Vanguard (Lagos)

Nigeria: How Gov. Shekarau's New Economic Roadmap Raises Confidence in Investing - Nour Sani Hanga

John Nwokocha

13 July 2008


interview

'Kano is working' sounds a current music in the air virtually everywhere you turn to in Kano State. Perhaps, the claim is predicated on the economic development agenda of Governor Ibrahim Shekarau, called Economic Roadmap, an initiative his aides are determined to cause to succeed, if one is to judge from the passion with which they talked about the programme, and which they would persuade you to assess him on.

But quite intriguing, with all their zeal they prefer that their roles remain anonymous. So persuaded to talk about his professional background during this interview, Commissioner for Planning and Budget, Nour Sani Hanga would not. The unassuming technocrat would rather give the credit to what he described as Shekarau's foresight. Hear him in this excerpt.

THE government of Mallam Ibrahim Shekarau has initiated what it calls the New Economic Roadmap. Could you explain what this is all about and how it will engender growth?

Thank you. Let me begin by saying that the motivation for the Economic Roadmap came from Mallam Ibrahim Shekarau who has been the governor of Kano State for five years now. During his first term in office, the governor pledged commitment to human development and that was the focus of his administration.

Then, upon his administration four years later consolidating on that experience and the good works that he had done by touching the lives of the people and having the experience in terms of the economic direction of the country. The resources that are available to the state and the various challenges faced by the government, in fact, enormous challenges you know Kano State is the most populous state in Nigeria.

(Cuts in) Well, we also know that is still controversial...The governor committed himself to pursuing an agenda for economic growth. So, upon winning the governorship election for second term, he appointed a committee made up of all the classes of our society- the elders, traditional rulers, elites, NGOs, communities, experts to engage them in determining what will be the economic future of Kano State.

And it was discovered that the thinking of the governor which was to try and see how a programme can be developed for growing the economic of Kano State. And that was how this initiative came about. It is a product of the governor's experience. And it is a product of all the people of the state. Another motivation which came later for the Economic Roadmap, which for me only strengthened the resolve of Governor Shekarau is the Vision 2020.

If you recall in September 2007, President Musa Yar'Adua invited all the state governors to Abuja during which the Vision 2020 programme was unveiled. And it is about moving Nigeria forward economically and that is to grow the economy of Nigeria to be among the 20 economies in the globe.

For Kano State that idea only vindicated our resolve. It vindicated the commitment, thought and plans of the governor that if we are to move ahead we must find new ways of development that will help grow the economy so that over time many of the challenges that we are facing in areas of unemployment, poverty, even meeting many commitments of the governor can be overcome. So, that is the background of our Economic Roadmap.

However, the economic roadmap rests on five pillars, these are the core programmes on the road map. There is a new drive to develop the internally generated revenue. Secondly, to open window for quality education, thirdly, is agriculture. That is all year round farming, being supported by irrigation because we have the largest water bodies. And in terms of number of dams we have the highest in the country. We want to utilise land water and human resources for all year round agriculture production and processing.

So there is also value addition. It is not just to do the primary products and sell off the market, but to make sure it is integrated so that not only to grow but to also process into semi or finished product. In addition there is the challenge of commerce and industry, Kano being foremost centre for commerce. We identified a number of initiatives to pursue so that the economy will be vibrant interms of commercial activities.

These include the ICT park, development of an ultra-modern market on the basis of public-private partnership, also to pursue urban renewal and revitalisation of the central business district (CBD) in a way that is going to support our economic growth initiative.

So that when we talk about CBD we mean that piece of land which is about 8km square where commercial activities, banking even the Central Bank are located within that central business district. We are enhancing activities and upgrading that place which should translate into additional economic activity. We talk about urban renewal in terms of infrastructure, roads reconstruction in areas that will add value by creating convenience in transit that will create more business to the area.

Firstly, is empowerment programme, for women and youths. There is effort to help entrepreneurship, small enterprises, even the formal sector so that youths can be gainfully employed. There are other initiatives that we are pursuing some through officers of the government directly intervening in micro businesses, some working with various agencies and commercial set ups.

This is briefly the roadmap which has been costed and designed into specific programmes. From the time it was initiated till now which took a long process which I wanted to share, we have made tremendous progress.

But one major set back of government's initiative is that they are used to buy time and at the end of a tenure rather than translate into reality that would impact on the society is just on the drawing board without taking off, if not in the trash basket. How is this going to be different?

