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THE YEAR OF CONSTRUCTION!

 

By Idongesit Inyang

Employment generation and job-creation have over the years been widely recognized as major paths to socio economic progress of a nation.  Jobs are the oxygen of a country’s economy. Following closely behind employment generation is the investment in infrastructural development. Infrastructure is key to the growth of the economy.  Investment in agriculture and food sufficiency is a major plank for economic development. Food sufficiency is a poverty problem. Food lies at the very centre of any nation’s security as its adequacy determines the state of stability in such a society or nation.

 

 

These notions and others must have occupied the mind of the Executive Governor of Akwa Ibom State, His Excellency Deacon Udom Emmanuel as he worked on the development of the template for the fiscal year 2019 budget of the state.

 

 

Christened the “Budget of Industrialization for Poverty Alleviation”, the Fiscal year 2019 budget of the Akwa Ibom State is an audacious and bold attempt at moving Akwa Ibom from the fringes of the country’s economy to the centre stage of industrialization and production. It is an expression of the state’s determination to become the business hub of the  Nigeria state. It signposts the government’s drive to move Akwa Ibom from the label of a ‘Civil service state’ to an industrial city.

 

 

The 2019 budget captures the components of the Governor’s five point agenda of Job creation, Poverty alleviation, Wealth creation, Economic and political inclusion and Infrastructural consolidation and Expansion. The five point agenda encapsulates the governor’s covenant with the people of Akwa Ibom state. The overall intent of the covenant is to further transform the state into an industrialized entity and an economic hub.  The policy thrust of the 2019 budget is aimed at reducing the dependence on statutory allocation as the main source of revenue to the state.

 

 

But why do I say that fiscal year 2019 budget is an audacious attempt at making Akwa Ibom State a business hub? The provision and line items in the budget proposal as submitted by the governor drives this assertion.

The Akwa Ibom state government has proposed a budget outlay of N670.718 billion for the 2019 financial year. Out of this amount, N97.096 Billion is proposed for Recurrent Expenditure, N445.936 Billion for Capital Expenditure while N127.686 Billion is for consolidated Revenue Fund Charges. In a country that consumption is a big issue, it is gratifying to note that the state government is cutting down on recurrent expenditure and making massive provisions for Capital expenditure.

 

 

But how will the government fund this budget?

 

 

Predicated on the benchmarks of USD 60 per barrel of oil at the exchange rate of N305/USD, the budget will be funded through the statutory allocation, derivation fund, retained revenue, VAT, IGR etc.  Between the month of January and September 2018, the IGR profile stood at N19.043 Billion. In 2019 financial year, government plans to collect about N43.693 Billion as internally generated revenue. Out of the N445.936 capital expenditure proposal, N286.116 Billion is allocated to the economy. The economy takes the chunk of the 2019 budget, representing about 64.2 per cent of the entire state budget. What does this mean?

 

 

It indicates that the government is ready to make massive investments in the state, stimulating the state economy and spreading prosperity to all the nooks and crannies of the state towards achieving sustainable socio-economic growth and development.

 

There are a few key things in the 2019 budget that stand out for me and I believe these are the game changers for the state. The first is the completion of the MRO facility at the Ibom International Airport. Next is the development of the Liberty Free trade zone, a mega industrial city in the state. Third is the Development of the coastal and inland waterways of the state.  In addition, the state government plans to build two mini AKEES industrial parks to add to the already existing one.  The completion of the MRO (Maintenance, Repair and Overhaul) facility for the aviation industry cannot be over emphasized.

 

 

Every year, Nigerian airlines spend billions of Naira to service aircrafts in their fleets outside the country because we do not have a functional MRO in the country. Since the liquidation of Nigerian Airways by the Federal Government in 2004, which had a functional MRO facilities, airlines in the country have resorted to taking their aircraft outside the country for required checks.  This is a big income earner and the state government cannot allow such an investment opportunity to fritter away. With the completion of the MRO, the facility will handle the maintenance and repairs of aircraft for almost all the airlines operating in the country. This will broaden the revenue base of the state and free up funds for industrial development of the state. Jobs will be created for indigenes of the state. Capital flight will be curtailed.

 

 

Located in Ikot Abasi on a 50,000 hectare site, the documentation and preliminary work on the Liberty free trade zone has since been completed. Already, companies like ExxomMobil have indicated interest and readiness to invest in the trade zone. The state government has done extensive work on the project and in financial year 2019, plans to move speedily on the project to completion. This project, when completed will make the state a business hub and an investment haven. It will generate income for the state and provide employment for the teeming youth population.  Government also plans to develop two mini AKEES industrial parks in the 2019 financial year.

