Imo. Business Must Go On

On the second of January 2020, the Imo Economic Summit Group organised an Economic Outlook event in Owerri. It was a well attended event that brought the Imo Elite and technocrats in Government in a discussion on the economic outlook of the state

The next day, there was a well organised Diaspora Business development event in partnership with Ford Foundation. Both events seemed to highlight a new direction in a state where politics had always seemed to be the only business in town.

Imo state and most states in Nigeria live on politics. And politicking. However in the past few months, politics has lived side by side with business. And there was a chance that the state would join a few other states in Nigeria that are struggling to build a culture that allows business to be part of the conversation of government.

This was odd for Imo at this point. Then governor was too much of a politician. And did not leave you in doubt that politics was his life. But in his politics, he seemed to understand the reality that the state must wean itself from the largesse of Abuja’s dwindling rent sharing. His predecessor`s wasteful eight years did not make that choice any easier.

Perhaps there was also a realization by the elite in the state that too much politics was not helpful for the state`s economic development. That the elite has some accountability in building alternative institutions that will work with government or other institutions to build the state. Too often, the economic elite in most states in Nigeria stay in Lagos , Abuja and Diaspora to pontificate on how good governance and economic development of their state can be achieved. From the comfort of their smart phones only.

And so for the past seven months the romance between politicians and the Imo elite seemed to be blossoming. The State Governor was a willing participant in this romance. You could see this in his efforts to be seen in business circles in the state, Abuja and even far away in economic capitals of the world . He seemed at home with development partner and investors. He even visited Dangote! He sought out knowledgeable Imo technocrats to join his team and man critical roles. His recognition of Imo’s place in the development of the larger Eastern Nigeria was noticeable. It did appear that perhaps there was hope for the state to build the future where business contributed its quota to the development of the state and the region.

And then the Supreme court came calling. Politics is a game. And those who play it take no prisoners. And for each outcome there are losers and winners. And there are consequences.

There will be consequences for Imo state because of the Supreme Court intervention. But how can the state manage the effects and create some stability in the aftermath of the disruption that this judgement is bound to have? How can we continue the efforts to mobilize the economic elite to remain part of the development of the state. Some times on its own. At other times in partnership with government. Below are my suggestions on reducing the consequences for the state and mitigating any negative effects on the opportunities that seemed possible only a few weeks back.

1 Accept the positives from the last 7 months

There have been some successes in the past seven months. The collaboration with development partners. The opening of space for collaboration with Business.The positive feeling of Imo elite that the state could be moved in the right direction for business.The willingness of investors to come into the state under a positive business environment.The ambition around infrastructure from roads to airport and technology. The possibilities around Oguta. The revival of institutions that support business . The focus on making the state an easier place to do business. There is no need to stop these . They were done with state resources and owned by the state. Stopping them takes the state backwards and wastes valuable time in the match to reverse the years lost to Okorocha`s wastefulness.

2 Accept the Economic Opportunities in Imo

By its location and capacity, Imo state has always had the potential to be one of the really sustainable states in Nigeria. It’s not because of the past 7 months that it became apparent. However its important that whoever rules the state understands this potential and works with the business elite from the state and beyond to build a state that the citizens can be proud of.

As Nigeria races to the bottom of the poorest place on earth, states like Imo with real business potentials have to create wealth for the citizens and help reduce mass poverty and unemployment. Any day lost to wrong choices made by its chief execute creates more poverty both for the state and Nigeria.

3 Embrace Business.

Politicians will always play politics. But business pays the tax that the state requires to provide services to the people. It’s not a favor to the business community that you make doing business easy. It’s a necessity. Imo has wallowed at the bottom of the Ease of Doing business in Nigeria at around number 35. It needs to be under 10 to have a chance. The state also seemed uninterested in raising its internally generated revenue by encouraging business in the state.The former government showed some will to do the right thing. Please let’s continue to move in this direction.

4 Embrace the development community.

States that are working with development partners to create a better run government are getting more support funding. In the process attracting investors and investment . Edo State, Kaduna state are easy examples. Lagos was the pioneer in this but seemed to have struggled in recent past. There are new governors in the Class of 2019 who came prepared to take their states in this direction. Imo was one. The World Bank, Bank of Industry, CBN, AfDB, AfreximBank, DFID all have programs for institutional development of a state like Imo. We must build structure to work with them . It requires the state though to build discipline and structure around governance.

5. Secure the state.

Imo is a diaspora state. It has one of the highest percentage of economic migrants living within Nigeria and abroad. Its economy is influenced by the remittances and the investments these people bring home. When they come home , they boost the economy of the state with their spending. The state`s hospitality industry survives on this. Security across the state is important for this diaspora contribution to the local economy to continue to flourish. It will be wise for any chief executive of the state to make security a priority.

5: Reduce Government.

How much government does a state require? What are the things the state needs to be involved in and which services are better provided in partnership with business? In my view, a state should encourage business to take more responsibility in providing services they are better at. The Rochas government wanted to build hotels in a state that has the highest hotel density in Nigeria. An example of the way a government creates bureaucracy it does not need.

6. Embrace the states Elite

The new government needs the support from the states elite , especially technocrats and business people. Most at the moment are watching for the signs of the direction of the new government. Many are wary. Some are worried and want to know more about the direction of the government and the relationship it wants to build with the business community. The government must settle down quickly and try to bring the state elite, especially the non partisan ones to support in anyway they are best suited to.

Finally, Lets Get Back To Business

In the coming days and weeks, as the government settles down and starts appointing key functionaries to drive its policy agenda, it will be clear the direction it wants to take the state.

Whichever direction it takes though, I will encourage the business elite not to abandon the state. And for the development agencies not to turn their back on the state. But the buck stops on the new Chief Executive of the state to make this easy. He does not have a choice. Its why he is there. But as the past shows us, State Chief Executives in Nigeria are all too powerful and can take their states backwards with poor avoidable choices that will take generations to reverse. Imo was just coming out of one and needs not get back there.

Imo was opening for business. Let’s keep it open. For the good of the state and it’s long suffering citizens.