The Delta State Commissioner for Commerce and Industry, Kingsley Eze Emu, in this interview with LEADERSHIP’S KOLA NIYI-EKE, speaks about the state’s government strategies to create employment for school leavers. He also speaks on the contentious new currency policy proposed by the Central Bank, saying it would promote corruption.
You have done well in financial industry and other sectors that relate to money, so what do we expect for Deltans in 2013?
It is not my standard, it is the state’s standard, and we have been lucky to have Dr. Emmanuel Uduaghan as the governor because of his vision. We have been through the process of policy and planning. We are going to build on previous years’ projects, realigning our aspiration so that the projects we could not achieve last year due to financial constraints we are recognising them.
There is no point painting a very robust picture of the financial situation, in terms of development, derivation, etc., and even financing those projects when you know that the economy is diminishing. The size of our revenue is not dependent on oil; the greater portion of it is not dependent on oil and so you have to plan for it cautiously. We have been given cash and we have to work with it to achieve what we want. I am not going to speak for other ministries because I am not privy to their budgets, but suffix it to say that this is a basic principle that guides all the budgeting process.
We have a good cap and 10 industries are achievable, four must commence this year. Indeed, cassava will be taken to financial programme. For Commerce and Industry, we are taking 10? industries to catch on by next year; we are also going to intervene strongly along the SMEs, alongside other industries.
By direct intervention, I mean, identify their problems and support them financially. If you like, it can be working capital, it can be equipment financing and, above all, you know that a lot of software are into entrepreneurship training. So the modalities for reaching out to these numbers of SMEs are what we have been working out. So far, what we have been able to fix together is that all stand-alone SMEs with N5 million and above must be affiliated to a local chapter.?
Once affiliated to a local chapter, the local chapter must be affiliated to the state chapter and DECCIMA, which in conjunction with Commerce will profile these companies and begin to identify them for the purpose of aiding intervention. We needed to put a proposal to his Excellency, after identifying their challenges and the collateral will run from physical to material thing to substitution, like the local chapter guaranteed, personal guarantees of stand alone, cooperatives, up to DECCIMA guarantee.
That helps your credit worthiness because to do the credit processes for you, we have to run a business promotion with the man.
So in conjunction with the man, we are going to develop the product paper where the bank themselves will agree to it and where we find out that they can partner with us, we do that.
For first graduates, we will continue to treat them and mediate the physical skills currently exist in them: they all went through theory; the quality has also deteriorated. Therefore, we need to bridge that gap and give them some professional skills. We have about 56 of them undergoing training in fashion and designing, and we are happy they are doing very well. We will take them straight into the micro level; we are not just training them, but will also give them starter packs. We are going to build more on that model.
Entrepreneurship development for low level cadre and other Deltans is that we will teach them craft, teach them how to fish, make bread, etc. We are also looking at cocoa and we don’t programmes on people; we have a collection of programmes. I have a soft spot for Warri Industrial Park, and His Excellency has already approved some votes for the fast-tracking of that project.
So it’s a major industrial development and it will offer lots of attraction for investors. In fact, when we talk about all these mega projects, people will want them to materialise in one day; it’s not possible because they are not currency transaction.
They have gestation period and we are happy Governor Emmanuel Uduaghan is passing through all these processes, and I think that Deltans will be happy for it. It’s not how many years you spend in an office, but what you are able to achieve – the impact.
So we are going to do trade fairs, participate in economic summits to promote the potential that we have. So it’s going to be very busy for us next year, especially project managing the 10 industries, having to impact greatly on SMEs, building professional skills of empowering the undergraduate and other parts. It’s going to be very busy for us. It’s going to create huge employment in the state and reduce unemployment.?
Can you say it’s going to reduce the hunger for oil?
I did not say that it will stop unemployment, because we have many unemployed today. There are many universities out there still churning out half-baked graduates.
So we need an integrated effort to put students through vocational training and entrepreneurship training; that is how government plans better. Generation of employment is a long term programme, because the malaise has been on for a long time; it cannot be solved overnight.
What have been the economic? benefits of Delta State since it was created?
Delta State created 21 years ago, precisely August 27, 1991, from the defunct Bendel State by the President Ibrahim Badamsi Babangida led military administration, The oil-rich Delta State, no doubt, has witnessed different economic transformations since inception.
