Obioma Okorie, group managing director of Jeffo Construction Company, Obioma Enterprises, and Dangote Cement distributor, tells Special Correspondent, ONWUKWE EZERU, his views on the high exchange rate, what the government should do to boost business, and other national issues.
National business environment
The present administration came in with its policies to change the system. Change is dynamic and a lot of things are involved for change to take place.
Government policy and the ban on the importation of certain goods affect our business. For instance, we import tiles but we can no longer access forex (foreign exchange), and for many months now there is no importation of tiles.
Dollar exchange rate is high, making it difficult for business to thrive. Government policy says if you can source fund anywhere for importation, it is okay. Banks cannot give you assistance for forex and this is a major challenge.
In Nigeria, the price of iron rod is on the increase, day in day out, because of high tariff in electricity which affects the production of rods.
Ajaokuta Steel and Delta State Steel companies are not working, and Oshogbo Steel Rolling Mill is not also working.
For now, India and China are controlling the steel industry in Nigeria and they can increase prices anytime they want.
In Nigeria, there is no consumer protection agency that regulates the price of goods.
Getting over the challenge
The only way out is for the government to resuscitate the ailing steel mill industries.
Ajaokuta alone has the capacity to produce not only iron rods but railway rails. If possible, give it to a good company to manage, but with the government, it will not survive.
For example, in the cement sector, Nigerians have no problem because Aliko Dangote has assured that he can sustain the cement business. Nigeria now exports cement and that is the type of business we need.
If you have somebody like Dangote to man Ajaokuta Steel, he would revamp it and the company would stand the test of time and these Indians and Chinese would now depend on Nigeria.
These foreigners do not have Nigeria’s interest at heart. Their concern is to make money and go back to their countries.
For now, the economy is bad and some states cannot pay workers’ salary. Thanks to President Muhammadu Buhari for the bailout fund. Now that he has promised states full allocation, there will be money in circulation.
Housing for all
It is possible to provide homes for all Nigerians, but for now it is doubtful. Nigeria wants to do so many things at the same time. But there is no fund in the system and so many states cannot pay staff salary.
If the government can concentrate and make housing policy achievable, that will be alright. The only challenge here is that it is difficult to access the housing fund, including those who contribute to the fund.
The government should make it mandatory for the contributors to have access to the fund, make a law so that they use the fund for its purpose, and those who want to go into mortgage should also be accommodated.
For example, civil servants who contribute to this fund cannot access it. If the government can look into this area, it will go a long way to help solve the housing needs of Nigerians.
The government should also know who is qualified for this loan. People could collect this fund and pay it into their private accounts without using it for the real business intended.
Business environment in Abia
Abia is enjoying a relatively conducive business climate. The government of Okezie Ikpeazu has put in place some motivational plans. One of such is adequate security of lives and property.
I have the belief that if the national budget is implemented, business will boom and the economy will improve. But for now, there is not much money in circulation.
The major problem lies in the power sector and infrastructure decay.
The Nigerian Electricity Regulatory Commission (NERC) should ensure that electricity distribution companies provide adequate power for business to thrive.
The Nigerian National Petroleum Corporation (NNPC) should also ensure that fuel is available to end the hardship suffered by Nigerians.
Assessment of Ikpeazu’s administration
Ikpeazu has done very well in office. Abians know he would succeed, and that was why they voted massively for him.
Tracing his record as the deputy general manager of Abia State Environmental Protection Agency (ASEPA), he made a mark. As governor, under one year, he has embarked on 65 roads and actualised 27, among other achievements.
Go to Aba and see the development and changes that have taken place. To us in the market, the state government has been very supportive.
Contribution to Abia and host communities
A lot has been contributed and very soon Ikpeazu would commission over 50 housing units I built near the industrial market.
Apart from this, my company has given employment to Abians, especially host communities. At least 70 per cent of my workforce are Abians. This is part of our social responsibilities.
Assessment of Buhari’s administration
There is no remarkable change.
The government should block leakages and fight corruption proper. Workers should be paid and infrastructure upgraded.
