South-East And Burden Of Moribund Industries

The state of many once thriving industries in the South East now moribund has been blamed on the unfriendly attitude of the state governments, ranging from government’s multiple taxation to poor patronage of their products to outright abandonment.LEADERSHIP’s Nnamdi Mbawike writes on this devepment.

In the 1960s, Chief Michael Okpara, premier of the defunct Eastern Region laid a strong foundation upon which the economy of Eastern Nigeria, without mineral resources, grew faster than many African, Asian and Central European countries.

Because of the strength of the economy of the region then, many concluded that it could actualise Nigeria’s long held desire to be among the most industrialised countries in the world.

The conclusion followed the presence of many manufacturing industries and farm settlements in the areas that made up the region.
Due to the visionary leadership of Chief Okpara, the unemployment level in the defunct South- East region and Nigeria was very low following the presence of many industries and farm settlements.

Apart from Okpara, other leaders of the zone including former governor of old Anambra State, Chief Jim Nwobodo, former governor of old Imo State, Chief Sam Mbakwe, among others established viable industries that sustained the economy of the region.
Following the abundance of viable and well functioning industries and natural resources, the defunct South East Region was a beehive of activities as foreigners

and Nigerians trooped to buy finished and unfinished products.
The development forced many to nickname the then Eastern Nigeria as “ Japan of Africa” and even went ahead to predict that the economy of the zone would be better than all the economies of most developing countries in the world in the near future.

Unfortunately, the vision of the foremost leaders of the South East to make the zone the envy of all has been thrown into the dustbin of history as almost all the industries and farm settlements that made the defunct Eastern Nigeria proud are now moribund.
They were abandoned shortly after the visionary leaders left office or went to the great beyond. Also the natural resources in the zone accept crude oil have been abandoned.

Notable among the industries that have been abandoned in Enugu, Imo , Ebonyi and Abia, Anambra States include Niger Gas, Niger Steel, Nkalagu Cement Industries, Avutu Poultry Farms Limited , Enugu Petroleum Depot, Sunrise Flour mills, Modern Ceramics, Anambra Vegetable Oil Company of Nigeria(AVOC), Golden Guinea Breweries Plc just to mention but a few.

Worried by the development, the Manufacturers Association of Nigeria (MAN) in Ebonyi, Enugu and Anambra States on May 2011 expressed concern over the inability of the South-East governments to revitalise all the moribund industries established by their predecessors in the zone to create employment opportunities and reduce crime.

Speaking with journalists after their annual general meeting, the chairman of MAN in the three states Chike Obidigbo, noted that the absence of those companies in the south east zone had contributed to the unemployment problem and the rising incidence of crime in the zone.
He also lamented the unfriendly attitude of the state governments to the existing manufacturing industries in the states ranging from government’s multiple taxation to poor patronage of their products.

In April 2011, some cement dealers in Enugu State urged the South-East governors to build new cement factories and reactivate the Nkalagu Cement Factory.
“I am appealing to South- East governors to reactivate the Nkalagu Cement Factory, which was abandoned many years ago so that people here can have access to it,”one of the cement dealers at Kenyatta Market, Mr. Oliver Asogwa cried out.He added, “We travel all the way to Benue and Port Harcourt to purchase cement.
“But if the Nkalagu Cement Factory is re-activated, it will be easier and cheaper for dealers and consumers from the zone.”
Although some incumbent governors of the south- east had in the past years made efforts to revive the industries, there is nothing to show that the moribund industries would see the light of day again.

For instance, in 1998, Enugu State government reportedly entered into negotiations with a renowned steel company in a bid to reactivate Niger Steel Company Limited, Emene, which has been comatose for some years now.
The state government was said to have disclosed then that a partnership agreement between it and the management of the steel company was being worked out with technical assistance from the Russian government.

It added that the company when revived, would be of immense benefit to the nation’s economy in terms of job creation and making steel available in view of its high demand in the country.

In 2000, the federal government reportedly made moves to reactivate the Nigercem Cement Factory, Nkalagu in Ebonyi state.
It was reported that negotiations were going on between the federal ministry of industries and stakeholders in the company on how best to raise funds for the reactivation exercise.

In 2010, the special adviser to governor Sullivan Chime on Diaspora Matters, Dr. Jude Akubuilo, urged people to expect the implementation of the privatisation programme of the state government aimed at reviving some moribund industries in the state such as the Niger Steel Emene, Niger Gas Ltd, Avop Oil, Hotel Presidential, Daily Star, etc., which would afford investment opportunities to Enugu people at home and in the diaspora.

Unfortunately, despite assurances by the federal government and the state governments in the south- east, the moribund industries are yet to be revived.
The industries have remained moribund, forcing many to conclude that they will never get off the ground again.

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