The Nation Newspaper

Tag: Expanding

  • Expanding Nigeria’s tax base for economic growth

    BUILDING robust tax system is a must for any economy that is serious in its commitment to growth and development. This could explain why for the first time, the Federal Government of Nigeria and World Bank Group had a consensus on an issue of urgent national importance. Both agreed that tax revenue is a critical contribution, and for Nigeria’s economy to grow and its leadership position in Africa sustained, a reform of its tax system in a way that ensures that more people pay their taxes is paramount.

    All stakeholders agree that tax collection must grow in line with growth in the economy, and this can only happen when the country’s tax base is expanded. Minister of Finance, Kemi Adeosun, believes that Nigeria’s tax system must be dynamic in order to respond to an ever evolving commercial landscape and increasingly technology-driven business models. For her, the current level of tax compliance is low and in some cases, the effective tax rate paid by those that are complaint about is lower than equivalent tax payments in most developed/developing countries. “We must respond to the growing phenomenon of base shifting and other practices that allow companies to evade their fiscal and legal responsibilities. We will critically examine our Gross Domestic Product (GDP) to align taxes with economic activity in our bid to block all leakages,” she said.

    The minister said that those who are not paying taxes have to be exposed. “We only have about 13 million tax payers in Nigeria at the moment and about 12.5 million of them are Pay As You Earn (PAYE). So, all the wealthy and self-employed that pay taxes are only 500,000 in this country. People are going to be invited, and it is really the wealthy and rich that will be invited. We want to be much more aggressive on tax payment, not because we want to witchhunt anyone, but because we have to get our taxes to grow the economy. It is the job of government to ensure revenue redistribution from the high and low,” she told participants at the World Bank Spring Meetings held last month in Washington D.C. Tax collection is the collection of money on behalf of all Nigerians.

    For her, tax administration and technology can be deployed to widen compliance and encourage more individuals and companies into the tax net. In line with this objective, the government is investing in technology to boost tax collection efficiency. For instance, some of the recent initiatives in the Ministry of Finance mean that it is now virtually impossible to obtain a payment from the Federal Government without being fully tax compliant. Therefore, tax payment is part of the social contract between government and people and the most effective measure to enhance compliance is the knowledge that tax revenues are being utilized effectively for the development of the people. Adeosun said revenue mobilisation is critical to the success of Nigeria’s economic reform agenda.

    “We have an unacceptably low level of non-oil revenue, and much of that is driven by a failure to collect tax revenues. With a tax to Gross Domestic Product ratio of only six per cent, one of the lowest levels in the world, we have a lot of work to do if we are going to build a sustainable revenue base that will deliver inclusive growth. Our data gathering programme over the last year has now given us the tools we need to be more aggressive at pursuing tax avoiders, both domestically and abroad,” she said. Speaking further, she explained that as some of her contemporaries in the G24 have done successfully, Nigeria is going to focus on tax in 2017 through an asset and income declaration scheme to address her low tax revenue collection and ensure improved compliance, a broader tax base and more sustainable revenue.

    The minister also highlighted the need for strong budget implementation and transparency to create trust and accountability in government: “While we focus on raising revenue’s and bringing people into the tax system, we must be equally aggressive in our approach to budget implementation and transparency. Our people must know where their hard earned tax contributions are being spent and the impact that they are having on national development, and the daily lives of citizens.

    This will be a core focus for us.” Besides, the Federal Government is committed to the fight against corruption which has robbed us of development. Already, public financial management reforms are being implemented to strengthen Nigeria’s financial controls and ensure greater accountability. Government is also committed to addressing the current infrastructure deficit which is critical to economic development. But building infrastructure also requires huge capital accruals.

    Hence government is beginning to crack down on tax evaders to ensure equitable redistribution of wealth and funding of key developmental projects. There will be naming and shaming of those who refuse to pay their taxes, to improve Nigeria tax to Gross Domestic Product (GDP) ratio of six per cent. Also, there is ongoing collaboration with the British Government to ensure that Nigerians that own properties in the United Kingdom pay taxes in Nigeria while consumers of luxury goods are being targeted to pay higher taxes. The government is equally going to make it much more difficult for people to evade taxes. “At every data point of government, we will be picking up information that we will be using to compel people to pay taxes”. Besides, all the countries Nigerians admire have effective tax system.

    Nigeria has one of the worst tax to GDP ratios in the world. Yet our tax rates are comparably lower than the rates in these desired countries. There is therefore need to find ways to make the country’s tax collection much more effective through effective collection of tax data and naming and shaming tax evaders. The Federal Government does not intend to introduce new taxes, but will pay more attention to implementation of the tax laws. The job of government is to ensure that it is very difficult to evade taxes. Now we have already started that job by gathering data, because to tax people, you must know how much they earn or have. If you do not have the data, it is not going to work.

    The International Monetary Fund (IMF) directed Nigeria to begin a new tax reforms that will enable it improve revenues, and wriggle out of economic crisis triggered by crash in crude oil prices. The IMF Director, African Department, Abebe Selassie, said the economic circumstances in Nigeria remain difficult, even though it is a country of tremendous wealth. He said government has to reform its tax system, but reduce the impact of such reforms on the poorest.

