By: Ifeanyi Onyekachi
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There is a general consensus in Imo State that Dr. Sam Onunaka Mbakwe (De Sam) who governed the State between 1979 and 1982 is the only governor that has realistically tried to place the State in the pedestal of Industrialization and economic development. This issue, through comparative analysis has become unequivocal.
Among the strides that enshrined the name of De Sam in the annals of Imo history is the massive industrialization of the State by sitting cottage Industries across the State, including Ada-Palm, in Ohaji Egbema. Today De Sam is gone and we are back to the beginning. We have grown without development. As a state, we are deep sunk into the abyss of misery and have moved faster to the back.
Though we have seen successive governments since the departure of De-Sam, yet it looks as if we never had any. Unemployment, joblessness, under employment and outright poverty stare everyone in the face. How long shall we continue to languish in this gory tale? How come we cannot get it right? More importantly, how do we get out of this quagmire?
In the very recent time, people have argued that the hardship that ravished the State is not peculiar to Imo but caused by general down-turn in the Country’s earnings. Recession. But State like Anambra still increases salaries, reduces tax and produces rice for export. They are not oil producing State. What did they do differently?
Also, Lagos just launched its own rice. Lagos has exhibited quality leadership right from the days of Lateef Jakande and is better for it. Senator Ahmed Tinubu, while the governor of the State proved that Lagos is resilient at the face of hardship. The test case was when the federal government led by President Olusegun Obasanjo withheld their State allocation from the Federation account.
During that period, which could be termed recession for the State, Tinubu employed tact, ingenuity and prudential management to ensure that the effect of the withheld fund was cushioned and the economy boisterous.
The ordinary man did not understand when you said Lagos allocation was withheld. I lived in Lagos at that time. Tinubu and his team managed the economy with superlative dexterity.
Although many argued that Lagos is the country’s commercial nerves centre and is therefore insulated from financial down-turn, the truth is that a government manages the State to sustain its economic tempo. The managers certainly did not descend from the moon.
Just like Lagos, Imo is also strategically located to ensure maximum harnessing of her resources for economic sustainability. But our story is different. This has bugged the minds of many genuine Imo Stakeholders including myself.
However, one open secret that was revealed by Mr. Okey Ezeh, a renowned technocrat, reputed for starting business and run it to multinational, is that Imo State is sitting on a goldmine. He said that except for poor economic management by successive government, the State is rich with abundant resources which if fully tapped, federal allocation would not be required for survival.
Mr. Okey Ezeh who did not want to play the ostrich as many politicians do, elucidated his explanation with focal point on Palm oil production. Imo journalists were held spell bound as they listened to him reeled out his facts and figures on how palm oil alone can place Imo among the richest States in the world. Okey Ezeh, who has shown personal commitment to revitalizing the State economy stated this at the 2016, Imo NUJ press week titled: The Press and Economic Recession, Nigeria’s Case.
The financial consultant opened the eyes of his audience to see the inherent opportunities that abound in palm oil production where Imo has comparative advantage than other States. Sharing his thought with the journalists and indigene of Imo in general, he said palm oil product cost higher than crude oil in the International market. He made us to know that the cost of crude oil per barrel is put at $56 while the cost of deep water extraction of crude is $32 per barrel. If you minus the cost of deep water extraction from the bench mark of Nigeria’s crude oil sale in the international market, the difference is $24. This difference in terms of profit is what the government at every level scrambles for in Nigeria.
Compare the above prices with palm oil. One metric ton of palm oil in the International market is put at $650. While the local purchase price of one metric ton of Nigeria palm oil by industrial consumer is N650.oo. Each ton of palm oil has about seven barrels. Suffice to say that one barrel of palm oil is about $395 as against the $56 per barrel of crude oil. If for instance, Imo State decides to genuinely concentrate and consolidate on palm oil production and chooses not to export, she will earn N650,000 per ton for selling to manufacturing industries in Nigeria which are in dire need of the product.
Having listened to Mr. Okey Ezeh, I believed him. Not because he said it, but because I have privy to a research he paid heavily to conduct in Imo State regarding opportunities that exist in the 27 Local Government of the State in case of industry sitting with special regard to their comparative advantages.
