Rivers State’s $28.4 billion economy comparable to Rwanda and Botswana, is being held hostage, without any drive for growth for four months by the Martin Amaewhule-led State Assembly’s non-passage of the 2026 medium term expenditure framework (MTEF) of N1.85 trillion, which was submitted to the legislature by Governor Siminalayi Fubara.
The continued reluctance of the FCT minister Nyesom Wike-controlled State House of Assembly to facilitate the approval process for the State’s budget has kept the oil-rich state’s economy on freeze.
Many financial experts and analysts have been wondering at whose benefit is the impasse. The state House of Assembly, led by Speaker Amaewhule, formally rejected Governor Fubara’s plans to present the 2026 MTEF and Appropriation Bill. The lawmakers declared they will not receive or approve any budget proposals until ongoing investigations into alleged gross misconduct against the Governor have been concluded.
Details of a standoff
Members of the Assembly passed a motion stating they will not proceed with the 2026 MTEF or budget until the allegations — which include unconstitutional expenditure and neglecting legislative processes—are addressed.
Citing Section 188 of the 1999 Constitution, the lawmakers initiated impeachment proceedings against both Governor Fubara and his deputy Ngozi Odu, insisting there were reckless spending and budget failures by the governor.
The state executive council had approved a N1.85 trillion budget proposal for the 2026 fiscal year. The standoff has effectively stalled the formal presentation and passing of the state’s appropriation bill. A similar impasse gravely affected the budget of 2025.
There has been disturbing ongoing uncertainty in the state. While political interventions and legal battles have caused fluctuations in the crisis, prolonged periods of legislative inactivity have equally sparked anxiety among stakeholders over governance and fiscal planning in a state that had lost N2 trillion in public sector investment in more than a decade due to unsettled political spat by its gladiators.
Economic reports indicate that Rivers potentially lost over N2 trillion in public sector investments and economic opportunities over the last 12 years. This staggering figure stems directly from prolonged political turmoil, instability, and a resultant decline in investor confidence in a state, which had once shared a similar annual budget with Lagos State.
The key economic impacts of the long political struggle for the soul of the state is the cumulative loss of public sector investments over a 12-year period in excess of N2 trillion. This loss significantly impacted the state’s Gross Domestic Product (GDP), employment rates, and overall economic activity.
At a recent investment summit, Governor Fubara publicly lamented the loss of the state’s rating as a prime industrial hub and preferred destination for domestic and foreign direct investment. To combat this economic downturn, the governor past executive and emergency federal budgets have significantly prioritized capital expenditure to rejuvenate infrastructure and restore investor trust.
Some of the lost investment include: N375 billion (or $250m) World Bank water project that was to transform Port Harcourt into a modern city. Everything was said to be done but the office of the Minister of Finance that was to sign off for its drawdown was allegedly prevented from signing it under Goodluck Jonathan when Wike was very powerful. When Wike became governor, it was learnt that all efforts to revive the loan proved abortive. Result: Port Harcourt remains a borehole city.
Another lost project was the plan to develop the state capital into a fast-moving transport system known as monorail with about N250 billion with over N20 billion already spent by the state government and with most trunks of coaches said to already be at the Onne Port. The project was abandoned when Wike came to power.
Additionally, Port Harcourt was approved to be a modern city by creating the Greater Port Harcourt City by expanding to eight local councils with massive facilities. The project was to consume N100 billion per year for 10 years (N1 trillion) but in total, not up to N100 billion was allotted to it and it suffered what looks like half-hearted status or what many call drain pipes to settle political backers.
There was also a dream to create an agro-village in Etche LGA in partnership with LR of Israel, but the moment Amaechi left office, the project died a sudden death. It was to create a model where farmers were to be partners with lands as equity but get to global standards with the Israelis creating an integrated agric system.
The Rivers Songhai Farm Initiative (RSFI) which was 20 times the size of the original copy in Benin Republic had gulped over N3.6bn and was put for acquisition because it was becoming very viable. John Deere of California was said to have emerged as the preferred bidder. They were said to have planned to use Rivers as a centre for their tractor manufacturing business to target West Africa, but they delayed sealing the deal waiting for the 2015 succession period to see how Rivers State would play. Songhai would have been a Songhai integrated farm centre for Africa as well as tractor and farm implementation automation centre, something Bobtrack is trying to do now.
According to Orayi St. Franklin, a public affairs analyst, “the prolonged delay by the Rivers State House of Assembly, particularly after the reconciliation meeting facilitated by President Bola Ahmed Tinubu, continues to tighten the noose on governance and development in Rivers State.
“Rivers State economy is held hostage: at whose benefit?” he retorted.
He said what makes the situation even more disturbing is the obvious contradiction in the Assembly’s conduct. This is the same Assembly that moved with lightning speed to convene sittings and deliberate on matters surrounding the political crisis in Rivers State, including needless vacuous sessions carried live on national television to promote Wike’s agenda. Yet, when it comes to their core constitutional responsibility to the people of Rivers State, they have gone silent and inactive.
“The question therefore becomes unavoidable: what exactly does Nyesom Wike stand to gain by ensuring that the State budget is delayed? Is the intention not to frustrate governance? Is it not to preserve the commonwealth of Rivers people until his political control can be fully reclaimed? Why should the budget of an entire State be held hostage for this long? What justifies it”?
St Franklin said it is clear that even access to the State’s commonwealth is being restricted by political actors and their loyalists, to the detriment of the people. Yet in some quarters it appears as though it is the Governor who has refused to send the budget, when in reality, the process is being stampeded by the State Assembly.
