South East; the Need for Regional Economic Development Master Plan

That was the Eastern Region that reminence in anyone’s mind. An economy that would boost anyone’s talents and skills to fruition and provide the opportunity for inclusiveness and growth.

That is the Eastern Region that we miss, and that is the region that can cater to everyone’s dreams and aspirations, and the region we must purposefully design, support and develop, if we do not want to suffer self implosion and debilitation as a people and region; (for most of these social vices in the South East are products of poor socioeconomic standing; these weird insecurity, kidnappings, ritual killings, prostitution, drug abuse and internet frauds that are prevalent in the region, are all manifestations of a failed and rudderless economy, lacking in the provisions of hope, inclusiveness and opportunities for the people and the youths – a political-economy that inspires no hope in the future. But for as soon as an economy begins to grow at 7 to 7.5 percent (APR) (at the least), these symptoms of sloppy economy will disappear to almost non-existence.

In the journey of self discovery, it is important to ask where we started missing it. Where we got drenched, and at what moment the glitch occurred in our quest for progress and development.

It is also important to query what turned the fastest growing economy in the world to the shadow of itself, that the Igbos have turned to economic nomads, roaming the cities of the Nation, and the World, developing everywhere but their home region, that the latest data from SMEDAN/NBS shows that only 9.07 percent of the registered businesses in the country are located in the South East, compared to 22.3 and 20.5 percents from South West and North West.

Why is the South East not among the destination points for a young Nigerian or even an Igbo youth while choosing likely places to reside, hunt for jobs after College graduation, and make a living. Why is the South East not amongst the investments destinations in the country, as consistently only about one State in the region attracts about 1 percent or less of the FDIs coming into the country.

What is it that have turned this world fastest economy, to one that generates cumulatively amongst the 5 States an IGR equal to that of a single State (OGUN) in the South West, and less than 2 months cumulative IGR of Lagos State.

The South East region in the contemporary times operates a 5 independent Subnational economies, without any form of collaboration or linkages, hence the economies lack the necessary depth, comprehensiveness and gravitas enough to create the critical mass for growth and sustainability needed  for a vibrant economy.

The system theory has it that “the whole is greater than the summation of the parts”, hence the economy that would works for the South East, would require linkages, collaborations, shared-utilities management, and purpose-designed, planning, supervision, and comprehensive resource management/economic development planning for the entire region, and not an independent and uncoordinated micromanaging of the Subnationals as independent entities. Since the various Subnational economies are too weak, incomprehensive and lacking in depth to boost sustainable industrialization and development.

Operating the Subnational economies in the region independently in this uncoordinated manner has led the region to suffer enormous population and capital migration to the other regions, hence adversely affecting the South East socio-culture, growth, development and population stock, with negative-effects and implications in the National Resource Distribution and the National Politics (having been reduced to almost a non-major tribe/region in the country, with a population of about 30 million, in a country of 220 million).

As said, knowing the moment of glitch that truncated the Eastern Region economic growth of above 9APR growth for consistent 9 years, and developing the strategy of reconnecting to that very Economic Development Masterplan  and Implementation Strategy that produced such global record, that the likes of United Arab Emirates, (and on a National scale, the likes of the Republic of China, India, and Indonesia, etcetera, all copied and adopted to shoot to the great heights they have currently attained), would be how the South East, if not the entire original Eastern Region (if  political expediency would allow) would have to adopt and implement the Old Eastern Region Economic Development Masterplan again for consistent, sustainable and inclusive growth and development. The original plan may require modifications and retooling, but getting back to that document is a must do, if we are to make any appreciable economic and development stride.

Hence, find below a synopsis of the Old Eastern Region Economic Development Plan, for your interrogation, analysis, introspection and understanding, for the formulation of judgement, that would form the platform for discourses, thinking, planning and eventual strategies for adoption and implementation on the long-run, or sooner, if we are lucky.

