Kogi State is one State presently undergoing an Agricultural and Industrial Transformation.
This has been made possible through the signing of about ten memorandum of understanding with foreign partners to stimulate the State’s economy by Capt Idris Wada, the Kogi State Governor.
The feat to attract several Investors to the State is no doubt another giant strides by the present administration.
Similarly, the efforts and role played by Alhaji Yusouff Alli; Special Adviser, Investment Promotion to Capt. Idris Wada, Kogi State Governor needs to be commended for ensuring that Kogi State now plays the role of a catalyst, culminating into signing MoUs running into billions of naira.
The achievement to attract billions of naira into the state’s economy is anchored on the political will of Capt Idris Wada, has not only stimulated the state’s economy it has also helped in creating jobs for the teeming unemployed youths in the State.
In addition, there is the backward integration advantage that accrues to the communities where this projects are located and the State as a whole.
Also a proportion of the profit is also earned by the State thereby enhancing its revenue generation profile.
The partnership entered into by the State has also ensured a dual advantage of having a Direct and Indirect employment created on a massive scale while the lean funds accrued the State from the federation account are channeled for other developmental purposes.
In all of the MoUs the State has signed, its equity shares has been to capitalize its land and its content through a use “it or loose it basis,” allows the state to be allotted some percentage of equity.
It is important to state that on assumption of office as Governor of Kogi State, Capt. Idris Wada left no one in doubt that he was determined to maximize the limitless potentials inherent in the State.
With potentials for investment in diverse sectors of the economy such as Agriculture, Mining, Industry and Power, Kogi State is equally blessed with Tourism, Transportation, Trade and Commerce potentials. Other areas the state remains a bride to investors is in the area of Waste Management, Urban Renewal, Hospitality and Tourism endeavors.
Aside incentives as Tax Holidays, Access to land with necessary titles, the State also facilitates exploration of Minerals through the necessary Federal Agencies as support to investors.
The creation of an Investment Promotion Desk by the State Government,a one stop shop for information and detailed discussions, serves as an investment maternity ward for the safe delivery of investment projects in the State.
Towards ensuring the development of the State Agricultural and Industrial sector, the Wada led administration, thus entered into an understanding with willing entities, to form Joint Ventures and later as Build, Operate and Transfer with an enabling legislation to allow for Public Private Partnership already in its final stage.
The specific content of the partnership entered into by the State include: a Joint Venture MoU for farming of up to 6000 hectares of Cassava and processing it into native and modified Cassava Starch with Ostertrade Engineering and Manufacturing as well as with DPP International APS. The project has an equity investment of 650 million USD to be realized within 18 months by all parties. The project also has a high net worth with a Return on investment of 27% that is a pay back period of less than four years. It is also capable of generating thousands of employment in the area of its location.
Similarly, the partnership with Espera Global Limited in commercial Agricultural and Agro Industrial investment which would operate on a Project Model called Strategic Fast Tract Agricultural Development System, seeks to invest up to 650 million USD on 25,000 hectares of land.
Aside the backward integration advantage to the state, the state also enjoys 15% share of the project while employment would be created in Agriculture Infrastructure and Social Service.
The MoU entered into with Chelsea Group Limited, is for the establishment of Agriculture and Ethanol Plant and other associated Industries in Ilama Community in Dekina Local Government Area. The project is a 300 million USD investment. The equity structure of 85% and 15% for Cassava development for the partner and state government respectively, will occupy a land mass of 10,000 hectares of land.
The MoU with Favic Constructions Company seeks to exploit the immense location of economic advantage of Kogi State as a transportation hub. On the average, vehicles from 22 States pass through the Capital daily.
A Mechanic and Spare Part Market in Lokoja, is to be sited on a minimum of 10 hectares of land. The facility will have an international hotel, car park that will take at least 200 Vehicles, a Bank, Open Court Restaurants, and Rest Rooms is structured on the basis of 75% and 25% for the investor and State respectively.
Towards providing mass housing scheme in the State,the state entered into a partnership with Light House Financial Services Limited to build 1500 houses of various categories for it citizens in the state. The scheme would be located majorly in Lokoja and other urban towns in the State would be prosecuted in phases.
The importance of Power in driving socio-economic development in any society, made the State sign an MoU with Good Earth Power Nig. Ltd and Astra Coal Nig. Ltd. The companies aside investing in Housing, Agriculture, Infrastructure and Power Plants, would utilize the abundant Coal deposits to generate the much needed electricity for the Country.
Astra Agriculture Resources Ltd, intends to establish a Rice farm and Rice Mill at Ibaji. Infrastructures such as Health Centers, Schools, Roads, Water and electricity would be provided by the investor as part of their Corporate Social Responsibility.
Through the Kogi investment and properties Limited, a joint agreement with Kiabo Engineering Group Holding Limited of Hong Kong to Design, Construct and Operate an eleven story Hotel and offices to be known as Kogi House is yet another brilliant initiative of the Capt Wada administration. The project which would be located in the central business area of Abuja, would see the State enjoy 80% equity participation in the Joint Venture which spans a period of 30 years.
With the future of the nation said to depend on Agricultural Promotion, the State massive investment in Agriculture especially in Sugar through the establishment of a 50 hectares cane sugar seed nursery, that would enable the planting of 1000 hectare of sugar cane in about a year by BUA Sugar, Dangote Sugar and Unikem Sugar companies, who are planning to set up sugar plantation and refining facilities in the state is hoped would help form the bulwark for the realization of the National Sugar Master Plant.
The Achaju Oil Palm another farm is yet another project that will greatly improve economic outlook of the State through a joint venture.
The icing on the cake in all of the partnership, is the ongoing move to resuscitate the Ajaokuta Steel Plant.
The plant which has since been recognized as the fulcrum of industrialization for the country, has been bedeviled over the years by some forces against its take off, would soon have its jinx broken as bold steps by the State Government to reawaken the sleeping giant is already concluded.
Reprom Company Nig. Ltd, in partnership with the Kogi State Government has put in place machinery to reactivate the steel plant in the next few weeks.
All of this efforts by the present administration are aimed at meeting the yearning of the people especially as the State is aptly described as a Civil Service State, with 80% of its revenue spent on the payment of salaries with little or nothing to run the state after ward.
Without mincing words,the friendly environment created by the Capt Idris Wada administration and the states abundant potentials in Agriculture, mining, tourism, human capital development as well as its strategic location is making it to presently undergo an Agricultural and Industrial revolution.
Abu Micheal is the Chief Press Secretary to Kogi State Deputy Governor.
