Invest In Agriculture

 Background

 Rice Production and Cultivation

Rice is a staple food and the most rapidly growing food source in Africa. It also serves over half of the world’s population. Yet its production if facing serious constraints, with diminishing land and water resources, hence the current global initiative towards its sustainable production.

The Niger Delta is one of the wettest places on earth. Most of Bayelsa, which occupies the central Niger Delta, is very wet, an indication of its suitability for the cultivation of wet rice. Baylesa has a natural and environmental advantage for profitable investment in rice production. The floodplain soils, back swamp soils and the mangrove swamp which are suitable for rice cultivation constitute about 7,134.68km2 (52.42 per cent) of the total land cover of Bayelsa.

Investors can team up with local farmers or public agencies. The Burma rice project undertaken by Agip illustrates the viability of such partnerships. Presently, few farms in small private holdings are operational. The major private rice farms like the Otuokpoti rice farm in Ogbia Local Government Area and the Akassa rice farm in Brass area, which were providing popular and high-demand rice for the state and its neighbours, have lain fallow for over half a decade because of financial constraints and lack of milling tools.

The 1,200 – hectare Peremabiri rice product established in 1958 by the Niger Delta Development Board, and inherited by the Niger Delta Basin and Rural Development Authority, has been out of use since 1992. at the moment, all rice consumed in the Niger Delta States is imported. A major investment in rice production in Bayelsa State would obviously by a productive economic venture to cater for the growing need for the staple food by Nigerians, and allied industries, as well as for export.

Plantain and Banana

Plantain and banana are among the major food crops grown by indigenous farmers in the state, and constitutes high-demand food items in this part of the world. With available fertile soil for large-scale cultivation, commercial production of these crops is necessary to supply the food needs of the local population and that of neighbouring states, and for export.

Plantain and banana are also ready raw materials for the commercial production of chips and canned or bottled fruit drinks. The present cultivation of these crops in small and medium holdings can support such industries. The plant population of plantain ranges between 1666 – 2500 per hectare, with a yield range of 800 – 1000 bunches per hectare. Individual farmers I the state currently cultivate about three hectares of land for plantain production. This means the production level is good enough for local and export needs, but requires a major boost to propel greater investment.

Poultry

There is dearth f poultry products in Bayelsa State, even in the face of sky-rocketing demand for eggs and chicken, which are basic sources of animal protein. At the moment, Rivers and Delta States supply poultry to the open market and catering businesses. A great potential thus exists for the development of large-scale poultry farms In Bayelsa State. The few poultry farms that exist are in smallholding. Large-scale poultry farming to produce egg and broilers, as well as turkey farming, feed production and marketing, would certainly be lucrative and economically worthwhile investment in the State. But such business would also have to overcome the challenge of common poultry diseases like booder pneumonia, gumboro, coccidiosis and fowl typhoid.

Invest In Infrastructure

 Background

Created out of the former Rivers State on October 1, 1996, Bayelsa is still a relatively young Nigerian state whose infrastructure development has been in response to the pace of socio-economic development. Presently, the government is offering opportunities for private sector participation in the form of individual investments and partnerships that, it hopes will contribute to rapid growth and development. Investment opportunities thus exist in the areas of housing and hospitality, commercial infrastructure development and telecommunications.

Housing & Hospitality

The large influx of businesses in Bayelsa, especially in the oil, banking, communication, commerce, education and civil service sectors, is increasing the state population, which places an urgent demand on accommodation. Investments in real estate, for building of new homes, hostels, office complexes and hotels at strategic locations are needed. Although developmental necessities may bring a number of area into focus for this type of investment, investors may presently target the state capital Yenagoa, Brass and Amassoma.

Markets & Commercial Buildings

Increased commercial activity in Yenagoa has created its own problems. The existing central market is congested and thus limits the stocking and selling of various goods. Itinerant traders, hawkers and illegal structures have sprung up, constituting a threat, not only to the city’s aesthetics but also to public order. This state government is looking for private investors to help build a well structured market in the state capital.
Also, individual investors can engage in the construction of shooping centres and warehouses around the city. Meanwhile, the imminent launch of the Nigeria Liquefied Natural Gas project in Brass is bound to generate increased commercial activity. This should also greatly inform investors choice.

Telecommunications

Bayelsa also offers investment opportunities in telecommunications. More wireless networks, especially GSM, are required to boost the present loca area network by NITEL and the GSM network that operates in Yenagoa and other parts of the state to facilitate ease of communication and business growth.