Yes, there are still outstanding issues. There are still initiatives that need to be studied further and costed. But there are areas that we have made considerable progress if we consider the area of irrigation that is agriculture, one of the key things that we are determined to embark upon is rice production.

Now we are working with consultants, comprehensive surveys have been conducted especially damstream. It has been found that rice production is realistic or feasible. And still with these consultants we are embarking on rehabilitation of the dams. As we speak, the pilot programme has started on rice production. It will be concluded in four months time and we will begin the expansion of the operation.

Another area that we have made progress is the Karnawa ultramodern market which the governor has influenced private investors to become interested in. So, it's already off the ground. Similarly, on ICT which another component of commerce and industry, months back we had an international workshop on the ICT idea and attract tenants into the ICT, park. Because we believe that ICT is providing the impetus for globalisation in terms of economic and commercial activities. I'm sure you have heard of out sourcing where many of the banks and big companies activities, internationally are conducted elsewhere in countries such as ours.

So, at that workshop there was a lot of encouragement, many businesses indicated interest to be tenants in the ICT park. As a matter of fact even the software testing laboratory, that is the only one in the country is going to be located in the ICT park. So, while I'm not able to guarantee all the initiatives and ambition of the roadmap, I can assure you that the commitment is firm and is built upon the premise of partnership, it is not about government doing it alone.

We are working with businessmen anywhere to participate in this, in the realisation of the programme. So because it's public-private partnership it must be open, there must be a business plan and a fora for business people to see the justification for them to participate. So, I am confident that this is not going to be just another lofty idea that will not take off the ground. I am confident that it will become a reality.

To what extent has the government influenced private investors to drive these projects?

We are reaching out to investors. There is intense private interest in the projects.

And just as I have said it is all about public-private partnership. What the government is doing is to provide what we call public goods- those things that can not be possibly be provided by individuals like the dam, so that people can come and take advantage of the facilities that we have provided, because there is profits to be made.

In all these designs you seem to place less emphasise on security. But historically Kano State is a flash point of riots of different diamensions and therefore, a threat to investments and economic growth. So how can the state attract foreign investors who are we know have the capacity to develop any economy, especially those in the continent like ours still struggling to come up?

For me, the foremost challenge that I recognise is power issue. But we argue that both the federal government and private investors are addressing this.

Then the question is currently are the businesses making profits? Yes, they are still making profits, everyday we see that inspite of this problem, money can be made in Nigeria and the profit that one can make in Nigeria is qualitative. With the reforms to strengthen our institutions businessmen will still find our environment very attractive.

The investment climate I think is improving. But it could take long. Then, the resistance and misgiving that you used to hear are diminishing. Now, everyday you hear of investors coming into the state. So, we are getting there.

What are the economic potentials of Kano State, the human resource?

We are no less than twenty million people ...

(Again, cut in) Still controversial ...

(Laughter) So that human resource, I see it as the foremost. We take a great deal of pride in our human resource and then our commercial heritage. Kano has always been known for enterprise and commerce. So, our people are enterprising. People interested in business also come to Kano. But then I think the focus is important when you have a programme in a supportive environment like the Vision 2020, which is to help grow the economy.

That the way to go, so we are vindicated. So, everyone is moving in this direction and the probability of success is enhanced. And is in tandem with our initiative, we can provide the food we need in the country through our irrigated farming and this is why the government is committed to put the dams to optimal use.

I like to know the industries you are referring to as your strength, for, it is glaring that industries in the state are closing shops due to lack of support by the state government which left a string of protests by MAN in the state?

It is very difficult to reconcile the situations because people are free to express their own opinions on their own assessments. I have not said that we have solved all the problems, but we are focused and these things are in the making. Having identified the problems together with the private sector, these challenges would be addressed. But talking about protests, I don't know about that. I know that the government is supporting businesses to grow.

One of the pillars of the roadmap is to renew the drive for internally generated revenue. But experience has shown that such a policy is often anti-people, without a human face, manifesting in multiple levies and bills and taxation, in short draconian. Is this what the people should expect under the roadmap dispensation?

My own understanding is not about multiple taxes, nor is it going to be like what is happening in other states of the federation. It is not about taxing per se, everyone or re-introducing the pool tax which has been abolished over two decades ago in the state. It is about determining the source of government revenue and strengthening our institutions and capacity to collect revenue.

We are not talking about new taxes. We believe that our tax potential is far bigger than what we are currently generating, and this is because our institutions are weak. And to realise this, we are moving from the beggar system to computer system to import data and track information. We are talking about collecting what is legitimately government revenue.

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