This is sequel to the different changes in government and governance which, perhaps, were laced with different economic visions, policies and programmes.
In what could best be described as radical departure from the prototype economic vision, policies and programmes of past administrations in the state stage, which analysts held did not engender the desired economic breakthrough at any particular material time in the economic platform of the former ‘Big Heart State’ now ‘Finger of God’, the administration of Governor Uduaghan, an astute medical doctor, has taken a legendary role in transforming the economic landscape of the state through massive industrialisation.
This government has achieved, or better still, without resort to hyperbole, is set to achieve a lot through its numerous programmes which among others include the Delta State Micro-Credit Programme (DMCP) which, understandably, has won the state a place of pride internationally.
Complementing the achievement recorded so far in the state through the aforementioned micro-credit programme championed by the State Ministry of Poverty Alleviation, the State Ministry of Commerce and Industry, which is essentially adjudged the economic hub of the state, is yet taking a legendary role in driving the state economy through the? promotion of massive industrialisation through the creation of Small and Medium Scale Enterprises (SMEs) across the 25 local government areas of the state.
At present, the state government, under the rehabilitation of ailing industries/establishment of new ones and in collaboration with the Bank of Industry (BOI), is undertaking the establishment of 10 new SMEs.? As a matter of fact, four out of the 10 industries have so far been approved by the State Governor.They include Cassava processing mills at Obetim, Abavo, Emede, Koko, Agbarho and Mosogar, while the fish feed mills, he said, would be located in Asaba, Agbor, Ubeji and Uvwie.
Besides, it is also instructive to mention that the Delta State government, through the State Ministry of Commerce and Industry, has embarked on entrepreneurial development programmes and activities aimed at industrialising the state and cushioning the effect of unemployment in the state.
Some of the programmes include N1billion State Government/BOI Intervention Funds for Industrialists, the Shell Livewire Programme, Identified Unemployment Tertiary Institution Graduates, among others.
For instance, one Gaius Utomi is one of the beneficiaries of the N1 billion State Government/BOI Intervention Fund; another is the President, Ndi-Chukwu Ri-Azu Co-operative Society, Agbor
As an industrialist I currently have 10 youths on my employment, and I want to commend the state governor for the intervention fund which has raised the capital base of his business to about N8.5 million after securing about N3.5 million from the intervention fund.
Utomi, who now owns a palm kernel processing mill in the area, got the intervention fund, and his business has expended such that he now produces domestic soap which he distributes to some major markets in the state and beyond, particularly Onitsha Market.
In Ughelli, another beneficiary of the fund, Mrs. Roseline Akoyere, Managing Director, Akanon Plantain Flour Factory, also got the intervention fund; that has helped in repositioning her business.? In Warri, members of Ochukome Co-operative Society Limited (block moulding factory), are another beneficiary of the fund (they got N7.5million) and they commended the state government for the fund.
In Ewuru-Agbor, Ika South Local Government Area of the state, members of Ever Green Multi Purpose Co-operative Society, and beneficiaries of the intervention fund, showered praises on the present administration for coming to their aid, stressing that the fund had revamped their business.?
Some of the beneficiaries of the state government Shell Live Wire Project, who included Miss Gift Okoh-owa, Mr. Ndidi Emu-Agbor, Blessed Utomi-Ogwashi-uku, Chinedu Eborah – Ogwashi-uku, and Paul Okpul-Asaba, now have a new lease of life.
Members of United Fish Farmers Co-operative Society Limited, Ekpan, are not left out in the state government intervention fund.
These concerted efforts are aimed at addressing the increasing challenges of youth unemployment in the state.
The fish farm currently has about 5,000 earth ponds fully stocked with fish, and has currently engaged no fewer than 300 youths in the area.
What step is the state government taking to tackle unemployment problem in the state?
The Unemployed Graduates Self-Employment Scheme (UGSS) is an alternative employment window created for unemployed tertiary institution graduates of Delta State origin by the Delta State Government.
Fifty-five youths identified from all the LGAs in the state are to benefit from this scheme this year, considering the fact that thousands of youths are still combing the streets in search of gainful employment. Some of the youths have been in the labour market for some years after passing out from the NYSC.
