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The administration of Governor Udom Emmanuel in Akwa Ibom State records unprecedented accomplishments across all sectors of the economy. Mr. Udom Emmanuel - INVESTMENT, COMMERCE AND INDUSTRY

INVESTMENT, COMMERCE AND INDUSTRY

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08 Nov

INVESTMENT, COMMERCE AND INDUSTRY

  At the inception, of the present administration, Governor Udom Emmanuel had declared – “Our commitment to industrialization is irrevocable. We know that through industrialization, we shall rewrite the Akwa Ibom Story in employment and wealth creation”. That declaration has manifested in the frenetic pace of events and magnitude of developments as it touches the industrialization sub-sector of Akwa Ibom economy. Beginning from clear policy articulation to the flurry of project consolidation events, and even result bearing indices, there is no denying the fact the last 12 months have been remarkable.


    The following are some of the highlights of achievements of government in the area of investment, commerce and industry.

  •         Revitalization of Peacock Paints Industry in Etinan
  •         Revitalization of Plasto Crown, Aka-Nung Udoe Road
  •         Groundbreaking for the establishment of an automobile assembly plant in Itu.
  •         Groundbreaking for the establishment of Blue Marine -Light Emitting Devices (LED) factory at Ikot Ebom Itam, Itu.
  •         Ground Breaking Ceremony of Shoprite at the Ibom Tropicana; Uyo
  •         Provision of revolving credit scheme by the state government to small scale industrialists
  •         Construction of Ibaka Deep Sea Port in progress.
  •         Introduction of Department of Investment in the new Ministry of Investment Commerce and industry.

        REPOSITIONING OF THE MINISTRY OF COMMERCE AND INDUSTRY 

To underline its development vision the present administration  re-shaped the Ministry of Commerce and Industry into the Ministry of Investment, Commerce and Industry. This re-designation was aimed at forging a viable synergy between investment and industrialization, anchored on a Public Private  Participation, PPP model. By this initiative, the goal was to explore and promote investment opportunities in the state; catalyze and effectively implement the industrialization policy and take commercial activities in the state to a new level.

        ESTABLISHMENT AND OFFICIAL INAUGURATION OF AKWA IBOM STATE COUNCIL ON MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES)

 Inauguration of the State council of MSMES, on 8th February, 2016 to serve as an aggregator to co-ordinate and guide the government, international development agencies and the private sector in the development of the Micro, Small and Medium-Enterprises Sector in the State.

The Council chaired by the Honourable Commissioner for Investment, Commerce and Industry, has its members drawn from relevant Federal and State Government Agencies, the private, and other relevant organizations, some of which include: Central Bank of Nigeria (CBN), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Corporate Affairs Commission (CAC), Standards Organization of Nigeria (SON), Bank of Industry (BOI), Industrial Training Fund (ITF), National Agency for Food and Drug Administration and Control (NAFDAC), Akwa Ibom Investment Corporation (AKICORP), Manufacturers Association of Nigeria (MAN), etc.

   A representative of the Akwa Ibom State Council on MSMEs sits on the National Council on MSME headed by the Vice President.

        COCONUT PLANTATION/REFINERY 

   In a bid to create a diversified industrial economy in the State, the government has invested in Agro-Allied industries. One of such is the coconut plantation/refinery, which brings the state government into partnership with H. J. Oil Food Consulting Ltd, a South African firm. The coconut plantation/refinery project is sited on 20,000 hectares of land, straddling Mkpat Enin, Ikot Abasi and Eastern Obolo LGAs. The land has been cleared for the cultivation of imported 15,000 special breed coconut seedlings.


    The coconut refinery has an installed processing capacity of  200 tons of copra as well as 200 tons of coconut and palm  kernel oils per day, for export, industrial and domestic uses.

        The Coconut refinery will achieve the following;


    –       Rejuvenation of the palm produces industry in Akwa


    Ibom State.


    –       Incentivizing the development of private coconut plantations.


    –       Creation of 5000 direct employment and 5000 indirect employment within and outside Akwa Ibom State.


    –       Increased GDP for the state.


    –       Increased IGR for the state.


    –       Generation of 4 megawatts of electricity for use by the factory and the host communities.


