By Akan Inyang
I like the dexterity, Robinhood appeal to governance by our Governor, Pastor Umo Eno and his uncanny zeal to commence projects that he deems iconic, but may not necessarily yield the desired impact in the short run to our dear state and its citizens.
Real Estate transactions world-wide are sunk costs driven, with longer term yields and which is not necessarily hinged on the deployment of scarce and short term funds. This is elementary banking, primary Feasibility/Viability Appraisal stuff vis-a-vis Land Economics and most often than not a private-driven entity which can be packaged adequately in our climes with minimal government participation.
Firstly, the motive, award and socio-economic benefits to us the people of Akwa Ibom are shrouded in secrecy and consecrated with utopian analogy that it will boast employment, drive revenues to the state, and enhance Gross Domestic Product (GDP), among others.
Related post: Ibom Towers: ‘We invest in Real estate to boost state economy’ – Gov Eno
I hope he remembers that yield from this investment is commercial rent, taxes, and other charges will accrue to LASG and not Akwa Ibom State based on the location and business identity/derivatives. Little or nothing will come to Uyo. ExxonMobil Headquarters is a classic example End of Day (EOD).
I think we have been here before and know how far????
The Dakkada Towers in Uyo currently is 99% unoccupied, vacant and with unacceptable void periods despite all the promises of the previous Governor of having off-takers to rent the place before completion… Names like ExoonMobil, NNPCL, BUA Group, DPR, Master Card, etc were been bandied about as some of the prospective tenants… till date this is still a mirage and colossal waste.
Recently, there has been a slump in the Real Estate Market on commercial properties due to the economic squeeze, hence only special purpose-built residential houses have been in demand over the last 10 years particularly in the major hubs, for example, Lagos, PH and Abuja.
This has even worsened with the minimal inflow of Foreign Direct Investment (FDI’s) and closure and departure of some major nationals and international companies.
In fact, for the personal effort of our current governor of practically wooing Bank of Industry (BOI) to come to the state for business services on a rent-free basis….. which is I think for 3 or 5 years. What a business decision!!!! Am sure our Harvard Business School, LSE, MIT, Kellogg School of Management and our Lagos Business School will soon make it a classical case of study based on its exigencies, concept and business model.
This signature project appears to have the imprint, rubber stamp and approval of our all knowing previous Governor who is an Accountant by profession or say Auditor cum Banker but has now put on the cap of an Estate Surveyor and Valuer without any recourse to the noble profession. I digress.
But I find it shocking that Obong Victor Attah, a former Governor of the State and a reputable Architect appears to be part of this project concept.
He knows that in the built environment, a project of this magnitude should include the vetting and approval of all certified professionals, who should be the drivers and not government or any other profession. This, in my opinion, is a big slap on our faces as well as insulting the intelligence of our people.
Again if I recall, when Econet came into Naija, three States were the biggest investors in the Telco Company namely Lagos, Delta and Akwa Ibom States respectively.
After years of operations and expansion, we were made to understand that the key investors made a fortune from the investment, raking in billions. Till date, I still don’t know where our dear state Return on Investment (ROI) on that investment was deployed for the benefit of our people and state.
Today, we have embarked on another project…. which appears more socialist, status inclined and which does not have any direct bearing on the masses….in fact, it is a elitist and more of a commercial transaction at the expense of creating cottage industries, revamping and partnering the private sector in resuscitating moribund industries in the state, investing more in our health delivery, Education, Commerce, Agriculture sectors.
Prioritizing and ensuring that the Maintenance, Repairs and Overhaul (MRO), Ibaka (Ibom) Deep Seaport comes on stream. Partnering the FGN aggressively to ensure Aluminium Smelter Company of Nigeria (ALSCON) resumes production by 2025….. ensure that the Refinery by BUA Group and other Modular Ones in the State see the light of the day….. for me, these are the real tie breakers and real deal for economic development, revenue growth, GDP enabler and real empowerment and prosperity for the state.
If you add the Gas projects that will kick in by 2027…then Akwa Ibom should be the Silicon Valley of Naija a few years to come as well the California of West Africa.
Again, I hope my write-up is not being misconstrued here as I sincerely desire the best for our state particularly our relationship with Lagos State where, I have resided and lived since 1996.
There are better ways to engage Operations (OPS), a department that ensures the organization runs efficiently and profitably and typically falls into functions like Product, Marketing, Revenue, and Sales, in Lagos to partner, spear head and anchor business cum commercial deals cutting across transnational governance without necessary leading from the front.
Government must create the enabling and conducive atmosphere for engagement and project delivery.
Some of our revered Kábíyèsís, business moguls, professionals that either attended the foundation laying ceremony or reside in Lagos could have effortlessly taken up this project putting down their monies without our government getting involved.
On the Victoria Island, Lekki Corridor up to Abuja …. I can name seven persons who will handle same effortlessly with minimal bank support to deliver same.
These are really difficult times and government must be very prudent, business savvy, cost cutting, block wastage and only embark on meaningful/impactful projects back home. Capital flight is really not the way to go and excess funds can be better channeled for the development of the state back home considering our unemployment rate, lack of adequate Small and Medium-sized Enterprise (SMES)/Industries, poverty lines, untold hardship, rising costs of goods and services, inflation, etc.
I hope am making common sense.