Water Transport

About 45.16 per cent of Bayelsa’s 12,000km2 land area of covered by water. Boats, from hand-paddled canoe, ferries and speedboats, are therefore the main way of moving cargo and people around. Marine travel is expensive yet in high demand as all local government areas can be reached via the waterways.

The neighorring states of Delta, Rivers and Anambra are also accessible by water from Bayelsa. There is additional pressure to move goods between Port Harcourt and other neighouring commercial cities, as well as Bayelsa communities, especially Yenagoa. The oil industry has also created the need for a constant and rapid transport syste.

The expanding tourism sector creates an added demand, making passenger and cargo transportation by boat a particularly high-activity area to invest in. in the meantime, the Bayelsa State government is looking into providing transport on designated water routes. But the need for more investment in this area is till urgent.

Boat Building

The prominence of the water transportation network creates a potential for investment in the boat-building industry. Canoe-building is a major craft throughout the state, meeting the people’s water transport needs, especially rural dwellers. The same can be said for ferries, which have low fares and are regarded as safe.

However, speed-boats, made with plastic and fiber-glass hulls, are faster and preferred by urban dwellers and visitors. At present most of the locally made speed boats used in the state are built by Almarine and Epenal boat builders, both based in Port Harcourt, the Rivers State capital. There are two boat building yards in Yenagoa but they are less well-known. This leaves lucrative room for investment in speed-boat building in Bayelsa State.

Ports

The deep-sea channels of the Nun River estuary in the Brass area provide the potential for development of a modern seaport in Bayelsa State. During the Atlantic slave trade, when the Portuguese, Spanish, French and British made contact with the Niger Delta, Brass became a leading city state in the region. Foreign traders used its port in Akassa to ship slaves and subsequently legitimate produce. The inland waterways are also navigable by light sea-going vessels. With the growing development of the oil industry and Nigeria’s export drive, a seaport in Bayelsa becomes a necessity. Meanwhile, the government is privatizing national seaports, including those in Lagos, Calabar, Port Harcourt, Koko, Bonny and Sapele. This is an indication that private participation is sought in this economic sub-sector. Presently the Agip oil export terminal at Twon-Brass serves as an export route for Nigeria’s oil.

Invest In Forestry Resources

Background

The rich forest resources of Bayelsa offer opportunities for investment in three major areas, namely timber and non-timber forest products (NTFP), mangrove resources and conservation.

Timber Processing

The fresh water and brackish water swamp forest, as well as the riparian forest formations in Bayelsa State, represent a rich ecosystem that is home to a variety of commercially important species of timbers. Some of the more common include irodo, bau, cotton tree, iron tree and mahogany. Forest timber supplies the building and construction trade, furniture makers and boat builders and chemical industries, as well as providing fuel wood and charcoal.
Sawdust is also useful for making particle and paper boards. Investment in these areas is possible in the small, medium and large scale.

Presently, timber felled in Bayelsa forests are transported as logs either by road or bonded and floated along the waterways to Port Harcourt sawmills in neighbouring Rivers State. Some is processed locally at small mills to feed the woodwork industry, timber sheds and the building and construction industries. A small amount of sawed wood is loaded for sale outside the state.

 Non Timber Forest Producst

Bayelsa forest also provide niches for a variety of bio-resources of high economic value. A variety of forest plants can be exploited for food, industry and medicines – for example, palms, wild fruits, spices and vegetables, rattans and canes. These non-timber forest products are currently under-utilized. The following investments can be development from the NTFPs.

Palm Wine - Raffia palm, from which palm wine is tapped, grows extensively in Bayelsa swamps and represents huge potential for industrial development. Spin-off area include: palm wine bottling plants for processing and storage of fresh palm wine for local consumption and export; distilleries for local production of gin for local consumption and export; factories for the production of dry yeast for baking and medicinal purposes plants for the production of industrial and laboratory grade ethyl alcohol (local gin has a high concentration of alcohol).

The raffia palm trade is extensive in the Ogbia, Sagbama, Yenagoa, Southern Ijaw and Ekeremor local government areas of Bayelsa State. Communities of palm wine tappers create makeshift camps in the swamps where they distill palm wine into gin locally called kai-kai. Both fresh palm wine and gin are consumed locally and are very useful in herbal preparations for diseases like malaria and yellow fever, and gastro-intestinal problems. Gin is also sold out side the state.

