Emma Amaize
20 September 2008
interview
CHAIRMAN/Chief Executive of Warri-based Saitob Concepts Enterprises and Rawgold Associates Limited, Engr. Sam Otti has spent over a decade doing business in Warri.
Contrary to the postulations of some persons, he believes the oil city is safe for business and is in fact, confident that Warri will become the model city of Africa, if the current industrialization efforts of the Delta State Governor, Dr. Emmanuel Uduaghan comes to fruition.
Indeed, he stayed put in Warri when some companies ran to Port-Harcourt due to the Warri crisis and said he refused to run because "I am a firm believer in the Warri project." EXCERPTS:
You have been doing business in Warri for over one decade. What is the environment like now compared to some years ago?
In the late 80s and up to good part of the 90s, the business atmosphere in Warri and environs could be described as booming in the sense that oil exploration and production activities, which form the mainstay of the local economy, progressed without much serious deliberate disruptions. This period of relative economic prosperity, mainly for the multinationals and their agents and to some extent the business community, did not imply the absence of fundamental and latent issues within Warri and environs in particular and the Niger Delta region as a whole.
The import of the situation then was more or less that of seeming complacency and docility among the people of the region. However, the inter-ethnic skirmishes that ensued in Warri and the domino effect on other groups and interests rammed in the final nail on the coffin of peaceful co-existence and boisterous business environment. The rest is now history.
The resultant effect of this quagmire, as you are aware, was absolute flight of business and investment as potential investors became apprehensive. We are yet to recover from the above situation in spite of the relative peace and calm within Warri since the inception of the new administration in Delta State. I must use this opportunity to commend the efforts of His Excellency, Dr. Emmanuel Uduaghan, the Executive Governor of Delta State for his commitment towards maintaining peace in the State.
Am particularly amazed at how he has been able to cleverly handle what can better be described as the most volatile state in the country. The governor has demonstrated political will to face the issue of peace and security head on and the results are visible.
Today we have better atmosphere for business to thrive in Delta State especially in Warri as a result of the above efforts and improved infrastructural development. No doubt a lot more need to be done to consolidate the peace and security we are currently enjoying to secure the absolute confidence of investors. Government involvement of Organized Private Sector like the Chambers of Commerce and Industry etc in policy formulation is a welcome development and will further engender stability, trust and confidence within the business community.
What has been your experience with area boys and others who demand for "deve"?
You can agree with me that the general consensus on this matter is that this Area Boys issue is a colossal disaster. You see young and able bodied men acting under the guise of one front or the other invading your premises, exhibiting unwarranted aggression, intimidation and threats, and making frivolous demands. Some of them flaunt regulatory papers from government organs or agencies that one can neither fathom nor verify. They place a demand notice and arbitrarily fix a price.
Depending on their mood you may attract an instant fine of between N10, 000 to N50, 000 based on their assessment of your "size". You are given seven days to pay up or face their wrath. Their next visit to your premises on the appointed date will surely be followed by bruises, either in physical or financial form depending on your response.
As highlighted above, there is the need to actively and positively engage these youths. There is need for adequate re-orientation. In this regard, our respective families have a vital role to play. These youths must be encouraged to take up jobs and stay on the jobs. The era of enrolling in a job and absconding only to return at pay day to collect salary should be discredited. The boys are not all bad but you can easily discern the missing link as a result of poor parenting and guidance. A little psychological pep talk can do a lot of wonders.
Many companies moved from Warri during the crisis, but are now coming back. Why did you not move?
Yes, indeed a lot of companies and individuals left Warri as a result of the crisis. There is a natural tendency for people to move from areas of hostility to friendly territories. Now, the environment is conducive and people are making a come back. Apart from the excessive overflow of violence in Rivers State where most people migrated to from Warri, the issue of nostalgia may be another strong factor for people finding their way back to Warri.
This is a place they lived in peace and harmony with families, friends and associates, built houses and had substantial investments. No matter how you discern the situation, it is often difficult to start a new life in a new environment. You may recall that the magnitude and dimension of the Warri crisis took virtually everybody by surprise, including the principal actors. In fact, what they saw at the end of the mayhem wasn't what they bargained for.
The situation escalated out of proportion that the elders and leaders had the first clear message that they were no longer in control. We thank God that all is now history.
