Why Edo State Thrives in Midst of Nigeria’s Economic Chaos
By Nosakhare Agbonigiarhuoyi
The global economic crisis has significantly led to global decline in standard of living, increased rate of unemployment, poverty, conflicts, wars, job uncertainty, increased vulnerability, changes in cultural patterns, amongst others.
As such, nations of the world have begun to diversify their economies in order to maintain stability. Nigeria however has continued to rely on revenue from crude oil sales which has been at an all-time low.
According to research, the current economic crisis which the nation now faces; the high cost of living, huge debt burden, decline in government revenue, depreciation of the Naira, amongst others, are consequences of her years of overdependence on crude oil at the expense of other sectors of the economy.
Despite the enormous challenges faced by the nation, Edo State seems to have found a way around them. The reason for this is not far-fetched.
Since Governor Godwin Obaseki assumed office as Edo State Governor, the state has diversified various sectors of its economy. The progress so far recorded in the state is as a result of the robust and efficient policies mapped out by the Obaseki-led administration to drive the state’s economy in maximizing its potential.
These policies were birthed as soon as the Govenor assumed power in 2016, and consolidated upon by the Making Edo Great Again (MEGA) agenda of his second tenure, with a vision “to build a modern and progressive Edo State, where every citizen is empowered with the opportunity to live life to its fullest” and “To make Edo State the best state to live and prosper in by the year 2050”.
The MEGA vision is built around six thematic pillars, namely; Institutional Reforms, Economic Revolution, Infrastructural Development, Social Wellbeing, Environmental Sustainability, and Culture, Arts & Tourism. These pillars have afforded the administration a working direction in attending to every sector of the state.
A principal way Edo State has been able to thrive despite national economic challenges, is the diversification of its economy rather than rely on federal allocation from crude oil sales, which, unfortunately in recent times, has plummeted drastically, due to a fall in the prices of crude oil and of course, the all-too-common mismanagement of the nation’s common patrimony.
Oil palm production for example, is a major area of investment where the Obaseki administration will be leaving a landmark. The establishment of the Edo State Oil Palm Programme (ESOPP) has immensely aided oil palm investments, farming and production in the state. The programme, which was created to bring opportunities to large, medium and small-scale investors in the oil palm sub-sector, is creating thousands of jobs across the value chain.
As at 2022, within nine months, the state had attracted investments valued at 531.2 million dollars to the oil palm sector alone through the Edo State Oil Palm Programme (ESOPP), with a total of 62,500 hectares of land allocated to investors.
Another laudable initiative of the Obaseki administration is the establishment of the Edo production centre, a hub established to produce and develop locally based products. With a conducive environment for manufacturers to work in clusters, the centre provides a multipurpose production facility, which serves as a hub for Micro, Small and
Medium Scale Enterprises (MSMEs) in the state.
The hub is a cluster for over 200 SMEs, bringing together different manufacturers with sections for welders, metal and fabrication, polythene cut, printers, woodwork, recyclers, shoemakers, among others; and it is fitted with 24 hours electricity, supplied by the state-owned independent power plant, the Ossiomo Power, for increased productivity.
The Ossiomo power plant is an independent power source established through a Power Purchase Agreement (PPA) by the Obaseki-led administration with the Ossiomo Power and CCETC Clean Energy (CCETC-Ossiomo Power), in order to create an enabling environment for businesses to thrive and also boost the electricity market in the state.
Today, the plant powers government buildings and public utilities, such as the State Civil Service Secretariat, hospitals, offices, street lights, Samuel Ogbemudia Stadium and some communities. The power plant also attracts investments into the state, ensures greater performance in the sector, and creates competition in the power supply industry.
Information technology is another area the Obaseki administration has empowered youths in the state which has boosted the state’s economy drastically.
Over four years ago, as part of the move to make Edo a smart, digital state where the government can deliver services to its citizens using state-of-the-art and modern technology infrastructure, the Edo State government, under the leadership of Govenor Obaseki, signed a deal with two companies to build a digital ring around the state capital.
Consequent upon the success of the project, the state government decided to extend it to other parts of the State by entering a new partnership with Geniserve Limited, a leading data centre and ICT infrastructure firm, to connect the 18 LGAs of the State with fibre optic cables in order to enhance internet connectivity. This project is currently underway.
Similarly, the Governor established a Tech Park to create an inclusive environment for technological investments, accelerate the growth of the state’s tech industry, and support seamless collaboration and partnership between technology, talent, business and investors.
These tech innovations are also being carried out alongside the state innovation center known as Edo Innovates, which is currently equipping youths in the state technology-wise, who now attract foreign exchange and investments into the state.
In summary, Governor Obaseki is boosting the state’s economy by enacting business friendly policies, creating a conducive investment environment and opening up the state to several investment opportunities; giant strides which cannot be covered in a single treatise.