Application of Matrix Algebra to Input-Output Analysis of the Niger Delta Economy

This study applies matrix algebra and Leontief input-output analysis to examine the structural interdependencies of the Niger Delta economy, with particular attention to the oil and gas sector's linkages with other productive sectors in Rivers, Delta, and Bayelsa states of South South Nigeria. Input-output analysis provides a quantitative framework for tracing how changes in final demand for one sector's output propagate through the entire economy via intermediate transactions, making it a powerful tool for regional economic planning in resource-rich contexts. Data for the study are sourced from input-output tables published by the National Bureau of Statistics and supplemented by sectoral output estimates from the Nigerian Upstream Petroleum Regulatory Commission. A regional input-output matrix is constructed for the Niger Delta, disaggregating the economy into twelve productive sectors. Matrix inversion techniques are applied to derive the Leontief inverse, from which output multipliers, income multipliers, and employment multipliers are computed for each sector. Results reveal that the oil and gas sector, despite its dominant share of regional output, generates comparatively weak backward and forward linkages with other sectors of the Niger Delta economy, a finding consistent with the enclave development thesis advanced in recent regional economics literature. The study argues for deliberate policy measures to strengthen inter-sectoral linkages. Keywords: matrix algebra, input-output analysis, Leontief model, Niger Delta, economic linkages