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Tag: zones

Why only viable free zones should be licensed, by Umana, others

Oil and Gas Free Zones Authority (OGFZA) Managing Director Mr. Umana Okon Umana and Lekki Worldwide Investments Limited Managing Director Dr. Tunde Sodade have underscored the need for total compliance with a strict regime of requirements for operating licence by prospective free zone developers.

Umana and Sodade spoke at the first session of the Nigeria Business Roundtable in Lagos at the weekend.

They were joined by Dr. Chris Asoluka, former chairman of the OGFZA board, at the roundtable that discussed free zones as an economic system with great potential to impact development positively.

The key stakeholders argued that there were too many unviable free trade zones in the country and blamed the situation on the business design and licensing process for free zones.

Umana, in his intervention, said the OGFZA licensing process was based on a strict and rigorous evaluation that puts emphasis on the viability of the business design rather than on political considerations.

He said OGFZA’s painstaking licensing process in part explains why the few free zones licensed by the agency are among the most successful in the country.

He cited Onne Oil and Gas Free Zone, licensed and regulated by OGFZA, as a model of success in free zone development.

The OGFZA boss stressed that application for free zone status must be an economic proposition that meets the test of viability.

Umana highlighted the economic value of free trade zones, describing them as the engines of growth in economies around the world.

He said development experts all over the world have consistently seen the free zones in that light, which has been bolstered by statistics that show that there are more than 5,000 free zones around the world generating more than 50 million jobs.

Umana, who led the discussion, agreed with his co-panelists that there were huge opportunities in the free zones as business clusters to empower small and medium size enterprises and further generate more employment through multiplier effects. They said the Nigerian content law is meant to drive inclusion and participation for local small businesses and individuals in the opportunities available in the free zones.

Umana explained that the Federal Government decision to fund the establishment of six special economic zones in the country with effect from the 2017 budget underscores the value that the present administration places on the free zones as a mobiliser and magnet for investments and job creation.

Sodade called for better business design and rigorous evaluation of applications for free zone status to guard against failure.

Asoluka drew attention to the need for better quality service delivery in the free zones to deal with competition from rival free zones in the southern African region and other parts of the world.

The former OGFZA chair said Onne was perfectly positioned to continue to offer leadership in free zone services in Africa.

The roundtable, which was convened by Dr. Ogho Okiti, CEO of Time Economics and publisher of the Business Post, had three sessions of discussion on the Oil and Gas Free Zones, SMEs and the Payment System.

Okiti said the purpose of the roundtable was to stimulate discussion on the economy with a view to impacting public policy.

May 29, 2017
Zones of disaffection (2)

Last week I made a general philosophical point regarding the resolution of culture conflicts in a federal democracy. I concluded that any such conflicts must be resolved in favour of the host community. Today I focus on two specific cases of culture conflicts in recent times. Fortunately for me, between the time that I submitted my piece last week and now, in one of the cases that I had in mind, there has been an intervention that supports my position. In the second case, the victim has made a suggestion that reflects maturity and experience.

I start with the first case. Igbo traders have found peaceful abode in Yorubaland for decades. They are found in the remotest parts of the region. In my own family house, an Igbo family found a warm welcome, settled down and gave its children Yoruba names. The husband chose Bamidele for himself and learned to speak fluent Yoruba. Unfortunately, the man passed on; but the wife remained there for a long time with the support of the entire community. That is the way of Omoluabi, comparable to the Yoruba traditional practice of adopting their new abode and showing respect for their host culture.

Times appear to have changed and to the dismay of many Yoruba, including the Afenifere Renewal Group, there is a new phenomenon but avoidable cultural crisis brewing with Igbo traders in the Southwest installing themselves as Eze Ndigbo in various Yoruba towns and states.

Since the first reporting of the Akure incident and the Deji’s pronouncement of the matter of Eze Ndigbo in that ancient city, I have learnt something new about the particular matter and about human nature generally.

First, I had thought that the incident was an unnecessary provocation by the Igbo traders of that ancient Yoruba city. I later discovered that it is a zonal crisis across Yorubaland.

Second, I had sworn that the Yoruba in other cities and states would not engage in such blatant disregard for host cultures. To my utter dismay, I have since learnt that it is a national malaise. I have been told that Yoruba traders and residents of Kano have an Oba Yoruba. So do the Yoruba residents of Abuja. I remember also that in the dark days of Abacha, there was a powerful Seriki Shasha, a Hausa-Fulani monarch in the heart of Ibadan city.

The new craze only confirms our knowledge of human nature, including the search for glory and the lust for greed. It is unclear who crowns the Oba Yoruba of Abuja or Kano, just as it is unclear who is responsible for the installation of Eze Ndigbo of Akure or Oyo State.