There are other self-employment/employment opportunities created by the Delta State Government to enable Deltans be gainfully employed. These include: Delta State Government/Bank of Industry loan scheme; the Delta State Micro Credit Programme; the Delta State Integrated Rural Industrialisation Scheme (DESIRIP); the Entrepreneurship Development Programme (EDP), and the rehabilitation of Ailing Industries/Establishment of New Ones programme
Under the latter, the Delta State Government, in collaboration with the Bank of Industry (BOI), will establish 10 new SMEs on or before the end of this year. The proposed 10 new SMEs and their locations are as Cassava Processing Mills at Obetim, Abavo, Emede, and Koko, Agbarho, and Mosogar, Fish Feed Mills at Asaba, Agbor, Ubeji, and Uvwie.? You will agree with me that these 10 SMEs will definitely give employment to a good number of Deltans when established.
For those who have been identified to benefit from the Unemployment Graduates Self-Employment Scheme this year. I do not have any doubt in my mind that they will take this training workshop and the entire scheme very seriously.
This is because it is a life opportunity. Let me quickly say that if any youth does not attend any of the training session up to 90%, he or she will be disqualified from benefiting from this scheme.
They will be trained for three days on business management, book keeping; how to write feasibility study reports and how to set up a business by a renowned consultancy firm, Okonye FC & Co., Chartered Accountants. After these days training, they will be attached to master trainers for two months to master the trade they choose. The trades for them to choose from are fashion designing and barbing.
Two training centre with four (4) master trainers have been identified in Ughelli and Asaba.
Those who will choose fashioned designing and will want to be trained in Asaba will be treated in Sewing and Fashion Academy at No. 24 Ogbeosowe Street, Asaba.
For those who will choose barbing and will want to be trained in Asaba, they will be trained in Hairless Services at No 34. Agueze Street near Ogbueke Square near Holy Trinity Church, Asaba.
Those who will choose fashion? designing and want to be trained in Ughelli will be trained in Philip Tailors at No. 42 Market Road, Ughelli, while those of you who will choose barbing and will want to be trained in Ughelli will be trained in Willy Whit Saloon? at No. 10 Ahoro Street, Ughelli. They will be paid stipends by government for a week and two months to augment their feeding and accommodation.
At the end of each of the training, they will be given testimonial and certificate of participation, and machines as starter pack to establish their chosen trade.
I am sure, by now, you will agree with me that this is a lifetime opportunity they should not joke with. We know that the training will not make them master all the intricacies of their chosen trade, but will enable them to start their own trade.
What is the relevance of the scheme introduced by the state government through your ministry?
Delta State Government through the Ministry of Commerce and industry initiated this scheme, The Unemployed Graduate Self-Employment Scheme’, as an alternative window for creating job and employment opportunities for our tertiary institution graduates and young school leavers.
The aim of this scheme is to awaken the innate job creating ingenuity of tertiary institution graduates so that they can direct their intellectual capabilities to production ventures so as to employ themselves and young school leavers.
Those who are identified should count themselves lucky, because they are identified out of the thousands of the unemployed tertiary institution graduates of Delta State origin to benefit from this scheme this year. It is, therefore, imperative that they should be very attentive during the training session so that they can get themselves gainfully employed afterwards.
I wish to use this opportunity to urge Deltans in particular and all Nigerians in general to assist in industrialising the state by investing. It is universally accepted that no one else can develop your country or state for you but yourself; others can only assist you.
You can develop your state by investing in cottage, small and medium scale industries so as to create wealth for yourself, job for members of your family and employment opportunities for our teaming unemployed youths, hence increasing the economic base of the state and that of the country in general.
What is your take on the proposed introduction of N5, 000 note by the CBN?
There is economy survey in terms of saving. Having worked in financial department I know what it entails. So if we do higher denomination, it will save us a lot of money. But I’m also not too aware if I must retract my earlier position, because there is economic inflation associated with that.
It will significantly help cashless economy because not everybody can carry N5, 000 notes in his pocket. It will promote corruption. Those are some of the shortfalls of using N5, 000 note. My only concern is that, to compel people to get into the cashless economy, CBN should create more channels, more awareness for the country to run; otherwise, it’s not going to work.
Because the technical issues associated with our network, it may not work. I think there should be a holistic thing, and not just increasing the denominations because you want to save cost, what is the legal tender problem that is associated with the channel? These are my observed challenges, if not, there is nothing wrong with it. There should be proper engagement and proper orientation of people in order for them to understand the effects.