BEVERLY HILLS, March 15, (THEWILL) – Undaunted by a deluge of criticism and negative media reports, the Kogi State Government braved a two-day Economic and Investment Summit February 13-14, 2018, the first in the state’s 25 years of existence then. Three years after the highly celebrated event, the outcome of the Summit remains in limbo.
The summit was to draw attention to the massive economic opportunities and potentials in the Confluence State that, if or when tapped, could turn Kogi into the league of Nigeria’s topmost economies and end its appendage of a civil service state.
However, various stakeholders and industry experts within and outside the state had warned that the summit might not go beyond the podium rhetoric it generated. They maintained that the timing, execution, ‘body language’ of the organisers, socio-economic and political realities of Kogi, showcased the summit more as a package of “political propaganda” – far from the objectives it was meant to achieve.
Coming at the peak of unfriendly voices of labour, opposition and critics, it was to the credit of Alhaji Yahaya Bello, the state governor that a quantum leap of faith was taken to host the investment summit “to highlight Kogi State’s economic opportunities and potentials to an international audience comprising policymakers, business leaders, academics and finance professionals to debate what must happen now for the state to overcome its challenges, mitigate the risk in a downturn, and ensure its lofty hopes for future prosperity are met.”
Kogi was toeing the lines of her counterparts. The dwindling fortune of oil revenue had put the nation’s economy on edge. Since mid-2014 when prices of oil in the international market slumped, Nigeria’s three tiers of government (federal, states and local) have experienced acute revenue shortfalls. The imperative of diversifying the economy thus became more compelling than ever as governments embarked on survival strategies to stay afloat. Kogi seemed to have tapped into that unfolding narrative.
According to Governor Bello, Kogi had worn the appalling appendage of ‘Civil Service State’ since inception and his administration was determined to change the narrative: “Twenty-five years ago, Kogi State was created and ever since then, it is often referred to as a civil service state. Under this administration, we will no longer take that narrative because Kogi state is full of potentials.”
Sounding confident about his vision that underscored the imperative of the summit, Bello linked the necessity and outcome of the event to the expectations of dividends of democracy under his leadership. “How can the government deliver on its bold promises – from increasing ease of doing business to making it easier for firms to raise capital—to improve the climate for foreign investment?”
“Our geographical location, natural water bodies, variable vast and arable land, human capital and solid minerals are great potentials. I refer to Kogi State as the solid mineral capital of Africa. All these potentials will remain untapped so long as we continue to see Kogi State as a civil service state and nothing is done,” Bello said at the opening ceremony in Lokoja, as if preempting Vice President Yemi Osinbajo, who represented President Muhammadu Buhari at the occasion.
Osinbajo said, “This summit is both timely and strategic not only to draw attention to the confluence of opportunities in Kogi State but also to reinvigorate and inspire the people of Kogi; as you are reminded of your prospect both as a state and what it has to offer and the possibilities that are so unique to this state.
“A fertile arable land that makes Kogi the largest producer of cashew, potential major rice producer, a respected fishing community among others as well as a bed of some of the most prolific solid minerals including coal, limestone, iron ore and tin makes undoubtedly, the confluence state.”
Then Minister of Solid Minerals, Kayode Fayemi, urged Kogi to explore partnership opportunities for immediate exploration of the huge mineral deposits in the area. “There are opportunities for Kogi State to partner with private sector players to exploit the vast value chain of mining in the state. Kogi State, in partnership with private sector entities can invest in beneficiation plants that encourage the expansion of mining activities within the state, thus creating jobs and economic opportunities for indigenes.”
The Flipside
Divergent opinions were raised then concerning the two-day summit that attracted the Vice President, state governors, top government officials, eminent religious leaders and traditional rulers, and members of the diplomatic corps among others. The critics accused the state governor of pursuing an “anti-people” initiatives that, contrary to his pronouncements, did not show convincing evidence that he walks his talk.
A newspaper columnist had on February 18, 2018 used his back page column to throw uncommon punches at Bello saying: “It is obvious that the idea of an economic summit is an abstraction to him, a distant idea with no ties to either his own vacant mind or economic and social reality. The state is in decay, its people groaning in abject poverty and government-inflicted pains, and he has engineered an oppressive air that envelopes the state.”
But, the Director-General, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Kebbi State, Malami Kebbi Guruza, noted then that the success of such economic development initiatives is tied to the goodwill of the government of the day.
“The success of the summit will depend on the goodwill that the people enjoy from the government of the day. When salaries are not paid, it affects the commercial activities of the state; even the market women are affected. The workers, who will implement the policies, are affected”, Guruza told a national newspaper.
The Chairman, Kogi Chapter, Nigeria Labour Congress (NLC), Comrade Edoka Onuh, at the time said that Labour was not involved in the Investment Summit, a pointer to possible hurdles towards achieving the objectives of the exercise.
“Government needs the civil servants in implementing the policies and programmes of the investment summit, even if it is going to be private-sector driven. If government has commitment to the summit, it must use the civil servants to drive it. But in a situation where many of the civil servants have either been sacked or prematurely retired, how will the government go about it? Labour was not part of the summit; we cannot say if government has the capacity to drive the initiative or not”, Edoka was quoted as saying.
