Obasanjo Lauds Private Sector’s Role in Economic Development
Former President Olusegun Obasanjo has described the investments made by British American Tobacco Nigeria (BAT) in Nigeria as a major milestone and also a testament to government’s efforts geared towards attracting foreign direct investment into the country.
Obasanjo stated this at the inauguration of BAT’s West African regional head office, located in Ikoyi, Lagos.
Tracing the return of BAT to Nigeria, which began with the signing of a Memorandum of Understanding (MoU) between the Nigerian government and the company in 2001, Obasanjo said BAT was among the first companies that heeded his government’s invitation to invest in Nigeria.
Commending the role of the private sector in economic development and jobs creation, Obasanjo, who was the chief guest at the event, highlighted the important role that companies such as BAT are playing in the country.
“Almost a decade and a half after the signing of the MoU, we are again at BAT to witness another milestone. I’m particularly delighted because this head office building showcases faith in Nigeria and BAT’s continued investment in Nigeria,” he said.
Making reference to the legality of the tobacco industry and the benefits Nigeria derives from the legitimate tobacco industry, Obasanjo said that the health warnings on cigarette packs are conspicuous enough.
“With the warning on cigarette packs, the government and tobacco companies have fully discharged their duties. We cannot sacrifice the huge benefits BAT brings to the economy,” he emphasised.
On his part, Managing Director, BAT Nigeria, Chris McAllister said one of the major benefits of democratic rule is the relative stability the country enjoys, in addition to engendering an environment conducive for businesses to thrive,
Listing the objectives of the MoU BAT signed with the federal government to include the development and expansion of a fully vertically integrated tobacco industry, the building of potential for regional exports, significant increase in both the quality and quantity of tobacco grown and establishment of an independent foundation to address rural economic development, McAllister said that the company has continued to fulfil its obligations to Nigeria.
“As an economic development partner, we believe that by highlighting and celebrating the values and attributes that are unique to the Nigerian nation, the private sector can assist the government to achieve its global objectives. We are an ideal model of how, if properly structured, foreign direct investment can spur economic development,” he stated.
The multi-storey building will serve as the headquarters of BAT for its West African operations. BAT produces cigarettes from its factory in Ibadan, which it exports to other countries in the West African sub-region. The company also sources its major raw materials from farmers who are predominantly based in Iseyin, Oyo State. Over the years, farmers in Oyo State and other states of the federation have, enhanced their income by practising mixed cropping, among other initiatives.