Other useful products from raffia palm are raffia fibre and piassava, used for making of footmats and ropes, bamboo poles and thatch for roofing. These products can drive small-scale investments and create jobs.

Snail Farms - Snails, especially the giant African land snail, are locally hunted in Bayelsa State forest. This wild resources supports the livelihood of people who sell both live and prepared (fried) snails, usually at bus stops and in markets. This highly nutritious food is considered a delicacy in most parts of the country but demand presently outstrips supply. Snail farming , both in the natural and artificial environments and in medium and large-scale establishments, would certainly be a beneficial investment for Bayelsa. Snail shells may also be useful in animal feed production.

Bee Farming - Honey is undoubtedly a product of very high value. As a nourishing, energy-giving food source, it is considered to be one of the super nutritional terms. Locally, it is also valued for its medicinal properties. In Bayelsa, honey is obtained in the wild from forest honeybees, mostly in the northern part of the state and in the Southern Ijaw area. But honey can also be produced with less risk and greater productivity in bee-keeping farms. This is an undeveloped area locally offering a tremendous investment opportunity, given the local abundance of bees. Apiaries could be established in the extensive and relatively undisturbed forests in the upland and riverine parts of the state.

The state’s Agricultural Development Programme (ADP) is meanwhile encouraging interested indigenous farmers to go into bee-farming by providing training courses. In addition to honey, other products from bee farming are bee’s wax used in the production of candles and medical applications, and propolis, which is useful as an adhesive and also sold in the west as a herbal remedy. Agriculture in Bayelsa would produce honey and related products for local use and for export.

Mangrove Trees - The mangrove forest belt in Bayelsa State is massive, covering 3,107.76km2 or 22.88 per cent of the total land cover. It provides ecological niches for its associated biodiversity, with various species of flora and fauna yet largely untapped. Its resources include timber and logs, fuel wood and charcoal, shrimps and prawns, periwinkles, oysters, lobsters, salt, tannins and dyes. Many medicines are made from mangrove for the treatment of skin disorders, headaches, rheumatism, snakebites and ulcers. Locally, the use of leaves of the red mangrove to treat skin rashes and insect bites is well known. Products like pulp, rayon and toilet paper can also be derived from mangrove trees. Mangrove forests in Bayelsa are a rich sources of raw materials but remain underutilized.

Conservation

The forests are home to rare and endangered animal and plant species which must be protected to preserve the ecosystem and biodiversity. This underscores the importance of our forests. In Bayelsa State, with 3,801.06km2 of forest area making up 27.98 per cent of the total land cover, there is a rich variety of biological communities of rare plant and animal species that could be conserved for socio-economic benefits, including medical research. Local forests could be leased out for scientific research purposes, or for use as game reserves, where local fauna is conserved and visitors can watch animals in their natural habitat. The mangrove ecozone is a remarkably important habitat for birds, mammals, crustaceans and fish. Conservation could bring great economic gains in the short term as well as offering opportunities for patented discoveries originating from the forests of Bayelsa.

Invest In The Agro-Based Indusry

Background

The agricultural base of Bayelsa State is extremely rich. Food and tree crops like cassava, plantain, sugar cane, coconut, oil palm, raffia rapfia palm, African mango, rubber and seasonal food crops like maize and fruits, as well as timber, which are abundant locally and can provide sources of raw materials for allied industries. This defines the need for agro-industrial development that involves the utilization for these resources in cottage and large-scale industries to serve local needs, and also for export. Along these lines, the potential exists for the establishment of a variety of industries in the state.

Food Storage & Export

This offers the opportunity to store and preserve excess production, especially for seasonal crops that are perishable over short intervals of time but are in high demand for direct consumption and as raw material input in allied industries. In the fruiting period of seasonal crops, waste is inevitable as farmers race against time to dispose of their products. As much as this reduces the economic value of farmers’ produce, it also diminishes morale, puts a clamp on productivity and so affects the overall local food production industry.

The Bayelsa State Government, in its resolve to join the International Alliance Against Hunger, is interested in providing central storage facilities to cater for excess production in order to minimize losses by farmers. However, non is yet in place. Food storage and preservation facilities would open up avenues for intense activity in crop production and increase the opportunities for exportation of crops such as plantain, banana, pineapple, orange and grains, which are readily available. With a steady source of power in the state, there are no peculiar or insurmountable challenges to this investment option.

