As Nigeria moves forward with its “energy transition” from fossil fuels, Civil Society Organisations (CSOs) are urging Akwa Ibom State, a key oil-producing region, to proactively strengthen its economy by boosting investments in agriculture and tourism.
Groups including BudgIT, Natural Resource Governance Institute (NRGI), and Policy Alert raised this call at a recent policy dialogue organized by BudgIT, aimed at enhancing fiscal resilience in the state.
In her presentation, NRGI’s senior officer, Tengi George-Ikoli, emphasized that not only Akwa Ibom but all oil-producing states should structure their budgets to draw revenue from diverse sources instead of relying heavily on federal allocations.
This approach, she noted, would help shield these states from the impact of the energy shift.
Citing recent reports, George-Ikoli highlighted Akwa Ibom’s 86% dependency on FAAC, raising concerns about how the remaining 14% from internally generated revenue could sustain expenses like salary payments if oil revenues decline.
She encouraged the state government to tap into its tourism and agriculture sectors, noting that with Africa’s longest shoreline, Akwa Ibom has an untapped potential to attract global visitors.
She advised the adoption of a technological system for revenue collection to prevent leakages and called for the Akwa Ibom State Internal Revenue Service (AKIRS) to gain autonomy to reduce corruption and inefficiency within the state’s investment enterprises.
George-Ikoli stated, “Akwa Ibom should diversify its economy, shifting its focus from oil and gas to other sectors such as agriculture and tourism. The state’s tourist destinations should be better packaged and promoted to attract global tourists.”
Enebi Opaluwa, a Research and Policy Analyst at BudgIT, echoed this perspective, expressing hope that Akwa Ibom’s government would address the concerns raised during the policy dialogue to build fiscal resilience. He pointed out that, with ongoing adjustments to its budget and fiscal structure, the state has an opportunity to embed economic diversification within its plans.
Opaluwa observed that certain projects in Akwa Ibom, like the Godswill Akpabio International Stadium, are not sweating — meaning they generate less revenue than they cost to maintain. He urged the state to open such facilities to more income-generating activities.
Opaluwa added, “Akwa Ibom should check the popular renewable energy sector that will help in diversifying its fossil fuel dependence. The state has the longest coastline, and there are things it can leverage on to achieve this objective, such as the hotel industry, Akwa culture, tourism, among others. These are potential sources of business that can be explored.”