3.                 INDUSTRIALISATION IN EKITI      3.1                  WHERE WE ARE     Currently, there is only one modern manufacturing outfit in the state, Warm |Spring Waters Nigeria Ltd.  The Publishing and Stationery  Companies established by Chief Omolayo in Ado-Ekiti went moribund shortly after his death about 4 years ago.  There are a lot of Saw Mills but they are essentially dealing in a primary product with little or no value added.   In the Small/Medium Scale level, the Odu’a promoted Industries, Odu’a Textile Mills Ado-Ekiti and Ire Bricks never operated optimally because of, among other reasons, excessive Government involvement in the Governance and Management of both companies.  They are both now dead, with Assets worth of millions of Naira wasting away.  Other Industrial outfits like ROMACO and the Ikere Pharmaceutical Company never took off the ground.   Recently, according to a report from the Ministry of Commerce and Industry, the State Government embarked on the establishment of 16 viable industrial projects at SME level across the 16 local Governments in the state, with first phase of six Pilot Projects.  Two were completed in 2005 and leased to 2 se4parate investors.  In December 2006, the Administrator approved a sum of =N=1.5m which was expended on the Palm Oil Mill in Ikeomoba and the Project is reported to be nearing completion.   The State Government is also establishing 3 cassava Processing Plants this year in the 3 Senatorial Districts.   In all, the current level of industrialization in Ekiti is virtually nil and cannot make any impact on the economic development of the state or the revenue generation efforts of the Government.    3.2     WHERE WE SHOULD BE To reverse this situation, a bold, well-articulated Industrial Policy needs to be put in place with clearly stated goals and targets to achieve within a clearly stated period.  There must be an undisguised commitment of the Government to the determined pursuit of the Goals and Targets.   TABLE 4                STRATEGIES QUICK WIN (WITHIN 1 YR) SHORT TERM 1-3YRS MEDIUM TO LONG TERM 3-5YRS/6-10YRS 1 Review and secure the commitment of the State Government to Industrialisation   Action  -  Economic Advisory Council Timing -  April/May 2007. 1. Achieve 10% Contribution to GDP     of Ekiti within 3years ·  Deliberately promote agro-allied industries based on ·        Cassava ·        Cashew ·        Pineapple/Fruit Processing Minimum of 10 manufacturing outfits of Medium size to be operational in the state within 3years. 1.  Further improve Power Supply with a possible 20Kva Hydro Plant in Ipole Iloro to boost Ekiti allocation of National Grid   Action – EAC/Govt./PPP Timing  -  2010/2012 2. Put in place a bold but worthable INDUSTRIAL POLICY focusing on Private Sector Driven Industrialisation Plan Public Private Partnership Well articulated competitive/superior Package of Incentives Provision of Promotional Capital by Government in major Medium/Large Scale Industries. Action  - EAC/Governor Timing – April/May 2007   2.     Privatise Ikun Dairy within the next 1year even if sold at a concessionary Price 2.  Seek the establishment of a Large Scale Ethanol Plant to utilize increasing production of cassava in Ekiti and be a partaker in the NNPC Ethanol PMS Blend for Vehicles. Work through PPP.   Action EAC/Investment Promotion Centre Time – Commence from 2nd half 2007 to commission 2009. 3. Creating awareness locally and internationally on New Industrial Policy and mobilizing support from Ekitis in Diaspora, IFC, UNIDO etc.   Action -   ECA/Govt. Timing – 3rd Quarter 2007   3.     Get Odu’a to sell the Factory site of Odu’a Textile to a Private Investor willing to productively utilize the place for viable Industrial Activities.   3.  Mobilize International Funds using “success Story” of the Short-Term effort/results as Testimony and bate of attraction to International Agencies and Investors. 4. Secure 133K Substation in Ado Ekiti to improve power supply to Ekiti to commence operation   Action – Administrator Timing – April, 2007 4.     Fully Privatise the Cassava Processing Factories currently being mid-wifed by Government and any other companies owned by Government   Action  1-4 – ECA/Govt. Timing – 1-3years.   5. Secure, refurbish and equip and resource the INVESTMENT PROMOTION CENTRE, Ado-Ekiti to commence operation     Action by:  Administrator Timing:     April 2007. 5.     Support, re-organise and energise Ekiti Chamber of Commerce and Industry Mining and Agriculture (EKICIMA) to become a rallying point for businessmen in Ekiti and an agent of EAC of providing culture change in Ekiti.   