He commissioned the research prior to his political interest in salvaging Imo from economic squalor in 2015 before he was edged out by political hawks desperate for power for the sake of its paraphernalia and acquisition of wealth.
The point here is that Imo could become a haven, money spinning factory and a State of financial independent if the leadership has adopted the vision of De Sam and expanded the frontiers of palm oil production.
Malaysia, a country whose population is barely the population of Lagos and Kano, has impressively harnessed their palm biomass, today they are the 2nd largest producer of sustainable oil (I was told they took their palm seedling from Imo State)
According to Robin Miller, a renowned analyst, Malaysia generates 39% of world palm oil; accounting for more than 5% of its export with approximate value of over $20billion. The country has about a million people working within the value chain of its palm oil industry.
Since Imo has comparative advantage on palm oil production, if the industry is fully utilized the available potentials and market requirement are so expansive to take full attention of the State without recourse to any other source of revenue generation. Every part of the Palm fruit is essentially useful and revenue generating. Nothing is a waste.
Beyond the common knowledge of being used as frying oil, crude palm oil and palm kernel oil are among world versatile raw materials. They are based ingredients found in approximately 50% of products in supermarket shelves. They are used in making consumer food and snacks, personal care cosmetic, bio-fuel energy animal feeds, pharmaceuticals among others.
This means that even manufacturing companies in Nigeria such as Unilever are in dire need of the oil. That is why Mr. Okey Ezeh said the States can make billions of naira from palm oil if she chooses to supply to local manufacturers only.
Apart from crude palm oil (CPO) and palm kernel oil (PKO) which are of high industrial use, the palm kernel expeller (PKE) is used in animal feed industry. The product is high in energy and fiber and retains good level of residual oil.
It is interesting to note that experts have shown that it is comparatively cost effective to start palm oil production in reasonable commercial quantity. The question that begs for answer is why has successive governments not mustered enough courage to venture realistically in palm oil production.
For the purpose of emphasis, the type of agricultural industrial commercialization that is proposed cannot be actualized in the “Ikuola nkwu” fashion, where N2 million was shared to each community for palm plantation. Such money is obviously for “Chopulate” because the process lacks intrinsic and extrinsic design for sustainability and growth. It lacks the industrialization methodology with clear evaluation strategic plan. It can never work! No wonder the State government is going after those who “Chopulate”, the money, this is according to newspaper report.
Also, the “back to land” model of the state government, which mandates every civil servants to go back to agriculture will only recycle subsistency. I have written on this severally. I will however refer you to Simeon Kolawole’s article titled: Agriculture is Not a Magic Wand”. He dwelled extensively on that.
From the afore-going, if the running of Ada palm is devoid of political intrigues, visionless and directionless leadership but with right political will on the part of government, many more Ada Palms would have been born in at least all the geo-political zones of the State.
It is only the right leadership that can cause industrial revolution and economic sustainability. But the challenge remains, how do we enthrone this elusive right leadership? This rhetorical question does not in any way deride the competence of the incumbent, because this administration has done its best.
However, indigene of Imo must shun grand styling and window dressing politicians who speak so eloquently, organizes “mega constituency briefing” whatever that means, lacks every iota of fear of God, mesmerizes unsuspecting and gullible Imolites only to win election. They spend money that is not commensurate with their earnings. Good leadership does not just happen, there must be evidence of high level of managerial ability with sound sense of judgment and educational backup.
I mentioned Anambra and Lagos earlier in this piece as States that are succeeding. I would like you to read the background of former governor Peter Obi who handed over to Governor Obiano. Also, read the background of Obiano himself.
Please do same to former governor Ahmed Tinubu and his successor Raji Fashola not leaving out the incumbent governor of the State. This will help you to know that good leadership is beyond being a money bag, dolling out some cash or doing patches at empowerment with motorcycle (Okada), sewing machines, Hair driers etc.
Mr. Okey Ezeh at that event also told Imo Journalists some bitter truth. That is a story for another day!