    For Selassie, government has to quickly decide on the particular tax handle it wants to use, but must ensure the poor are protected from the impact of such policies. He said that without such reforms, and huge investment in infrastructure, government’s objective of addressing poverty may not be achieved. He said: “Government needs to build more schools, invest more in health and education. All of this requires resources. So, it is imperative for government to be able to address its long-term development agenda including tax handles that will be able to generate revenues.

    But there are ways to mitigate the impact on the poor, without which, you cannot have the development that the country seeks. “Nigeria has moved from a period when oil prices were $100 per barrel for five or six years or more to where the prices are now. It is a huge hit to the income of the country and government’s revenue. The government has a lot of goods and services that it has to provide. A lot of public services it has to provide, which need to be financed and alternative sources of financing have to be found for that.” That alternative source of funding is taxation. Hence, it is believed that effective and successful implementation of the ongoing tax reforms in Nigeria is key to its economic diversification and dominance in both regional and global arena. •Ewulu, a financial consultant, works with Lagos-based Angelstege Advisory Services Ltd.

  • Expanding the frontiers of mango farming

    Expanding the frontiers of mango farming

    There is a huge market for mangoes in the world from which Nigerian farmers can hit a goldmine, reports DANIEL ESSIET.

    Former Adamawa State Governor Vice Admiral Murtala Nyako (rtd), who is renowned for his investment in mangoes, is a successful farmer.

    Nyako owns the largest mango farm in Nigeria and he is popularly known as Baba Mai Mangoro (BMM). Exotic mangoes from his orchard of 50,000 trees were first exported to Europe in 1993. The mango farm, Nyako said, generates N5 billion yearly.

    With 50,000 mango trees,  he said, the farm has the capacity to produce 10,000 tonnes of mangoes yearly, representing 200 kgs of mango per tree. ”If you make juice with 10,000 tonnes of mangoes at the present price of juice in the market, you will get about N5 billion, while all it would cost you to process the juice won’t be more than N1.5 billion. That is why I will be taking home N3.5 billion annually all things being equal,” Nyako said. He cited his farm to underscore the importance of commercial farming.

    Experts believe mango has enormous potential that can transform the economy like other traditional export produce, such as cocoa, cashew and palm oil. Classified as MangiferaIndica, its fruits are delicious and they have the advantage of being relatively low in calories and high in nutrients.

    In total, about 40 million tonnes of mangoes are produced worldwide.

    Key exporters in Africa, include  Côte d’Ivoire, Egypt, Ghana, South Africa, Senegal, Mali, Burkina Faso, Kenya, The Gambia and  Cameroon. Top ten mango importers are the United States of America, the Netherlands, China, Germany, the United Kingdom, Canada, France, Japan, Hong Kong and Spain in that order.

    This clearly points to the fact the developed countries are the main importers. Of the 10 top importing countries, the US, the Netherlands and China, account for 49 per cent of total world imports.

    Rising consumer appetite for mangoes, particularly in Europe, has boosted demand for mango from developing world . However, in Europe, importers  give  preference  to fair trade – and organic-certified mangoes. To access premium prices from European supermarkets, as opposed to selling into the less lucrative wholesale market, exporters need to achieve GlobalGap (EurepGap), which assures good agricultural practices including traceability, soil management, pest management and responsible water use.

    An  exporter, Sunny Anjorin, said there was  a big market  for mango in the Middle East. He  told The Nation that he  had an order from Dubai for mango last November. Anjorin  has  experience in export business, including purchasing produce from farmers and overseeing movement of the produce to the port.

    He said perishable products, such as mango present greater risks than other non-perishable ones. This is because the  fruits get damaged at every point in the value chain from pest infestation, poor transport conditions, such as poor ventilation, temperature control, bumpy roads and delays in shipments.

    Also, exporters of fresh produce incur a lot of costs, including processing and transportation costs.

    On the farmers’ level, they are concerned with diminishing mango yields caused by fruit flies that cause losses of between 50 to 85 per cent of total mango production. They plant the mango trees and maintain them by weeding, controlling pests and applying compost.   These aside, Anjorin maintained that mango export offers a particularly promising opportunity for economic development.

    He  urged  farmers  to  continue on growing notable varieties that interest  importers and  produce fruits that meet the domestic and international market standards.

    National President of Federation of Agricultural Commodities Association of Nigeria,Dr. Victor Iyama, said Nigeria has potential for producing mango products that can be used in processed food. He believes  the  nation’s  arable land offers enormous potential for development of exports.

    Although Nigeria’s potential exports in the mango sub sector is  limited because of increasing competition from other  West African countries  and capacity constraints, Iyama believes that Nigeria ‘s numerous under-exploited  perishable  food resources present potential for expanded exports.

    He said constraints such as old storage depots, outdated infrastructure and additional cold storage facilities for perishable agricultural commodities need to be fixed. Some container facilities are slow to process cargo containers. Quality control, inadequate technical capacity, and lack of government and institutional support are also cited as impediments to export development. There is also a limited understanding of global market quality requirements.

