Saturday, 4 April 2015

Akpabio should tell us what happened to Bank of Industry’s N15 billion – Obong Iniobong Jackson

Obong Iniobong Jackson, from Etinan Local Government Area of Akwa Ibom State, is a renowned politician and businessman. In the past, he has been the State chairman of Alliance for Democracy in Akwa Ibom State and later the deputy national publicity secretary of AD, and the deputy national chairman of the party in the South-South. He is among thousands of people in Akwa Ibom State who recently defected from PDP to APC. He is also an industrialist and the CEO of Jackson Devos Nig Ltd, a carpet-manufacturing company based in Calabar, Cross River State. Obong Jackson spoke with journalists in Uyo.



What is the state of industry in Akwa Ibom State?

I am a firm believer in industrialization because without industrialization you cannot have a developed economy, and it pains me to see that in a state like Akwa Ibom where we have had so much money over the years we have not been able to get real industrialization even after several promises have been made to provide one industry in each of the 31 local government areas of the state. Today, we cannot boast of even one industry and we have more young people in the state looking for employment. And as a matter of fact we still remain a civil service state. This is a serious issue. No matter what we do, the economy of this state cannot grow except we change our attitude and be more focus towards entrepreneurial development and industrialization. If you look at Cross River State, for instance, you have several tank farms and people are still looking for where to put more tank farms, and one is tempted to ask how come we don’t have investors wanting to set up tank farms in Akwa Ibom State? It therefore means that the level of attractiveness of business to Akwa Ibom State is very very low.

You mean there are more industries in Cross River State than Akwa Ibom State?

Yes, of course. It has to do with how attractive is your location for investment, because it is not only your people that must invest. You must be able to accommodate others from outside the state…..

Are these industries in Cross River State built by indigenes?

No, most of them are built by non-indigenes. If you have a good location for investment people can come and invest in your state.

Can you give us names of some of the industries you are talking about in Cross River State?

General Electric is constructing right now in Calabar. We have several companies in the free-trade zone in Cross River and they are owned by non-indigenes. Flour Mills is there. Jackson Devos is also there, it is owned by a non-indigene. It has a lot to do with the people’s attitude towards investments, especially at the level of government support and encouragement. We have a long way to go in Akwa Ibom State.

Are you attributing the industries in Cross River to the state government there?

Yes, it is the doing of the Cross River State government. The people there are also very receptive and supportive.

How about Akwa Ibom people? Aren’t they receptive to investors?

We are not. We are not receptive in the sense that the people representing us probably don’t have the interest or the understanding that they need to be more open and supportive to entrepreneurs and investors.

This could be an indictment. What evidence do you have?

If you have not had certificates of occupancy, for instance, signed for organizations that have come in and applied to be given a space to establish industry in this state…. Look, you can even do your own investigation to find out how many certificates of occupancy have been signed and issued out to people who have applied to invest in this state. If you have to lobby before you can get your certificate of occupancy signed for you, then that is a put off for an average investor, obviously.

Is that the only evidence?

You know everything in Akwa Ibom revolved around an individual or certain individuals, and investors don’t operate like that. If you come in, you have commissioners for instance; the commissioners should be able to take certain decisions and tell you we are ready or not. But having to wait for a particular person’s approval in everything is a put off for investors. It may sound simple, but it affects the attractiveness of a place to potential investors.

We know Jackson Devos is an old name in manufacturing; the company has been in existence even before the creation of Akwa Ibom State. How is the company performing currently?

The performance is not as good as it used to be and it has to do with the realities in the country; manufacturing is suffering a lot in this country at the moment because the support base for manufacturing is not as good as what you have, let’s say, with people who are into buying and selling of goods. Let’s take access to finance, for instance. If you approach a bank to raise money to dash into China to buy good, sell them back in Nigeria and pay off the bank money, the bank would easily listen to you than a manufacturer who is going to buy machines, test-run them and then go into production before he starts thinking of paying off the bank money. The financial institutions in Nigeria are not so helpful to manufacturing. Then of course we have the challenge of infrastructure, electricity power supply in the country is a major issue here.

Your company is still producing carpet?

Yes, we are still producing carpet….

No diversification?

Well, we had diversified.  We went into hotel business sometimes ago. But the core of our business is the production of carpet, and our carpet is still the best in Nigeria.

Most old companies which we could refer to as contemporaries of Jackson Devos folded up long ago. What’s driving Jackson Devos? Is it family pride or profit-making?