The then Chief Press Secretary (CPS) to Governor Yahaya Bello, Mrs. Petra Akinti-Onyegbule, said that government would launch a small and medium enterprise (SME) clinic alongside the summit to demonstrate its determination to take the project beyond podium rhetoric and make it beneficial to the people, irrespective of the numerous challenges and oppositions. This SME launch was performed by Vice President Osinbajo.
Beyond Podium
The question being asked then was, after this podium rhetoric, what next? How would the vision of the summit and the efforts invested in the project be translated into concrete action to deliver on the seven-point objectives of the Summit? Is Kogi ready to move out of its undesirable orbit of a ‘civil service state’ – an appendage that conveys laziness, cluelessness, lethargy, lack of creativity, being allergic to entrepreneurship and not in a hurry to seek the way to the next level. Perhaps, the questions raised in the summit document offered the answer:
“How can Kogi State navigate these complex policy challenges successfully to ensure an economic revival? How can businesses ride out the current slump, mitigate the risks and impact on the bottom line? What are the consequences for regional cooperation and what, if anything, can foreign investors do to help?
“What do these new circumstances mean for foreign investors engaged in ongoing or planned projects in the state, and where do the key opportunities lie? How can the government deliver on its bold promises – from increasing ease of doing business to making it easier for firms to raise capital — to improve the climate for foreign investment?”
There are three defining factors considered germane to achieving the objective of the summit and translating the plethora of rhetoric by various speakers into result-oriented, measurable programmes. These are human capital; security; and micro, small and medium enterprise (MSME) development. Without strategic policy frameworks to articulate, execute, monitor and review these economic advancement imperatives, the 2018 Kogi Economic and Investment Summit will end an exercise at blowing penny whistle, many observers pointed out.
Human Capital Imperative
A key challenge of Nigeria’s economic development is poor human capital status. The nation lacks skilled labour to tackle economic development challenges and that is why the unemployment rate is high – 27.1 per cent as at Q2 2020. Kogi is not one of Nigeria’s educationally developed states and this reflects in the poor state of its economy. Observers therefore wondered the magic wand Bello possessed to rapidly transform Kogi into another Lagos, Kano or Port Harcourt.
Experts urged the state to develop a well-articulated human capital development plan, preferably in 10-year parenthesis tenure, to determine what it required, when and at what level. What are the mineral deposits? In what commercial quantity are they? What is required for exploration? What is needed for development? Who will do the marketing? What about the processing? Who is monitoring the environmental factors as well as tax and other regulatory policies guiding business in the country?
It is imperative to revisit the status of the technical colleges and other skill acquisition centres. There should be a total man concept in human capital development strategy of the state. This is to ensure that everyone is relevant and contributing. None of these has happened in Kogi.
Security Imperative
Insecurity is a tremendous threat to development. Although, crime rate has dropped remarkably in recent times in Kogi, according to reports, the area is notorious for heinous crimes like armed robbery, kidnapping, ritual killing and assassination. The strategic location of the state is a huge asset. As Vice President Osinbajo noted, “The state is also the undisputed gateway between the north and south. This state stands in a strategic position making it the only state that shares boundaries with ten other states including Abuja”. But it is always in the news for negative reasons associated with crime and road accidents.
Besides “equipping and inspiring the security agencies”, government should consider the neighbourhood security network system of Lagos and adapt it to its (Kogi) peculiarities. A local arrangement that produces Kogi neighbourhood security network watch will go far in crime prevention and detection. Besides, it will serve an avenue for job creation for the teeming youth who would be excited at being part of the developmental process, security experts suggested.
MSME Imperative
To show faith in what Gov.Bello had show-cased at the event, experts advised the state government to vigorously drive the micro, small and medium enterprise clinic it launched at the summit; the Economic Recovery and Growth Plan (ERGP) pattern and a strategic partnership with the Bank of Industry (BoI) was recommended.
The Ooni of Ife, Oba Adeyeye Ogunwusi, who was among the personalities that graced the occasion, emphasized at the summit: “We make that mistake a lot in this country. We have versatile youths who can manufacture equipment locally but we will focus on how to discourage and pull them down. Why can’t we urge the government to set up a research and development unit so they can be schooled?”
Exercise in Mirage
Over three years after the Kogi Economic and Investment Summit that dominated the waves and pages of the electronic and print media, there is nothing to show that Gov. Bello was sincere about the initiative or determined to pursue the grandiose project beyond rostrum rhetoric and loud audience applause. The opening ceremony was streamed live on major national televisions at a huge cost.
Gov. Bello’s re-election in November 2019, over a year after the summit, was adjudged one of the worst in Nigeria’s electoral history by domestic and international observers. The election was least in transparency, unmatched in irregularities, monumental in corruption, and absolute in brutality. Widespread violence, intimidation and bloodbath held sway. Political thugs set Peoples Democratic Party, PDP, women leader ablaze with her household, a heinous crime that was never investigated nor the culprits apprehended and prosecuted.