    He said mango exporters   have had to improve several processes, from understanding what products are in demand internationally and planning crops to the logistics of shipping, handling of the product and its packaging, which must be done carefully and must always follow rules to qualify for certification

    The Chairman, Export Group, Lagos Chamber of Commerce and Industry, and Chief Executive,  Multimix Group , Dr Obiora Madu,  said  involvement  of big players  is crucial  to support the development of  the mango sector  and stimulate wealth creation and reduce poverty. According to him, though small- and medium-scale farmers are the majority in the sector, they don’t have the capacity to acquire infrastructure to succeed in mango exports. In addition, he noted that small businesses are unable to fulfill the volume requirements of importers in developed-country markets. Since mango has a big value chain, Madu said  there is scope for small farmers to increase their incomes. He added, however that the big players  have to support SMEs in farming to increase productivity. This is because big time processors need higher volumes of fruit at lower prices to be competitive. Compared with Nigeria, he  said Kenya is doing   well as  the leading mango producer in East Africa. It contributes about 43 per cent  of the region’s total production volume. Kenya has two mango seasons: a main season from October to March and a low season from May to July. This production calendar gives Kenya a natural advantage in the Middle Eastern market where, during Kenya’s main season,the key market suppliers, India and Pakistan are out of production.

    Kenya is able to supply mangoes throughout the year but there are two distinct major harvest seasons from October to March and from May to July, with only minimal supplies available in April, August and September.

    Madu  said the  government needs to commit to continue improving the infrastructure for the entire productive chain. They must give priority to irrigation projects, as well as to modernising the roads, airports and the ports to improve marketing from the main agricultural activity points and to facilitate transportation to the most distant destinations. One of the most important things farmers consider in raising the quality of mango production is the suitability of the soils, fertilisers, climate and irrigation in the proposed plantation site. They are encouraged to collect soil samples for testing to identify nutrients, composition and other characteristics to know whether the soil is suitable for mango cultivation.

    For many years, mango growers have struggled to find experts from abroad specialised in soil sciences and fertilisers to have trainings on soil and fertiliser application so that they would be able to produce high quality mangoes and generate a surplus for export meeting customer’s needs.

  • Expanding safety

    •Governor Ambode raises Lagos State security stakes with  13,000 CCTV cameras 

    Light from the onset of his administration, the Lagos State governor, Mr Akinwunmi Ambode, has left no one in doubt that his promise to significantly enhance security of lives and property in the country’s commercial and industrial nerve-centre was no mere election campaign gimmick. One of the first steps taken by the Ambode administration towards the realisation of this objective was an interactive forum for members of the corporate world and other influential figures of society at which over N1 billion was raised as donations to strengthen the security machinery of the state. Since then, there has been no looking back as the Lagos State government has taken one steady step after the other to reinforce the logistics and processes for upgrading the standard of public safety in Lagos State.

    Till date, for instance, the Ambode administration has expended approximately N7 billion, through the Security Trust Fund, on providing material, logistical and moral support to the various outfits responsible for maintaining security in the state. Some of the critical equipment procured for the state’s prime anti-crime outfit, the Rapid Response Squad (RRS), and other security agencies in this regard include hundreds of new power bikes, 4-door saloon cars, Ford Ranger Pick-Ups, three aerial surveillance  helicopters, two gun boats, 15  Armoured  Personnel Carriers, vehicular radio communicators, bullet- proof vests, helmets, handcuffs and uniforms, to name a few. Equally important is the improved insurance and death benefit schemes to deceased officers.

    The recent announcement by the Lagos State Commissioner for Information and Strategy, Mr Steve Ayorinde,  that the state plans to procure and deploy 13,000 Closed Circuit Television Cameras (CCTV) latest by October certainly represents another significant milestone in the sustained drive to make Lagos safe and secure. For a mega city of over 20 million people with an unending daily influx of new residents, the importance of monitoring cameras strategically placed to capture the activities, particularly of miscreants and criminals, cannot be overemphasised. This is especially because a significant percentage of the population have no fixed residential locations and move from one area to another on a regular and continuous basis.

    In addition to the 13,000 CCTV cameras, the Lagos State government also plans to install 6,000 new street lights and security sensors to further enhance its surveillance and crime prevention capacity. Already, the Ambode administration has made an appreciable impact with its Light Up Lagos Project through which about 365 streets were lit up across the state within its first year in office. It is of course obvious that darkness provides a better opportunity for criminals to perpetrate their nefarious activities and that lit up communities facilitate the detection and deterrence of crime.

    The impressive strides taken by the administration in the area of security illustrate the beauty of continuity in governance rather than the prevalent unhealthy practice of each new administration jettisoning the policies, programmes and projects of its predecessor and starting out on a new slate altogether. Thus, the Bola Ahmed Tinubu administration rebranded and strengthened the ‘Operation Sweep’ outfit, which it inherited from the military, transforming it into the Rapid Response Squad, with substantial logistics support. The succeeding administration of Mr Babatunde Raji Fashola (SAN) established the Security Trust Fund and enhanced the funding and equipping of the RRS. All of these have made it possible for Mr Ambode to raise the security of the state to a new pedestal of effectiveness.