It is important to stress that it is the Biafra of the mind, as espoused by Dim Odumegwu Chukwuemeka Ojukwu that will assert our position in the country, and not necessarily a territorial or physical autonomy. We need to take charge of our economy, development and growth for our people and homeland, for inclusiveness, total wellbeing, progress and security. We need to start thinking as the Baveria of Germany and the Bacelonia of Spain, and consciously grow and develop to an economic powerhouse, purposely and meticulously building and aggregating our Total Gross Capital Formation and the platform it offers for economic growth and development, for assertiveness and respect and the due and desired recognition within the National and Continental polity.

EASTERN NIGERIA’S DEVELOPMENT PLAN (A Regional Economic Development Masterplan – to copy, adapt and implement for South East Regional Integrated Economy):

The economy of the former Eastern Region was planned from ground up by the US consulting firm Arthur D. Little

Dr. Azikiwe brought them and they worked with M I Okpara at first, then with Sam Otti and later Eluwa who headed the Civil Service and later with Sir Louis Phillip Odumegwu Ojukwu who at the time was the Chairman of the Eastern Nicerian Development Corporation (ENDC) and also the Chairman of the Eastern Nigeria Commodities Board (ENCB)

Louis Phillip  Odumegwu Ojukwu also sat as Chairman of 15 multinational companies at the time – John Holt, PZ, Michelin, Costain, Thomas Wyatt, Guinness, GB Ollivant etc

He was so rich that he single handedly funded the establishment of the Lagos Stock Exchange but refused to list his company there for fear of losing control

His photo still hangs proudly on the floor of that exchange as its first chairman

Arthur D Little also worked with a coterie of young Eastern Nigerian economists at the time – Pius Okigbo (PhD Northwestern), Ukwu I. Ukwu (PhD Cambridge), Chukwu Sunday Okongwu (PhD Harvard). These young men in their early twenties worked with Arthur D Little to plan our economy from scratch

I know this because Ukwu I Ukwu taught me at Nsukka and I also worked in Dr Chu SP Okongwu’s economic planning firm right during and after grad school in Nigeria.

Arthur D. Little recommended the setting up of a university in the East to produce key skills needed to drive economic growth as most of those skills were not being taught in Ibadan at the time

Dr. Nnamdi Azikiwe sent Dr Akpabio (MA Columbia) who at the time was the East’s Minister of Education on an extended tour to universities in Michigan and New York for collaboration in key fields like medicine, engineering,, surveying and photogrammetry and business administration.

UNN was the first school in Nigeria to offer many of these courses. Ibadan at the time taught mostly Classics, General Science and later Medicine

Palm oil, Palm  Kernel, Coal, Cocoa (from Ikom), Coffee from Obudu and later petroleum from firstly Izombe – Oguta area and later from Oloibiri in Ijaw land drove the economy of the East

In terms of development, the East started late, compared to the West.

Development and education had started in Lagos and Abeokuta right after Beecroft occupied Lagos in 1850s and made it a British colony.  Lagos and the SW thus had more than a 70 year headstart over the East in terms of total gross capital formation and the platform that it gave for growth.

But after the implementation of Arthur D Little’s recommended growth plan, the East’s economy grew at more than 9.2%, starting from 1958 till 1967 when the war began

At over 9%, the Eastern Region in this period, had the fastest growing economy on earth consistently for 9 years and was estimated to equal Western Nigeria by 1978 (in terms of total gross capital formation) and then overtake the Western Region after that.

The civil war truncated that momentum and the East never recovered after that.

Louis Philip Odumegwu Ojukwu brought his industrial influence to bear on the growth plan as he singlehandedly pushed for the establishment of not just industrial estates but industrial corridors in the region.

An industrial estate is localized. An industrial corridor joins two or more industrial estates to form an industrial conurbation.

Industrial estates sprang up across the East

TransAmadi in PH.

Aba for light industries.

Umuahia for biotechnology.

Emene in Enugu for steel and industrial automation.

Nkalagu, PH and Calabar for  cement and building materials.

Onitsha as an emporium to drive retail trading.

