Niger Delta must shift from oil to production — Alaibe

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Delta State map

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By Daniel Abia, Port Harcourt

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A former Managing Director of the Niger Delta Development Commission (NDDC), Chief Timi Alaibe, has called for a fundamental restructuring of the Niger Delta economy to move the region from dependence on crude oil extraction to production, value addition and regional trade.

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Alaibe made the call on the sidelines of the ongoing Niger Delta Investment and Economic Summit organised by the Niger Delta Chambers of Commerce, Industry, Trade, Mines and Agriculture (NDCCITMA) in Port Harcourt, Rivers State.

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He said the region’s decades of oil production had not translated into commensurate improvements in the living conditions of its people, citing persistent challenges in infrastructure, healthcare, education, potable water and poverty.

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“For more than six decades, this region has connected Nigeria’s natural resources to the global economy. The question before us is whether we can convert that strategic position into something broader and more enduring: a competitive regional economy built on production, trade and investment,” he said.

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Alaibe, who was a lead speaker on “Regional Trade Integration and Infrastructure Competitiveness: Unlocking the Niger Delta’s Economic Potential,” said the region’s economic future should increasingly be driven by production, processing and trade rather than extraction.

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He noted that the Niger Delta had a history of international commerce predating the discovery and exploitation of petroleum, with palm oil traded through its waterways to global markets.

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“Petroleum did not create the Niger Delta’s connection to the global economy. It changed the commodity,” he said.

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Alaibe cited Aba and Ariaria International Market as examples of the region’s entrepreneurial and manufacturing capacity, saying the challenge was to connect such productive clusters to infrastructure, finance and larger markets.

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He said the African Continental Free Trade Area (AfCFTA) had created opportunities for businesses in the Niger Delta to access markets across Africa, but noted that market access alone would not guarantee success.

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According to him, high logistics costs, unreliable transportation, customs procedures, product standards, limited trade finance and border delays remained challenges that needed to be addressed.

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The former NDDC chief advocated an integrated regional infrastructure strategy rather than isolated road, port and airport projects.

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“We must stop approaching infrastructure as isolated projects and begin developing economic corridors that connect production centres to processing facilities, logistics platforms and markets,” he said.

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He proposed stronger links between industrial and agricultural production centres and gateways such as Onne, Port Harcourt, Warri and Calabar, supported by roads, waterways, aviation, warehousing and efficient cargo-clearance systems.

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Alaibe also called for the development of the Niger Delta’s waterways as commercial transport corridors, saying modern jetties, terminals, navigational systems and barging could reduce logistics costs and create opportunities in fisheries, aquaculture, marine engineering, ship repair and coastal tourism.

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“If Nigeria is serious about the Blue Economy, the Niger Delta should become its principal investment laboratory,” he said.

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On security, Alaibe described it as an essential component of economic infrastructure, noting that insecurity could increase the cost of doing business and discourage investment.

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He also stressed the importance of strategic governance and sustained implementation of regional development plans, saying successive plans would have limited impact without effective implementation and accountability.

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“Plans continue to be planned until they are implemented,” he said.

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Alaibe urged governments to balance spending on physical infrastructure with investments that directly improve household welfare through education, healthcare, skills development and economic opportunities.

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He said the region’s objective should be to reconnect its historic trading culture with modern production and infrastructure.

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“Our task is not to teach the Niger Delta how to trade. Our task is to reconnect its historic trading instinct to modern production, modern infrastructure and modern markets,” he said.

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According to Alaibe, achieving the transition would position the Niger Delta not only as Nigeria’s resource base but also as a production platform, logistics gateway and major trading corridor for West and Central Africa.

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