Abia launches Enyimba city project for Economic revival

Governor Ikpeazu oAbia State

From PETER OKORE, Umuahia

The proposed $25 billion Enyimba Economic City project located in Abia state is expected to take- off by January, 2019. At the moment the CCEC firm from China is conducting a final comprehensive survey of the entire land-space to properly put in global best practice in terms of the roads, electricity supply and other infrastructures, including amenities that will be needed in the Economic city.

On its part, the Abia state government has already issued a Certificate of Occupancy (C of O) to the Enyimba Economic City Development Company (EECDC), the sole managers of the business.

The project is managed under the corporate name, “Enyimba Economic City Development Company (EECDC)” and is sitting on a land space of 9,800 hectares, stretching from Ukwa-East, Ukwa-West and Ugwunagbo Local Government Areas of Abia state as well as portions of Imo, Rivers and Akwa-Ibom States respectively.

A total of 30 communities are said to own the land on which the project situates. It has the advantage of being located on the largest Gas deposit site in Nigeria for purposes of generating electricity there-from.

It is projected that by the end of November, 2018, all machines for the Shoe factory will arrive Aba from China. Full work on the Shoe factory will commence on site immediately after the installation of the machines.

For Equity participation, about 95 percent of the investible share capital is coming from the private sector, the major drivers and shareholders in the project, while Government own the remaining five percent.

Speaking with BusinessHalmark in respect of the Project, in Umuahia, the Abia state Capital, Mr. Chinenye Nwogu, Special Adviser to Abia state Governor on Job Creation, who is also charged with the responsibility of overseeing the realization of the Enyimba City project,  hinted that the project will re-jig the economy of the state and entire South-Eastern States of Nigeria  as well as offer employments to the army of youths currently roaming the streets and causing all manner of crimes in society.

He also disclosed that the Enyimba Economic City project is modeled after the Dubai markets.

The Ruyi Group of Companies from China, is the largest private-sector investor in the project. Nwogu asserted that the Ruyi Group has the financial muzzle to pull other conglomerates into the project. He explained that the Chinese are good partners in the venture because they are successfully running similar investments in other parts of the world.

For sustainable and steady electricity supply to the Economic City, the Ruyi Group is investing the sum of $2.5 billion for power generation in collaboration with Geometric Power Plant, Osisioma.

According to the Chairman of Geometric Power Limited, Prof. Barth Nnaji, processes are currently on to switch-on the Company’s 141 megawatt power capacity station dedicated for de-lineated customers in Aba, Abia state. He promised that the station will be commissioned within the first quarter of 2019.

It was gathered that the protracted dispute Geometric Power Plant Ltd had with Enugu Electricity Distribution Company (EEDC) over her distribution capacity rights to consumers had delayed the commissioning of the Geometric power plants, built since 2013. The issues have today been resolved and adequate compensations paid to the deserving party.

For now, the captive market held by the Geometric Power Company covers key industrial and commercial locations in Owerrinta, Osisioma, Aba metropolis and other proximate business premises and ring fenced clusters in Abia state.

It will be recalled that Geometric Power Ltd, has a $530 million power plant in Osisioma area of Aba, Abia state. The Plant was built in 2013 and has a generating capacity of 141megawatts of electricity-supply to parts of the state.

Moreover, the Enyimba Economic City project is jointly owned by the Federal government, Abia state government and members of the organized private sector,(OPS) from Nigeria, China, Germany and the United States of America. Investors from these countries are coming to run the various components of the establishment.

The components of the Economic City project include Industrial, Electronics, Leisure parks, Education parks, a Training Institute to be manned by Enyimba City Development Company and the foreign partners;  ICT section, Garments and Shoe factories, Tourism, Sports section, Logistic hubs, etc.

What economic hope does the Economic City project hold for Abia state and other shareholders? Nwogu further emphasised that the Project is designed to fund itself, give huge investment turn-over and revenues to Abia state and shareholders. It has Free Export Processing Trade Zone attached to it, which makes for high scale manufacturing of goods, wares and sales to different parts of the world at competitive global market- prices.