    Having raised the expectation of Lagosians as regards the new CCTV cameras, however, it behoves on the government to deliver on its promise so as not to dash the hopes of Lagosians. We say this against the background of the sad experience of the Federal Government, which in 2010 awarded a $470 million CCTV cameras and Solar Panel back-up for Abuja and Lagos. Unfortunately, that project is yet to be actualised. And when the cameras are eventually installed, all residents of Lagos State must see it as their bounden duty to vigilantly keep watch over them so as to prevent their vandalisation by criminals who will understandably feel threatened by the existence of the facilities.

  • Micro insurance: Expanding the job market

    More jobs will soon be created, with the National Insurance Commission (NAICOM) issuing operating licences to prospective micro insurers. These insurers are expected to employ individuals to deliver micro insurance products to consumers. Omobola Tolu-Kusimo reports.

    Is there any advantage in micro insurance growth? Yes, say insurers worldwide who believe that it will create the emerging market jobs. This may soon manifest in Nigeria.

    The Federal Government expects that micro insurance will become rooted without delay to help boost insurance’s contribution to the Gross Domestic Product (GDP) following the release of the guidelines on takaful and micro insurance by the National Insurance Commission (NAICOM). The guidelines take effect from January 1, next year.

    Through the guidelines, NAICOM has opened the insurance market and also called on service providers and agents like non-governmental (NGOs), mutual cooperatives and others to operate as micro insurers in addition to the already licensed insurance companies.  NAICOM believes the creation of jobs it anticipated in its reform agenda will be triggered once the takaful and micro insurance business kicks off.

    About seven firms have indicated interest in operating micro-insurance business in the country.

    Micro-insurance is an insurance that is accessed by the low income population, provided by licensed institutions, run in accordance with generally accepted insurance principles and funded by premiums. This type of low-cost insurance covers life, health, crops and property of the most vulnerable and poor people. It also provides social protection to victims of natural disasters such as flooding and drought.

    Majority of the potential consumers of micro-insurance products and services do not have bank accounts so, service providers have to cross this hurdle before delivering insurances to them. As such, the products are designed to take care of the unbanked population, non-salary and low income earners.

    In Nigeria, consumers of microinsurance products are essentially in the rural areas of the country hence the need for prospective micro insurers to deploy delivery models by employing people in the sector.

    There are two categories of jobs that would arise from the new development. The first is the would-be micro insurers and the second are the individuals that will be employed as marketers and other service providers.

    According to experts, the would-be micro insurers which the commission has opened the market for to operate will also need to employ people in order to enable them sell micro-insurance products to the consumers.

    The potential employers in the insurance industry apart from the existing conventional insurers are NGOs, health service providers, utility and telecommunication companies, Saving and Credit Co-operative Organisations (SACCOs), Micro Finance Institutions and Micro Finance Banks, co-operatives and friendly societies.

    Other groups that can operate a micro insurance company are self-employed people associations, self-employed women’s associations, retailers, pharmacies and mobile phone operators, mutual co-operative and community based organisation, self-help groups, and insurance brokers and agents.

    NAICOM Deputy Director, Leo Akah, explained that specialised micro-insurer and conventional micro-insurer are eligible as microinsurers noting that the specialised micro-insurers are those under the service groups and agents while conventional micro-insurers are the already licensed insurance companies.

    He said for any of the specialised groups to be licensed, they must be a limited liability company registered under the Companies and Allied Matters Act (CAMA 1990).

    According to him, they can choose to underwrite the life micro-assurance with minimum paid-up share capital of N150 million, general micro-insurance with N200 million and composite micro-insurance with N350 million.

    Minister of State for Finance, Dr. Yerima Ngama called on operators and stakeholders to take advantage of the opportunities provided by micro-insurance and takaful to improve their fortunes in the market.

    He also charged NAICOM to ensure that only fit and qualified individuals are issued licences to operate micro-insurance and takaful businesses in the country, noting that the introduction of micro-insurance and takaful will revolutionise insurance practice in Nigeria, as they will help deepen penetration.

    Ngama said researches have revealed that the target market for takaful and microinsurance in the country is large, stressing that takaful has attained 70 per cent penetration in the country.

    He said: “It is my expectation that the operations of takaful and micro-insurance business would be properly rooted without delay. In view of this, the Federal Government hoped that the industry and all interested stakeholders would take advantage of this remarkable initiative by NAICOM towards the expansion of a new business frontier for the development of our economy.

    “Interestingly, various researches have revealed that the target market for takaful and microinsurance in Nigeria is large and recent reports, particularly from the few existing takaful products operators in the country indicates the attainment of 70 per cent penetration. This level of achievement recorded from rudimentary insurance industry players is a very good sign for our future economic development.”

    The Commissioner for Insurance, Fola Daniel, said about three non-insurance firms have expressed interest to have their micro-insurance firms and the commission is ready to grant them immediately they meet the necessary requirements.

    The commissioner, who said he is not bothered if existing insurance companies do not take full advantage of the takaful and micro insurance project, is optimistic that Nigerians will embrace it.

    He said: “This project is not for insurance companies alone. If the existing insurance companies do not want to do it, we do not have a problem. That is why we are opening two windows of opportunities to prospective operators.