I lived outside the fire zone and did not find the need to escape. Also having been through hell on earth, though as a child, during the Nigerian civil war, my background prepared me for eventualities and situations similar to what happened in Warri, which in the real sense was a child's play compared to the civil war. I know a lot of people who were too panicked to the point that they developed incurable high blood pressure up till date. I was not scared but very cautious. Funny enough and surprisingly too, my wife appeared calm throughout the period and never gave me any negative pressure. Finally, and most importantly I am a strong believer in the Warri project. I have always had faith and confidence that Warri will eventually be a model city in Africa . I found no compelling reason at the time to relocate.
Do you think Warri is safe for business; I ask this because many think it is unsafe to do business in Warri?
As earlier mentioned, the executive Governor of Delta State launched a three- point agenda with peace and security as top priority. From the point of one who is on the ground and doing business in Warri, there is no better time than now to do business here. There are better road networks. The street lights are powered on 6.00 pm to 6.00am everyday, irrespective of epileptic power from the PHCN.
Though in fairness, there seem to be some significant improvement on the part of PHCN in the past one month. The security agencies are living up to expectation in curtailing nefarious activities. However, you can excuse the skepticism of those looking from a distance. Generally when there is problem about 500nautical miles from Warri or even in other deep South-South states within the Niger Delta region, the psyche is that Warri is on fire. People need to be assured and reassured of the safety of their lives and investments. There must be continuous enlightenment programs in the media to educate people about the viability of Warri and Delta State as a whole. Tourism must be encouraged to allay the fears of the people. Definitely, there is still work to be done.
How have you been able to help the government in your own little way to check youth restiveness in Warri by offering jobs to the unemployed youths?
In our own little way, we have been impacting positively on the society. For instance, my factory employs well over 25 employees and I hope you appreciate what this figure means in terms of our model of communal living in Nigeria , that is we are looking at over 100 people relying on our efforts for their livelihood. Over 80% of my employees are Deltans from Warri, Effurun, Udu, Ughelli, Sapele, etc. Over the past two years, we have offered training to more than 18 young men and women in various fields like polyester fiber extrusion and packaging, polypropylene extrusion, cutting, printing and packaging, monograms, screen printing etc.
We are currently preparing training for others in the areas of digital colour separation and large format printing. Some of these young men and women are now independent and productive entrepreneurs of their own. I am particularly elated and overjoyed whenever I step into my factory and witness these young trainees work independently unaided. The kind of enthusiasm being exhibited on the work by these young men and women, especially the ladies gives me confidence that all hopes is not lost regarding youths' restiveness within the region.
We, the small scale industrialists need encouragement from government. We are all aware of the cost of energy in this country. Our daily diesel consumption is about two drums or 400 liters at the cost f about N60, 000, that is if we are lucky to get unadulterated product. Sometimes, we get bad products from filling stations with the attendant damages and costs to the generators. No nation can aspire to greatness without adequate attention to the SMEs.
The Asian Tigers are very clear cut examples. We read a lot about SMEs only on the pages of newspapers. Government must be proactive in terms of support for SMEs by creating enabling environment, providing electricity and most importantly open up access to funds. Banks are not helping matters. Double digit interest rates, stringent conditions for loans etc all impact negatively on the activities of SMEs. I wish to say that the Bank of Industry may be the only key to industrial revolution in this country if properly funded and its activities expanded for greater reach.
Do you think the industrial park planned in Warri by the Delta State Government and the move to revive the ports in the state will turn around the Economy here?
The establishment of the industrial park and the revival of the sea ports in the state will place Warri in particular and Delta State on the map. Judging from the potentials the sky is the limit for Delta State . Take Warri for instance, we have in less than five kilometer- radius a refinery with a petrochemical plant also harbouring a carbon black plant (only two in Africa), a steel plant built with western (American/German) state of the art technology, Shell and Chevron (Escravos is Chevron's biggest operation in sub Saharan Africa), several oil servicing companies, modern sea port and so on. There are very few cities if any in the world that can boast of such potentials.
Therefore, the addition of industrial park will regenerate the industrial potential of the city, as industries will synergize with existing facilities. Also the volume of trade and business activities will have a quantum leap upon the revitalization of the sea ports. My brothers from across the Niger in Onitsha will feel better to clear their goods in Warri port and get to Onitsha in three hours than going through the stress of transporting goods from Lagos, provided the government guarantees the elimination of undue multiple extortion by organized gangs.
Be the first to Write a Comment!
Copyright © 2008 Vanguard. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