Action – EAC/Govt Timing – Within 1 year             QUICK WIN (WITHIN 1 YR) SHORT TERM 1-3YRS MEDIUM TO LONG TERM 3-5YRS/6-10YRS 6. Revamp and popularize Ekiti State Web-site and promote the State Industrial Policy in a professional, Matter- of fact and dynamic manner     OR     7. EAC to host a Web-site exclusively devoted to Economic/Investment Issues/Development in Ekiti                   CCOMMERCIAL ACTIVITIES IN EKITI   4.1                  WHERE WE ARE   Commerce in Ekiti is characterized by Petty Trading and Artisanship.  It is aimed largely to support subsistence living.  Skills levels are generally low. Capital base is very low and severely hampers productivity and growth. Joint ventures are very few even when there are  hundreds of cooperative movements. We have no information on the viability of Community Banks to be able to assess those that can transform into Micro-Finance Institutions. Use of Internet for capacity building and genuine wealth-creation is at its infancy. The potential for the Bamglore/Silicon Valley type of knowledge Industry, particularly in ICT, is there in Ekiti but yet to be tapped In view of the rather low economic activities in the State, Ekiti cannot be described as under-banked. Generally, the paradigm of RISK AVERSION persists among our people and a major education/reorientation is required to make them (us) embrace higher scale of Commercial activities.      4.2                  WHERE WE SHOULD BE IN COMMERCE   Despite its rudimentary and low level of activities, Commerce is reported to be the largest employer of labour in the state – representing 70% of the total employed in them formal sector.  The potential for Commerce is huge and if appropriate level of attention is paid to it should contribute to improving the revenue base of the State as well as help in raising the economic activities of the state above subsistence level.  Our Committee believes that if we get our strategies right Commercial activities could contribute significantly to lowering the dependency of the state on Federal Allocation as earlier mentioned in this presentation.  By 2010, Commerce should contribute about 10% to the internally Generated Funds of Government.     TTABLE 5   STRATEGIES QUICK WIN (WITHIN 1 YR) SHORT TERM (1-3YRS) MEDIUM TO LONG TERM (3-5YRS/6-10YRS) 1 Along same line as for Industrialisation, put in place a POLICY on COMMERCIAL DEVELOPMENT OF EKITI   Action  -  Economic Advisory Council Timing -  April/May 2007. 1.Encourage Artisans to go into Joint Ventures to have critical mass in terms of capital to attract worth-while loans and win the dividends of economy of scale.     1.  Open discussion with the Federal Ministry of Transport on the possibility/viability of an Inland Container Depot in Ado-Ekiti to serve Ekiti, the Western Flank of Kogi State and the Southern end of Kwara State.   Action – EAC/Govt./PPP Timing  -  2010/2012 2. Through major coops and EKICIMA, organize seminars and workshops to re-orientate our Citizens on Risk Taking and business management generally.  Bring SMEDAN to the rescue Facilitate the opening of SMEDAN Office in Ado-Ekiti Action  - EAC/Investment Promotion Centre /Administrator Timing – 2nd – 3rd Qrt 2007   2. Encourage Saw Millers to add more value through processes like exportable door-making and paquet   2.  Encourage establishment of more micro-Finance Institutions in line with the growth in the Industrial and Commercial Sectors of the Economy   Action EAC/Govt. Timing – On-going. 3. In collaboration with the FUTA School of Enterpreneurial Studies, set up Study Centres in Ado-Ekiti for current SME owners and young graduates. 3.  With improved power supply (when 133KVA Sub-station comes on stream) popularize the Internet Business under strict EFCC  compliant modus operandi. Action – Investment Promotion Centre Timing – 3rd Quarter 2007 3.  Mobilize International Funds using “success Story” of the Short-Term effort/results as Testimony and bate of attraction to International Agencies and Investors. 4. Ministry of Commerce has a desk currently for assisting SMEs to develop/improve upon Feasibility Studies.  Transfer this to the Investment Promotion Centre for more professionalism and impact and also to attract aids from International promoters of SMEs.   Action – EAC/Govt. Timing – Immediate 4.  Invite Ekitis at Home and in diaspora to come together to float an ICT VILLAGE for Systems Development etc along same or similar lines to BANGLORE   Action –  EAC/INVEST. PROMO. CENTRE/GOVT. Timing – From 3rd Qrt. 2007   5. Assist SMES with bankable Projects to access the SMIES FUNDS in the Banks thourgh equity participation or the max 10% interest loan route.   Action by:  Investment Promotion Centre/EAC.           TOURISM IN EKITI STATE   5.1     WHERE WE ARE   In terms of Tourism sites and attractions, Ekiti boasts as one of the most endowed in the South-West Zone of Nigeria.  