CONTENTS

INFORMATION ON DELTA STATE Inadequate power supply – Imposing major constraints on social and economic activities. Environmental pollution and degradation – Resulting in adverse effects on health, environmentand biodiversity. Transport infrastructure – There are inadequate motorable roads and limited inter-modal transportlinkages. Narrow industrial base – Limited infrastructural facilities and enabling environment to facilitaterapid industrialisation process. Unemployment – Which fuels restiveness, conflict and threat to security, law and order especiallyamong the youths. Funding - Poor funding to execute critical projects. Social values, attitudes and conflict – Decline in moral values, greed and self- aggrandisement. Constraining federal laws and regulations – These deprive the State of the opportunities ofoptimally using its resources (including crude oil and gas) to create wealth and serve as disincentiveto investors, limiting investment opportunities and contributing to high cost of doing business. Inadequate housing - Short supply of housing units and basic amenities.All of these challenges are being tackled by the State Government in order to maximize the developmentpotentials of the State.Environmental DegradationThe physical environment of the State exhibits a number of trends: biodiversity loss, declining air and waterquality, poor waste management and unsustainable agricultural practices. Activities of oil and gas companieshave caused considerable pollution and environmental degradation in oil producing communities.Delta State Revenue ProfileThe State has historically been mainly dependent on oil and gas revenues, deriving over 85% of her totalannual revenue from FAAC. The table and figure below shows that revenue from FAAC to the Stateincreased by 84% from N95 billion in 2005 to N175 billion in 2008 but fell by 11.5% to N155 billion in 2010due to the lower world crude oil prices, global economic meltdown and crisis in the Niger Delta area whichreduced the State’s oil production figures.The State’s Internally Generated Revenue (IGR) accounts for less than 15% of total revenue. However, itincreased by 135% from N11 billion in 2005 to N26 billion in 2010. It is important to note that the IGRderives mainly from taxes on salary incomes from the oil and gas sector.46