On Sunday, 23rd September, 2018, Abia state governor, Dr. Okezie Ikpeazu at a ceremony marking the launching of his campaign office at Mission Hill, Umuahia  broke the cheering news that President Muhammadu  Buhari has approved the establishment of a Free Export Processing Zone in the Enyimba Economic City.

Hope also came the way of the Abia economy when President Muhammadu Buhari announced that he has secured a $2 billion loan from China to establish a cotton  plantation in Kano  and textile factories at Abia and Lagos states.

Buhari, who divulged this information  in Abuja when he played host to traditional rulers from Abia State, led by His Royal Majesty, Dr. Isaac Ikonne, explained that he secured the deal following his  recent visit to China to attend the Forum for China-Africa Co-operation.

However, other comparative advantages of the Economic City include its proximity to both Onne seaport in Port Harcourt and the Ibom Deep Sea near Akwa-Ibom state as well as the proposed Inland Container Dry Port at Isialangwa Local Government area and Railway lines. The location has a captive population of over 60 million people.

Again the Economic City is located in-between the three airports in   Owerri, Port Harcourt and Uyo, as well as has the full support of all the shareholders and governments. Both the State and Federal governments   are said to have the political-will in conceiving the project and seeing it to fruition.

These aside, Aba is already a bustling and renowned entrepreneurial city and a lot of commercial activities are currently going-on there to support the Enyimba Economic City. The presence and activities at the Ariaria International Market in Aba, is an added advantage to the Economic City.

According to Nwogu, the EECDC has done engagements with the various communities that own parcels of land there and each community has determined the extents of their land.

“We are adopting two methods of paying compensations to the communities. The first was payments for economic crops, trees and other landed properties, while the second phase has to do with Share   acquisitions in the investment.  As an added value, the natives will have  opportunities to invest and be employed in the business.

“We estimate that the company will, within the first one year of operation, offer employments to about 50,000 people.The Enyimba project will re-jig the economy of Abia state and entire Eastern States as well as offer employment to  the army of youths currently roaming the streets and causing all manner of crimes in society”.

Other advantages of this project include enhancements of massive development of the place and creation of jobs for both Nigerians and foreigners alike. It will enhance foreign exchange earnings and increase the IGR of governments, boost Technological transfer and influx of foreigners to do business and also will have great impact on the Abia state Tourism industry.

Nwogu, however, commended the efforts of Governor Okezie Ikpeazu for his resolve to industrialize the state, think of sustainable projects that will out-live his regime and for the people to have strong hope for better life.

Industry watchers, however, sadly regret that the numerous industries, plantations and other commercial centres that adorned Abia state before the Nigeria/Biafra war have gone comatose or become moribund since the civilian administrations came on board in the state.

Some of these industries that determined the economy and economic activities in now Abia state, included the Golden Guinness Breweries, Plc and Modern Ceramics Industries, Umuahia; Abia Oil Company; Cotton Mills, International Glass Industries(IGI),Aba; Ogwe Golden Chicken, Abia Cashew Industry, Isuikwuato; Abia Hotels; Aba Textile Mills; Lever Brothers  and Nigerian Breweries, Ltd, Aba, Metallurgical Complex and a few other privately-owned Industries. Aside these, there were also some Oil Palm and Rubber Plantations opened by late M.I. Okpara, where people resided ,farmed and made their living.

Today, those industries, establishments and plantations are apparently no-more or are now mere ghosts of themselves. They have either been sold or abandoned by the politicians in Abia since the year 2000.

As part of efforts to redress the economic downturn that had greeted Abia State, the Abia state governor resolved to diversify the Abia Economy by  revolutionizing the industrial/ real sector in the state. He decided to reverse   the trend and make Abia to assume its pride of place in Nigeria.

To arrive at this stage of sustainable economic development, the governor  held a chain of meetings with private investors, members of the  organised private sector(OPS) through the Chambers of Commerce, Industry, mines and Agriculture, Manufacturers Association(MAN), Small and Medium scale Enterprises.

Others included Development agencies and International Institutions which catalysed the influx of investors into Abia.

“It is only hoped that these efforts would be sustained and improved upon by subsequent governments, for generations coming after”, observed a University don, who did not want his name in print.