    COCONUT NURSERY IN MKPAT ENIN EXPECTED TO SERVE THE COCONUT REFINERY


     REVITALIZATION OF PEACOCK PAINTS LTD


    With government commitment to invest massively in the revitalization of ailing industries, Peacock Paints Ltd, Ikot Ekan, Etinan, closed down more than 15 years ago, has been revamped. In addition, the government negotiated and paid off a debt overhang to the tune of N102 million, owed to First Bank Nig. Plc. This was followed with an injection of N424 million for the reactivation of the company, which led to the re-commissioning of the company on September 5, 2015. The company with a current capacity of three million litres of paint per year has since commenced production. Procurement of  some hi-tech equipment and machines to boost the level and quality of the paint production has been made including:


    – 122KWT KBM 242 39 Fu Basket Mill


    – Laboratory Basket Mill


    – Stainless Industrial Water Filling Line for Gloss Paint


    – Automatic Volumetric Filling Line for Gloss Paint


    – Automatic Volumetric Filling line for water base paint


    – Automatic Volumetric Coding/ Labelling Machine


    – Branding machines


    – Laboratory/Quality control equipment


    – Refurbishing of underground tank and its


    transportation   systems


    – 500 KVA CAT C15 Generating set.


    ADMINISTRATIVE BLOCK, PEACOCK PAINTS LIMITED


    500 KVA CAT C15 GENERATING SET SERVICING PEACOCK PAINT, IKOT EKAN


    Government’s plan to fully privatize the Peacock Paints Ltd after recouping the state’s investment within one year is very much on course with an effective expatriate led management in place and new market openings for the company’s much sought after products.

        With the success story at Peacock Paints Ltd, other ailing industries mapped out for reactivation include – Qua Steel, Plasto Crown, Quality Ceramics, etc.

        AUTOMOBILE MANUFACTURING PLANT


    This bus logistics Assembly plant, located at Ikot Ukap, Itu LGA had its ground breaking ceremony on 13th July, 2015 and is billed to commence production in September 2016. With an operating model of a public private partnership between the Akwa Ibom State Government and an Israeli Automobile company, MIMSHAC Merkavim Technologies, the Automobile plant is designed with specialty in assembling of luxury buses, utility vehicles, ambulances and fire trucks. The plant is projected to engage more than 3000 people as skilled and unskilled labour.

 As part of the government’s investment for a sustainable auto manufacturing industry, more than 20 youths from the state are presently receiving training in automobile engineering in Israel.

        LOW ENERGY DEVICES (LED) FACTORY 

 The Low Energy Devices (LED) factory at Ikot Ebom Itam, Itu LGA is also receiving government attention. The alternative energy stabilizing kits outfit is another good example of Public Private Partnership (PPP) which brings together the Akwa Ibom State government and Romanian investors (Blue Marine Assets Holding Limited).

 Since the ground breaking event on 21st August, 2015 Government has appointed a project manager, undertaken perimeter fencing, paid compensation to affected persons, issued certificate of occupancy and handed over survey plans to the company.

The LED factory which is expected to start production in the first quarter of 2017 has capacity for more than 1000 direct jobs and more than 10,000 indirect jobs.


    The factory will produce solar panels, lamps, low energy bulbs, low energy electronic devices and parts, among others.


   


    WITH METERING COMPANY FOREIGN INVESTORS 

        ELECTRIC METER ASSEMBLY PLANT

 The ground breaking for this project was carried out in December 2015. Located at Awa Iman, Onna LGA, the metering plant is scheduled to begin production in June 2016, with technical partners from China, Pakistan and India. The Plant is designed for the production of single phase and three phase electricity meters, in various configurations and mountings. Other products expected include standard one unit electricity meters, maximum demand meters and smart electricity meters.


    At full operational level, the metering company is capable of creating more than 2000 direct jobs and 10,000 indirect jobs.

        FERTILIZER PLANT


    As a deliberate policy to boost agriculture, the State government undertook the ground breaking for a Fertilizer Plant located at Abak, on 4th September, 2015. Programmed to begin production before December 2016 and create more than 2000 direct jobs and another 300,000 indirect jobs at full capacity, the Fertilizer Plant is operated under the Public Private Partnership initiative between Akwa Ibom State and Greenwell Technologies, an American joint venture for the manufacture of different blends of fertilizers, for a wide variety of agricultural needs.

        REFINERIES AND PETROCHEMICAL COMPANY 


    Among the key industrial projects of the Governor Udom Emmanuel led administration are the refineries and the petrochemical company.

        OIL PETROLEUM LTD

  Programmed to take off in December 2018 and generate over 5000 direct and 50,000 indirect jobs, the Hi Rev. Oil Petroleum Ltd which is under development is designed to refine 50,000 barrels per day. The investment attractions of this project include its seating on an oil bloc in Oko, Eastern Obolo LGA. The bloc has at least 17 oil wells, 15 of which have been confirmed to be commercially viable. The distance between the refinery and the crude deposits too is short. A primary challenge to the progress of this project was funding constraints which have now been addressed by the government.

