Interview: Ifeanyi Okowa
What factors are improving the international investment outlook for Delta State?
IFEANYI OKOWA: The level of security that Delta State has enjoyed since 2015 remains central to our development agenda. The Peace Building and Advisory Council as well as the Advocacy Committee Against Vandalism of Oil and Gas Facilities – convened in August 2015 and May 2016, respectively – have been instrumental in coordinating efforts of law enforcement agencies to maintain stability. Additionally, the Delta State Investments Development Agency’s promotions and incentives help investors capitalise on opportunities by easing conditions for market entry. Under the government’s job creation scheme, skills acquisition and youth entrepreneurship programmes have deepened the talent pool across key sectors, improving the overall business environment. Moreover, with roughly 2000 km of roads and 1400 km of drains constructed and rehabilitated since 2015, the state now has an extensive network of paved roads. Over 30% of these roads connect rural communities to urban centres, easing mobility and boosting inter- and intra-state commerce. Finally, we have improved our tax administration system to boost transparency and ease of payments.
In ways can public-private partnerships (PPPs) bolster human capital development?
OKOWA: PPPs have been used to drive economic development across several sectors. For example, the government has partnered with Norsworthy Investments to develop 3000 ha of land to strengthen the palm oil value chain, enhancing the transfer of skills and creating jobs. The contributory health insurance scheme has also enabled private operators to manage primary health care centres while leveraging technology for processing, registration, payment systems and enquiries. Furthermore, the job creation scheme has accelerated human capital development, manifesting in skills accumulation, leadership and entrepreneurship.
How do you assess the diversification of the economy and the development of agro-industrial parks?
OKOWA: According to the National Bureau of Statistics, non-oil sectors contributed more than 52% to the state’s economy in 2021, compared to roughly 42% in 2013. Ongoing efforts to boost non-oil activities include encouraging youth entrepreneurship, extending microcredit, upgrading urban infrastructure and improving public services. The main sectors propelling diversification are services, agriculture, tourism, construction and trade. Moreover, supporting micro-, small and medium-sized enterprises will be crucial to this effort, as they account for over 60% of employment.
Meanwhile, we have made significant progress in the development of a multi-product agro-industrial park at Abo Ogwashi-Uku. The initiative involves a partnership between a private sector anchor investor and a public-private company for the management of the park. We have also entered into a joint venture agreement with a private investor to upgrade and manage the previously state-owned agro-industrial centre at Amukpe. Furthermore, Delta State is engaged in discussions with the African Development Bank for the establishment of an agro-industrial processing zone within the proposed export free trade zone.
When fully operational, these developments will enhance market access for farmers, boost income and stimulate productivity. Which key factors enable the flow of funding to public infrastructure projects?
OKOWA: The funding of critical infrastructure is subject to the availability of low-cost funds, private partners and the size of our receivables when weighed against other needs. Infrastructure financing is prioritised based on urgency and anticipated impact. Contractor financing, for example, is being leveraged to bridge gaps through the provision of Irrevocable Standing Payment Orders. Accessing financing from banks is another key step to ensuring adequate infrastructure funding.
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