Numerous Igbo achievers have received traditional titles in Yorubaland for many years. Such titles are in recognition of their contributions to the nation. Many Yoruba have also received titles in Igboland and in the land of Arewa. This is not the issue.

Why the recent craze for Eze Ndigbo in Yoruba towns and states or for Oba Yoruba in Kano? If it is to protect the interests of Igbo or Yoruba traders respectively, that can be done simply by having an Igbo or Yoruba or Hausa traders association with an elected or appointed leader in the various states or cities. If it is to have a seat at the political table in their various states of residence, it is a legitimate aspiration that can be achieved simply by becoming a caucus within a political party. They do not need a traditional title to achieve such a goal.

The Eze Ndigbo title in Yorubaland is an unnecessary irritant in a tradition-conscious culture like Yorubaland and a distraction from what could be a very fruitful relationship between Igbo and Yoruba cultures. The Akure incident is an example of what could be an ugly pattern.

Yoruba traditional rulers are rulers of their domains, not of an entire state. Therefore there can be no Eze Ndigbo over a whole state. Is the Eze Ndigbo of Oyo State a recognised traditional ruler in the state alongside Iku Baba Yeye? Will the Eze Ndigbo then be a member of the Oyo State House of Chiefs?

If the Eze Ndigbo title is conferred on a person by an individual or group other than the traditional ruler of a Yoruba town and it is meant for a particular Yoruba town or state, it is a challenge to the authority of the traditional ruler(s) of that town or state. Anyone that bears a traditional title in a Yoruba town is subject to the authority of the traditional ruler that confers it.

By the same token, if an indigene of a Yoruba town is conferred with a traditional title by a traditional ruler of another town, he or she still bears allegiance to his or her traditional ruler. Bringing to town a title from another domain does not confer any superior or even ranking authority over an indigene of a Yoruba town. It must be ditto with an Igbo title.

Fortunately, the controversy generated by the Akure incident has been doused by the intervention of Ohanaeze Ndigbo with its support for the Deji of Akure’s banning of the Eze Ndigbo title. This demonstrates the depth of the organisation’s cultural understanding and its commendable willingness to build bridges across cultural divide.

Yoruba organisations and traditional rulers must also stand against the bastardisation of the institution of Yoruba Obaship by Yoruba residents of other states and cities who self-install as Oba Yoruba whether in Kano, Kaduna, or Onitsha. Emirs must condemn the corruption of their culture by self-proclaimed Seriki Shasha and his ilk in Yorubaland. Let there be adequate respect for our sacred traditions.

My second case is the abduction of Chief Olu Falae, former Secretary to the Government of the Federation and a former presidential candidate of AD/APP in the 1999 presidential election. He is a respected Yoruba leader. His abduction from his farm and his being forced to walk miles was not only demeaning to him; it was capable of creating avoidable inter-zonal crisis.

We have just gone through a presidential election that many in high places tried desperately to portray as a zonal competition in which the North was supposed to be pitched against the South. As a prominent member of a political tendency, if something tragic had happened, a serious crisis would be difficult to avert.

The issue of cattle rearing has come up in the ensuing discussion because Chief Falae’s alleged abductors are Fulani herdsmen and he had had problems with them or their likes shortly before his abduction. Could it be that they came back to avenge the court judgment against them? Kidnapping is a crime, and kidnapping for ransom is criminal exploitation, which deserves heavy punishment. The issue is, however, more than kidnapping.

The kidnappers are herders and there have been serious clashes between herdsmen and local farmers especially in all states of the Southwest. When herdsmen deliberately steer their cattle through farmlands and those cattle destroy crops, do they expect the farmers who invested in and laboured restlessly on the farms to be quiet? But when farmers like Chief Falae go to court for compensation, they become targets for kidnapping. We cannot go on as if the rule of law is a sham.

Fortunately, the victim, Chief Falae, has come up with a suggestion that conforms to what happens in civilised communities. Rearing cattle through towns, villages and city streets is barbaric and unbecoming of a modern republic. The government of change must find it appalling and unworthy of protection.

Herdsmen need grazing land for their cattle. The business of cattle rearing is their livelihood. They also benefit the nation with a regular supply of protein needed for a balanced diet. The federal and state governments provide the infrastructure needed by all professions without which they cannot make contributions, including tax payments, to the society.

It is time to make provision for herdsmen in the form of well-maintained grazing ranches, on payment per use basis, in various states of the federation. As the need is inter-state, the Federal Government must take the lead.

November 6, 2015
Buhari’ll be fair to zones on appointments, says Emerhor

Delta State All Progressives Congress (APC) governorship candidate in the April 11 election, Olorogun O’tega Emerhor, has urged the party’s members to remain calm for President Muhammadu Buhari to select those to serve in his cabinet.

