The Economy of the South-South: Bayelsa State

The first thought that comes to mind when I think of the South-South region is the fact that most of the states are large oil producers, but is that all the region has to offer? You must be familiar with the phrase ‘tax is the new oil’ and it is not merely a phrase but a reality that is being birthed.

In recent times, some of these oil producing states have struggled with internally generated revenue (IGR) as they have been largely dependent on the Federal Government’s monthly allocation, especially because they have an additional big share of the ‘national cake’ which is 13% of oil proceeds. Unfortunately, Nigeria does not determine international oil prices and the rate at which it has been fluctuating has affected these states ability to fund their budgets and be self-sufficient.

Bayelsa State was established in 1996 and has Yenagoa as its State Capital. The State was carved out of Rivers State. The state covers approximately an area of 9,059 square kilometres. It is estimated that the population is about 2.27 million.