Background
The Akwa Ibom State Government has popularized the phrase “Akwa Ibom Beyond Oil” to signal its commitment to diversifying the state’s economy away from overdependence on oil revenues. However, recent moves such as the public hearing on a bill to establish a state-owned oil company raise concerns about whether this vision is being pursued in practice or merely in rhetoric.
With global oil demand projected to peak by 2030 due to the energy transition, continued reliance on oil exposes Akwa Ibom to fiscal risks, stranded assets, and long-term economic vulnerability. This webinar, organized by Policy Alert in partnership with NRGI and Youth Voices 2060, provided a platform for stakeholders to interrogate whether Akwa Ibom is on a credible path toward a diversified economy and to highlight alternative growth pathways beyond oil.
Introduction
The session was moderated by Edidiong Dickson – Head Energy, Extractives and Climate Justice Programme and the Coordinator Youth Voices 2060 Secretariat, with the keynote delivered by Tengi George-Ikoli, Country Manager of the Natural Resource Governance Institute. Panelists included Emem Edoho, the Executive Director of Network Advancement Programme for Poverty and Disaster Risk Reduction, Mmanti Umoh – Senior Consultant, Purple Patch Consults, and Ekemini Simon – Head Investigative Reporting Desk at TheMail Newspaper, who provided insights into the opportunities and challenges of moving Akwa Ibom beyond oil.
Speakers emphasized the urgent need to align fiscal and development strategies with the realities of the global energy transition. It was noted, particularly by Ekemini Simon, that placing non-oil revenues alongside recurrent expenditures for 2023 and 2024 reveals little fiscal room for capital projects, underscoring the extent of the state’s dependence on oil. Stakeholders agreed that a deliberate and strategic diversification plan is required if Akwa Ibom is to achieve long-term resilience.
Observations
- Oil derived revenues are what is driving the state economy exposing the state to external shocks.
- Placing non-oil revenues alongside recurrent expenditure of the last two fiscal years – 2023 and 2024, there is little fiscal room for capital expenditure.
- Interrogating the IGR basket reveals a reliance on taxes from the oil sector, showing that Akwa Ibom State Government is not deliberately steering its economy away from dependence on oil-derived revenues.
- Akwa Ibom has failed to position itself as a leader in renewable energy, particularly solar, hydro and tidal energy to align with global trends, especially due to our strategic location by the Atlantic Ocean.
- Inefficiency associated with IGR management with leakages in both revenue collection and expenditure.
Recommendations
- Akwa Ibom State must Invest in agriculture to employ thousands, boost food security, and tap into global seafood demand.
- Akwa Ibom State Government must expand tourism by leveraging Akwa Ibom’s cultural heritage, natural beauty, and coastline to attract domestic and international visitors.
- Open Akwa Ibom to global markets through trade-friendly policies, improved infrastructure, and partnerships that maximize its strategic coastal location.
- Increase investment in education, healthcare, and skills acquisition to prepare Akwa Ibom’s youthful population for opportunities in agriculture, renewable energy, and ICT.
- The Government must deepen engagement with communities, especially women, youth, and marginalized groups, in shaping and implementing diversification policies.
- Akwa Ibom State Government must align state policies and budgets with the realities of the global energy transition to ensure that “Akwa Ibom Beyond Oil” moves from rhetoric to reality.
Signed:
- Network Advancement Program for Poverty and Disaster Risk Reduction (NAPPDRR)
- TheMail Newspaper Clement Isong Foundation
- Youth for Change Initiative
- Accelerating Social Impact Initiative
- Connected Development
- Ibom Peer Foundation
- Niger Delta Youth Parliament
- Plasticultured
- GbeduHQGebuii
- Psychotherapy Consult Ltd.
- Eddy Monday
- Aniekpeno Nelson
