Jigawa State Governor Muhammadu Abubakar, in this interview with Ahmed Rufa’I, speaks on the benefits of his recent trip to China to woo foreign investors and other issues.
What was the purpose of your recent trip to China?
All praise be to the Almighty Allah. I made it clear during my inaugural speech that supporting agriculture and its value chain will be one of the cardinal points of my government, because that is what will enhance the economic life of our people.
The main objective of my trip to China is to identify and source the cost-effective and modern technology for agricultural value chain development.
I kept talking of competitiveness in agriculture because our farmers today produce, but end up losing their money or making little profit because they do not produce competitively. So, the mission is to see how best to enhance competitiveness through the use of technology to maximize production at lower cost. The state would benefits a lot from this trip. The trip was made for the state and its people be cause we know the existence new innovation which, we need to bring to the state for our people to benefit.
I traveled with almost 20 people, which include farmers, business people, medical expert, official of state’s chamber of commers and civil servant. My reason is to expose the state to the world and see the new modern technologies and techniques in Agriculture and industrialization. To espose our potential resources and business opportunities to investors in China would woo the prospective investors to Jigawa State, especially with the current China policy for economic investment diversification which has emphasis to Africa. Among what people and Jigawa to benefits from this trip are modern technologies in agriculture where agricultural production made in large quantity and in less cost, to showcase livestoke and hide and skin traid. We also used the oppoturnity to discuss and invite foreign investors to come and invest in the state. We also saw modern medical facilities and government purched direcly from the producers in a low prices. During the trip, we visited some China medical universities, discussed and agreed on sending our students to study there in China.
So, what are the benefits to the state and the people?
By the grace of Allah Almighty, very soon, people would see the result, because during the trip we have an opportunity and visit Gonzi province we met with Lee group of companies and inspected some their factories in china part of the factoried visited includes their suger company where we indicated much interest and discussed visibility and all agreed to establish $120 million suger company here in Jigawa and “we agreed to sited the factory at Kijawal in Ringim local government while we proposed 5000 hectre for sugarcane plantation in Gagarawa local government areas.
Another thing we agreed to establish with the Lee Group of Company is foil paper, though what they told us that its the production required so much water. We selected some places that have plenty water to site the foil paper company. The same team would also take the sample of our Tyhper grass to analyse the content of fibre to see the possibility of using it in paper mills projects, if it eventually fits the project. This would help us in clearing the grass from our waters ways.
We also discussed the possibility of establishing phamerceutical and organic fertiliser company by using our Neems tree. With regard to the expansion of the existing plastic factory in Jigawa, they assured us of the completion and commission of the project in April, next year. The company would employ between 400 and 600 people.
The Lee Group also intend to establish vocational and technical training school because of the perceive industrialisation coming up in Jigawa state with view to use the centre in training our youth how to use modern industrial machines and also build their managerial capacity.
A team of expert from the two companies, that is, the suger and foil paper, would arrive the state this week to inspect the site and other technical issues with regard to the establishment of the two companies. When the two factories are established and they commence productions, thousands of job opportunties would be provived and the economy would largely expanded.. One good thing in this is that little money is needed. What we need is the enabling environment such as land, security and government commitment to encourage them. We will do it, because it in our benefits. Also, the classroom furniture factory, which would also to be establish jointly by the state government and a Chanese company will reduce the high cost of purchasing class room furnitures by the state government. Because every year, Jigawa State government is spending N350 – N400 million on class room furnitures of the learning institutions across the state.
Our plan is to reduce the cost and have a quality furnitures in the less cost while at the same time produce and sales to other interesting state. Its did not stop there there is also a plan for the establishment of Mango joice factory, Marble and granite factory sesame processing factory all by the Chinese national. I have instructed the ministries and agencies to provide all necessary needed, in terms of lands and other thing to enabling enviroment for the speedy of the projects.
You said medical training and facilities are parts of the trip. How?
The Commissioner for Health was among my entourage and we had an opportunity to enter into an agreement with three Chinese medical training institutions and agreed to offer admission to the state’s indigens students. Three medical tertiary university would give admissions to our student to study different couses in medical profession. The schools are Shanyen medical college, Yuney medical university and Zainhun medical university. The commissioner of health, Dr Abba Zakari Umar, is left behind to discuss more and formalizes the agreement with the universities, and the agreement would take effect within shortage period of time. During the discuss we discovered the studying medical in China is cheaper by 60 percent to study medicine here in Nigeria and the countries that the state government sending students to study medicine. So what we intends to do is after securing admission to our students to study medicine here, we will sent the remaining whom did not have vacancy here to China. And you know China; it does not compromise in quality when coming to the issue of training, especially in the health sector. So, this will give us more medical students, at a cheaper price.
Specifically, what is the time frame for the projects you are planning in collaboration with foreign investors?
Each of these projects has its own time line. For example, the plastic project will be commissioned by April 2016 and the expansion will continue till the next 12 months. For the sugar factory and the estate, we have done compensation survey and now we are doing out- growers’ analysis, as well as water analyses, trail of sugar- cane species to see which type will fit our soil for high yield and competitiveness.
I believe that, by the end of next year, you will start seeing sugarcane plantation and factory arrangements. On mango, they are waiting for us to give them land to mobilise to site as this is not a huge project. So, between now and next one and half years, we are hoping to achieve much of these projects.
Looking at the financial status of some of the farmers, do you have any plan to build their financial capacity to meet with the planned industrialisation?
We are all aware of the N1billion to N2 billion fund set aside by the CBN for our farmers. So, we deliberately delayed the accessing of the loan until we identify the competitiveness of our farmers, their group, crop potentiality and profitability. If we establish these, we can than access and distribute the loan to them. So, the fund to support the farmers is not a problem.
Essentially, what we are doing is to make them competitive. For example, our dry season farmers spend between N30, 000 and 40,000 on fuel each season. So, we committed some manufacturers to look into the possibility of moving from diesel to solar powered water pump generator to minimise cost of production. Such are the little things we are considering. We are also committed to getting improved seeds that can provide high yield for our farmers.
Can we say the Ministry of Commerce and Industry may take lion shares in next year’s budget?
As I said, wooing investor to the state does not require money. What you need to do is to provide enabling environment for the businesses. Where we may probably invest money is in agriculture for the provision of fertiliser, modern farm implements, research and procurement of high breed seeds to our farmers.
Why agriculture?
This is the area where we have a lot of potentials and advantages. In past years, Jigawa received between N6 and N8 billon as monthly allocation. Today, we are receiving only N2 to N3billion monthly due to the sharp drop in oil prices. And there is no hope of improvement in global oil market any time soon. Currently, Nigeria has over 19 million barrel of crude oil in the market looking for customers.
So, in such a situation, we must go the extra mile to diversify and strengthen other sources of income, and by supporting agriculture and agro-allied industries, we empower our people and also generate income for the sustenance of government for the discharge of our responsibilities.
