By James Overly

When Victor Attah, a highly successful architect and businessman, became governor of Akwa Ibom in 1999, an intelligent observer might have wondered, "Why did he bother?" The state was a mess. There was a pervasive despair and mind-boggling neglect.

Governor Attah looked around at a rusting economic infrastructure, a paltry industrial base of old, run down public enterprises, frightening unemployment, and no technology. In a world full of creaking industries looking for capital, Governor Attah had to create an environment attractive to private sector investors.

One of the first things he did was to establish the Akwa Ibom Investment and Industrial Promotion Council, (AKIIPOC, pronounced AK-ee-pock). AKIIPOC pursues the state government’s investment and industrial promotion initiatives. Additionally, it supervises the government’s economic development programs and institutions. The Council was further empowered to revive and privatize public enterprises, as well as to attract new investment and businesses.

Several overseas firms have established operations in Akwa Ibom since Governor Attah took office, and that number is steadily increasing. At least five of the old public-owned companies are now operating firmly in the black. These include a brewery, a paint factory, a transport company, a water-bottling firm, and a hotel. Another five or more are in final stages of privatization.

Mr. Obot Akpabio, AKIIPOC Deputy Director, says, "The key areas of interest for AKIIPOC are the strategic industries such as oil and gas, telecommunications, agriculture and empowerment programs."
AKIIPOC also manages a Strategic Economic Empowerment Fund, known by the acronym, SEEF. Mr. Akpabio says, "The fund aims to improve the quality of life of the state and the people of Akwa Ibom through the provision of technical and financial assistance to bring forth viable small- and medium-scale enterprises owned by state residents."

Large-scale commercial projects that AKIIPOC has supported include Akwa Petrochemical and Energy Company, a holding company involved with the planned refinery and the independent power plant. The Council is also a partner in Akwa Pave, a new company formed in partnership with Lanco Limited for the production of interlocking stones and concrete materials. It holds 15 percent equity in Econet Nigeria, Ltd., one of three GSM cellular telephone operators in Nigeria.

These investments show the determination of the Akwa Ibom state government to finance development projects when other financing is not available. But Akwaibomite leaders are quick to point out their strong belief that government should have only a limited role in the production sector, where private companies perform much better. Accordingly, while the government will do everything it can to help a needed investment project get off the ground, it is also willing to divest its equity stake quickly and turn over all control to the private sector.

AKIIPOC has helped the state develop a flexible and beneficial investment climate, including lengthy tax holidays, prompt allocation of land, assistance in obtaining economic data and licenses quickly, and repatriation of foreign capital. Moreover, investments can be made in a climate of good governance rarely found in Africa.

AKIIPOC also is the state’s chief promotion agency, having led many trade missions to foreign countries. Often, these trips have included Governor Attah, Akwa Ibom’s "chief marketing officer." Recent missions have taken place in China, the United States, India, Syria, Ukraine, and South Africa.
Mr. Akpabio says, "AKIIPOC is working with the U.S. government agency, OPIC (Overseas Private Investment Corporation), to explore the possibility of guaranteeing financing of a flour mill by an American investor. If it goes ahead, it will be the first ever non-petroleum related, OPIC-guaranteed project in Nigeria’s history."

Tim Harwood, OPIC spokesman, confirmed the OPIC is very interested in this $6.8 million project. "This will be the only flour mill in the region and our risk analysis was favorable." USAID is also working in the region, doing a feasibility study in the area of fertilizer manufacturing.

The investment climate created by AKIIPOC and the Akwa Ibom state government is beginning to pique interest with the larger American and European firms. GE, for example, won part of the contract to build the new independent power plant, and has already indicated an interest in assuming an equity share in the project. Major oil producing companies, including Exxon Mobil and Shell, are very active in Akwa Ibom.

During an early November visit to the United States, Governor Attah spoke with many potential investors, including at least one software company considering an investment in the science park. the money for these purposes."