By Abdul Aji.
The major report about business in Kogi State of recent is the Nigerian Bureau of Statistics which claimed two consecutive times that inflation in highest in Kogi State.
The National Bureau of Statistics, NBS, report showed that Kogi State, recorded the highest, Year on Year, food inflation with 29 per cent followed by Oyo State with 24 per cent. At the level of sub-nationals, Kogi state recorded the highest annual inflation rate as its CPI rose by 20.82%, which is lower than the 23.4% inflation rate recorded by the north-central state last previously when it also ranked highest in terms of inflation amongst the sub nationals.
Kogi, one of the most endowed in terms of natural resources is debatably a catalyst as well as instrumental to the growth and development of modern Nigeria. Kogi state is the most uniquely and centrally located state in Nigeria. It connects the Federal Capital Territory with the Western and Eastern parts of Nigeria and shares boundaries with the FCT, East, West and Northern parts of Nigeria covering a total of 9 states.
Agriculture is the predominant economic activity in Kogi state. The resources in the agricultural sector are impressive. Kogi has become a household name in cashew and cassava production. Kogi State has a landmass of 30,354.74km most of which is arable. The state has favourable climate for farming. The rainy season commences from April, attains its peak in September and ceases in December.
On the demand side, the location of Kogi sharing boundaries with many other states including Federal Capital Territory makes Kogi State a natural hub and bulking point for major agricultural commodities and a transshipment point for Agricultural Commodities Exchange. However, despite the agricultural outputs in Kogi State, food price hike has been the major issue in recent years in Kogi State. This is because food merchants from eastern and some northern states flock Kogi State with heavy duty vehicles to cart away huge volume of food items such as yams, cassava, maize, millets, melon and many others.
In addition to agricultural potentials, Kogi State is blessed with abundant human capital and mineral deposits including iron ore, coal, marble, limestone, feldspar, dolomite, tantalite and gemstones; and oil and gas. There is also the presence of Ajaokuta Iron and Steel Company, Nigerian Iron Ore Mining Company, Itakpe and Obajana Cement Companies and relative peace in the state.
Recently, the growing rate of insecurity in Kogi State, occasioned by incessant robbery attacks, has not only become a source of worry to the residents, but also the police, the state government and the business community. It is pertinent to realize that economic cycles indicate that during difficult economic times, criminal activity increases. Nigeria has been in economic difficulties even as the country’s currency, the Naira, continues to lose its value in recent times. The entire country has been engulfed in criminal activities and acts of hooliganism in recent years. Bandits, kidnappers and the menace of Fulani herdsmen has been the security concern in the year and Kogi State is not left out. Famers in several remote villages in western and eastern parts of Kogi State were reported to be unable to go their normal commercial activities including farming because of Fulani herdsmen that have taken over farmlands making their caws to feed on planted food crops.
Following the emergence of the Governor Yahaya Bello-led administration in 2015, the aspirations and desires of Kogi indigenes is to enjoy the dividends of a better governance as well as livelihood devoid of agony and pains. According to Yahaya Bello, his administration has proven beyond doubts its capacity in tackling the aforementioned security issues in the state by enhancing citizens’ involvement in the fight against insecurity.
“Some of the measures taken by the government to tackle insecurity include clearing of highway bushes, equipping security agencies, engagement of youths in vigilance groups and incorporation of hunters into anti-kidnapping squad,” Bello made this observation at the Annual Lecture/Fellow’s Night 2021 of the Institute of Security and Strategic Studies in Abuja.
Contrary to the above, some persons interviewed are of the opinion that the youth governor is playing politics with the lives of the citizens, claiming Kogi indigenes are suffering in silence as a result of some of the under-reported cases of hunger, starvation and neglect confronting the state.
Undoubtedly, Kogi has all it takes to be the commercial nerve centre of Nigeria considering what nature has blessed it with, especially boasting as one of the states with numerous resources, human and natural. Thus, there is need for the New Direction Government to buckle up its seat belt by putting measures in place to meet the yearnings of the masses.
Recently, the governor embarked on town-hall meeting to enable his governmental team understands the feelings and aspirations of the indigenes first-hand.
