14 October 2008
Lagos — Among the states of the federation, Abia's diplomatic move to bring in foreign investors has become very remarkable, Paul Ohia writes
Before now, the federal government was known as the only level of governance that could go beyond the borders to invite foreigners to invest in Nigeria but states are joining.
Of course, there is no law that sets a limit to where a state within the federation can seek investors or sundry partners in development and they may even have representations outside the country if they so wish.
It is in this spirit that the government of Abia state's move to bring in foreign investors and to embrace outside missions and governments in its bid to boost development in the state becomes a thing to reckon with.
Just recently, the state invited an Italian firm to take over the Abiapalm.
After lying comatose for 13 years, the Abia Palm Limited owned by the state governemt was handed over to an Italian firm, Fri-el Green Power Spa, which would now manage the vast palm plantation under a new name of Fri-el Abia Palm Company Limited.
The change of ownership was effected at a ceremony with the state governor, Chief Theodore Orji formally handing over the moribund plantation located at Ohambele in Ukwa East local government to Fri-el to revitalise and manage it profitably.
Orji in his address described the event as 'historic' given that the occasion was a signal that the state was now ready to give agriculture its former pride of place as a major revenue yielding sector of the economy.
He recalled that the discovery of crude oil has relegated agricultural produce to the background even though all the regional governments depended solely on agriculture for survival during the first republic.
"Crude oil will come and go one day but our palm trees would remain in our soil," Orji said , adding that there was no turning back again in making agriculture the source of not only food but also foreign exchange earner for the state.
President of Fri-el Green Power Spa, Mr. Thomas Gostner, said that his firm was inspired to come to Abia and invest in the oil palms after designing and building power plant that uses palm oil, which is a renewable energy as source of fuel.
He said that the multi-million euro project" would be of immense benefit to the people of Abia, 'which include but not limited to economic empowerment, employment and transfer of technology.'
In their address presented by the council Chairman, Chief Glory Kanu, the Ukwa East local government stakeholders welcomed the handing over of the palm plantation to Fri-el to revitalize and assured of 'our preparedness to join hands in ensuring a peaceful working environment conducive to achieve success.'
The host community made a number of demands on the firm, including setting up a state-of-the-art oil mill at Ohambele, reserving 75 percent of junior staff positions for the indigenes, appointing Ukwa East council indigenes into the company board and developing a new town around the plantation.
Also, in the earlier part of this year, Abia State and China started talks aimed at of engaging in a joint venture focused towards tapping into the technological strength of the Asian nation and exploiting positively the human and natural resources of the Nigerian state. Dialogues leading to such agreement was commenced during a courtesy visit of the consul-general of China to Nigeria Mr Guo Kun to the governor of Abia State at the state's liaison office in Lagos. This, THISDAY learnt has started yielding dividends.
In the same vein, the state government recently signed a memorandum of understanding with a United States' company, Nevada Petroleum Resources Limited to build a 20,000 barrels per day refinery in Abia State.
At the ceremony which was held at Tampa, Florida, Orji signed on behalf of the State Government while Kalu Onyioha, Executive Vice President of Nevada Petroleum Resources Limited signed on behalf of the company.
The refinery, which is expected to come on stream within twenty four months of the commencement of work on the project is expected to cost 100 million Dollars to complete and will be cited in the oil producing region of Abia State.
Speaking after the signing ceremony, Orji noted that while Abia State is desirous of entering into partnerships with private organisations for the development of the state, the state would no longer enter into partnership with companies whose backgrounds and level of seriousness cannot be guaranteed.
Orji noted that the delay in signing the MOU since April, 2008 when the company indicated interest to commence the project was to enable the state Government carry out its due diligence to ascertain that the company had the capacity to deliver on the project.
In his speech, the Executive Vice President of Nevada Petroleum resources Limited, Mr. Kalu Onyioha, noted that the company chose Abia State for the project because of the economic viability of citing the refinery in an oil producing location which will enable them sell their products to the entire South-East Region.
He expressed the confidence that with the assistance of the technical partners his company have engaged, the project will be actualised on schedule and thanked the governor for his commitment to provide every necessary support for the actualisation of the project.
On what would be he benefits of these foreign investments' drive, the state commissioner for commerce, Emeka Okafor said the efforts would bring back the moribund industries in the state.
"Already, based on the enabling environment the governor has created for industrialists to operate, investors have started trooping to Abia State. And today, we have started reactivating the ceramics industry, which I believe, by now, must have started their test run production." He said.
He disclosed that in addition to the aforementioned investors, there are people who are interested in partnering with the government to explore other agricultural products like the cashew nuts at Umunneochi and Okwe Golden Chicken.
"So, people are actually coming and I am talking about the serious ones, the business minded investors." He concluded.
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