As Akwa Ibom State celebrated its 37th anniversary on September 23, 2024, concerns over its economic diversification have come to the forefront. Despite ranking 17th in Nigeria's Human Development Index (HDI), the state grapples with significant challenges, including a poverty rate of 47.8% and an unemployment rate of 31.4%. The state's GDP per capita stands at $2,400, placing it 14th among Nigerian states, which raises questions about its economic viability and growth potential [98d5ae3a].
In a recent address, Professor Damian Mbaegbu, a Business Management lecturer at Igbinedion University Okada, emphasized the critical need for economic diversification across Nigeria to achieve national prosperity. He argued that Nigeria is rich in resources and should not experience widespread poverty if managed effectively. Mbaegbu highlighted that over 80% of the population is affected by economic downturns, which he described as self-inflicted due to poor governance and exploitation by the ruling class [56afab18].
From 2011 to 2015, Akwa Ibom received a staggering N1.4 trillion in federal allocations, yet the benefits of these funds have not translated into sustainable economic development. Leadership failures and corruption have been cited as major impediments to progress, prompting calls from economists and local leaders for a renewed focus on economic diversification into sectors such as agriculture, tourism, and industrialization [98d5ae3a].
Mbaegbu warned that mass poverty leads to insecurity and reduced foreign investment, making a strong case for enhanced agricultural, manufacturing, and trade initiatives. He also called for political restructuring and social re-engineering to address these systemic issues [56afab18]. Prominent economists, including Prof. Pat Utomi and Dr. Biodun Adedipe, have echoed similar sentiments, emphasizing the urgent need for transparency and accountability in governance. They stress that fostering entrepreneurship and vocational training is critical for empowering the local population and driving economic growth. The need for a people-centric governor who can effectively address these challenges and implement a robust economic strategy has become increasingly evident [98d5ae3a].
The situation in Akwa Ibom reflects broader issues within Nigeria, where many states struggle to diversify their economies and reduce dependency on federal allocations. As the state moves forward, the focus on sustainable development and effective governance will be crucial in shaping its economic future [98d5ae3a].