    “The first is that, you can operate as a standalone by obtaining a license to float a takaful insurance company or micro insurance company. The second is that you can do it as a window operation and this means that you will have it as an attachment to whatever you are doing.

    “There will be competition and people will key into it. We are not going to rely on the 59 insurance companies. We already have an inundated application from people to operate as micro insurers and takaful insurers. People are interested because the capital requirement is small. It is like the community bank where you do not need N25 billion but small amount to do it and that is why community banks are springing up all over the country. This project is about financial inclusion. We want to include those who have been excluded from insurance.”

    He said Nigerians will start seeing the impact of these businesses from now as it is also an avenue to create jobs in the country.

    NAICOM consultant on MDRI and Managing Director, Risk Guard Africa Limited, Yemi Soladoye, said many companies have embraced the need to deepen the insurance penetration by making available tailor-made products in the retail market.

    He said some operators have commissioned him to design specialised products to carter for the needs of different classes of insurance consumers, adding that these products are capable of creating over 22,000 workers jobs in the industry.

    “I know seven operators that are determined to embrace retail insurance in the next three years. A particular company is ready to establish 200 offices between now and 2015, which will generate 22,000 employments in the retail market,” he said.

    He said there are enormous untapped business opportunities within professional and cultural groups which can boost the profitability of operators.

    He noted that the business culture of operators has stemmed the growth of the industry, adding that the operators are comfortable with going to brokers to collect cheques, which is unhealthy for the industry’s growth.

    He said for the industry to thrive, the operators must embrace new trends and strengthen their retail marketing strategy.

    “Part of what has hindered growth is the full adoption of retail insurance. There is no other thing. We have a population of over 170 million. Unless underwriters understand that insurance is like banking which focuses on retail and create access to insurance products, through the foot soldiers, wide spread offices, trained people to sell products, give good services to customers, design and develop products that are relevant to the public and enter into strategic alliances with no traditional channels -what we are doing is using brokers who only engage in corporate and government business to distribute our product.”

    Managing Director, Anchor Insurance, Mr. Mayowa Adeduro, said his company is ready to key into the microinsurance project.

    He added that the project will give rise to massive employment in the sector.

    Deputy General Manager, Life and Retail Operations, Union Assurance, Nhamo Mawadza, said now that the guidelines have been set, a lot of insurance companies are ready to take advantage of the opportunity, including his own company.

    Mawadza noted that takaful which is a Sharia-compliant product will enable more people to take insurance.

    He said: “I believe the micro side which is the retail side has been lacking in our economy but it will now give way to employment. They will also help the informal sector.

    “Everybody is ready and even some organisations are already going for training on takaful and microinsurance. Employment will be boosted because we have to meet with the people all over the country. We have to meet the banana seller under the bridge, the vulcaniser, the hairdresser and a lot of artisans.”

  • Abia: Expanding dividends of democracy

    Abia: Expanding dividends of democracy

    Associate Editor TAIWO OGUNDIPE, who recently visited Abia State, writes on the feats recorded by Governor Theodore Orji in the last three years.

    The vast undulating architectural layout is what instantly strikes a first-time visitor. The sprawling market is designed in rolls based on what a consulting architect on the site termed ‘architectural atmospherics.’ The market is devoid of the choking atmosphere that most major markets of its type have come to be known for. At the freshly ‘minted’ Ubani/Ibeku Modern Market at the outskirts of Umuahia, the capital city of Abia State, there are large openings and spaces which allow for free circulation of air and unhindered movements of both buyers and sellers as well as merchandise. The shops and stalls are neatly arranged in rows and sections according to the types of business or trading each group of traders is engaged in.

    As at the time of The Nation’ s visit to the market, frantic efforts were being made by both the traders and the construction workers to put finishing touches to the shops and other facilities. The roads have been asphalted. In an encounter with the Chairman of the Relocation Committee of the Ubani /Ibeku Modern Market, Sir Ebenezer Offor, The Nation was told by him: “We are relocating the old market to this new one. The old market is at the centre of the town. It is an eyesore for anybody coming into the town. When you get into that Okpara Square, you see that the place is very noisy, very dirty. You see all sorts of things, keke, wheel barrows and other things around that place. It is not good for the state capital.

    “Today you are seeing fewer crowds. Yesterday, the people were many. This week is the end of the relocation exercise. We must make sure by weekend most of the allotters are here. By Monday we are going to seal off the old market though we are not going to destroy anybody’s property. We’ll allow them to pack their wares gently and bring them to the new market. We are going to organise the new market the way it should be. We are going to sectionalise everything according to what each group is selling. We also have a place we call relief side. It is for those who were trading on the rail line before in the old market. They are so many that it is always difficult for people to pass through the place. We have a free zone for them. They are also eager to come into the new market. We are making sheds and stalls for all of them.”

    The Nation asked Offor about the transparency of the relocation exercise. Offor, a retired civil servant who claimed to have a reputation as a strict, incorruptible person, said: “They know I don’t take and I don’t give. Those who are working with me have to follow my footsteps. Anybody who does that will be dealt with. We are now focusing on the people who have sheds in the old market. When we are through with them, then from next week we’ll start considering those who do not have sheds in the old market.”

