Ogun as Nigeria’s fastest-growing economy

The title of a report in the November 2, edition of The Economist reads: Many of Africa’s fastest-growing economies have not relied on oil or mining. It listed six countries in the continent as being in the enviable club of Africa’s fastest-growing economies.

The publication listed, among others, prudence and ingenuity in public finance management, leading to higher revenues and enabling climate for private investment, leading to local and foreign investments.

“Progress,” according to the story, “was not restricted to economic policy. The six countries in the IMF study are far better governed than they were in the mid-1990s. Based on indicators compiled by the World Bank, they are less corrupt, have better bureaucrats, enjoy more stable politics and are better regulated than their African peers.” (Emphasis supplied)

Although these countries, the leading financial medium concludes, still have a lot to do, they are on the right track.

The above is simply apt for the appraisal of Ogun State, Nigeria, which, last Wednesday in Lagos, was adjudged the fastest growing economy and first choice for industrialists and entrepreneurs among the 36 states in Nigeria by the Management and Board of Editors of the nation’s leading business newspaper, Business Day, at its States Competitiveness and Good Governance Awards ceremony.

According to the Editor of the paper, Phil Isakpa, Ogun won the prestigious award “because it has the highest number of businesses establishing in its domain and that the government has made the environment more attractive to investors. Ogun also has the highest positive number of Gross Domestic Product in the last one year, the number of bank branches has increased more than that of other states in the last three years and its financial inclusion, particularly the embrace of cashless economy and use of Automated Teller Machine by residents had increased tremendously.”

It is no longer news that before the advent of the administration of Senator Ibikunle Amosun, Ogun State was in a state of siege. Residents could not sleep with their two eyes closed. Freedom of speech suffered steadily. Banks were closing shops every now and then as insecurity became the insignia of the state. The climate was that of fear. Readers should only visit the libraries of Nigerian newspapers to refresh their memories of what became the story of Ogun, a state that was once a haven of peace and tranquillity.

Of course, under such a climate of anxiety, businesses would close shops and move to other states; investors would avoid the state like plague; economy would plummet; unemployment would rise; crime and social vices would become the norm; development would be in abeyance; and life would become a restriction.

That was the public perception of Ogun State before the inauguration of the current government in May, 2011. Matters were exacerbated by the fact that for about two years before May 29, 2011, there was effectively no government in Ogun, as one vital arm of government was completely paralyzed while the other eclipsed by fear.

It was a daunting challenge for any new administration. To the glory of God, insecurity has been fought to a standstill. Or when last did you hear of banks in Ogun closing business because of insecurity? That has become a thing of the past. The climate of fear has been removed as residents now move freely and enjoy their inalienable right of free speech. Some unions who agitate for Amosun to clear all the arrears of salaries his government inherited in one fell swoop rather than piecemeal and politicians who incite landlords with illegal structures, indeed, now understand the meaning of freedom. But freedom and responsibility, we must note in passing, are two sides of a coin…

During the inauguration of another multi-billion naira investment, Wempco Steel Mills Co. Ltd, Ibafo, on April 18, President Goodluck Jonathan said, “I congratulate the Governor, the Government and people of Ogun State on another landmark achievement in this great state. I thank you for sustaining a conducive and business friendly environment that promotes economic activities in the state. I look forward to coming again in the very near future.”

Among the multi-billion naira investments in Ogun in the last 30 months are May and Baker Nigeria Plc, Idiroko Road, Ota; Lafarge Cement Wapco Nigeria Plc, Ewekoro II (Lakatabu); Dangote Cement Factory, Ibese; Metal Recycling Industries Limited, Ogijo and African Foundries Limited, Ogijo. All these are providing employment for thousands of Ogun indigenes. But the success of the Amosun administration is even more patent in the over 45,000 jobs created through direct and indirect employment. Through partnership with institutions like the Bank of Industry, thousands of youths have been taken off the streets and many SMEs established, hence the natural drastic fall in crime rate in the state. The Uplifting Project of the Wife of Governor, Olufunso Amosun, has been of tremendous help in this regard, as hundreds more are provided free training on handicrafts and empowered with start-off kits.

Ogun could not have been known all over the country today as one huge construction site with only gravels, irons and earth-moving equipment in place. Thousands of jobs are equally generated through the construction work. The Olokola Free Trade Zone is receiving attention and the state is expected to reap maximum benefits from its rich deposits of bitumen, kaolin, limestone, phosphate, granite stone, gypsum, bauxite, feldspar, among others.

The government is waging war against illegal taxes and fees while harmonisation of company taxes has been substantially achieved, with companies already enjoying the benefits.

From a paltry N700 million monthly Internally Generated Revenue (IGR) it inherited, the Amosun-led administration has raised the IGR of Ogun to a record figure of N4billion per month. This is done essentially by plugging the loop-hopes in the old system, automating revenue collection processes, encouraging residents to pay their tax as prescribed by law and removing bottlenecks in the interface of the public with government officials.

The administration has zero tolerance for corruption. For instance, officials recently indicted have faced the full wrath of the law. The fact that Amosun is a chartered accountant and highly experienced auditor has equally ensured that processes in government are less prone to corruption; workers are motivated through regular payment of salaries and provision of work-friendly environment.

The first international investors’ forum organised by the administration, where rebates and discounts were announced for genuine entrepreneurs, has opened a floodgate of requests for investment in the state: 37 new industries (not SMEs) have already established their businesses in Ogun, 14 are at various stages of building their factories while 32, according to the Commissioner for Commerce and Industry, Otunba Bimbo Ashiru, have got approval for land allocation.

These new firms will generate another round of thousands of direct and indirect employment in the state.

The on-going investment in agriculture, roads, ultra-modern markets, power, water, transport (contract for a light rail has been signed), education, etc, can only ensure one thing – Ogun state remains investors’ destination of choice.

•Soyombo, writes from Abeokuta.

The post Ogun as Nigeria’s fastest-growing economy appeared first on The Nation.

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