The APC chieftain was reacting to reports that the Department of State Security (DSS) had screened some ministerial nominees, including renowned economist, Prof Pat Utomi.

Emerhor noted that the development had caused disenchantment among some people across the state, especially those in the Central and South senatorial district.

This followed the view that federal appointments had always been to the advantage of the Igbo-speaking Delta North, where Governor Ifeanyi Okowa hails from.

Central Bank of Nigeria (CBN) Governor Godwin Emefiele is also from the Delta North Senatorial District, like the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr Ibe Kachikwu.

Reacting to the outcry against what many residents called lopsided federal appointments, Emerhor assured that President Buhari was aware of the sensitivity of ethnic concerns in the state. The APC chieftain said the President would ensure balance in his appointments.

According to him, the seeming delay in the appointment of the President’s aides and ministers was the result of his interest to consult and reach out to stakeholders to manage the peculiarities and sensitivities in various states.

September 17, 2015
CBN dollar policy, cement and free trade zones

The opportunity to be heard is a remarkable difference from what happened few weeks back when we all dressed to our various offices only to be told by our employees that our businesses has been decreed out of existence by the CBN. Not only were the channels of communication wrong, the powers to technically ban those 41 items were highly questionable. Such is the impunity and hostility that has beclouded our business environment and inhibited its growth. Today we live in an economic environment of confusion, policy summersaults and inconsistencies. In most cases, you see yourself standing face to face with, and against the law. We have gotten to a level where our law and the constitution say one thing, and our operators say a different thing.

The Free Trade Zone is a creation of statute. Its activities are governed by Decree No 63 of 1992. Going by the provisions of this Decree, business enterprises within the zone enjoy some incentives and exemptions.

Some of these incentives include exemption from all federal, state and Local Government taxes, duties, levies, VAT and foreign exchange regulations. This is clearly written in Section 26A of the decree setting up the free trade zone. By law, the free trade zone and the CBN are institutions of coordinate jurisdiction. Free Trade Zone enterprises are in theory, regarded as a country within a country. The CBN therefore has no legislative authority over the zones. The CBN in realization of this had washed its hands off the fiscal responsibilities of the zones until this recent attempt on the annexation and colonization of the zone. The status confers and imposes certain restrictions as well as obligations on mode, module and medium of exchange. For instance, companies within the zone are incentivised to import foreign currency of any amount and export 100% of same. They are exempted from the buying of forex from the CBN, among others, thereby affirming their quasi autonomy. This suggests that the only avenue open to the operators for the sourcing and procurement of forex was the free funds, or the BDC’s. Depositing and withdrawal of dollar cash was a way of life and has never been under the sledgehammer of the CBN.

But the dollarization policy which is now being enforced across board and borders has laid comatose the operation of the Free Trade Zone, as the only foreign exchange window open to operators had been shut, padlocked and the key flung into the ocean.

The immediate dire consequence of this unfortunate, ill-conceived policy is the suffocation of investments within the zone leading to business closure by investors and foreclosures by banks and other lending institutions. The fall out of this would be litigations arising from breach of contracts, mass retrenchment of workers, loss of revenue by government and loss of face in the international community, and of course, the short circuiting of technology transfers – which is a cardinal factor for the setting up of the Free Trade Zone.

Why would CBN ban 41 items in the guise that they do not have sufficient dollar to fund their imports only to turn around to ban deposit of the same currency in our banks as a result of excess dollar?

As the CBN continues to reap from where they did not sow with regards to foreign exchange regulations within the Free Trade Zones, one needs to remind them of the ripple effect of their actions. Secondly they need to observe the thin line that separates the various organs of government as contained in the principles of separation of powers.

When the CBN cannot give long term loan to a young graduate to buy equipment and commence the production of toothpick, why would they stop the same boy from importing N10,000 toothpick from China where the investment climate is not only conducive but predictable? To do otherwise is impunity and starvation.

To put up an average cement plant of one million to two million metric tonnes one requires a capital outlay of about $300 – $400 million. This used to be an average of N50 billion to N60 billion. To accomplish this, using the current exchange rate, an intending investor needs an average of N80 billion. It does not stop there: The ugly side of it is that as long as this policy remains, no Nigerian can ever invest again in the cement sector. How, you would ask?