Beverage & Food Drinks

The fruit drink/juice industry can be supported by the increase production of various crops like pineapple, banana, pawpaw, African Mango, Cocoa, Maize and Coconut. Such industries are as yet non-existent in Bayelsa. Opportunities exist for small, medium, and large-scale investors in the industry.

Cassava Processing

Cassava is the source of garri, a staple food made of cassava flour. Almost every household in a rural areal has a cassava farm. In Bayelsa State, it is extensively grown in all the local government area, and serves also as a source for fufu (a starch-like food), starch, tapioca and farina. It is one of the major crops which the government is interested in development the encouraging investment in. local farmers are already benefiting from the government’s cassava commercialization programme, through the provision of planting materials available to cassava farmers.

The two major species of cassava produced in the state the bitter cassava and sweet cassava. However, the state’s Agricultural Development Progamme (ADP) is encouraging farmers to plant improved varieties, which also made available to them. With a cassava plant population of 10,000 plants per hectare, average yield of 15 – 25 tonnes per hectare and an estimated land cultivation rate of about 3 hectares per season per farmer, current cassava production in the state is enough to support local need and exports. With the government’s renewed effort in the cassava programme, where local farmers receive improved species and planting materials, production expected to accelerate. This would certainly drive the anticipated industrial revolution in cassava-based industries in the state.

Basically, every aspect of the processed tuber is useful, but derived utility is always limited by exhaustive processing due to the lack of adequate modern processing facilities. Cassava is useful as a raw material for a variety of products, and its abundance would support cottage and large scale industries throughout Bayelsa State. The following potentials may be developed :

Garri Processing

This would enhance the widespread production of garri for local consumption and for export, provide chips for food production and create employment opportunities. At present, traditional methods of processing cassava into garri are used, but takes two days. Virtually every households can produce garri from cassava using local means. The use of grating enginesto grind cassava tubers is the only mechanized aspect of the process; the squeeze-drying, sieving and frying aare manually done. These take time and inhibit large-scale production. A cassava processing facility would also produce fufu flour, which is an export product, especially in the West African sub-region.

Bayelsa State is a member of the Cassava Group in Nigeria. In 2003 the state government announced plans to establish cassava processing plants in the cassava belt. Some have been established, although non is yet established, this informs the need for investment in this area.

Starch Industry

Industry starch can be readily processed from cassava. This would served the needs of textile, drug and papare industries. No such industry is currently available in Bayelsa State, but one which could be sustained by the rich raw material base. This product could be branded for local need and for export. Ethanol can also be produced from cassava.

Sugar Industry

Intensive farming and abundant production of sugar cane in Bayelsa State provides investment opportunities for sugar production, for local consumption and export. Brown sugar is useful in food and industrial application, e.g. in brewing and pharmaceuticals. Industrial alcohol is also derivable from sugar can processing. At present sugar supplies to the state, and most of Nigeria are from imports. A local sugar factory sited economically advantageous. Non is available at present. Sugar cane harvested in local farms is distributed within the state and also collected at urban markets for sale to dealers.

Palm Oil Processing

The oil palm tree is the most ubiquitous crop in this part of Nigeria.  In Bayelsa State, wild groves of oil palm trees are the major source of edible oil.  Indeed, Bayelsa State is a major producer of oil palm/palm kernel in the country.  Government owned and small individual holding plantations are also available.  The abundance of this cash crop is a potential for investment in palm oil processing and allied industries in the state.

Palm Oil Mills

Palm oil processing mills would employ modern techniques for the commercial production of palm oil, palm kernel and kernel oil from the palm fruits. In some communities in Bayelsa State, the traditional methods of boiling and pounding to extract oil, and manual cracking of the nut to obtain the kernel are used. However the old screw-type hand-press device is still in use in small mills in most communities. Hence production is obviously limited. Large-scale production of palm oil requires modern tools and large capacity process in mills. The state government has installed a 10/20 tonne/hr oil mill to take care of the processing needs of its 1,000-hectare oil palm plantation in for investment in oil palm production as the mill’s capacity need at least over 50,000 hectares to satisfy capacity. This is a large capacity for exportation of processed oil palm products including palm oil (edible oil), palm kernel/kernel oil. But would also be lucrative to employ them as raw materials for the production of high-demand products.