From Ikogosi Warm and Cold Spring to Iyin Cave, to Ipole-Iloro Water Falls, to Ikere Hills and Inselbergs to Okemesi Hills to Egbigbu Lakes in Ayetoro just to mention a few, there are alluring attractions waiting to be developed into revenue-generating centers.  The stumbling block to the realization of the potential of these sites is the lack of commitment of various administrations in the Western Region, Western State, Ondo State and now Ekiti state to the development of the centres.  Until recently the sites were largely inaccessible due to poor roads.  Even today, none of the sites has reliable power supply.  The Government has no clearly defined policy for Tourism.  The suspended Administration dealt a devastabling blow to the arrow-head of the sites-Ikogosi Hotels – by vandalizing the facilities through removal of the Air-conditioners and other valuables from the Rooms.  Today, Ikogosi Hotel Rooms are uninhabitable.   No wonder, Tourism is contributing nothing to the revenues of the State and vast economic advantages associated with Tourism have so far eluded Ekiti State.     5.2.1          WHERE WE SHOULD BE   Ekiti state should be a Tourist’s delight and that is what we must make it.  The facilities, if well developed, are very attractive.  In Ikogosi zone, there are at least no less than 3 possible Industries that can spin off the Warm spring and Water fall sites.  Today, only the Water Bottling Plant is on stream.  Therapeutic Treatment Pool (Spa) and injection production are possible.  So is Camping ground for Sportsmen.  A power plant (IPP) is possible in Ipole-Iloro Water Falls.   The problem has been the absence of a committed leadership, the type Mr. Donald Duke provides in Cross River State which has placed the state on world map as a Tourist Centre and is receiving foreign aids for Tourism Development.  The Kebbi State Governor with the revived, improved, repackaged and relaunched Argungu Fishing Festival is another example of leadeship-driven success.   Ekiti should be the leading Tourism Business State in the South-west, outside Lagos.  The hinderance of inadequate and substandard Hotel facilities is being removed (thanks to Path Finder, Saidat and a few other Hotels springing up in and around Ado-Ekiti).  Ikogosi should be refurbished to meet international standards.   All considered, if the right steps are taken Tourism should become a major contributor to the economic activities of the state and even promote diversification leading to a broad-based economy.   TABLE 6      STRATEGIES QUICK WIN (WITHIN 1 YR) SHORT TERM 1-3YRS MEDIUM TO LONG TERM 3-5YRS/6-10YRS 1 Develop and put in place TOURISM DEVELOPMENT & PROMOTION POLICY   Action  -  Economic Advisory Council/Govt. Timing -  April-June 2007. 1.Ekiti state Govt. must make promotional Investments in any of the viable Tourism Projects while seeking core investors.   Action – Investment Promo. Centre to be arrow-head Timing - On-going     1.  In view of Funds constraints some of the short-term strategic plans may flow into Medium/Long Term.     2. Governor to accept and commit himself to the role of TOURISM CHAMPION for the state Action  - EAC/Govt. Timing – April – June 2007  and On-going. 1.     Ensure infrastructural facilities – roads, electricity water supply – are available in the belts optimally. Action – Govt. Timing – from 3rd Qrt. 2007 and on-going   2.  With active Development of some of the sites, particularly the caves in Uyin, Ikere, and Okemesi associated with Yoruba Wars of the 18th /19th Centuries, UNESCO recognition and listing as International Monuments could be pursued.   Action EAC/Govt. Timing – On-going. 3. Encourage Hotel Proprietors to improve their facilities to attain minimum of 2 to 3 star status.  For enlightened self-interest, Govt. could provide motivating Pri zes for competition among Hotels. Action – Investment Promotion Centre/Govt. Timing – 3rd Quarter 2007. On-going 3.  After bringing the standards of Ikogosi to a good level, privatize the facilities. Action – Govt./AOC. Timing – 2008   4. Create Tourism Belts: -         Ikogosi Belt as arrow-head -         Ado-Uyin-Ikere-EmureBelt -         Ijero/Ayetoro Belt.   Action – Govt. Timing – From 3rd Qrt 2007 4.  In view of Funds constraints, focus on the development of one Belt at a time but if there are interested Private Investors in any of the other Belts, let go.   Action –  Govt./EAC Timing – On-going   5. Embark on impactful publicity to create awareness of the sites and seek for PPP.  Use Ekiti state Govt. and Investment Promotion Centre Web-sites to maximize effect in attracting investors.                     