To put up an investment of this magnitude where banks’ lending is on short-term and double digit interest rate is practically impossible in an economy of today. Let us agree that you get a willing bank to help syndicate the financing, you would be required to put down an equity contribution of about 30%. This translates to about N24 billion. The implication is that you require 10 banks to syndicate your equity alone, and another 20 banks to syndicate the remaining 70%. This is impossible. In addition you need to have your market share and popularize your brand before any bank can take this huge risk on you. What is possible is what has been the practice where backward integration policy was designed for new entrants. These new entrants had attracted an investment of over $20 billion tied to various strategic trade partnerships. These investments are threatened by this dollarization policy.

As a member of the Presidential Committee that produced the 2009 cement policy, our recommendation was that new entrants should be encouraged to embark on backward integration with some government incentives. This was how Lafarge, Dangote, Unicem, Flour Mills etc started. They formed strategic trade partners who signed technical and business agreements towards local investments. This is how the near success story we have today in the sector

If we have a success story in cement, why are we buying a bag of cement at N2000 in 2015? In Asia, a bag of cement sells for as low as N350 a bag; in Europe it sells at N500 a bag; in neighbouring West African countries a bag of cement sells for between N1200 and N1400 a bag. When the lie of Nigeria being a net exporter of cement was told by several persons, in several quarters, including the former coordinating minister of the economy, some of us who know covered our faces in shame.

In a recent survey, the World Bank predicted Nigeria’s cement consumption to be 45 million metric tons. Mind you, consumption is different from demand and supply. With a total installed-not production capacity of cement at over 20 million, Nigeria still has a huge demand gap of between 15 – 20 million metric tons.

The reality of this deceitful situation will soon hit us when government solves the insurgency situation in the North-east and commences rehabilitation works; moves to fill the over 15 million housing deficit, tackles our huge infrastructural decay; and starts the cement – base road construction, by then, existing cement plants would have started growing old, I bet you, Cement may sell as high as N3000 in this country.

In my honest opinion, government needs to open the cement space for investors of all sizes to come in. Monopoly should be discouraged. A limit should be set as to maximum investment an individual can invest in any sector of the Nigeria economy to create room for others’ participation. This would also ease credit tension and whittle down risk appetite of banks and other lending institutions.

This what countries like China and India have done. In China, you have over 9000 functional cement plants and over 800 in India. China for instance, manufactures over 2.42 billion tons of cement per annum, representing 58.6% of global production. In reality Nigeria produces a little above 25 million. What the government of these countries did was to liberalize investment in the sector, encourage and incentivise investors.

What the CBN Governor has done with the recent foreign exchange restriction on cement and 41 items amounts to a ban and criminalization of businesses.

Governments world-over encourage investments; you don’t decree, you don’t frustrate, you don’t criminalize. A toothpick importer of today may be a Bill Gate or another Dangote of tomorrow.

Being a paper presented by Ochiagha Ufomba at the Focus Group Discussion on Impact of CBN Foreign Exchange Policy organized by the Lagos Chamber of Commerce at Oriental Hotel Lagos.

September 14, 2015
‘$68.1b fresh FDI coming from free zones’

The Federal Government is targeting about $68.1billion fresh Foreign Direct Investment (FDI) from eight newly licensed free zones, the Nigeria Export Processing Zones Authority (NEPZA), has said.

NEPZA Managing Director, Gbenga Kuye, said the enhanced efficiency of the agency, in line with the Transformation Agenda of President Goodluck Jonathan, had helped to fast-track approvals for zones, based on the new checklist and methodology put in place for assessing requests.

Kuye who spoke in Abuja yesterday, said the investments attracted already, and the incoming ones that had been sealed, provide a solid foundation for a stronger economy and greatly improved the standard of living of Nigerians, adding that the current administration should be commended for the feat.

He said: “Based on the new checklist and methodology put in place for assessing Free Zone requests, the President approved the following: Centenary City Free Zone (Business and Tourism Destination), with expected investment of about $18billion; Ogogoro Industrial Park, Lagos (oil and gas activities) $160million; and the Nigeria International Commerce City, Lagos, (formerly Eko Atlantic City) $38billion.

“Others are Badagry Creek Industrial Park, Lagos-$1.3billion; Nigeria Aviation Handling Company (NAHCO) Free Zone-$25.5million; Dangote Refinery/ Petrochemical Park-$9billion; Lekki Deep Sea Port (under Lagos Free Trade Zone)-$1.4billion; and Samsung Heavy Industries and Mega Construction Integrated FZE (under LADOL Free Zone)-$300million.

“The Authority is currently at advanced stages for the approval of the proposed Kogi Industrial Park. We are also consulting with the Cross Rivers State government on the establishment of an Automotive Industrial Cluster in the state.

“This is sequel to a bilateral relation agreement between Nigeria and Japan, in which Japan has proposed to help develop an auto industrial cluster in Calabar. This is being done in conjunction with the National Automotive Council. Consultations are also ongoing for the revamping of the Idu Industrial Area located in Abuja.”

