Anambra’s Investment Rain
One of the memorable titles of Newswatch magazine in the hey days of its media presence was the two - part edition, “Shagari’s Last Days” published soon after the aborting of the second republic. In that compelling story on the seduction of presidential power masterfully crafted by Ray Ekpu, there is an allusion how Shagari as President had once introduced Ishiaku Rabiu as Nigeria’s number one business man in the course of a state visit to Britain. That is a recommendation any business man will savour. Nations and their constituent states too also crave such powerful promotion as investment haven. Yet, it is a long walk to an investment boom for any economy; which hard fact renders media reports of an investment rain in Anambra State in the past one year interesting and deserving of closer attention.
Since 1960, Nigeria’s federal and state governments have sought expansion of their economies through multinational infusions and corporations with little success here and there. In recent years, increased cost of running government and the volatility of oil prices has made diversification of the economy an inevitable task especially for the 36 states sentenced to paltry allocations by a unitarist-oriented revenue law. It is therefore cheering news that Governor Willie Obiano had attracted direct foreign and local investments in Anambra State’s economy to the tune of $1. 8b.
A glance at the investment sheet shows that a broad range of critical sectors from agriculture, manufacturing, hospitality and tourism to power generation are beneficiaries of the capital inflow. The joint ventures with Coched Farms; Ekcel Farms; Joseph Agro Industries ;Grains & Silos; and Delfarm Limited and Songhai Regional Centre with a combined worth of over $600m, is significant for its statement on food security. In various stages of development, the chain value of the agro-allied enterprises offer soothing economic and social potential in the face of unemployment concerns. What is striking in these partnerships is the evidence that they are not ad hoc but in pursuit of the administration’s inaugural objectives to make Anambra State a leading producer in rice, cassava, garri, palm oil and fish.
The other outstanding legs of the investment bang are the $100m natural gas project being undertaken by Falcon Corporation Limited and the $50m vehicle assembly plant by Richbon Nig Ltd. The strategic importance of these ventures in the quest for an industrialised economy cannot be over-emphasised. In the face of the nation’s energy crisis and the statutory limitations of state governments on power, a gas-distribution initiative represents about the best intervention in the power supply chain. With this facility, the Obiano leadership aims to shore up energy delivery to the state’s industrial zones, thus, boosting capacity utilisation of entrepreneurs. The agreement with Richbon shows that its automobile plant will assemble buses, light and heavy duty trucks, construction as well as agricultural equipment. It is of much significance that some of these ventures have capacity for ripple effect on other new and old investments such as the assembly
plant promises to impact on the agricultural revolution in the area of equipment. It is also interesting to note that the location of the vehicle assembly plant is Oba, close to the Nnewi auto industrial centre. Oba incidentally is the site for the proposed commercial airport for the state.
Is this engagement sustainable or a flash in the pan? This doubt seems all the more cogent by the exception Governor Obiano has proved in this aspect of governance. The trend had been that new governments spend the first six to 12 months learning the ropes and adjusting their programmes based on the reality on ground. Indeed, the negotiations leading to the take – off of SabMiller Breweries at Onitsha, Anambra State, in 2012 gives a sense of the odds in getting prospective investors to part with their money. It had taken some six years before the crystallisation of the plan. Former Governor, Peter Obi had first invited the South Africans to take over the Premier Breweries at Onitsha. This was declined on the consideration that the facility was too small. The offer was later reviewed to include another privately owned brewery in the commercial city. The response came in the startling observation that Anambra was unstable! When Obi remonstrated that the state had moved on from the battle ground of previous years, the South African brewers cited his impeachment as evidence of instability. It would take more years of persuasion before the South Africans agreed to come and build their own structure.
Obiano’s feat in winning investor confidence in so short a time and on such an unprecedented scale seem to be the product of his experience as an investment banker and the spirit of leadership transformation. Either way, it is a vindication that Ndi Anambra made the correct choice when they elected him governor in 2014. It may well be that Obiano’s emphasis on standards defines the stability that has attracted investors to the state.