POPULATION, EMPLOYMENT, SME, PPP/FDI Committee Members   •         Princess E. B. I. Oladunni   •         Arc. Dipo Ajayi   •         Mr. Folu Ayeni     Outline   PART 1: PREAMBLES     1.      Introduction     2.      Overview of Previous and Current State     3.      Key Challenges     PART 2: SUGGESTED DESIRED STATE  4.            Objectives  5.            Preparing the Ground  6.            Areas For Generating Employment  7.            How To, By Who and When  8.            Conclusion       PART 1 PREAMBLES   1.         Introduction   1.1 Facts about Ekiti State include:   ·        About 7000 sq km of very fertile land. ·        The people: highly educated, industrious and forthright ·        Mineral resources that have not been tapped ·        Very poor infrastructure: roads, water and electricity. ·        Poor security situation. ·        Nil incentive for outside investors to come in. ·        High poverty level and total reliance on government patronage.   1.2.  Overview of Previous and Current   2.1 State Statistics             TABLE 7 a)  Population 1996    2006   - Male 891,852                      1,212,609   - Female 910,414 1,171,603   - Literacy Level       - Primary School Enrolment        574,844   - Secondary School Enrolment   79,247   (2005)   - Tertiary School Enrolment             b)  Employment Levels       - Government       - Agriculture       - Schools       - Private Sector             c)  Number of  manufacturing Industries             d) Number of SMEs             e) Number of Artisans             f) Number of Cooperatives             g) Number of PPP/FDI                                                                                                                 2.2  SWOT Analysis               2.2.1    Strengths Large agrarian land mass Skilled, educated population (above national average) Homogenous State – all Ekitis One State-owned University, one Federal Government-owned Polytechnic One State-owned College of Education and numerous secondary schools Fairly good network of roads Closeness of the State capital to Akure airport Good tourist potentials Good solid mineral potentials Good Industrial potentials because of the town dwelling characteristics of the population Good IT potentials (people) affinity for knowledge Until recently, very peaceful   2.2.2    Weaknesses Poor social infrastructure Poor telecommunications.  NITEL virtually non-existence, O’Net only in Ado-Ekiti. Among the least in federal allocation Internally-generated revenue (IGR) very low Industries virtually non-existent (Od’ua textiles & Ondo State brick works dead) Substandard hotels Mainly subsistence farming base Low purchasing power of the people Recently, political instability Untapped tourist potentials Land locked No petroleum resources (major income earner, not included in derivation formula) Poor recreational facilities, e.g. swimming pool in Ado-Ekiti, Tennis Court, substandard Stadium, no inter-school,inter-collegrate sports activities, Club Houses, parks, zoo / museum 2.2.3    Opportunities Profit tremendously from commercial farming which has huge local and export potentials e.g. Kwara State with the South African farmers. The huge global tourism market can be tapped to develop the existing tourist potentials in the State. Develop agriculture potentials by leveraging into the Federal Government Agriculture Initiative (N50bn currently released to this sector to improve agricultural practices) Ekiti State can tap into the industrial development fund of  the Bank of Industries (current asset base – N500bn).  Disbursements to states and organizations have commenced but will terminate in 2008. World bank and ADB infrastructure and poverty alleviation schemes.  Ekiti State can make use of this for improvement of infrastructures, viz health delivery, rural, roads, portable water, public toilets, electrification including agriculture. IT capability.  Development index is now related to IT capability.  Ekiti State being fountain of knowledge can develop this to grow the economy.  Ogun State is already embarking on this project. Huge local industry and export potentials can be developed from the global high demand for Gem Stones and other solid minerals.  Leverage foreign partners to develop this sector.   2.2.4    Threats These may materialize in the future. §         Further reduction in some state allocation of federally generated revenue due to dwindling revenue from oil, or increased allocation to oil producing states. §         Continued emigration of our skilled manpower to other states or abroad due to lack of local opportunities. §         Political instability in the country would be a threat to both economic and social activities in the country.   3.  