Vibrant Economy
Out of the six geo-political zones in Nigeria today, only the South South has the
economic muscle to translate its dreams into realities. The rich natural resources
of the zone accounts for more than 90 percent of total national earnings. The zone
comprise Akwa Ibom, Bayelsa, Cross River, Delta, Edo and River States. For years,
these states were considered as the minorities with little say in the management
of their natural endowments. Not any more. Today, following from the return of democracy,
we have become a voice that is heard across the land; a major power bloc. In this
group, Akwa Ibom State is a major player.
The people of the zone are being empowered
politically and economically, especially through the recent changes in federal revenue
sharing system that gives 13 percent of oil earnings to oil producing states.
The
zone has a total population of 3.9 million representing 3% of total national
population of 140 million. Add to this the 16 million people in the neighbouring states of Abia,
Anambra, Ebonyi, Enugu, and Imo which forms the south east zone and you will come
face to face with one of Africa’ s extensive market, by far larger than the population
of South Africa.
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Free Zones
Akwa Ibom State is the only Nigerian state that is served by three export
free zones. That means, triple benefits for investors. There is an export processing
zone at Ikot Abasi, home to Nigeria’s multi – billion dollar Aluminium Smelter Company,
Alscon. The state also falls within the catchment areas for Calabar export processing
zone and the oil and gas free zone in Port Harcourt.
Because we are positioned midway
between the two port cities of Calabar and Port Harcourt, Akwa Ibom has unlimited
access to the world, whether by air or by sea. Much more, we have become part of
Nigeria’s gateway to the countries of Central Africa, like Cameroon, Gabon, Central
African Republic, Equatorial Guinea and Congo. These are great market potentials
for our industries.
Currently, the Federal Government is dredging the Atlantic Coast
at Ikot Abasi so that sea going vessels can berth at the port. This should help
the export drive of Alscon and for you, foster business growth.
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Areas for Infrastructure Investment
TRANSPORT
- Airport-cargo handling
- Bonded and unbounded warehouses (@ Airport & Seaport)
- Deep seaport development
- Dockyard and watercraft repair facilities
- Water transportation
- Ibaka – Tinapa rail
- Inter state rail lines
- Metro line & trams
- Road infrastructure
POWER
- Independent power plant phase II
- Power lines
- Power distribution
- Electrification installation accessories
OIL AND GAS
- Refinery
- Gas gathering (dry)/Distribution
- Gas-to-liquid (GTL)
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INDUSTRIES AND TOURISM
- Industrial park
- Trade fair centre in Uyo
- Dome – consisting of amusement park, circus, entertainment center
HOUSING
- Housing (commercial / residential / urban renewal)
- Hotels
WATER
- Rural water and water treatment equipment operation and maintenance of urban
water supply
- Schemes and water pipe lines reticulation and distribution infrastructure
INFORMATION TECHNOLOGY
- Manufacturing / assembling of ICT equipments and parts
- ICT support services
- Establishment of science lab for research / grading of produce
ENVIRONMENT
- Integrated waste management / conversion (waste to wealth)
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Investment Incentives
A Memorandum of Understanding was executed in 1986. New incentives were introduced
between 1990 - 1993 by the Federal Government to encourage further investment in
the gas sub-sector. Concessions are available for investors interested in Joint
Venture with APEL Exploration and Production Company Limited.
The main policy thrust of Government on investment is to
encourage private sector-led industrialisation. The State Government has established
a corporate body: The Akwa Ibom Investment and Industrial Promotion Council (AKIIPOC)
as the primary agency of Government. Government guarantees prompt allocation
of plots.
In its effort to provide investors in the State with the most competitive and generous
investment environment the government has obtained approval from the Nigerian Export
Processing Zone Authority (NEPZA) for Export Processing Zone status.
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Agriculture
The rich land mass and the all year - round clement weather offer a favourable environment
for the production of food and tree crops as well as livestock. The following crops
are widely grown in the state.
The major industrial crop is the oil palm tree. The state has the densest groves
of oil palm in Nigeria. The Akwa Palm Industries PLC was set up in 1991 to
harness the full potential of this crop. The production of crude palm oil will
allow for downstream industries which can refine the oil into vegetable oil,
soaps, margarine, glycerine, candles, detergents and numerous other products.
The kernel oil is used for the manufacture of high quality toilet soap. Bye
product from the oil palm industries are used for the production of livestock
feeds.
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Strategic Infrastructuretegic Infrastructure
In Akwa Ibom, we are modernising our infrastructure to bring them to world class
standards. The state is benefiting from a federal programme to upgrade and modernise
key telephone facilities across the country. This process should be completed shortly.
We are currently discussing with a number of organisations within and outside Nigeria
to develop independent power projects that will provide clean, uninterrupted electricity
in the state.
We are building new roads and rehabilitating old ones. A total of
1,000 km of road will benefit from this programme over the next 12 months. They
should open up our communities and facilitate easy movement across communities.
Our compact size demands that we develop our state as an integrated city served
with very modern amenities.
In the housing sector, the state is benefiting from
a special programme sponsored by the Nairobi - based Shelter Afrique. More than
$3 million will be invested over the next three years in developing owner occupier
homes across the state.