        RESOURCE PETROLEUM LTD


    With a take-off date of June 2017, the 100,000 barrels per day refinery is projected to employ over 10,000 people in direct jobs and 100,000 in indirect jobs. The state government has obtained all the basic licenses for this project. Located along Eket-Ibeno Road on 100 hectares of land, Resource Petroleum Ltd is billed to attract President Muhammadu Buhari to its ground breaking, considering the sheer scale of the project.

        AMAKPE REFINERY 


    Fabricated about eight years ago, the Amakpe Refinery sited at Ikot Usekong, Eket LGA, is warehoused by its manufacturer in Pasedena, Texas, USA. Conceived to be the trailblazer in privately owned oil refinery, Amakpe Refinery comes with a capacity of 6,000 barrels per day, expandable to 12,000 barrels per day and a job prospect of over 2000 direct jobs and 5000 indirect jobs.

        QUANTUM PETROCHEMICAL COMPANY LTD


    The 1.5billion dollar methanol plant located at Ibeno was initiated by Mr. Jim Ovia, the chairman of Quantum Petrochemicals Company Ltd as a fine example of private sector participation in the industrialization policy drive of the present administration. The ground breaking for this project was done by then President Goodluck Ebele Jonathan on 14th August 2014. Billed to take off in the final quarter of 2017, the Petrochemical plant is projected to generate more than 100,000 skilled and unskilled jobs when completed. Aware of the enormous importance of this project in the industrialization agenda, the state government has done the needful for the actualization of the project. These include the conduct of environmental impact assessment, issuance of certificate of occupancy and provision of more land to the promoters of the company for the building of an estate for staffers.


    10.0 IBOM DEEP SEA PORT 


    Fully conscious of the critical nexus, globally, between deep seaport and industrialization, the present government invested massive effort from the get go in the deep sea port project. Around the world, deep sea ports drive industrialization and multiple economic activities, while the economic activities in turn drive the seaports. This unique development potential, in addition to the monumental job prospects, has made the Ibom Deep Sea Port (IDSP) a huge part of the state’s industrialization agenda. For this reason, the government put together a 10 member Ibom Deep Sea Port implementation committee, called the Technical Committee for the Realization of Ibom Deep Sea Port (TEIDSP). Governor Udom Emmanuel has iterated and re-iterated to the TC-IDSP and other development partners that the take off date for the IDSP is December 2018. The IDSP is designed to be a self sustaining commercial city with oil and gas support services and to maximize the immense maritime potentials of Akwa Ibom State as a major littoral State, with the longest coastline in Nigeria. IDSP is configured to accommodate off shore oil and gas development; offshore joint ventures with companies in Scotland, Brazil and South Korea; construction of supply boats for off shore oil operation; fabrication of off shore cranes; repair and maintenance of offshore equipment and facilities; production of wet Christmas tree; supply of subsea manifolds and construction of oil platform jackets for oil production systems.


    Other operations and activities compatible with the configuration of the IDSP include FSPO fabrication and the export oriented Ibom Liquefied Natural Gas Plant. The Deep seaport is designed to connect the 1000km railway extension line into the Niger Delta, from Kano, which will run from Port Harcourt to Aba through Uyo to the Deep Sea Port.


    To underscore its unflagging commitment to the project, the State Government has appointed Transaction Advisors, designers of the Industrial city; issued the certificate of occupancy, signed the contract for the Full Business Case and endorsed an memorandum of understanding with CCECC.


    TECHNICAL COMMITTEE ON IBOM DEEP SEA PORT


    11.0 IBOM POWER NIGERIA LTD


    In the last twelve months, Governor Udom Emmanuel has secured a license from the National Electricity Regulatory Commission (NERC) for the State to increase its production of electricity from 190 mega watts to 685 mega watts. The government has also invested tremendously in the building of transmission lines and power substations to enable the power supplied by Ibom Power Nigeria Ltd to be evacuated to consumers.


    On the transmission line that links Ibom Power Ltd to the National grid alone, the government expended 22 million dollars which the Transmission Company of Nigeria (TCN) is expected to refund before assuming ownership of the transmission line, in tandem with the National Energy Policy. The State Government has equally signed an MOU with Tricap Investments, a private investor, for the generation of power in Akwa Ibom State to further boost the power subsector for industrialization.


    Ibom Power Plant reception Of Additional Megawatt License


    AKWA IBOM INVESTMENT CORPORATION, AKICORP


    Akwa Ibom Investment Corporation (AKICORP), formerly known as Akwa Ibom Industrial & Promotion Council (AKIIPOC), was established by Law enacted by the Akwa Ibom State House of Assembly in 2012.