Key Challenges •         To create wealth for the large masses of people in the State •         To generate employment opportunities and reduce dependence on government as the sole provider of sustenance in Ekiti •         Improve the IGR in Ekiti State •         Create an entrepreneurial culture •         Revamp the attitude to farming and the image of the farmer •         Industrialization of the State in partnership with the private sector both local and foreign •         Mechanized Agriculture •         Lack of storage and basic food processing facilities •         Hotel/Tourism at the crudest •         Value Reorientation / patriotism •         To organize and empower the various cooperative societies and artisan groups towards improved performance.   PART 2 SUGGESTED DESIRED STATE   4.  Objectives To reorientate the Ekiti populace about the benefits of their setting up ‘something’ legitimate to create wealth (money in pocket, Banks and Investment). To change the attitude to farming in Ekiti State as the lowest form of employment and something you do when there is no alternative. To empower  Ekiti students of a requisition of the skills that would enable him / her fend for themselves after  graduation. To harness all the available Ekiti resources to generate employment for its people. To make Ekiti State attractive for private investors both local and foreign.   5.  PREPARING THE GROUND 5.1 Ideas for Generating Increased Employment   5.1.1 Value Reorientation We need to reorientate our people and reawaken in them the following important values, which have distinguished them over time. §         Ekiti people are not lazy – hard work  and perseverance, integrity §         We shall feed ourselves – internal food security §         We are honest and forthright people – honesty and forth rightness §         Our salvation is in our hands – self determination / confidence, dignity of labour §         The farmer is king §         Education will make us better people – Educated citizen §         Core values of Ekiti people to be distilled and taught in schools and broadcast.   5.1.2  Education and Training §         Teach entrepreneurship in all institutions from primary to tertiary §         Establish school farms and fish ponds run by students §         Establish work study programs in secondary and tertiary institutions §         Set-up more technical schools to train and re-train artisans and increase vocational training sections in tertiary institutions.   5.1.3 Funding §         In collaboration with the private sector establish micro-finance institutions to provide the funding to jump-start industrial activities in Ekiti State. §         Organize the micro-finance scheme by local government areas and include reputable local people in the administration §         Government to provide seed money by local government to move the process forward. §         Give farmers access to funding by giving them title to their land. §         Certificate deposit.   5.1.4 Strengthen Cooperatives §         Reorganize the artisans, traders and farmers into viable cooperatives §         Most assistance, improvements funding and extension services should be via the cooperatives §         Cooperatives would regulate their members’ behaviour. §         They would also mobilize funds to promote growth of community development activities.   5.1.5 Provide the Necessary Infrastructure §         Improvement in roads network §         Electricity §         Water §         Incentives for PPP and FDI §         Extension services to help farmers, traders and artisans §         Provide agricultural inputs like land clearing implements, seedlings, pesticides and herbicides §         Create storage facilities and marketing boards. §         Improve the security situation in Ekiti State.   5.1.6 Establish Institutions to Promote Industrialization and Employment Generation   (a)  Industrial Promotion Council – -  To be established as a joint government and private sector initiative -  Its role will include:  to promote the investment opportunities in the State and to attract investment and industrialists, both local and foreign into the State. -  To recommend to government a list of incentives to bring investors into the State. -  To organize trade fairs in collaboration with Ekiti Chambers of Commerce and Industry and attend both local and foreign fairs to showcase opportunities in the State. -  To manage the ‘Economic House’.   (b)  Enterprise Development Centre -  For skills acquisition -  For quick set-up and smooth-running of enterprises -  Provision of business incubators -  To be run by the Industrial Promotion Council (c)  Fountain Investment and Property Co. Ltd. -  Joint venture between government and private sector. Private sector to have majority shareholding 75/25 -  To manage t