Gov. Bellow has decreed salary cut of civil servants’ – a move that kindled the wrath of the state medical doctors and other healthcare workers who vowed to resist the move. In a statement by the Kogi State Chapter of the Nigerian Medical Association (NMA) and signed by its chairman, Dr Kabiru Zubair in Lokoja, in May 2020,the group said:
“The NMA is not unaware of the ongoing global pandemic of COVID-19 and the consequent economic downturn. But, the NMA strongly rejects any salary cut for doctors and other health care workers.
“This is because doctors in Kogi State have been getting along on half salary before now, occasioned by the non-implementation of corrected CONMESS – Consolidated Medical Salary Structure; Non-implementation of the new minimum wage of N30,000 and its consequential adjustment, skipping, relatively, promotion and annual stem increment.”
In February 2021, Kogi primary school teachers and local government workers alleged massive salary deduction that left many with a take-home pay of between N6,000 and N10,000 per month. Gov. Bello had embarked on the screening of government workers to determine ghost workers and ascertain the genuineness of the workers’ certificates, an exercise that lasted about two years.
“The screening did not end on time. It lasted more than a year. During that period, they (the workers) weren’t paid salaries. After the screening, they now had cleared and uncleared workers. Workers receive meagre salaries that are not enough to support them. Some people who were found to be ghost workers were sacked. Later, those that were not cleared were transferred to the pardoned list. This process lasted for over two years with no pay. Some died, some survived”, an unnamed government worker told Sahara Reports.
Kogi State Commissioner for Information and Communications, Dr Kingsly Fanwo, did not respond to THEWILL WhatsApp message on the status of the Kogi Economic & Investment Summit held in February 2018. The Director-General, Kogi Chamber of Commerce & Industry, Victor Ibrahim, declined to comment. The President, Kogi Chamber of Commerce & Industry, Grace Obafemi, responded tersely that the event created awareness among the residents. “Being the first of its kind, there was real awareness of businesses in the state. It made us to know about the businesses existing in the sate”, Obafemi told THEWILL in a note.
Vital Statistics
Findings by THEWILL revealed that Kogi has the lowest budget of N130 billion for the 2021 fiscal year among the six North Central States. Its FAAC revenue as at H1 2020 was N23.52 billion, while internally generated revenue (IGR) was N7.43 billion according to the National Bureau of Statistics (NBS) as at Q3 2020 was $28.62 million (or N11. 73 billion at N410/US$1), and domestic debt N73.31 billion bringing total debt to N85.04 billion. Its unemployment rate as at Q2 2020 was 36 per cent, the highest in the zone.
Kogi is a struggling state. Its gross domestic product (GDP) is among the lowest among the 36 states: $32,719,347.57 as at June 30, 2017, according to the National Bureau of Statistics (NBS). Its population as at 2006, is 3,595,789, Per capita is circa $1,500. Its productive age group (15-64 years) as at 2006, according to National Population Commission (NPC) is 1,715,165.
Conversely, Kogi is fifth best state to do business in Nigeria: Starting a business takes 28 days in eight procedures; ranking second after Abuja F.C.T. Registering property takes nine procedures and lasts 33 days. In registering property, Kogi merges three procedures into one i.e., assessing the deed at the Federal Inland Revenue Service (FIRS), paying the stamp duty, and stamping the deed, by allowing applicants to pay the stamp duty at FIRS directly, rather than at a commercial bank.
Kogi State Nigeria is one of the most naturally endowed states in Nigeria. The natural resources in Kogi State are in commercial quantities. These include coal, dolomite, feldspar, bauxite, and iron ore. Others are tar, limestone, gold, petroleum, tin and barite.
Kogi is located in the central region of Nigeria bordering nine states which an added advantage for commerce and other economic activities. They include Niger, Kwara, Ekiti, Ondo, Odo, Anambra, Nassarawa, Benue and Enugu. It is called the confluence state because both river Benue and river Niger meet at the capital, Lokoja which could be developed into a unique tourist attraction with special boats and an annual festival.
A prominent Kogi-based road transport operator who pleaded for anonymity in this report expressed disappointment in the leadership of Gov. Bello. He described Bello as a young man burning energy in the wrong direction and aiming at the sky when he has not learnt to walk.
“Gov. Yahaya Bello is a dreamer a mere dreamer. Look at the huge wealth lying untapped under the state. Look at the location that opens it up to economic opportunities from many states. He is not looking that way. He has tasted power without working for it; he has learnt to deploy brutality and crude force to have his way. He wants to be Nigeria’s president when he has not managed small Kogi.
“His unique selling point is his youthful age which means nothing without being resourceful. We have seen many young governors – Orji Uzo Kalu (Abia), James Ibori (Delta), Lucky Igbinedion (Edo), Adamu Muazu (Bauchi), Godswill Akpabio (Akwa Ibom), Chimaroke Nnamani (Enugu) and many others were young governors. What do we remember them for now? Kogi Economic and Investment Summit has become a mirage. The governor wants to be Nigeria’s president.”
About the Author
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
