of Abia State

Posted on by kalu Aja

On August 27 1991, Abia State was created

There are many good things to celebrate about Abia State eg Abia has stayed constant in WAEC performance…Abia has always been among the top three states with WAEC pass rates…

Enyimba of Aba won Nigeria first and only Champions League Cup…twice.

“Aba made” goods ie SME manufacturing in Abia, Nigeria has not died of, rather they have been resilient and have survived, even without government support. Aba remains one of the largest and deepest  SME and commerce  base in sub-Saharan Africa.

Abia was the first state in Nigeria to have a privately owned, independent IPP, the Geometric Power in Aba…Abia also has a vibrant non-oil economy with palm oil, Cassava, and Cocoa (yes Cocoa, Abia is the fifth largest cocoa producer in Nigeria). The first phase of potentially the largest Mall in Africa, The Aba Mega Mall has been completed in Abia.

However all these achievements have come in spite of not because of the Government of Abia State. The real story of Abia is how Abia has wasted 16 years from 1999 to 2015. The state of Abia has had probably the worst state governors in Nigeria….ever!

The Orjis were governors that could not clear garbage from the streets of Aba…talk less develop Aba into a modern center of manufacturing; services and fabrication. Theodore Orji took the word “incompetence” to a new level. It’s still too early to judge the new Governor Ikpeazu, he is fixing roads in Aba as I type, so I give him the benefit of the doubt…..for now.

Abia receives the highest 13% oil derivation revenues in the South East but as at June 2015, Abia state was owing the Abia State Universal Basic Education Board, six months salaries; the Abia State Polytechnic, five months salaries; and state teachers, three months’ salary arrears.

Abia leads in IGR collection in the South East. If you remove the oil based economies of Delta, Rivers, Edo and then Lagos, Abia generated the most IGR in Nigeria as at 2012! Abia is blessed to have Aba, perhaps the largest SME cluster in Africa, which can generate enough IGR irrespective of crude oil prices… Yet there is no government approved industrial estate In Aba. Aba is basically a residential town overtaken by manufacturers, unplanned, unsafe for SME manufacturing.

So what can Governor Ikpeazu do?

  1. Publish a clear 20 year road map that must be followed by any new government to develop the state.Abia State, was part of the defunct Eastern region that, in 1964, that was rated as the fastest growing in the Third World by the UNDP. The road map should have the clear target to make Abia the largest state economy in Sub-Saharan Africa by 2035. That’s an apolitical goal that can survive whichever party is in power. Such a goal is clearly possible with vision, action and responsibility. The private sector base in Abia already exists, thus the government of Abia must see itself as a business enabler, a policy giver, the government must not stand in the way of business.
  1. In the World Bank Ease of Doing Business in Nigeria 2014 edition, Abia is ranked, 35 out of 36. This is clearly unacceptable. Governor Ikpeazu should work to make Abia the number one state in Nigeria for doing business, enforcing contracts, property rights etc., that’s a target for the new government.
  1. Communicate intent via a brand, own and promote…”Aba made”. There is no “Abuja made” or “Lagos made” …just “Aba made” so work it…own it, set standards, drive it, monetize it. Such a slogan should be accompanied with clear policies to attract SMEs to Abia. “Aba made” branded serves as a target for the state as well a pointer on what they intend to do.
  1. Pass clear business friendly tax laws, if SMEs invest in infrastructure, they can claim it back in PAYE taxes. If a SME build a solar farm and generates power to light up a street, give that as a tax credit back to the SME. If a state locates its manufacturing in Abia from anther state, reduce their PAYE…..compete.
  1. Fix up Aba, from simple widening of roads, street numbering, open space green areas and public sanitation to more ambitious goals of providing superfast broadband in Aba. Abia has got a $200m loan from the AfDB to tackle, water, sanitation and roads in Aba, that’s is N40b to be spent in Aba. This fund must be spent and seen to be so spent…
  1. Build a new modern industrial city in Abia…. If Cross River, without oil could build Tinapa, why can Aba with oil not build a modern Industrial cluster, with warehouses, offices, roads. This is clearly possible, and can be financed by issuing a diaspora bond to Nigerians living offshore. The State should simply provide, the land and title and move out of the way.
  1. The CBN policy on domiciliary accounts transactions present a rare opportunity. Abia has a lot of citizen offshore, draw up a remittance policy for Nigerians abroad to send cash to relatives living in Abia or SE. It should be possible for a citizen in Austin Texas to Pay USD to say Bank of America/Abia account in Dallas and Abia government pays Naira cash in Naira. The Abia government can build up large USD deposits which it can deploy to Nigerian importers at a profit to the state government. This can be used to import inputs on “CBN Import restriction list”. Abia does not need to borrow, it need to take advantage of its opportunities.
  1. The state want to invest in an airport, this is good but not urgent. The State should focus on partnering with Anambra State to build a railway from Onitsha to Aba. Julius Berger has confirmed it can bring in any container from any port in the world to the Warri Port. The Anambra state Shippers Association has adopted Warri Port as its destination port of choice Abia State should get approval to get investors to build a bonded warehouse in Onitsha. With the. Rail link, imports can come from China to Warri then to Aba, similarly cassava exports can go from Aba to Onitsha to China. The taxes Abia will make from this port, rail carriage and increased commerce will be bigger than 13% oil derivation.

In summary, Abia has to ride on its competitive advantage and via commerce and education and project Abia State as Nigeria’s business and commerce capital. Enough of the wasted years….

Its our problem, we can fix it.

(Photo Cedt: Abia State Government)