    The Nation also learnt during the visit that the issue of doors not having been fixed on some of the shops was raging. The chairman said only a few of the marketers were affected – about two to three percent of them. He revealed that the governor directed that each of them should be given N25, 000 to fix the door if they so wished out of the N100, 000 deposit they have made. Each shop goes for N400, 000 to be spread over a period of four years.”

    The Nation also spoke with Ejidike Onyebuchi, The Chairman of the Association of Market Men and Women. Speaking in deeply accented and halting English, he said: “We now have a very conducive market. We traders in the market are jubilating over how our governor has located this new market for the masses. Each shop is supposed to go for N1.3 million but realising that we traders don’t have money, the governor decided to carry us along. He got the shops to be prized at N400, 000 each to be fully paid back in four years. So we are very very happy. In the old market, there is virtually no amenity. Here now, every amenity that can satisfy people is here. You have the fire service, potable water, access roads, security etc. The market buildings are of high standard. There is nothing like magomago. I am the chairman. I know the people inside the market. I am the person who will put my stamp of approval before a shop or stall is allocated to anybody by the allocation committee.”

    The Nation also met Chief Sunny Nwakodo, the state Chairman, National Union of Road Transport Workers, NURTW, who disclosed that the government also made provisions for vast open spaces for various groups of those in transportation business in the state. He said each group is supposed to develop the portions given to them through self efforts. He, however, added that the government made available to them supportive infrastructure including electricity. He also testified that the new market is “very conducive and everybody is impressed.”

    The Ubani/Ibeku Modern Market is one of the major legacy projects that the administration of Governor Theodore Orji is bequeathing to the people of Abia State. Apart from the market being equipped with most of the needed facilities, there is also a school and a clinic. There is a housing estate very close to the market. Roads are being built and widened into the new market. Also introduced by the government, are brand new buses carrying the traders to the market and back to town at a much reduced price. One of the traders quipped: “What else do you need? It’s a question of doing your business and going back to town.”

    Granting an audience to The Nation, the governor spoke at length regarding the evolution of the new market. “You have a market at the centre of the town, obstructing the aesthetics of the whole place and stalling the development and expansion of the town. It is incumbent on me to remove the market to another place so that Umuahia will expand. Some people don’t realise that these things need sacrifices from the citizens. In Umuahia, people’s lands are highly encumbered by government. They don’t have farmland any longer. Some of them find it difficult to find land to build their houses. But yet they have made that sacrifice to give the ones they have to the government for development to thrive in Umuahia.

    “In some other places, you don’t get that cooperation. If you go there, you tell them you want to take their land and you send a caterpillar there, they’ll fight the people who have come to work on the land. They would destroy the caterpillar and drive you away. But such things are not happening here because they are happy that the state capital is in Umuahia and they want development to be there. “

    On the relatively cheap cost of acquiring a shop in the market, he had this to say: “I’m building the market to help the traders. The primary intention is not to make maximum profit. But we will make money. However, it will be minimal over a period of time. I don’t want the burden to be on the traders. You should know that change is difficult to accept, especially by the traders. If you check history, you’ll see that relocating a market is not easy, especially this one in Umuahia. The idea of relocating it first came up in 1935. Since then till now, no government has been able to do it because the traders had been resisting it. But the approach we took made it easy for the relocation and the traders are extremely happy.”

    Governor Orji claimed that the government built the new market without assistance from anybody. And, according to him, the standard of the shops is very high. He stated: “If you evaluate the cost of each, you’ll know the cheapest you can get it for is about N1.5 million. Some people would be willing to pay that. But I said no, these are traders, we have to help them. That is a very magnanimous gesture on the part of the government. The traders are on their own moving into the market without being forced. “

    The Nation also paid a fact-finding visit to the recently relocated industrial market housing largely those who are dealing in building and industrial materials. The traders moved into the market a couple of months previously. The Nation noticed a number of lapses in the market. The roads have not been fully asphalted as that of the main Ubani/Ibeku Market. The drainage system is also noticeably poor.

    The governor, during his interaction with The Nation, acknowledged the lapses. “We are not totally through with the work on the industrial market. We made some mistakes in the relocation of the industrial market and we are being guided by that in handling the Ubani/Ibeku Modern Main Market. When we wanted to relocate the industrial market, the workers were extremely hesitant and very aggressive. They even took us to court. Then we had to put our foot on ground to tell them they had to move. Therefore, we were building as they were moving in. Now that they have moved in, we are still building, making the drainages, asphalting the roads so that the place will be conducive for them. We are still on the development; we are not through with it,” he said.

    Governor Orji was asked to react to the criticism from some quarters alleging that he is concentrating all the legacy projects in Abia Central, especially Umuahia axis where he hails from. He gave this defence: “I am the governor of Abia State; the whole of Abia State voted for me. And as such, they are supposed to be participatory in government. We don’t discriminate here in terms of sharing the dividends of democracy. We have three major senatorial zones: Abia North, Abia Central and Abia South. I am from Abia Central. But that does not mean that Abia North and Abia South are neglected. We are spreading development to all the nooks and cranies of Abia State.”

