News
Delta Unveils $100m Investment Fund As Okonjo-Iweala Backs State As Nigeria’s Next Industrial Hub
In a bid to attract investors, Delta State Government yesterday announced a $100 million (N136.5 billion) viability gap fund to de-risk investments in the state.
Governor Sheriff Oborevwori unveiled the fund at the state’s on-going economic and investment summit in Asaba.
Oborevwori said the move was a practical demonstration of the government’s commitment to ensuring that agreements reached at the summit were executed without delay.
Speaking at the summit, Vice President Kashim Shettima welcomed what he termed a healthy cycle of competition among the federating units, saying it is necessary for the country’s economic development.
Shettima attributed the current economic drive by the states to President Bola Tinubu’s reform policies.
In her keynote address, Director-General of World Trade Organisation (WTO), Dr Ngozi Okonjo-Iweala, said Delta State had the potential to become Nigeria’s next great industrial hub, standing alongside Lagos, Kano, and Port Harcourt, as an engine of the national economy.
Oborevwori stated in his address at the opening of the summit, “This summit is not a talk show; we are matching words with action. It is my earnest expectation that this marks the beginning of enduring strategic partnerships that will galvanise the massive industrialisation of our state.”
The governor said, “With an estimated population of six million people, abundant mineral resources, rich vegetation, fertile soil for agriculture, multiple urban centres, an enlightened populace, improving infrastructure, and a business-friendly climate, Delta State remains an investor’s haven, with vast opportunities waiting to be explored and harnessed. The economy is approximately N17 trillion, or $12.34 billion; making the state a key driver of national economic growth and development.
“Delta State connects major markets across Nigeria, serving as a gateway to the south-east and linking directly to Lagos, the nation’s business capital.
“With up to 15 urban centres, its greatest asset remains its vibrant, hardworking people, celebrated at home and abroad for their industry and ingenuity, like Dr Ngozi Okonjo-Iweala, Mr Jim Ovia, Mr Tony Elumelu, Engr. Austin Avuru, and so many others.”
The governor said the goal of the summit was to partner with prospective investors with the overriding objective of building a modern, strongly diversified economy that “can withstand external shocks in line with the policy imperatives of the MORE agenda of this administration”.
Oborevwori said his administration believed in a data-driven development model that was private-sector-led and created opportunities for the teeming youth population.
He stated, “Our primary goal is to partner with interested parties to maximise our state’s comparative advantages, develop the non-oil sectors of the economy, create jobs, accelerate economic development, and achieve sustainable development.
“In view of the foregoing, our ease of doing business incentives are top-notch, ensuring that prospective investors have a conducive atmosphere to operate seamlessly and profitably.
“The establishment of the Delta State Ease of Doing Business Council, chaired by me, is one of the major reforms we have undertaken to enhance the ease of doing business in the state. Also worthy of note is the granting of waivers of payment of tenement rates, fees, levies, and other charges to investors for up to five years after the commencement of business.”
Shettima praised the healthy competition among the 36 states of the federation, saying it is necessary for actualising Nigeria’s quest for prosperity, economic growth, human dignity, and job opportunities.
He said the current weather of economic competition was evident in the quality and ambition of the investment summits organised by states across the country.
Shettima emphasised that the country’s strength lied in the proactive economic awakening of its subnational governments rather than just the government at the centre.
According to him, “The cycle of competition among our states is now evident in the quality and ambition of the investment summits convened across the federation. Every state possesses immense promise, but each must define a trajectory unique to its history, geography, people and comparative advantage.
“This is the race we must welcome: a race that proclaims growth rather than conflict, a race in which the prize is employment, prosperity and human dignity, a race for the future.”
The vice president stated that the cycle of competition among states as well as the attendant economic and investment summits stemmed from the strong economic foundation laid by Tinubu, which had increased federal allocations for local development.
He acknowledged that Nigeria was currently on the right path in its growth and development trajectory, citing the reports of international ratings agencies, like Fitch, S&P, and Moody’s as confirmation of the country’s “direction of travel”.
Shettima hailed Oborevwori’s “bold leap towards a greater Delta and for creating a platform that matches the ambition of his people”, stressing that the state has advantage that is larger than its oil wealth.
He said one of the state’s boldest advantages was its conviction “that the future of a people cannot be deposited in a single commodity”, the core motivation for the economic summit.
Shettima stated, “Diversification is an instinct of economic self-preservation and a measure of the quality of leadership.
“A government that prepares for life beyond oil understands that resources may finance progress, but only ideas, institutions and enterprise can sustain it.”
He expressed confidence in Oborevwori’s ability to lead “Delta into a new era of productive expansion”.
The vice president assured investors, entrepreneurs, financiers, captains of industry, innovators, and development partners at the summit that the federal government “stands ready to support credible investments, strengthen enabling institutions and work with the state to remove obstacles to enterprise”.
Okonjo-Iweala, in a keynote address, said Delta State had the ingredients to become Nigeria’s next great industrial hub.
She stated, “This would be good for Nigeria as a whole. It would help decongest some of our economic hubs like Lagos and Kano that are becoming overcrowded. Lagos alone accounts for about a quarter of Nigeria’s GDP and half of its non-oil GDP.
“Consider Delta’s natural, infrastructural, and human endowments. We’ve heard about them. Abundant natural gas, a coastline with seaports at Warri, Sapele, Burutu, and Asaba. The Itape-Ajaokuta-Wari rail line. The fertile land of Delta State, solid minerals, 49 tertiary institutions producing young people who want opportunities in the state where they grew up.”
Okonjo-Iweala said, “On the financial front, the state also has some fiscal space. Budget 2025 State of States report ranked Delta 6th of 35 states in overall fiscal performance and 2nd in debt sustainability. I was very happy about that. And when I heard one of the speakers say, you’re not going to borrow, I was smiling. Keep the fiscal prudence because without it, you’re not going to be able to build the Delta State we want.
“If you have to deploy resources, you have to deploy them in a manner that makes the state productive, not wasteful. The 2025 proposed budget of N1.66 trillion prioritises increased capital expenditure as part of the efforts to move Delta onto a higher growth path. A stable macro-economic environment at the federal level, exchange rate management, bringing down inflationary pressures, would improve state’s prospects for success.”
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, declared that Tinubu had restored visionary monetary policy by ending excessive printing of money, as well as opaque and multiple foreign exchange windows.
Oyedele said the president had also ensured comprehensive tax reform, rewound the tax base, while lifting the heavy body off the shoulders of businesses, especially small businesses.
He said, “States and local government now receive unprecedented revenues, enabling them to pay salaries on time, settle pension arrears while investing in human development and building infrastructure. I share this milestone not to declare victory but to state a profound truth that macro-economic stability is the job of the federal government and that foundation has been laid.
“The centre secures economic stability; the states convert stability into shared prosperity and local government delivers it as a tangible higher standard of living for every family. That division of labour is where true fiscal restructuring takes place. Abuja can stabilise the currency but Abuja cannot operate a processing plant in Ugheli.
Related