Palm Oil Associated Industries

Large-scale availability of palm oil and kernel is an attractive potential for investment in the production in the production of Vegetable Oil, Detergents and Soaps. The ban on importation of all classes of soaps in the country in January, 2004 creates opportunities for investment in this area, such as cream, pomade, industrial oils and industrial alcohol Crushed kernel provides feed extract for fish and poultry farming. Non of such industries presently exist in Bayelsa State despite the large consumer market.

Coconut Processing & Export

Coconut is moderately grown in homesteads in most parts of Bayelsa State; but most commonly in the Nembe and Yenagoa area. It is also cultivated in plantations and dispersed naturally by water; hence it grows in most riverine areas and beaches. The coconut fruit is consumed locally and used for export. Its concentration in Bayelsa State provides investment opportunities in lowing areas: the development of coconut plantations; confecting industry; production of coconut-flavored confectioneries; cosmetic industry, the production of cream, soaps and oils; export of processed products/coconut fruits. By-products of coconut processing can also be used for feed in agriculture and poultry farming. Presently, the coconut fruit is yet to be utilized in any of these ways in Bayelsa or neighouring states.

Rubber Processing

Rubber tree are commonly found in Bayelsa State, with plantation mostly based in the Ogbia and Sagbama regions. The lack of industrial demand for rubber in Bayelsa State has had a negative impact on rubber cultivation. However the current situation provides opportunities for investment in: the development of rubber plantation; rubber processing factories for production of latex and glue for the wood, paper, leather products and allied industries. Rubber seed oil is used in soap and paint manufacturing, for production of soap, liquid soap and alkyd resins for paint making. Rubber seed cake is useful as protein substitute in animal rations, especially in poultry.

In the meantime, latex tapped from plantations in Bayelsa is sold for industrial use in rubber processing factories in the neighouring Delta State. A local rubber factory would have a steady source of raw materials within Bayelsa State.

Invest In Fishries & Aquatics

Background

Fisheries and aquatic resources are among the major natural endowments of Bayelsa.  The demand for fish in Nigeria is rising due to the prohibitive costs of animal meat.  Also, the active development of the fisheries sub-sector and utilization of the abundant aquatic resources guarantee high foreign exchange earnings and a positive impact on unemployment figues in the country.  There is also the guarantee of a handsome return on investment.  There investment areas are identified under fisheries and aquatic resources, namely fish, sea food and spin-off industries and aquatic plants.

Fishing

The vast water resources of Bayelsa, where the sea, rivers, creeks, rivulets, lakes and swamps constitute a greater percentage of the total land cover, offer enormous potential. Fish and sea food may not be quantifiable but their abundance is demonstrated by the successful all-year round fishing in the state, thus creating a huge industry for both artisanal and mechanized fishing. However, presently fish production in Bayelsa is disappointingly low. Current artisanal coastal fishery production is estimated at 70,000 tonnes annually; but potential production is estimated to be in the region of 200,000 tonnes per annum. Inland fishing, including agriculture, is insignificant because of seasonal effects, inadequate participation, and business development constraints. Opportunities in fisheries development thus clearly exist.

Fishery resources in Bayelsa State are exploitable for large-scale investment Brachish, marine and inland fisheries (including swamp and lakes) produce a wide variety of fin fish and shellfish species of high food value and commercial importance. Some common fish species available in Bayelsa waters include saltwater species like bonga, sardines, shed, mackerel, jacks, Atlantic bumber and long neck croaker; freshwater species such as cat fish, tilapia and zilli.

Investment potential in fish/fishing include commercial large-scale fishing / trawling; deep-sea fishing; commercial agriculture fish farming / pond development; fresh fish preservation, freezing, and storage and export; canning for local and export market; fish oil and fish meal production.

Presently in Bayelsa State, fishing in the brackish and coastal marine zones, and the inland freshwater is done by both full-time and part-time fishermen and women, including children. Full-time fisher folk are found in temporary or permanent settlements of fishing villages scattered along coastline of the state and by the banks of big rivers. Local fishermen and women work from canoes using a variety of low tech fishing gear. In the brackish and coastal marine zones larger canoes or trawlers are used. Great opportunity abounds for large fish trawling and improved fishing methods to facilitate large catches.