Obudu in Cross River for dairy, holidaying and corporate meetings.

Because he was the chairman of 15 multinational companies at the time, he used his influence to compel many of them to buy into the East’s industrialization plan.

Okpara also partnered with Israel for the setting up of industrial farms and plantations – seedling production, extension services, assistance to farmers etc.

So plantations (cashew nuts, palm kernel, cocoa, coffee, timber etc) sprang up in Oghe (Enugu State), Okigwe (Abia State), Obudu, Itumbenuzor, Akamkpa all in Cross River state and in various parts of Rivers, Akwa Ibom, Imo, Abia etc.

Okpara personally delivered some of the seedlings himself by driving behind the trucks that did the delivery.

Sir Louis Phillip Odumegwu Ojukwu pushed for the  establishment of 3 major cement plants in the region – Nkalagu, Eastern Bulkcem in PH and Calabar cement factory in Calabar.

Nkalagu and PH opened before the war started in 1967. Everything for the take off of the Calabar cement factory  was purchased but the war truncated its take off.

In 1970, Governor Esuene of the newly-created Cross River State opened Calcemco plant to the applause of many.

Three industrial corridors were also planned for the East

The Emene-Nkalagu Industrial corridor which was to focus on automobiles, building materials and industrial automation. Kaiser Motors in the US at the time (it has since been acquired) had agreed to build a car plant in Emene and a plant for car engines. That corridor was to stretch for almost 100 miles

The second industrial corridor was to stretch between PH and Aba. So industrial centers were set up in Trans Amadi and in Aba and over a ten to 15 year period, these two centers were to be linked by many feeder industries that would be located on the highway joining both cities.

Okpara had hoped that over time, the PH-Aba industrial corridor would follow the old road between Port Harcourt and Enugu and join with the Emene – Nkalagu industrial corridor to create a massive industrial cornubation that almost imitates the almost 200 kilometer Ruhr Industrial Valley in Germany built under Chancellor Otto Von Bismarck

Onitsha was to drive the East’s Retail economy and so the market was built there as an Emporium…to attract buyers from all over Nigeria and West and Central Africa so they could come spend their money in the East.

Dubai would copy this same model 50 years later and implement it successfully but on a global scale. Onitsha market achieved its purpose by 1958, two years after the East achieved self government. It became the preferred destination for retail and bulk shoppers from all over West Africa and even Cameroon, Gabon and Congo. This gave the Anambra Igbo a head start in retail trading…an advantage that they enjoy till date.

All of these development and growth projects were centrally driven by the Eastern Nigeria Development  Corporation – ENDC and the revenues were centrally aggregated into the account of the Eastern Nigerian Commodities Board (ENCB). Both groups were headed by Sir Louis Phillip Odumegwu Ojukwu

Funds for development came mostly from 3 sources.

1. Local revenues from the export of cocoa(Ikom and Itumbenuzor), coffee (Obudu and Arochukwu), timber (Akamkpa) Coal (Enugu-Udi), Palm oil (Rivers, Imo, Abia), Palm kernel (Rivers, Imo, Abia)

2. Direct Foreign Investments

3. Loans from Commonwealth Development Corporation (CDC)

Umuahia was to midwife the Easts’ biotechnology industries which explains why Golden Guinea Brewery and the Root Crop Research Instutute were established there.

Obudu because of its pristine hills and its fresh weather was to be a holiday resort for many as well as a primary center for a dairy industry that just started before the war commenced.  Obudu Cattle Ranch was the first in a series of investments that got scuttled in Obudu by the war.

Lastly, oil was discovered late. Chief Nwodo, Eastern Nigeria’s first Minister for Trade (father to the past Ohaneze Chairman) negotiated the first contracts with Shell on a 50-50 investment and sharing basis.

Virtually all of the East’s oil assets were seized by the Federal Government under Gowon with no compensation paid till date. The Federal Government simply inherited the East’s 50% slot and paid nothing for it. Today everyone profits from it

Most of the catalytic cracking and downward refineries that NNPC would later build were in the plans that the Eastern Regional Government had for the region.

