In a bid to shape Kogi state economy for positive growth and development, a non-governmental organization, Mentor-Box has kick-started a campaign to encourage patronage of local goods and services.
At a press briefing in Lokoja on Tuesday, Eunice Emmanuel-Bagi, co-founder of Mentor-Box, noted that Kogi state has a significant problem of capital flight.
She stated that the propensity of Kogi residents to patronize vendors of goods and service outside the state is detrimental to the local economy of the state hence the need to launch the #SpendKogiMoneyInKogi campaign to arrest the ugly trend.
“This campaign was created out of the necessity to create a paradigm shift. to get everyone involved in the process of shaping Kogi state’s economy for positive growth and development.
“Our Business Incubator program at Mentor-Box offered us the opportunity to carry out sector focused research of the business ecosystem in Kogi state, particularly the small and medium enterprise ecosystem. Findings from data gathered from survey forms and interviews gave clear indicators that Kogi has a significant problem of capital flight.
“Capital flight in the context of the Kogi situation refers to the purchase of goods and services in other regions much to the detriment of our local economy. This problem is largely enabled by the state’s close proximity to other regions, particularly the Federal Capital Territory. The culture of ‘I bought it in Abuja’ is hindering growth and threatening economic development with negative effects on our local economy,
“In a state like Kogi with significantly low income, capital flight weakens growth potential, it leads to economic instability. The consequences of this manifest in a number of ways which include rise in state budget deficits, increase in account deficits, increase in inflation, contraction in economic activity and lack of opportunities for profitable investment in our local economy. Furthermore, funds taken outside our state cannot be taxed, thereby causing loss of revenue for the state government,” she said.
Emmanuel-Bagi called on residents to support the #SpendKogiMoneyInKogi campaign by patronizing local businesses in the state. She charged residents with higher spending power to help contribute in growing the state’s economy by spending at least 10% of their disposable income on goods and services available in the state.
Speaking at the event, the Chief of Staff to Kogi state Governor, Edward Onoja commended Mentor-Box for the timely initiative.
He noted that the state government is working on establishing production concerns that will reduce capital flight on expenditure on food commodities. He noted that the rice mill at Omi and cashew processing firm will go along way in arresting capital and increasing the #SpendKogiMoneyInKogi potentials.
Aliyu Nda Salami, Chairman of Kogi State Internal Revenue Service agreed that allowing the state’s resources to revolve within the state will lead to improvement in employment, taxes as well as grow the economy.
Salami disclosed that as part of the measures by government to check capital flight, contractors operating within the state are now made to embrace the local content policy, which allows procurement from the local businesses.
Founder of Mentor Box, Mr. Happy Rugbere, assured that the #SpendKogiMoneyInKogi campaign will be of immense benefit to start-ups and existing small and medium scale enterprises in the state.
He added that the campaign will encourage business start-ups, reflate the economy and enhance job creation for the teeming youths in the state.