Fishponds & Natural Lakes

These also contribute significantly to the state’s fish supply. Conducive conditions for agriculture development are provided by the numerous freshwater swamps. The lakes are owned by individuals, compounds or communities and could also be leased to fishermen for specified periods. Fingerling (young fish) stock is also ensured by the vast fishery resources in the natural environment. The state’s agricultural development programme is promoting agriculture by providing technical assistance to farmers under the Federal Government’s Special Programme on Food Security.

Shellfish

The rich fishery resources of Bayelsa also include a variety of sea foods, including scallops, oysters; periwinkles, crabs, lobsters, shrimps, prawns and crayfish. They are in high demand, and commercial trawling or deep-sea fishing is required to meet food needs and other applications, especially the demand for seashells.

Seashells

Man’s earliest use of shells was as tokens of wealth, love and ornamentation. Today, shells, especially seashells, are used in interior decoration, craftwork, and as collectors’ items. They are also in high demand as tourist souvenirs. Seashells are also utilized in a variety of industrial application, as in the production of lime, whitewash, calcium concentrate for animal feed and toothpaste. The potential in this industry can easily be developed, thanks to the plentiful supply of the product.

Pearls

Local oysters cling on to the prop roots of mangrove trees and produce pearls from substances they secrete as a protective measure against foreign matter.  Pearls can also be cultured.  Both wild and cultured pearls are considered precious and carry a high price on the world market.  Oyster fishing/farming in Bayelsa could form the basis of such a niche industry.

Aquatic Plants

Two of the world’s most invasive plants have become established in the Niger Delta.  Although there is an ongoing programme to control them, they both posses economic potential.

Water Hyacinth

This is a free-floating plant with shiny green, round to oval leaves, bulbous and spongy stems and feathery, purple-white roots, suspended in water.  It is one of the fastest growing plants known to man.  It colonizes freshwater bodies at such a rapid rate that it doubles its population within 12 days, with an unusual ability to thrive under a wide range of environmental conditions.  It is also a menace because of the way it clogs waterways and prevents sunlight from reaching the water column and submerged plants.  In the Bayelsa freshwater zone, the water hyacinth is a common sight, constituting a hindrance to water travel, swimming and fishing.  However an industry could be created around this waterweed that would provide an avenue to control it and also convert it into an economic venture the following applications are possible: production of paper; fibre board, yarn and rope and biogas, weaving / basket making, fertilizer, animal fodder and fish feed.

Nypa Palm

The nypa palm is perhaps the only palm that graows well in mangrove swamps.  Native to southeast Asia, ti was introduced to Nigeria between 1905 and 1912 for coastal erosion control along Calabar and Oron coasts. However, today the palm poses a threat to the mangrove forests. Dispersed by water, it is invasive, with the potential to colonize the entire Nigerian coast.  But like the wate hyacinth, it could become economically productive by development an industry around it.  It can be tapped for its sweep sap, while its flower petals can be brewed into for making baskets and cane chairs, and for thatching.

Invest In Mineral Resources

Background

Minerals represent yet another of the generous endowments of natural resources existing in Bayelsa State. The state is rich in oil, natural gas and a variety of solid minerals. These create opportunities for diverse kinds of investment in the various economic sectors including energy, manufacturing and services.

Energy Sector

Enormous investment exist in the energy sector in Bayelsa State and comes under two sub-sectors, namely oil and gas and power generation.

Oil & Gas - The oil and gas or petroleum sub-sector of the economy is the most prominent in Bayelsa State, and indeed Nigeria, because it forms the pivot of the nation’s economy. Oil and gas from the Niger Delta region as a whole, account for about 90 per cent of the nation’s foreign exchange earnings. Bayelsa State contributes about 40 per cent of this wealth. The state’s enormous reserved of crude oil creates ample room for foreign investment. Of the three giant oil reservoirs in the Niger Delta with a potential for 1bn barrels production, two are in Bayelsa State, namely Nembe Creek and Gbarian field. The state is a hive of oil industry activity as operators set up their facilities upland, in the swamps and creeks, and off shore. The major operators in the oil industry in the state are Shell, Agip, Chevron Texaco, Consolidated Oil and State Oil. Opportunities abound for new investments especially in the following areas.