Today, some of those plants are located in far away Kaduna and no mention is ever made of the East.

Every Nigerian today depends on that oil to survive including states that claim that they can survive from internally-generated revenues.

I believe that rather than whine everyday, we Igbos should sit down and learn our history…take a look at the growth plans that got scuttled in 1967 and see how we can work  together to pick up the pieces and build again from scratch.

IMPORTANCE OF PUBLIC SECTOR SUPPORT FOR PRIVATE SECTOR LED ECONOMIC GROWTH & DEVELOPMENT – SOUTH EAST/NDI IGBO POLITICAL OFFICE HOLDERS MUST LEARN.

– INTEGRATED SOUTH EAST DEVELOPMENT.

The purpose of this work is to alert public office holders, especially, the Governors of the South Eastern states of Nigeria on the need/importance of  working closely with sound , enterprising, deeply knowledgeable and creative entrepreneurs of the South East/Igbo extraction to evolve robust region-wide  Private Public Partnership schemes to build wealth in South East/Igbo land, truly create factories/jobs devoid of empty rhetoric, enhance productivity and develop the eastern hinterland UNDER THE SOUTH EAST REGIONAL ECONOMIC DEVELOPMENT AND COOPERATIVES

Lagos, Ogun, Kaduna and Kano states, are examples of states where the public office holders, leveraged on the private sector skills, and strength of their sons/daughters to grow wealth for themselves and their people. Obasanjo, Tinubu, Buhari and other past political office holders from those climes since 1999 ensured that they remained on top.

It is only a daft and unthinking public office holder/politician, that brazenly steals  commonwealth meant for their people  to buy houses they visit once in a year in London, New York, South Africa and other far flung areas of the world.

It is only a daft person/politician that travels all the way to build $50 million hospital in South Africa, when her aunts and uncles are dying daily for lack of proper medicare at home.

You can invest to have the same world class hospital here in Nigeria for half that amount with 50% partnership with Israelis.

You will not only have your money intact, you shall also be creating jobs, attracting medical tourism and transferring medical skills to your people who will work with the foreign experts.

WHAT CAN THE SOUTH EAST/IGBO PUBLIC OFFICE HOLDERS – GOVERNORS/LEGISLATORS DO AT ALL LEVELS TO DEVELOP THE SOUTH EAST AS WELL AS GROW PUBLIC/PRIVATE WEALTH?

Identify, structure and partner creatively with excellent entrepreneurs of South East/Igbo extraction to set up factories, industries and manufacturing concerns in the South East under robust PPP arrangements – adopting Project Technical/Designing/Structuring and Implementation Support; Collaborating in the following key areas:

(a).Petroleum Refinery (Orient Petroleum should be supported massively by the 5 SE governors). to engage in Gas gathering, collection, compression and liquefaction plants (South East has over 10-18 trillion standard cubic feet of gas reserve . Many capped gas wells exist already).

(b). Partner under PPP arrangements to set up Petrochemical/Lube/Blending and Fertilizer plants in the South East. South East has huge gas reserve and condensates for this. Also set up pet/plastic recycling plants.

(c). Set up joint/ PPP driven  development bank under the Eastern Nigeria Development Cooperation arrangements. Such development bank in partnership with foreign development banks and agencies shall drive the funding support and arrangements for these PPP schemes in syndicate arrangement with the deposit money banks and other national development banks. (ENDC established with a secretariat that shall be manned by crack financial engineers/technocrats from the South East.

(d). Cement manufacturing and exploration of other mineral resources under a PPP arrangement. Support and partner with Ibeto, Chicason Group and other Igbo entrepreneurs in the cement bagging business to massively set up cement manufacturing plants in the South East. Ebonyi and Enugu states have huge coal, limestone and gypsum deposits. We have rich limestone, gypsum, coal and mineral dust deposits in the South East. Support Ibeto to develop and expand the old Nkalagu Cement factory.