Family pride is very paramount. Most importantly, we had a good succession plan and we still maintain good relationship with our technical partners. My dad who started the business had encouraged us early in life to start having interest in the company. My fulfillment in life is to still promote the Jackson Devos brand, and of course also make mega money from the business.

Do you feel you’ve done enough to promote the Jackson Devos brand compared with what your father did in the past for the company?

Well, not enough really. You know we have a lot of circumstantial issues surrounding manufacturing in Nigeria. So, within the limit of what we can, I would say yes we have. In their time government assistance and patronage was there, compared to what we are experiencing now. You know so many things have changed over the years. Out of about 28 carpet manufacturers in Nigeria up till about 1995 or thereabout, for us to remain among the only four indigenous manufacturers of carpet today I think it is something worthy of appreciation. Most other carpets you find in Nigeria are imported. In fact, the only carpet-manufacturing company in this country that belongs to a Nigerian is Jackson Devos. Other carpet-manufacturing companies in this country mostly have Indians at the back of it.

As the leader of the Manufacturers Association of Nigeria (MAN) in Akwa Ibom State we want you tell us if businessmen in the state are networking among themselves and with the state government.

I wouldn’t say yes or no. I believe individuals have when and reasons or places where they meet….

We are talking about official and corporate platforms like a forum of businessmen or maybe CEOs?

None that I know of that MAN is directly involved. However, sometime ago we initiated what we called Forum of Organised Private Sector. We have a lot of entrepreneurs, mostly small scale enterprises across the state. Our tendency as business people in this state is not often to meet. There is even a tendency to want to hoard information which is actually a problem here. Now, belonging to organised private sector means that you could come in and put your issues together because what affect you will most likely affect the next person, we proffer common solutions and share information with one another. Yes, it is true that in Akwa Ibom State we don’t really encourage information-sharing among entrepreneurs. We also have a tendency to politicise every issue in Akwa Ibom State. I have had a situation where I had a meeting with a commissioner for commerce in this state, and instead of addressing me on the basis of MAN that I went to see him, he was rather talking to me on my personal political issues, and that had affected the way MAN could have maybe complemented whatever the government was doing. I give you another example. The Nigerian Export Promotion Council is in this state today because we had support from the then commissioner for commerce, Elder Adasi Obolom, and that is one federal government parastatal that facilitate export businesses. But we had to pass through a lot of challenges before we could get the support of the state government for the Nigerian Export Promotion Council to have an office here in Uyo.

Is Akwa Ibom State not making good use of the Nigerian Export Promotion Council?

The state is more focused on political issues than economic issues. There is huge gap between the business community in this state and the state government.

What’s the relationship between Governor Godswill Akpabio and the business community in the state?

I don’t think the governor has in anyway been an encouragement to private sector development in Akwa Ibom. Let me give you an instance. Some years ago we were invited abruptly to witness the signing of MoU between Akwa Ibom State government and the Bank of Industry. From what we gathered, our invitation was on the insistence of the MD of the Bank of Industry who said that she wanted to have the organised private sector witnessed and be part of it because the funds, about N15 billion counterpart funding between the bank and the state government was earmarked for it, was meant for Akwa Ibom people to access it, and certainly you needed the private sector to be aware of it. But till today we don’t really know how many entrepreneurs in Akwa Ibom have access the fund. We are not even aware if the Akwa Ibom State government has provided cash backing for the fund, and meanwhile this is supposed to be public information. I am aware that no member of MAN in Akwa Ibom State has accessed the fund.

Governor Godswill Akpabio has said severally that he could patronise local road construction companies in Akwa Ibom State because he didn’t trust them to do a good job. What’s your take on this?

Any government that cannot encourage local construction companies is not willing to help in the development of indigenous businesses. The mega construction companies we see today started from somewhere. In fact, Julius Berger that we talk about today was a tiny and insignificant company in Germany, they came and became big here in Nigeria. If you want to be sincere, you can engage local companies to do your work; you give them the specifications on what to do, pay them what you pay other people and they will deliver. And if they don’t deliver, there are legal means of sanctioning those companies. It is not an acceptable excuse to say that you can’t give jobs to local contractors because you don’t trust their standard. As a leader you must learn to have confidence in your people. Even when they don’t have capacity today, it is your place to build them up till they have the capacity.

Let’s talk politics. How’s your local government faring?

In Etinan, everybody needs change. We are tired of the status quo. We will make APC win the election because that is the people’s party.



No comments:

Post a Comment