It is expected that the citizens of the state will bare their minds to the understanding of the governor. Kogi should be best known for its giant strides in terms of infrastructure and human capital development as against what is obtained today. Though the government is doing all it can to make life meaningful for the electorates but the best is not enough.
The growing rate of insecurity in Kogi State, occasioned by incessant robbery attacks, has not only become a source of worry to the residents, but also the police, the state government and the business community. The security situation in Kogi state has become a major challenge for investors, and this pose a threat for its economy with implication for investment and job losses.
The present security challenge could diminish the state’s ability to command local and international respect. Incessant kidnapping in various parts of the country affects commercial activities in no small measure. Nobody wants to take risk traveling from one state to another to buy food items for sale in the state. This accounts for the scarcity of yams, maize, beans, sorghum and millets in Kogi State this year.
In Kogi State acts of thugs hold sway. Thugs and terrorists are operating under the nose of policemen in the state. Some have become “masters” who now settle scores and issues in some communities. During cashew nuts harvest season armed youths and even Fulani men have been reported going to farms to harvest cashew nuts, in both day and nights. The cashew owners dare not come near them.
Security situation apart, business owners interviewed in the course of this report mentioned that they recorded low patronage from the public as a result of poverty and bewilderment that has been the situation in the country. Several business owners who spoke to this reporter are of the believe that workers are not enjoying their full benefits, especially local government workers and primary school teachers that form majority of workforce in the state are paid percentage salary.
They also mentioned that government offices are rarely patronizing indigenous contractors adding that scanty civil service activities are going on in ministries and agencies as there is visually no fund to carry out government businesses. In a state that is dominated by civil servants, this has culminated the purchasing power of the entire populace.
As business owners face low patronage, they also have scores to settle with tax payment agents that go about closing erring business premises that are unable to pay increased tax rates and impositions. Most business premises in Kogi State including banks, hotels, filling stations restaurants, and supermarkets have tax agents sealing notifications as a result of their inability to pay demanded tax from the government agent.
There has been water and electricity scarcity in Lokoja, the state capital. The state capital is blessed with abundant water with Rivers Niger and Benue, and there is a gigantic water supply system in the town, yet the people suffer severe water scarcity. Commercial activities that requires the use of water or electricity suffers setback in the state.
Kogi State citizens cannot be singled out on issue scarcity and want; the entire Nigerians are currently in penury. Statistics from the World Poverty Clock shows that 105 million Nigerians live in extreme poverty in Nigeria. The number accounts for 51 per cent of the country population of more than 210 million, the World Poverty Clock said. In its latest report, the World Bank noted that high inflation rate in Nigeria was worsening poverty and depressing business activities.
The bank said an estimated seven million Nigerians were pushed into poverty this year due to rising prices alone. According to the report, high inflation frustrated economic recovery and eroded households’ purchasing power, increasing both the poverty rate and the number of people living below the poverty line.
Recently, some analysts blamed politicians, especially state governors and assembly members – state and federal, for starvation prevailing across the nation. They accuse the governors of sabotaging the implementation federal government policies and programmes aimed at eradicating poverty among the citizenry. Some of such policies are the implementation of new minimum wage, implementation of Teachers Salary Scale, autonomy for the judiciary and the local government councils as well as implementation of NFIU, among others.
Some other analysts put the blame on the president himself. According to former Governor of Anambra State, Peter Obi, Nigerians are getting poorer due to misplaced economic priorities of the Federal Government. He said that the Buhari’s administration was borrowing for consumption instead of production. He argued that while it was not a crime to borrow money, the funds must be used solely for production that would enhance the lives of the citizens and enrich the economy.
According to him, the nation’s Gross Domestic Product, GDP, would not be growing while the people were getting poorer. Rather than relying on speculative growth in the media, the ace businessman said that the growth Nigeria needs is the one that would pull people out of poverty by making them have disposable income and be able to feed themselves.
As mentioned earlier, rising insecurity, misdirection of government funds and poor implementation of policies, programmes and interventions by the federal, state and local governments have been identified as the leading causes of hike in prices in the country. Other causes of poverty and poor economic activity include multiple taxations on inter-state goods transportation by federal, state, and local governments.
