How Wada Significantly Increased Revenue Base of the State

The present time no doubt calls for a thorough reflection, considering the fact that the nation’s economy has dipped to its nadir.

The federal allocation which remains the main source of revenue for states has dropped to about half of its size.

The crash in crude oil price  has triggered a sharp drop in state’s earnings with all the attendant negative up thrusts.

Since coming on board as governor, Captain Idris Wada ensured that prudence and accountability remains his watchwords.

The state under his stewardship until April last year receives between N3.5 billion to N3.7billion on the average since 2012.

The governor on assumption of office met a paltry N150million as internally generated revenue. The efforts by the governor through measures he put in place has now moved the IGR to about N600 million monthly.

Kogi State until the last three months has a better rating as it relates to the payment of salaries. with a wage bill of N3.2 billion monthly, as well as one of the highest paid states in Nigeria.

Across the states of the federation, the thinking now is about diversification of revenue.

Captain Wada thought outside the box. Little wonder a look at most of the projects he is and has embarked upon revealed that most of them are revenue earners.

For example, the Alo Cement Company, and the Ethanol industry which is due to be begin operation in April this year would further boost revenue generation in the state.

The recent inaugurated Lokoja trailer and modern motor park, the remodeled Kogi hotels, the diagnostic and imaging centre Lokoja and the seventeen storey Kogi House in Abuja when completed will rake in revenue for the government.

Similarly, a look at most of the projects embarked upon by Capt Wada, showed that they are those with direct bearing on the lives of the people. Projects such as the 500 housing estate at crusher and ganaja, the Otokiti – Ganaja bye pass, the welcome to Lokoja road, through to the international market and the reticulation of Greater Lokoja Water works to all adjoining towns of Lokoja as well as the upgrading of 35 water schemes across the state, some of the projects funded by the bond, are all having direct impact on the lives of the people of the state.

Captain Wada because of the recession made only projects and programmes with economic values a priority. Aside cutting down  cost of governance in the state to reflect the mood, a concerted efforts was also made by the Captain Wada administration to through areas it has comparative advantage lay emphasis on Agriculture, especially in the area of cassava and rice production.

With potentials for investment in diverse sectors of the economy such as Agriculture, Mining, Industry and Power,Kogi State is equally blessed with Tourism, Transportation, Trade and Commerce potentials.

The state which remains a bride to investors in the area of Waste Management, Urban Renewal, Hospitality and Tourism endeavors has entered into partnership to boost revenue.

Incentives as Tax Holidays, Access to land with necessary titles, the State also facilitates exploration of Minerals through the necessary Federal Agencies as support to investors and the creation of an Investment Promotion Desk by the State Government,a one stop shop for information and detailed discussions, serves as an investment maternity ward for the safe delivery of investment projects in the State,  motivates investors.

Some partnership entered into by the State include: a Joint Venture MoU for farming of up to 6000 hectares of Cassava and processing it into native and modified Cassava Starch with Ostertrade Engineering and Manufacturing as well as with DPP International APS. The project has an equity investment of 650 million USD to be realized within 18 months by all parties. The project also has a high net worth with a Return on investment of 27% that is a pay back period of less than four years. It is also capable of generating thousands of employment in the area of its location.

Similarly, the partnership with Espera Global Limited in commercial Agricultural and Agro Industrial investment which would operate on a Project Model called Strategic Fast Tract Agricultural Development System, seeks to invest up to 650 million USD on 25,000 hectares of land.
Aside the backward integration advantage to the state, the state also enjoys 15% share of the project while employment would be created in Agriculture Infrastructure and Social Service.

The MoU entered into with Chelsea Group Limited, is for the establishment of Agriculture and Ethanol Plant and other associated Industries in Ilama Community in Dekina Local Government Area. The project is a 300 million USD investment. The equity structure of 85% and 15% for Cassava development for the partner and state government respectively, will occupy a land mass of 10,000 hectares of land.

The MoU with Favic Constructions Company seeks to exploit the immense location of economic advantage of Kogi State as a transportation hub. On the average, vehicles from 22 States pass through the Capital daily.

A Mechanic and Spare Part Market in Lokoja, is to be sited on a minimum of 10 hectares of land. The facility will have an international hotel, car park that will take at least 200 Vehicles, a Bank, Open Court Restaurants, and Rest Rooms is structured on the basis of 75% and 25% for the investor and State respectively.

Towards providing mass housing scheme in the State,the state entered into a partnership with Light House Financial Services Limited to build 1500 houses of various categories for it citizens in the state. The scheme would be located majorly in Lokoja and other urban towns in the State would be prosecuted in phases.

The importance of Power in driving socio-economic development in any society, made the State sign an MoU with Good Earth Power Nig. Ltd and Astra Coal Nig. Ltd. The companies aside investing in Housing, Agriculture, Infrastructure and Power Plants, would utilize the abundant Coal deposits to generate the much needed electricity for the Country.

Astra Agriculture Resources Ltd, intends to establish a Rice farm and Rice Mill at Ibaji. Infrastructures such as Health Centers, Schools, Roads, Water and electricity would be provided by the investor as part of their Corporate Social Responsibility.

Through the Kogi investment and properties Limited, a joint agreement with Kiabo Engineering Group Holding Limited of Hong Kong to Design, Construct and Operate an eleven story Hotel and offices to be known as Kogi House is yet another brilliant initiative of the Capt Wada administration. The project which would be located in the central business area of Abuja, would see the State enjoy 80% equity participation in the Joint Venture which spans a period of 30 years.

With the future of the nation said to depend on Agricultural Promotion, the State massive investment in Agriculture especially in Sugar through the establishment of a 50 hectares cane sugar seed nursery, that would enable the planting of 1000 hectare of sugar cane in about a year by BUA Sugar, Dangote Sugar and Unikem Sugar companies, who are planning to set up sugar plantation and refining facilities in the state is hoped would help form the bulwark for the realization of the National Sugar Master Plant.

The Achaju Oil Palm another farm is yet another project that will greatly improve economic outlook of the State through a joint venture.

All of this efforts by the present administration aimed at meeting the yearning of the people especially as the State is aptly described as a Civil Service State, with 85% of its revenue spent on the payment of salaries with little or nothing to run the state after ward.

Without mincing words,the friendly environment created by the Capt Idris Wada administration and the states abundant potentials in Agriculture, mining, tourism, human capital development as well as its strategic location.