    He spoke further: “Starting with Abia South which is Aba area, Greenfield is building a major mall in Osisioma, very close to Aba. There they are going to develop 600 stores of international standard. They have started work. We’ve given them land and they have already started work. ABIC is also building another market in the same area. We are also developing another market in Ukwa East. You know Aba is mainly a commercial area. We have a specialist and diagnostic centre in Aba. We are building a major operating theatre in Abia State University Teaching Hospital in Aba. These are all in Abia South.

    “We have built a lot of roads in the whole of Abia South. Virtually all the local governments have been touched. Aba urban, especially, has witnessed unprecedented road construction, or rehabilitation. We are also making sure that Aba is neat. There is a lot of environmental improvement. Refuse is being carted away on a daily basis. People are no longer complaining. In that same Aba, if there is any rainfall, you’ll notice minimal flooding because we undertook the opening up of all drains and construction of new ones to channel flood water into Aba River.

    “We are also helping Geometrics, the private power station in Aba, in many ways including the construction of roads and waiver of taxes to make sure that the company starts generating power. We are encouraging the small scale industries that are all there. And more importantly, we have provided good security for the whole of Abia South, especially Aba because the major security lapses we were having in those dark days came from that zone – from Aba, Obingwa and Ukwa West. Now it is no longer like that. In Abia South, also, the courtrooms are being renovated, schools are being built, hospitals are being upgraded and additional ones – general are being built in Aba, Osisioma, Ogunabo and Ukwa East Local Government Areas, Okipe.”

    Focusing on Abia North, he declared: “Itis the same story in Abia North Senatorial Zone. We have also constructed numerous roads. In Isikwatto Local Government Area, we have about five roads undergoing construction. Some of them have been completed. Also in Umuneji, we have done roads and completed a bridge that was a problem in that locality. We are building a general hospital in Arochukwu. We are building another one in Ohafia and Izia. We are renovating the schools in these areas. We are also working on Ndioji/Ndi Okereke, a major road that had remained bad for donkey years – it is through this road food items are transported from the rural areas to the urban areas. They don’t have another road. By the time we leave office we want to make it an express road. The people of the area are extremely happy about the development.

    “We have entered into an MOU with a company that is going to produce cement in Arochukwu which is blessed with a lot of limestone deposit. We have250 health centres all over Abia State and they are adequately distributed to Abia North, Abia Central and Abia South. Those who criticise us do so out of ignorance because they don’t know what is on ground. “

    Governor Orji, however, maintained that Umuahia deserves the preference it is enjoying with regards to ongoing projects. In his words: “It is a fact that Umuahia is the state capital and preference should be given to it so that it will look like one. Somebody can come to Abia and just end up with Umuahia and go. The impression he gets about Umuahia is the one he has gotten about Abia State. So we have to make the place look like a capital city. All governors live in states’ capitals. And we’ve never had any Government House in Umuahia. So I’m building a new one there. Also, where do you expect me to go and build a secretariat? Outside Umuahia? Here is the centre of government. And the civil servants are supposed to live around here. That is why I’m doing what I’m doing. You need a specialist hospital to take care of all these people. And that is why I’m building one around here just like I’m doing in the other areas. These special structures are the ones that are supposed to be at the state capital, Umuahia.”

    The governor has also been variously criticised for not doing much in the area of industries. Reacting to this during his interaction with The Nation, he said: “When we came on board, I made it specifically clear that government has no business being in business and what we want to do is provide an enabling environment for industries to thrive and private people to invest. That, we have done on our part as government. And we are getting the dividends in terms of the small scale industries that are coming up and being maintained, especially in Aba. As for the existing industries, what we have done is to attract people to come and take them over. An example is the Golden Guinea Breweries Limited where an investor has come all along but is handicapped in reviving the place by the economic crunch. The man comes in everyday to explain to me and to tell me the progress that is being made. Another example is the Modern Ceramics Industry which has been ceded to UCL owned by the Catholic Church. So government is not running the place.”

    Should a church be involved in business? the governor was asked. In reply, he argued that UCL is a commercial arm of the Catholic Church. And in his opinion, “I don’t think a church can mess up in handling such a thing. So we ceded the place to them.” He, however, stated that UCL was experiencing some difficulties which they are striving to overcome in reviving the ceramics company. He also cited the textile company in Aba which, he said, was also seriously damaged. He reported that his government was trying to see if it could bring in people who can invest and revive the place.

    In concluding his view on the issue of industry, he affirmed: “But for our government to say I’m going to build an industry – well, any government can go and do that – personally we are not going to do that because we have seen series of failure on the parts of the government’s investing money in setting up and maintaining of industries. What we’ll do is to provide the enabling environment.”

    Is he considering having an airport in the state, a move, some believe, might enhance the fortune of the state? “Sure,” he said, “Yes it’s there in the pipeline but as of now it is not a priority because we have Owerri airport very close to us, which was built when Abia and Imo States were of one government. The airport is serving us for now. We have Enugu Airport that is also close by, now an international airport, serving us. We have another one close by in Port Harcourt, Rivers State also serving us. We also have another one close by in Akwa Ibom State. So, as of now, the issue of a state airport is not our priority. Our priority is to lay the foundation for an economic take-off of the state. Having an airport is one of the desirables but we want the foundational structures to be on ground. A strong economy, educated and healthy people make up a vibrant state.”