 

 

An industrial park is a carefully planned and zoned area for the purpose of industrial activities. An industrial park is an attempt to accelerate the process of reforming and diversifying the state economy, accelerate economic development by attracting innovative businesses that can generate jobs. Industrial parks exploits the local potential in supporting business and outline an environment where companies can interact with other businesses thus facilitating business and local development.

 

 

I have always argued for the need to harness and develop the coastal and inland waterways potentials of the state. I have made presentations on the need to develop the Oron-Calabar route and probably initiate a PPP arrangement with potential investors. The Oron-Calabar inland water route is a lucrative one, which will aid in the movement of agricultural products, people and goods between the two sister states of Akwa Ibom and Cross River.

 

 

Development of the inland waterways will bring a modern water transport mode that will complement the roads in the transportation of goods and passengers. An effective inland waterway transport system in the state will bring sanity on the highways and help in reducing high death rates occasioned by road accidents while creating jobs and generating revenue for the government.  The state government is making bold investment towards harnessing the maritime potentials of the state. And the potentials are enormous. The onus is now on the indigenes of the state to prepare and position themselves to take advantage of the opportunities that will come as we develop our maritime sector.

 

 

But the signature project of the Deacon Udom Emmanuel administration for the 2019 financial year will have to be the Ibaka Deep sea Port. In the three years he has been in the saddle, His Excellency, Governor Emmanuel has shown remarkable interest and commitment to the completion of the deep seaport project. The project has reached a very critical stage leading up to actual construction. Few days ago, the Bollore-Power China Consortium, Africa’s leading port operator was announced as the preferred bidder for the seaport. The Bollore-Power China consortium is a business comprising Bollore Africa Logistics and PowerChina International group. Their combined expertise will fast track the completion of the IDSP. The Ibaka Deep seaport is pivotal to the development of the state and the surrounding regions. At initiation, naysayers dubbed the seaport project a pipedream. It is therefore a thing of joy that the project is still on course and a reminder to the critical role of commitment and steadfastness in business success.

 

 

Other projects that the state government will undertake in financial year 2019 as captured in the budget proposal include the construction of a broadcasting house for the Akwa Ibom State Broadcasting Corporation AKBC Radio/TV (Phase 1), the rehabilitation of the Government Printing Press and the Pioneer Newspaper and the procurement of broadcasting equipment for the new AKBC studio. These initiatives will enhance the information management system of government. Of course the momentum of industrialization in the state will be sustained in 2019. Next year, more industries will come up stream. The state government plans to procure incinerators and specialized trucks for bio-medical waste in financial year 2019. The Tuberculosis laboratory at Ikot Ekpene will be completed and put to use. The construction of a state public health laboratory is also provided for in the 2019 budgets.

 

 

From the above, it is safe to say that 2019 financial year is the year of construction for Akwa Ibom State. It is indeed the year of consolidation of infrastructure and the construction of new ones. New roads will be constructed and old ones completed. Between now and early next year, the Ikot Ekpene-Uyo road will be completed and put to use. This road is a major infrastructural investment by the state government. Work is also on going on the 55.1KM Ibaka Super Highway leading to the Ibaka Seaport. The Eket remodelling project is already receiving serious attention and I do hope that work on the project will be accelerated in year 2019.

 

 

The internally generated revenue (IGR) profile of the state has changed significantly. There has been tremendous improvement in the collection of revenue for the state. Massive investments in technology and the development of a robust and lean collection system have seen to the increase in internally generated revenue for the state. Even the VAT component of the state revenue has seen incremental increase in the last three years. These are issues that gladden the heart of the average Akwa Ibom citizen.

 

 

The Deacon Udom Emmanuel administration is in a hurry to grow the state economy away from total dependence on oil derivation revenue to other sources of revenue. In this regard, government cannot afford to turn a blind eye to revenue/tax under performance. Our tax collection system must be strengthened for optimum productivity. The Foreign Direct Investment Desk at the Ministry of Commerce and Industry should be strengthened too.

 

 

Government will do well to set up a SME fund in the state. An SME fund is an important tool for the acceleration of entrepreneurial development in the state.

 

 

The year 2019 is an election year in Nigeria. But Governor Udom Emmanuel seems to be rather occupied with changing the Akwa Ibom economic landscape than with politics. This is commendable. The infrastructural and socio-economic development of the state which will translate to peace and prosperity for the people of the state should be the major preoccupation and passion of our political leaders and government and not politics. And that is why I believe that the citizens of the state should give the governor the needed support and encouragement. In the final analysis, the state and indeed its people will be the better for it. Governor Udom Emmanuel deserves a second term. Our duty is to make sure he gets it.

 

Idongesit Inyang,  a small business enthusiast writes from Adaha Okpo in Etinan Local Government Area.

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