and every other place is languishing? How do you build an economy when everything is centred around Lagos? Is it because the Lagos establishment is afraid that if there is an operational sea port in the eastern maritime flank, which geographically is better for maritime operations, we are going to have diversion of port operations from the South East to South South, the North East to Akwa Ibom? Is it because they are afraid of revenue losses? It doesn’t make any sense, we have to say the truth to power.”

The Economist emphasised the importance of decentralising port operations and investing in infrastructure across the country to create a more balanced economy, calling for significant reforms in Nigeria’s economic policies to address structural imbalances and foster equitable development. 

“First of all, I would like to commend the Taiwo Oyedele committee that has done very fantastic work over the last 14 months on the tax bills, very fantastic work that cuts through every sector,” Emmanuel said. 

“I would like to say that this is the most consequential reform that Nigeria has seen since it got independence in 1960, and I am very, very optimistic that the tax bills, when they are passed, are going to raise the revenue, especially tax-to-GDP ratio, and are going to strengthen the fiscal structure of Nigeria.”

Highlighting the state of Nigeria’s ports, Emmanuel criticised the over-reliance on Lagos, pointing out that other ports in the country are underutilised. 

“Of the six different ports in Nigeria—Warri, Onne, Calabar, Apapa, Tin Can—how many of them are operational today?” he questioned. 

“The Calabar sea port is dead; we barely have vessels coming there, maybe one vessel per week compared to Lagos. How do you build an economy where the smallest state by landmass, with the highest per capita income and the highest population, has the only functioning sea port in Nigeria while everybody else is left to go home hand-dry? It doesn’t make sense.”

Emmanuel urged the federal government to prioritise projects such as the Akwa Ibom deep sea port, which he noted has strategic advantages over Lagos ports. 

“The Akwa Ibom deep sea port, by the way, has a shore-to-sea that is 16 kilometres; it is the shortest distance to deep sea in the whole of Nigeria. It’s shorter than Lagos, shorter than what you have in Lekki, shorter than Apapa, shorter than Tin Can, shorter than the proposed Badagry deep sea port,” he said.

He also criticised the lack of infrastructure in the South East, particularly the absence of a high-pressure gas transmission pipeline in the region. 

“The South East does not have a pipe that runs through it, despite the fact that Abia State produces a lot of natural gas,” Emmanuel said. He added that the Nigerian Gas Master Plan, designed in 2007, proposed a pipeline from Aba to Owerri, Enugu, Onitsha, and Nnewi, but the government opted to redirect the pipeline away from the region.

Emmanuel called on the South East Governors Forum to address these issues with urgency, stating, 

“Why has the South East Governors Forum not gotten a meeting with the president asking why the region does not have a gas pipe that runs through it? What exactly is wrong that seems like there is a calculated power share between the North West and the South West?”

When asked about the role of the new Ministry of Blue Economy in decentralising port operations, Emmanuel expressed scepticism about the federal government’s commitment. 

“If the president is serious and means what he says when he talks about revitalising the economy and building a trillion-dollar economy, he should be at the forefront, leading the charge to ensure building and development starts,” he said.

On the broader issue of decentralising port operations, Emmanuel stated, 

“If states could just go ahead and build sea ports, you might have maybe four or five deep sea ports in the eastern maritime corridor by now, but that is not possible. You need regulatory approval, and you need the federal government to contribute its share to the project, which is 20 percent.”

He urged the federal government to prioritise strategic investments, such as the Akwa Ibom deep sea port, to foster equitable economic development. 

“This is the most critical project for Akwa Ibom State, and it is a very important project for the entire South East, South South, North Central, and North East,” Emmanuel said. “It makes such economic sense that if the government is not pushing it and has gone cold, then there is another agenda on the table.”

Faridah Abdulkadiri

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Faridah Abdulkadiri

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