    What specific efforts is he making to promote and sustain his proclaimed Aba Brand agenda? He recounted: “Several times, I have travelled outside the country on trade missions with the Aba Chambers of Commerce. This is to attract investors. We are also organising workshops and facilitating banks to give them small loans that will help them. Importantly, what I want to do in Aba is to develop a brand – Aba Made. As of now, Aba people are not yet confident in what they are doing and they are not doing much to market it. They feel that when they put the tag ‘Made in Aba’, people may say it’s a local material. But they are manufacturing goods that are of a superior quality and they use another brand name to sell it. Like clothes, bags and shoes, when they make them, they write Made in Italy. They also fabricate very good spare parts for machines and other products. They also manufacture good drugs and drinks.

    “I want to instill that confidence in them, that when they make such things they should be proud to market them directly. This was how China started. Before now, Chinese goods were derided but today the difference is clear. They have moved from experimentation stage to perfection. That is what I want to happen in Aba. We have the manpower and resources in Aba. Aba is the only town in Abia State where you don’t have unemployment. Every person who is in Aba is self employed. It’s either you are learning how to be a tailor, a mechanic, fabricate spare parts or become a welder. Even teachers that are sent to Aba end up in the market as traders. So there is no unemployment in Aba. People are not lazy or idle in Aba. What we have to do is galvanise all these talents to make it a brand. And that is what we are working toward. We are holding seminars to inculcate this outlook in them. We are organising fairs to help them to market themselves. You won’t believe that most of the military boots that are worn by the soldiers are made in Aba. Some think the boots are made in South Korea. They have the potentials, we are galvanising them.”

    A number of critics have decried the move by President Jonathan to organize a National Conference as a ruse and an attempt to take people for a ride. Known for being one of the staunchest supporters of the president, he was asked to react to this criticism. He shot back: “The National Conference is not a ruse and the president is not taking anybody for a ride. Afterall, the president did not just wake up overnight to introduce the conference. He took the decision based on people’s agitations. There was pressure on the president. And as a listening president elected by the people, he has to do what those who elected him want him to do. And that’s what he did. He answered the clarion call of the people. I believe that something good will come out of the conference. Nigerians want us to talk.”

    What does he think of some observers’ arguments that instead of wasting time and money on a new conference, one of the previous ones, especially the one held during Obasanjo’s tenure, should be reviewed and worked on, and also that the conference should be sovereign?

    In reply, he reasoned: “You cannot say because such actions had been taken before, there should be no new one. No, it wasn’t Jonathan who instituted that one. He is the one who has instituted this one and I’m sure he will implement the outcome of the discussions faithfully. The new conference is a progressive move. In any case, the people who were agitating for a conference were not calling on him to come and implement an old one. The call on him is to summon a fresh conference, which he has done. By making a call for a fresh conference, that suggests that the people are not satisfied with the outcome of the former conferences.”

    On the issue of sovereignty, he stated: “How is it going to be sovereign when we have a national assembly that has the constitutional right to discuss certain issues? This conference is for people to come together to air their grievances as well as views on how to move the country forward. “

    The Nation also asked Governor Orji to comment on his succession plan, if he has any? He replied: “It is ideal for every leader to want somebody who will continue with the good legacies. No leader would want a successor who would come after him and start rubbishing the good things he had done. You know you cannot predict human beings. Although a leader cannot make the choice himself, he has to be careful in leading the people to choose rightly. Every leader has that in mind. I have that in mind. The time for that is, however, yet to come. Right now we are facing the completion of our legacy projects. We don’t want to be distracted. Politics has not started in high velocity. It is still being done in low key fashion. People are just holding meetings here and there, trying to formalise things. When politics starts in earnest, we’ll then see what will happen.”

    He also commented on the argument of whether somebody from another zone other than his should occupy the governorship after his tenure. He said: “We have a peculiar situation in our state. We have three senatorial zones and we have two major ethnic groups: Bende and Ukwa Ngwa. We also have Abia Charter of Equity, not made by me but by the founding fathers of Abia, on how governorship should rotate in the state. Some of these founding fathers are alive while some are dead. I believe for fair play and equity we should abide by that agreement. I will not be the governor who will disrupt it because the words of our fathers are words of wisdom. If you follow the footsteps of our fathers and abide by what they have said, you will always excel. But if you don’t, nemesis will catch up with you.”

    Which zone does he have in mind, he was asked? “Ukwa Ngwa, he replied, because, as he said, “These are people who have never been governor. Abia North has produced a governor. Abia Central has produced. Bende has produced. Umuahia has produced. For fairness and equity and for peace and in keeping with the Abia Charter of Equity propounded by our founding fathers, it should be Ukwa Ngwa. That is what is written in the charter. The people of Ukwa Ngwa should go and prepare and bring up their choice. But that does not mean that the other zones should be barred from contesting. It is an open thing. When I and my predecessor were contesting respectively, people from the other zones also contested. But I believe for fairness and equity, Ukwa Ngwa should bring out somebody.”