Victor Attach, Governor of Akwa Ibom State

Akwa Ibom boasts mineral deposits as well as oil.

By James Overly

The struggle between federal and state governments over the spending of financial resources is one of the recurring themes of Nigerian politics.

At independence in 1960, Nigeria was an agrarian state. The federal government shared about 50 percent of its revenue with Nigeria’s states and regions. As the oil boom began in the 1970’s, Nigeria’s military government began a series of moves which significantly increased the federal government’s share. This left a mere pittance—about eight percent—to support state and local governments, and more importantly, economic development in the states. These policies continued after the return to civilian rule in 1999.

Over-dependence on oil, inept military government policies and management, and lack of basic infrastructure development has led to significant economic decline in Nigeria. In all important areas of the economy except oil, Nigeria has declined in production since independence. As a result, by 2002, says the State Department’s Background Notes, Nigeria’s per capita income had plunged to about one-quarter of its mid-1970’s high – an amount below the level at independence.

Especially impacted by these developments were the states in the Niger River delta, including Akwa Ibom, historically the poorest area of Nigeria. Despite the fact that the biggest share of Nigeria’s offshore oil wealth is generated from these states, they received no income from oil; the federal government had decreed that all revenues from off-shore oil belonged to the federal government. With the lack of revenue, vitally needed economic development projects had no funding.

It was against this economic background, as well as, in his words, Nigeria’s "ethnic rivalry, nepotism, corruption, uncaring exploitation and marginalization of minority groups, as well as unmindful pandering to a decadent, parasitic ruling class," that Victor Attah was elected governor of the state of Akwa Ibom in 1999.

Governor Attah came to office with a vision and a strategic plan to develop Akwa Ibom State. The primary requirement to realize any of his goals was, of course, money. And the most obvious source was the federal government’s oil revenue. Governor Attah knew that the revenue allocation formula had to be altered in increase the portion going to the states. This strategy, however, carried immense political and personal risk. It meant taking on President Obasanjo, a former general, and the majority tribes who dominated the Nigerian government.

To succeed, Governor Attah needed political support from other states. Governor Attah argued that the distribution of natural resource among Nigerian states was broad, and that other states should have control over revenues that could be generated by the development of their agricultural and mineral extraction potential. The concept became known as "resource control," and was defined as a "partnership in development wherever resource abounds" that "develops local competence and builds indigenous entrepreneurship."

It went well at first. Resource control became the rallying cry of all the governors in the so-called "South-South" region of Nigeria. In Governor Attah’s second term, however, as the political struggle grew more intense, some governors developed cold feet. Nigerian writer Dr. Chidi Amuta called resource control "the new face of a resurgent and decadent tribalism."

After a prolonged political and legal battle which the federal government won, President Obasanjo realized that he had won the battle but lost the war—there was strong risk of a passionate political backlash. President Obasanjo reversed course and set up a committee to arrive at a political solution, which was codified and passed by the national assembly in February 2004.
Once resources began to flow into the state, Governor Attah quickly put the money to good use to fund a myriad of infrastructure projects that promise to transform this backward state. Akwa Ibom now boasts:
• a cell phone network that has leapfrogged the state’s communications into the 21st century;
• hundreds of kilometers of paved highways that connect Akwa Ibom to neighboring states and enable farmers to bring their produce to market;
• a power plant under construction that will meet the state’s needs and enable the sale of substantial wattage to the national electrical grid;
• a science park, one of Africa’s first, built with a thoroughly up-to-date computer center to research oil-related activities;
• a five-star hotel and championship golf course being built in a magnificent jungle setting to jump-start an international tourism industry;
• programs providing a range of agricultural incentives that are boosting production of both food and cash crops;
• a local university that is being reoriented toward a technological curriculum;
• contracts have just been let for the construction of a new international airport (by an American firm) that aims to become a maintenance center for West African aircraft.

Governor Attah also moved to privatize some of the moribund state-owned enterprises inherited at the time of independence. The most successful include a brewery and a paint factory.

The Attah administration has shown a large measure of flexibility in the implementation of his projects. If private financing could not be arranged to start one of his projects, he used state money to back the venture, with plans for rapid government divestiture of equity as the project gets off the ground. As he himself wryly noted, "Government does not usually do well in production."

If Governor Attah realizes his vision, Akwa Ibom will be transitioning to a knowledge-based economy by 2010. Equally important, however, is what his leadership has meant to the people of his state. He is almost universally respected in his state, and has become chairman of the Nigerian governors’ council. Akwa Ibom people are gaining confidence that they can make progress toward a better life, and solve their own problems. Professor Ime Ikeddeh, Dean of the postgraduate school at the Univerity of Uyo, marveled at what’s been happening in his state: "We elected a governor, and got a messiah."

All this from a province that was no longer satisfied with a pittance. An old Nigerian proverb says it well: "Courage is the father of success."