January 15, 2015
Troupe to perform in conflict zones

With his appointment as the Director of National Troupe of Nigeria, Akin Adejuwon has decided to infuse new life into the Troupe. Having been assured by the Nigerian Army that the Troupe will be performing for peace keeping purposes across Africa and more, he told Edozie Udeze in this interview that he and the Troupe are ready for the tasks ahead

You assumed office as the new director of the National Troupe of Nigeria with the creation of Ajoyo, a dance pattern with which you’ve been touring the country. What is Ajoyo and why the tour?

Ajoyo means celebration and it came up because immediately I received my letter of appointment, I realised I would be holding the position in trust for a lot of people. Until I got my letter, I wasn’t really told which portfolio to hold, even though I was interviewed by the Minister of Culture, Chief Edem Duke. I sent text messages and I did all kinds of things for him to tell me what office I’d hold. But he didn’t.

It was on the last day that I realised it was the National Troupe of Nigeria. I was actually expecting something in the line of visual art which is my own area of training. When I got the letter I was thrown aback a bit. But after a while, it just occurred to me that I have experienced and I have organised series of programmes in the performing arts virtually all my adult life. Like I mentioned earlier on, I spent most of my life during my holidays while at Ahmadu Bello University, Zaria, with Uncle Demas Nwoko. That was in his studios in Ibadan.

Also, I spent some of my spare time with Oba Sonuga who was then an artistic director. I was also close to Adeniran who was once the director of OAU’s Institute of Cultural Studies in Ife. And so performing arts has not been new to me. I have been involved, I have been with it most of my adult life as both an organiser of events and a promoter of cultures across states and climes. There had been command performances I had participated in over the years. I have done children theatre workshops at several times in different places through cartoons and so on. So, I have been into performing art.

When I came to that realisation, I quickly began to write down my plan of activities; what I will do to put the Troupe on the right track to perform and be fully useful and engaged. This was what I did send to the minister, even though I also added some research which I conducted. By the time I was defending my plan of action, he was really impressed. He asked: where did you get all these from? Three of the points I raised were already in his action plan for the Troupe. So, when I got that kind of approval from him, I hit the road running. When I was at the Institute of Cultural Studies I had little to run and maintain the place. So, I am used to no money situation. In other words, I am used to a Spartan kind of situation. I was not afraid to go into it all even though I inherited a debt of N26million when I got to the National Troupe of Nigeria.

Even then overhead had not been released for three months. And the office that was given to me was a bit uncomfortable compared to what I had in Ife. But this is a federal parastatal and it was like I had that blank cheque for me to do the job I was appointed to do. That was why I had to quickly put in place the stakeholders parley so as to have the input of those people with whom I have had those contacts professionally. From there, ideas came up which are really in synchronization with what I have for the Troupe. It was in the process of that I said, ah, we cannot do this without having a production, an artistic performance to usher in the people.

This was how Ajoyo was finally created with ideas and dances from here and there. Quickly, the experienced directors I inherited swung into action and in the end we have Ajoyo. It was a mosaic of repertoire which comprised of all aspects of the art. And so within a few days the ideas were fused into stage with different dance patterns to have Ajoyo. That Ajoyo was completely put together by the core artistes themselves. That was how it came up.

So how do you evaluate the nation-wide tour so far?

I had evaluated it before we took it out to the states. I saw it as the best dances for the road-show. I had put it out before for peer review and the response was good. But we know we’ll get better as the road-show goes on. The plan is that as more shows that we have the more we see the need to do more to get the attention of the people.

We took references from the reactions we got from people. We worked on those ideas that today we’ve got better and bigger. The idea of Ajoyo is to truly get the people involved in the dance patterns, indeed the ideas which are meant to appeal to the public. Let the people see the Troupe as it really is. It is their own Troupe and they have to really identify with it. Also, I feel it is a work in progress. I will tell you that from my experience of organising festivals, you can see that this is a festival of sort; it is a noble festival. I didn’t want to let the Troupe know exactly what I wanted them to do. This has not been done and they are not used to it.

This is the European-type of theatre when you take the dances and performances to the people for them to feel it. You should know that Africans are known to take theatre to the streets; to the palaces of kings and market squares. And most of them are paraded in town before they are performed. This is what we’ve been able to do in the states where we performed and the reactions were very impressive. So, our work is to discover new talents; is to see how we can lure the young ones into art as a profession and as a career. We have opened a website and the responses have been encouraging. The awareness createdby the road-show is beginning to permeate the society. We wouldn’t find all these in a static theatre and so we had to move. Even the artistes, by the time we started, they said oga, let us try and see if it will work.