    The functions and powers of the Corporation, as contained in the Law, include among others: Promoting Entrepreneurship in the State through capacity building; Facilitating industrialization by adopting Public-Private-Partnership, PPP, Model and Management of the State government’s  Investment Portfolio among others.


    AKICORP, is therefore the Special Purpose Vehicle (SPV) for investment promotion, entrepreneurship and accelerated industrial development.


    In driving the industrialization process of government, the corporation has continued to translate the industrial and entrepreneurial blueprint of the State into tangible reality. Within the period under review, AKICORP has recorded the following achievements:

        Qua Steel Industry: The moribund Qua Steel industry, is under – going resuscitation for the production of 300 Tonnes/Year steel products.

        Signing of Memoranda of Understandings (MoUs): The


    present administration, through AKICORP, has signed several MoUs and attracted over 20 foreign direct investments into the State. All these projects will create employment for the teeming unemployed youths of the state.

        Brokering of peace in Aka Offot Industrial Estate/Banking Layout: AKICORP, during the period under review, has been able to initiate and broker a peace process amongst the four communities of Aka Offot Industrial Estate/Banking Layout (housing Champion Breweries Plc). The dispute over the ownership of land covering this Estate/Layout had lingered for about 40 years, even claiming lives and, oftentimes, disrupting production activities of Champion Breweries. A Memorandum of Understanding (MoU) was signed between the Akwa Ibom State Government and Aka Offot Community, on the one hand, and Nung Oku, Afaha Ikot Obio Nkan and Itiam Ikot Ebia, on the other. The MoU was signed by the Village Heads and Youth Leaders of each of the four communities. This achievement has been described as an ‘unprecedented feat in the settlement of the age long tussle’.

        Hosting of Chinese Government Trade Delegation: As part of efforts to attract investors within and outside the country, towards boosting the industrialization process, AKICORP hosted the Chinese Government Trade Delegation in the State. The visit was aimed at negotiating economic and trade opportunities that were of mutual benefits to both Akwa Ibom State and China.

        Pre-qualification of 32 Investment Proposals for Bank of Industry (BOI) funding: Fully aware that, the growth of the state economy depends largely on the development of Small and Medium Enterprises (SMEs), AKICORP has, during the period under review, pre-qualified 32 investment proposals, to benefit from the Bank of Industry (BOI) funding.

        Appraisal of over 100 Investment Proposals in some strategic industries: Towards paving a pathway to Industrialization, AKICORP has appraised over 100 investment proposals in some strategic industries geared at the establishment of strategic industries across the length and breadth of the State.

        Specially Trained 45 Youths on Roofing Sheets and Ceiling Manufacturing: In readiness for the smooth and successful take-off of industrialization in the State, AKICORP has, in collaboration with Onna Youth Industrial Association, partnered Eternit Nig. Ltd in the training of 45 youths in the areas of roofing sheets and ceiling manufacturing as well as carpentry.

        Twenty (20) Electrical & Mechanical Engineers for Manpower development:The Engineers are set to depart to the Netherlands for manpower development on Generator plant. On completion, they will work in Small World Project’s Silent Generator Plant to be sited in Aka Offot Industrial Estate/Banking Layout in Uyo.

        Business Presentations: Almost on daily basis, Business Presentations are made by both local and foreign investors, thus, providing the much needed enterprise development support services.


    In addition, AKICORP has also recorded the following to its credit:

        Restructuring the financial system of Universal Energy Resources Ltd, aimed at enhancing accountability and stewardship.

        Working with Ministry of Economic Development to formulate Investment Policies in the State, aimed at encouraging patronage of State-owned Enterprises, like Anchor Insurance Company Plc.

        Post rights issue investment monitoring and implementation activities in Champion Breweries Plc.

        Restructuring and assigning of new management to the State Government’s Investment Portfolio in Blue Chips.

        Visit and inspect all government’s investments to determine their state of functionality.

        Gazettes AKICORP’s Law.


    Also, during the period government has:

  •         Developed an international standard AKICORP Website for Foreign Direct Investment/Investors. See akicorpng.com
  •         Remodeled restructured AKICORP to mirror expected international standard for investors.
  •         Trained Staff and Management and instituted monthly Management Meeting for strategic planning and direction.
  •         Renovated and furnished all offices.
  •         Reached the concluding stage of a Sister-State-Relationship between Akwa Ibom State and the City of Tulsa, Oklahoma, USA, to enhance economic empowerment, transfer and social ties.