Kudos to Ikpeazu as Abia receives N1bn CBN agric loan (2)

How the governor’s positioning the state for more MSME funds (2)

Meanwhile, the Governor has set up a committee saddled with the responsibility of mapping out modalities for the disbursement of the fund to deserving beneficiaries, to ensure it is not used for political patronage. The committee would be chaired by the Commissioner for Agriculture.

Determined to change Abia narrative in commercial agriculture, Ikpeazu has returned to the drawing board to ensure more funds are made available to farmers. From the CBN, the Bank of Industry (BOI) to Africa Development Bank (AfDB), and the economy – driven Governor has forged collaborative alliance with the Federal Government’s Ministries, Departments and Agencies (MDAs) and International Development Agencies (IDAs) for development of agriculture and other entrepreneurial endeavours in Abia.

Only last week, the state under Ikpeazu’s watch, signed a Memorandum of Understanding (MoU) with the BOI in respect of Micro Small and Medium Enterprises (MSME) Marching Fund, which would soon be released for commercial ventures. Under the agreement, the BOI will provide one billion naira from SME Development Fund for Abia entrepreneurs. The Governor has assured that beneficiaries of the facility would be held accountable.

He is optimistic the opportunity provided by the bank would boost the state’s economy.

Ikpeazu is also positioning Abia for the CBN/Nigeria Export Import (NEXIM) Bank’s N500 billion Export Stimulation Fund, among other SME capacity-enhancing credit. Small businesses engaged in export will benefit from the NEXIM fund meant to support non-oil export growth. When the fund is finally released, Abia State would equally get at least one billion naira. And the multiplier effects of this to the emerging non-oil economy would be quite enormous.

There is also the BOI Manufacturing Refinancing Scheme and the Real Sector Support Facility (RSSF) also packaged by CBN. The state’s attraction to the RSSF initiative lies squarely in its direct benefits to the manufacturing sector, where Abia is a major player.

The objectives of the RSSF scheme, reports the BusinessDay of Monday, May 30, 2016 include:

“To increase output, generate employment, diversify the revenue base increase Forex earnings and convert FX by backward integration projects to provide input for the industrial sector on a sustainable basis. In addition it aims to improve access to finance for the Nigerian SMES in order to fast- track the development of the manufacturing, agricultural value chain and services sub sectors of the local economy”.

These go on to demonstrate that the present administration is attracting funds and investment to Abia. That’s why jaundiced perspectives insinuating the contrary are laughed off by serious and discerning minds. For a man whose policies are largely driven by a well thought out economic master plan aimed at turning the state around, he can only remain on top of his game. The Governor is not going to be distracted by few inconsequential armchair critics. He is rather engrossed in facilitating funds for businesses and revamping infrastructure in the state, with focus on Aba, Nigeria’s SME capital. And the visible derivatives of these efforts are juicy multi-billion naira local and foreign investments trickling into the state.

As the CBN/BOI soft loans are being judiciously disbursed, the state has also spread its net in the sea of agric credit for growth of farmers. In the same vain, the state ministry of Agriculture is equally providing incentives for commercial farmers. The result of these strategic interventions would be massive food production, which would ensure food security, create wealth, jobs, and promote diversification and inclusive economy.

Already, agriculture generates the highest revenue to the state after trade and commerce.

The sector, at its subsistence scale, is also the largest employer of labour as it engages over 60 per cent of the population. This explains the premium the current administration places on it. Taking this into consideration, Governor Ikpeazu has at every forum urged Abians, especially the youths to embrace agriculture. Investors are also being encouraged to diversify into the money spinner, with the assurance they would get tempting incentives that would help them maximize profit.

To this end, the Abia State government has been sensitizing the public on the value chain of agriculture and how it offers manifold benefits in Nigeria’s quest to expand its revenue base in a zero- oil economy. And not a few have hearkened to the clarion call to “go green” because of Ikpeazu’s commitment and focus. This farming season, the poor, the middle class and even the rich have joined the Agric Revolution. The Governor who leads by example also has modest farms, just as he had told his commissioners, aides and civil servants to return to their farms, as he builds Abia’s future on Agriculture.

Uche Olehi, a Pubic Affairs Analyst, writes from the University of Port Harcourt