What next for the National Troupe?

Today, just after one week of performances, I am talking to you from the University of Ilorin, where a few minutes ago the vice-chancellor, Professor Abdulganiyu Ambali, volunteered to partner with us to package a festival for Nigerian universities. It is to take off from the University of Ilorin and from there to other universities. I told you before that I wanted a festival of domestic arts and this conforms with that idea. We’ve just done week and you can see what we’ve attracted to the Troupe. I have work in progress. Yes, this is why we need to perform in the 36 states of the federation. I even intend to go and perform at the Sambisa forest next year.

But before we go into that, we need to have proper meetings with the armed forces of the federation. We all have to agree on the modalities and all that. The soldiers welcome the idea, in fact they are more enthusiastic than most people are. No matter how good I am as a dance director, I can’t just jump into performance in such a place. The soldiers have to be involved in terms of security and other assurances. So, I consulted and they said, okay, let us start from the peace keeping zones and a few other places like that. This involves The Democratic Republic of Congo and others. Yes, I’ve agreed and they have offered us an opportunity of performing at the presidential villa too.

Our performance at the conflict zones is to help douse tension and resolve conflicts. As it is today, the armed forces of Nigeria is constituting a schedule that will engage us for a year. They have all said that this is a good concept and it will go a long way to bring back peace in the minds of the people.

However, I discovered that only a few of my people are the core artistes. The issue has to be looked into soon. What I have decided to do is to bring in some of the workers who are artistes but do not perform to be part of it. My predecessor in office, Professor Ahmed Yerima tried it and it worked. I’ve started talking to them about this, that we would draw them into performances. At least 70% of the staffs need to be engaged in the area of artistic performances. They should be ready to go troupe, because that is what we do; that is why we are here. We will also go into the society to engage other artistes and encourage them to be part of what we do. Even some were part of this first stage of states tours and we’ll do more.

The fear is that in the next one year or so some of these artistes may not be able to perform. What are you doing to ensure continuity and safeguard their future?

To me, the first thing was to look at the artistes I have on ground. The artistes have been suffering in this profession, without being well remunerated. Just like we had in football in the past. But today the story is different. Football gives money and players are well taken care of with their future well planned. People like Thunder Balogun and others had no booth when they played. Today, you see footballers earn big in pounds sterling, in dollars. I also feel what these artistes are feeling right now.

They used their youth and virile period to perform and elevate the nation and now it is time to ensure that they go home with something in their pockets for their future. So, what I did was to interface with some of my friends in the private sector to get some insurance in place for these artistes. This is in form of one million naira insurance in case of accident or accidental death. This is already in place as I am talking to you now.

I proposed this to the National Theatre also, so that this can be expanded and captured on the website. This is much better than nothing at all. Each artiste will be making an input of three thousand naira to be able to make it work. We also have another plan; for those who are in-charge we will endow them. In this case, we’ll interface with the producers of Coca cola so that they can get it when they are about to leave. When more money comes in, we will expand the endowments. I can assure you of that. We will never know where we can go from there. But that’s the widow’s might we have.

Everything we do now is work in progress. If we have come this far, we hope to do more to ensure that this Troupe goes further than this. In one week of road travelling theatre, we have received this kind of accolade, that means we are on the right track and we will do more. The only way to go and keep going is to continue to try to keep the Troupe on its toes.

January 4, 2015
Senate blames free trade zones’ failure on weak laws

The Senate yesterday blamed the inefficiency of free trade zones (FTZs) in the country on weak regulatory framework guiding their operations.

Chairman, Senate Committee on Trade, Senator Odion Ugbesia, made the observation during a public hearing on a bill seeking to amend the Oil and Gas Export Free Zone Authority Act 2011.

Ugbesia said it was obvious that free traden zones in the country were far from achieving the purpose for which they were established.

He said: “Our free zones are far from achieving the purpose for which they were established and there are serious doubts as to whether Nigeria has indeed benefited from the Onne Oil and Gas Free Zones beyond the benefits accruable to an industrial area.

“This is because of weak regulatory framework guiding the operation of Free Zones in Nigeria.”

He said the amendments to the Act were proposed to ensure that the country benefited maximally from the huge investments in the FTZs.

Ugbesia said the most attractive feature of an FTZ anywhere in the world, is the tax holiday which investors enjoy as incentive and encouragement for investment which the proposed amendment provides for.

September 25, 2014
Can food processing zones do the trick?

To promote agriculture, the Federal Government has established the Staple Crops Processing Zones (SCPZ) to provide the critical infrastructure to boost production, improve market access and attract private sector investment in agribusiness. But experts are not impressed; they doubt the sincerity of the scheme. DANIEL ESSIET reports.