Petroleum Prospecting & Refining - Recent development in the Nigerian petroleum sub-sector have facilitated local and private participation in upstream activities. Some Niger Delta state governments and indigenous companies have been offered marginal oil fields to prospect. With the abolition of the onshore-off-shore oil dichotomy, the littoral states, of which Bayelsa is one, stand to derive enormous gains. Private refineries have also been licensed. Foreign investors have opportunities to entre into discussions with the Bayelsa State government about joint venture partnerships to operate in the upstream petroleum industry. Currently, the nation has three petroleum refineries located at Port Harcourt, River; Warri, Delta State, and Kaduna, Kaduna State. However, there is need for a refinery in Bayelsa State.

Gas Plants - Nigeria flares about 70 per cent of its associated natural gas in the Niger Delta region. Such flares are found in all flow stations spread on-shore and off-shore in Bayelsa and other Niger Delta state, even as gas gathering projects of Chevron Texaco and Nigeria Liquefied Natural Gas Company (NLNG) are on-going. The Oluasiri Gas Supply Plant in Nembe Local Government Area of the state supplies 53 per cent of the NLNG’s gas feed stock in Bonny, in Rivers State.

Opportunities exist for investors to build gas plants and utilize available gas for production of LPG cooking as and industrial gases, gas and industrial gases, which are in high demand. In the urban centres, LPG is the most sought sources of cooking gas. In Yenagoa, the Bayelsa capital, there is LPG plant and retailers get their stock from Port Harcourt, the neighbouring Rivers State capital.

Petrol Chemical Industry - Petroleum production in the Niger Delta offers potential for investment in the petrochemical industry for the production of chemicals and allied products for industrial use; for example, plastics and fertilizer industries.

Oil Servicing - In Bayelsa State, the oil industry offers opportunities for technical services ranging from seismic and othe geotechnical, drilling, pipeline, dredging and water transport, diving and underwater services, to environmental response and management services.

Power Generation

Independent Power Plants - As well as being a basic household amenity.  Power is the bedrock of all economic activities.  In Bayels State, the government provides domestic electricity free of charge through the state-owned Kolo Creek Gas Turbine Plant at Imiringi.  While its power supply reaches most upland areas, it is hoped that the coastal local government areas will soon be connected.  There is great room for private investors to ventures into electricity generation and supply in areas where power remains inadequate.  This is especially in the light of local industrial take-off, when industries are expected to be situated in various parts of the state close to the raw material source.  With abundantly available gas at the various flow stations as a ready source of power, independent power plants would operate with ease.  The recent federal government policy on deregulation favours the investment.

Solar Energy - The peculiar terrain of Bayelsa, one of criss-crossing rivers and creeks, freshwater and mangrove forests may pose difficulty in the generation and routing of power lines to the urban and local communities in such areas.  This creates the potential for investment in a solar energy plant for power generation and supply.  Bayelsa’s long coastline, which is free of vegetation, provides a suitable location for such plants.  Investors may open up discussions with the Bayelsa government to develop these opportunities.

Invest In Oil & Gas

Background

The following fiscal incentives have been approved by the government in the gas production phase:
The tax rate under the Petroleum Profit Tax (PPT) Act to be at the same rate as company tax which is currently at 30 per cent; capital allowance at the rate of 20 per cent per annum in the first four years, 19 per cent in the fifth year and the remaining 1 per cent in the books; investment tax credit at the current rate of 5 per cent; royalty at the of 7 per cent on shore and 5 percent offshore.

Gas Exploitation (Upstream Operations)

All investments necessary to separate oil from gas from the reserves into suitable products are considered part of the oilfield development; Capital investment facilities to deliver associated gas in usable form at utilization or transfer points will be treated for fiscal purposes as part of the capital investment for oil development;
Capital allowances, operating expenses and basis for assessment will be subjected to the provisions of the PPT act and the revised memorandum of under standing (MOU).

Gas Utilization (Downstream Operations)

Incentives to encourage the exploitation and utilization of associated gas for commercial purpose include:
An initial tax-free period of three years renewable for an additional two years: 15 per cent investment capital allowance which shall be reduce the value of the asset;
All fiscal incentives under the gas utilization downstream operation in 1997 are to be extended to industrial projects that use gas in power plants, gas to liquid plants, fertilizer plants and gas distribution/transmission plants;
The initial tax holiday is to extend from three to five years; Gas is transferred at 0 per cent PPT and 0 per cent royalty; Investment capital allowance is increased from 5 per cent to 15 per cent; Interest on loans for gas projects is to be tax deductible, provided that prior approval was obtained from the federal ministry of finance before taking the loans; All dividends distributed during the tax holiday shall not be taxed.