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The tourism
industry in Akwa Ibom State promises an unlimited investment potential. The state
has rich tourist sites that are eagerly awaiting investors to cash-in. The state
boast of road networks that crisscross the entire landscape of the state. The state
government is on the verge of completing its international Airport near Oron. In
addition to Mobil, the state boasts of a vibrant State Tourism Board that is providing
the enabling environment for investors. This is evident in the recent completion
the of the largest resort at the Nwaniba river which boasts of the largest golf
course in Africa and a five Star Ibom Resort Hotel being managed by Le Meridian,
a global player in the hotel industry. In spite of these giant strides, there is
need for more of such resorts to take advantage of the bustling tourist interest
in the 'land of Promise'.
With resort-type beaches such as the Ibeno Beach, Qua
River water- side, the water front area of the Oron River adjacent to the Museum
with its humid and temperate climate, the ancient trading beach at Okopedi, Itu;
the tropical oil palm scenery of the Ibagwa river valley, the Ibaka fishing settlement
site James Town, Uta Ewa fishing settlement, Ibaka beach, Obuabu Blue River and
the Consular beach at Ikot Abasi are all resorts waiting to be fully developed and
exploited.
Beside these scintillating resort sites, the State’s historical sites
demand urgent development. Such sites include; the oil Palm produce ware-houses
and the UAC Company agents residence; the Mary Slessor Cairn site on top of the
Okoyong hill, there is the ancient tree grove at Afaha Offiong in Nsit Ibom; the
Slave trading ware houses at Ikot Abasi, Itu, the building where the amalgamation
treaty was signed by Lord Frederick Lugard in 1914 at Ikot Abasi, the old Presbyterian
Church at Itu, built under the supervision of Mary Slessor; the Itu hill walk-way
that also has the first telephone line and Post office, among others. The amazing
mixture of traditionalism and modernity provides an awakening, a window to another virile and colourful glimpse of African humanity and its cultural and natural environment.
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At inception, the state inherited a number of companies from Cross River State.
These are:
- Sunshine Batteries, Essien Udim
- Peacock Paint, Etinan (Privatised)
Quality
Ceramic Industries, Itu (Privatised)
- Qua Steal Products Limited, Eket
Asbestonit
Industries, Oron
- Plasto - Crown Industries, Uyo
-
International Biscuits Limited,
Ikot Ekpene
- Champion Breweries, Uyo (Privatised)
- Pamil Industries, Abak
Most of
the companies are ailing, becoming a drain on government. As part of the economic
policies of the present Administration, these companies are to be revived and privatized.
Government is diverting its interest in them in line with overall philosophy to
focus on creating an enabling environment for private sector initiatives to flourish.
The State Government is pursuing its industrialization and privatization program
through the Akwa Ibom Investment and Industrial Promotion Council, AKIIPOC. Through
AKIIPOC, a number of interests have been secured as strategic partners and core
investors in reviving these industries. The Plasto Crown Industries has been revived
and is back on stream, producing crown corks for domestic and industrial uses.
A
core investor has been secured for the Champion Breweries, Uyo. An interim board
has been put in place to direct efforts at early resumption of operations. AKIIPOC
is discussing with other investors from across the world in participating the revival
of other companies.
Other industries in the state include Ebughu Fishing Terminal,
Mbo, Akwa Rubber Estate Limited, Itu, and Akwa Feeds Limited, Uyo. There are two
Federal Government industries, the Aluminum Smelter Company, ALSCON, at Ikot Abasi
and the Nigerian Newsprint
Manufacturing Company, NNMC, Oku Iboku.
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A very clement tropical climate, marked by two distinct seasons – the rainy and
dry seasons – combines with sound political and social conditions to create the
right environment for new investments. We have put in place sound economic policies
to support new investments and guarantee the safety of such enterprise. We are deregulating
and divesting our interests in state funded companies. The business of government
is to create an enabling environment for your business to grow. We are re- engineering
our public service to operate with a private sector mentality. We are computerising
our operations. We have made it possible for you to process and receive all government
approvals with dispatch.
There are a number of incentives for new investors. The
export processing zone at Ikot Abasi guarantees such benefits as tax holidays, processing
for export and easy repatriation of profit in line with international practices.
Our people are warm, friendly and very accommodating. Crime rate is very very low.
Akwa Ibom is one oil producing area without a history of hostage taking. Exxon Mobil
which has been operating in our area since 1961, enjoys a very close relationship
with the host community. We see it as a unique partnership for growth. To them,
it is good neighbourliness.
The State believes that growth and sustainable development
can take place through private sector initiatives under an enabling environment
created by the government. As part of our responsibility to create that environment,
the present administration will invest in strategic areas of power, telecommunications,
oil and gas as well as human capital development. Government economic policy is
consistent with providing the conditions for competition, liberalization and openness.
We believe in the empowerment of the people to participate and produce economic
activities. In addition to numerous skill development programs, the government in
partnership with the United Nations Development Program, UNDP, completed the Akpan
Andem Entrepreneurship Village, to boost domestic produce capacities and create
wealth.
Government is offering a number of incentives to attract and sustain investors.
These include: free land and title, access to research studies on various fields
in addition to tax holidays, capital allowance and easy repatriation of profits.
AKIIPOC has undertaken a number of studies on investment opportunities that exist
in the state and is willing to share these studies with interested investors.
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