IN the past, the Federal Government announced several mega projects, which promised to drive job creation and technology development. The Minister of Agriculture and Rural Development, Dr Akinwumi Adesina, said in designing such projects, the government expects the primary beneficiaries to be the more than 10 million small farmers who make a living growing diverse crops and raising animals. These farmers, he explained, are also believed to be part of the value chain that maintains food production and thousands of jobless youths.

He said while agricultural growth will provide the base for increasing incomes for about 100 million rural persons that live below the poverty line, additional measures are required to make this growth inclusive.

Achieving this has involved many steps, which include tackling infrastructure, which threatens the agribusiness sector. This step is to encourage agricultural development and increase incomes for farmers.

To further boost efforts in that direction, the government has established Staple Crops Processing Zones (SCPZs). SCPZ is a vast zone where there is commercial production of food, which is expected to attract the private sector to set up food processing plant that would process agric products into finished items.

The minister said the SCPZs are designed to boost agricultural productivity, improve farmers’ linkages with agro-processors, and scale up resilience to current and future climate variability. Six staple crop processing zones are established in Kogi, Kano, Rivers, Niger, Enugu and Anambra states.

The sites are designed to be multi-crop processing zones, located near high agricultural production areas with cluster of agro-processing activities. The zones would help to process the raw foods produced by farmers into finished foods and other economic products that would benefit the area.

The successful implementation of the SCPZs is estimated to generate revenues of between N660 billion and N1.4 trillion per year to the economy and create estimated 250,000 jobs.

The direct beneficiaries include farmers, workers in the SCPZ processing areas, small and medium businesses.

According to the United Nations Industrial Development Organization (UNIDO), the first phase of the Staple Crop Processing Zones (SCPZs), will gulp estimated $1,063.1 billion.

In partnership with the Federal Ministry of Agriculture and Rural Development, UNIDO has developed master plans for establishing the zones. So far, the zones have already attracted investments totaling $350 million from different financial institutions.

The World Bank has committed over $100 million to develop sustainable institutions and infrastructure in the zones, while the African Development Bank has committed over $152 million to make available low interest loans to the government, specifically for the development of infrastructure within the zones.

The International Fund for Agricultural Development has also pledged $70 million to build capacity of small farmers to ensure inclusiveness and equitable wealth creation in the zones.

UNIDO representative in Nigeria, Dr. Chukwuma Ezedinma, said the funds would cover specialised and support facilities, including external infrastructure, such as road connectivity, highway strengthening, rail connectivity, air and seaport connectivity, power linkages and external water supply linkages.

He said the six staple crop processing zones are estimated to cost $1,063.1 billion. The breakdown is as follows: Niger State ($181.4 million); Kano State ($151.1 million); Anambra State ($186.6 million); Rivers State ($79.6 million); Kogi State ($314.7 million); and Enugu State ($149.7 million).

Already, private sector investors have been secured for the Alape, Badeggi and the Bunkure zones and they are Cargill USA, Nigeria Flour Mills, and Dangote Group.

Of the 14 SCPZs selected for development in the country, six are to take off in the first phase. There are Bunkure in (Kano State) for rice, tomato and sorghum; Agbadu-Alape (Kogi State) for cassava; Badeggi (Niger State) for rice; Ketu (Lagos State) for aquaculture; Omor (Anambra State) and Adani (Enugu State) for rice and Okorolo (Rivers State) for fisheries and aquaculture.

Alape SCPZ in Kogi will focus on the production of starch and sweeteners. It is expected to produce 62,000 tonnes of starch, 5,000 tonnes of sweeteners, 720,000 tonnes of cassava root and create income impact of about 90 million dollars to the economy of Kogi State.

Stakeholders’ view

For experts, it is a very good thing the SCPZs are being implemented but they noted that their prospects for success are as great as their chances for massive failure.

Speaking with The Nation, the Programme Coordinator, Farmers Development Union (FADU), Mr. Victor Olowe, said there are fears the projects will go the way of other white elephant projects if the government is not able to create a distinctive conducive ‘localised’ business environment for implementation and management of the SCPZs.

While there are high hopes on paper, Olowe’s concern is that most of the zones lack critical services and incentives to help them take off successfully within the scheduled timelines.

He said the critical services that will enable the clusters work effectively include uninterrupted supply of electricity and good roads constructed in zones. This, according   to him, would reduce losses of products on transit and reduce cost of transportation faced by farmers supplying the raw materials to the plants. These are almost nonexistent in some of the zones.

Without access to land, key inputs such as fertilizer, seeds and loans, by the vast majority of small scale farmers who own one or two acres on average, serious commercial activity will become virtually impossible.