(e). Under the same PPP arrangement, mine and develop the huge coal deposit in Igbo land. Integrate embedded coal to power plants within this mine locations.

(f). Massive quarry site/stone works  developments under PPP framework to produce the chips and stones massively needed to turn Igbo land into huge construction sites, both for road, bridges and housing constructions. Also we can adopt the same model to develop the huge clay opportunities.

(g). Massive housing schemes under PPP arrangements incorporating/partnering with Diaspora Igbos. The state governors to make access to land (make sure you compensate the host  communities and do not steal/grab their land brazenly), also provide infrastructure support for identified locations, making it easy for Igbos in diaspora and at home to build and develop Igbo lands.

We need to develop and build our own Banana Islands, VGCs, NICON towns in Owerri, Aba, Enugu, Abakiliki, Umuahia, Okigwe, Awka etcetera.

(h). Agric/ Agro processing of all Agric value chains, adopting the Italy Copado model under PPP arrangements.

Partner with the communities /LGAs to dedicate huge swath of available arable lands working with the community and town unions and putting our huge human capital to use under diverse cooperative schemes.

We quickly forget that Erisco that is creating jobs in Lagos is an Igbo man. There are many like him , who can head home , if they have solid public sector infrastructure/security  support back home. Support the Tiger Brand in Onitsha to expand. Massively.

Partner with the South East Farms and Agricultural Processing Companies to develop new  30,000 hectares of tenera palm plantation per state, which will support 725 cottage oil processing mills in the South East.

(I). Huge Animal husbandry, Ranching, Dairy production, Tannery/Leather production under robust foreign aided supported PPP schemes.

(J). Massively champion and develop the leather, Shoes, Garment and Textile industries in the South East under the PPP frameworks.  (make Aba, Owerri and Onitsha as the hub and centers of excellence for this industry) . Massively industrialise that sector, create clusters  and tap into the huge AGOA opportunities. USA alone imports over $100billion worth of garments annually.

(K). Develop and expand the scrap/solid  metal foundry and recycling industry in the Eastern Heartland. We need such for massive industrialization under PPP frameworks.

(L). Support the local automotive industry – massively patronizing Innosson, Coscharis, Anamco and other local automobile assembly plants based in the South East. Partner with them to increase and diversify to parts production to take over the West Coast markets.

(M). Then support massively the growth/restoration of commerce and Industry in the South East. Restore the glory days when Onitsha and Aba used to be the hub of commerce in west Africa.

(N). Partner together to secure the eastern heartlands and all South East against external and internal marauders and criminals. Security of Lives and properties can be ensured adopting the same unique PPP arrangements.

(O). We must adopt the same robust PPP frameworks to develop massively our health and education sectors. Set up massive vocational and technical schools to train excellently our artisans in all field of endeavor to spearhead needed man power support . We can also export these huge man power and skills abroad.

Lastly, demography and population are key integral parts of economic development, as everything, resources or otherwise are distributed on the basis of population and spread; hence for the South East with a population of about 30 million, in a country of 220 million, cannot be playing on the big league, (it couldn’t be a major region with such population size), therefore the South East and the Igbos in general must consciously grow and sustain their population and maintain a healthy demography to compete and assert  themselves economically and politically in the country, as was the case in the first republic and before the rains began to beat them.

The Igbos would have to begin to take a cue from the Northers or the South West in bearing more children, or in having more wives, to be able to compete effectively in the population politics in order to maintain healthy political and economic status in Nigeria and the World – for whatever the consideration is, population is key – be it elections, creation of Local Governments, Polling Units/Political Wards, Number of Representatives at the National Assembly, Allocation of Revenues, Quota allocation and Employment Slots, and other Resources, population is key. Therefore the South East and the Igbos in general must learn to play the population politics to aid their easy assertiveness in the country, and achieve seamless economic emancipation.

The South East/Igbos must consciously work to double and sustain their population, especially the working and youthful population, and maintain a healthy demography and spread to successfully attain their economic and political eldorado.

● Dr Nwaodu Lawrence is a