He lamented that the zones lack basic rural infrastructure to bring produce to towns or to store them, which make trading difficult. Without connecting the rural areas to larger infrastructure and small holders’ produce for better access to input by farmers, attracting large investment to the zones will be difficult, he added.

While supporting clustering of smallholders and investment in specific value chains, he expressed concern that if basic interventions for small farmers are not prioritized over trade facilitation and large infrastructure, corridors may end up helping mostly large companies.

Like the Growth Enhancement Support (GES), he is concerned farmers within the zones would be deprived of funding to access machinery and parts as well as modern inputs at affordable rates to improve their farming. Such inputs will include fertilizers, insecticides, other pesticides or chemicals, implements/medium term machinery.

The other issue is how the government will implement the SCPZs to be effective and not end up as the farm settlement schemes, industrial estates among others. He raised doubt that the SCPZs will be implemented in such a way to ensure synergy and maximize social and economic benefits with other existing programmes under the Agricultural Transformation Agenda.

In his contribution, World Bank consultant, Prof. Peter Okuneye, said the programme was a good one as it was meant   to increase production capacity and reduce post-harvest losses. According to him, the policy would enhance food security, create jobs and stimulate rural agro-industrialisation, only that the    poor state of the nation’s infrastructure would not let it work.

He explained that the deteriorating infrastructure for the marketing and movement of produce, such as roads and telecommunications, as well as overall production capacity (including lack of fuel, electricity and input manufacturing industries), will lead to high cost of production across the zones.

He said nothing has been done to improve investment on the state’s roads, bridges and multi-modal transportation systems let alone supporting public transit systems across the state.

He said one reason the programme may fail is that government may not able to improve the transportation of produce and inputs to and from markets for small-scale rural farmers, particularly in remote areas, as well as major industries.

Currently, Nigeria is   characterised by poor   post-production and marketing infrastructure, he said. For instance, the nation lacks good commercial grain handling and storage system. He said inadequate storage facilities in rural areas, coupled with poor handling and poor post-harvest technologies, have caused exceptionally high post-harvest losses, particularly for many resource-poor rural farmers. Essential public sector post-production and marketing infrastructure across the country, he added,   has been deteriorating because of lack of public investment.

In addition, the collapse of the rural economy made it unviable for these services to be performed by private sector stakeholders

To succeed, the World Bank consultant, said the government will have to address multiple hurdles in the context of limited human resources, corruption, political pressures, shifting priorities, and inadequate infrastructure.

He said the government should   therefore make its plans as targeted and explicit as possible. They can concentrate investment on a value chain (all economic activity, from inputs to market associated with a crop), on a “breadbasket” region positioned for large productivity increases, or on an infrastructure corridor.

He said close collaboration between the government and the private sector will enable strong year-on-year growth in an otherwise stagnant agricultural sector.

To carry out an agricultural development strategy, he said government officials must work with farmers and the private sector across departments, from the central ministry to extension workers.

The evidence suggests that agricultural development programmes also require the active engagement of the private sector because they typically have access to capital and organisational know-how.

According to him, several issues are hampering the initiation of a solid positive growth path for agriculture. He said Nigeria needs a structural paradigm shift and transformation towards sustainable agricultural production based on in-depth structural and broad policy changes.

To make the zones work, he   said there is need to support rural traders, develop and catalyse local supply chains, creating effective demand for the produce of smallholder farmers. The establishment of rural centres and agri-dealers is essential. Including input and output markets, production services, and transporters, among others, is vital.

July 25, 2014
NTDC to build tourism centres in six zones

As part of efforts to rapidly develop domestic tourism destinations by the Nigerian Tourism Development Corporation (NTDC), six tourism centres are to be built across the six geopolitical zones in the country.

The Director-General of NTDC, Mrs. Sally Mbanefo, made this declaration while addressing members of management and staff in an interactive session at the tourism village in Abuja during the week.

The DG, who took time to intimate staff on progress report and recent developments since her assumption of duty, emphasized that the core of her administration remains a comprehensive development of Nigeria’s local tourism attractions, hence the need for the tourism centres across the geo-political zones.

According to her, the NTDC plans to introduce information desks at major airports in Nigeria with the aim of supplying tourists and visitors, relevant information on areas of interest, directory on places to visit, activities of the NTDC and the tourism industry in general.

During the meeting, Mrs. Mbanefo noted that the NTDC will work with stakeholders and professionals on strategic imperatives aimed at growing revenue base, while restructuring the corporation and repositioning it to better finance its activities.

The NTDC boss also said a productive workforce is essential to achieving her vision which is to make the NTDC an employer of choice in the public sector, putting measures in place to make the work environment conducive for staff with a comprehensive welfare package.

August 3, 2013