BFS of its large Iron ore Agbaja Cast Steel Project expected soon!, page-4

Kogi State and the NIPC Q3 Investment Report: The True Story


Dr Adams Adeiza
28/12/2020 ·5 min read



Kogi State Governor — Yahaya Bello (Middle), Vice President Yemi Osinbajo (Right) and Lagos State Governor (Babajide Sanwo-Olu). Photo credit: The Cable News.
A few days ago, we woke up to the news that the Nigerian Investment Promotion Council (NIPC) has ranked Kogi State as the number one investment destination in Nigeria. The state holds the largest chunk (25% — about US$1 billion) of the US$3.9 billion investment announcements in Nigeria between July and September 2020.
The news was indeed music to my ears. As someone who has been clamoring for strategies to attract private sector investment into the state, I celebrated the news all day long.

I even started bragging and bantering with some of my friends who always mocked me whenever unsavory news and dramatic stunts popped out of my state.

From Dino Melaye’s tree-climbing episodes, to Yahaya Bello’s scary boxing stunts and to the most concerning: news of non-payment or percentage payment of workers’ salaries — Kogi is never short of ‘holy shit’ kind of news.
The Doubting Thomas has Some Strong Reasons
But my friends would not let me enjoy this cheering one in peace. They dismissed the news. Initially as being fake and later, as being planted by Governor Yahaya Bello’s media aides to boost his image ahead of his declaration for — don’t bother me — you already know the office.
Well, as would happen to a kid whose end of the session academic performance is beyond expectation, I started to doubt the story myself. So, being a researcher, I decided to do the right thing: research the story.
Before I tell you what I found, let me give you some context and the probable reasons why people don’t believe the good news coming out of Kogi State.

First, with all the drama that seem to characterize the state, people don’t see Kogi as being serious enough to have the kind of business environment worthy of attracting a billion dollars investment. And they are not wrong for having that view.
In the World Bank’s 2018 Ease of Doing Business, Kogi is in the bottom 10 overall; 28th (out of 37) in Starting a Business, 22nd in Dealing with Construction Permits, 18th in Enforcing Contracts and 14th in Registering a Property.
The report submits that Kogi is one of the states that did not implement any serious reforms to improve business environment. For sure, those are not the numbers and narrative that any serious investors would want to deal with.
The state has historically been in the bottom of the list when it comes to investment attraction in Nigeria.
For sometimes now, I have been tracking NIPC investment announcements, at least since the last 15 quarters. Since 2016 when the current administration in the state came on board, not once, not in any quarter, was the state among the top 5 destinations. For the most part, Kogi is not even on the list.
Now, add to the mix, the fact that unlike other states with active Investment Promotion Agency like Kaduna, Ekiti, Nasarawa and Lagos, and whose Governors are visible in the investment promotion space, Kogi does not have any organized and active investment strategy delivery structure, nor is its governor known to be active in the investment promotion circle, aside, of course, the annual jamboree called Kogi Investment Summit.
So, you would excuse my friends who did not expect the state to do as well as was announced by NIPC.

My Findings — The True Story
The state’s recent performance in FDI, my study revealed, is traceable to one key manufacturing/steel project: the US$1 billion Agbaja Cast Steel Project being undertaken by Kogi Iron — a company listed on the Australian Security Market (ASX). The project is said to be funded by Torridon Investment — an European Fund Management Company.
The project is located on the Agbaja Plateau, near Lokoja — some 200km from Nigeria’s Capital City, Abuja.
Estimated to have a probable 205 million metric tonnes of Ore Reserve at grade 45.7 iron (Fe), the project is designed to exploit the Plateau’s extensive, flat-lying channel iron deposits.
The project has been a long time coming. As stated in the company’s website, the decision to explore the potential of the project was made in 2016. By 2017 through 2018, a Feasibility Study and Pilot Plant Test were successfully completed and the results confirmed both the technical feasibility and marketing viability of the project.
When completed, the project has a huge potential, not only in terms of putting to productive use, the unique mineral endowments of the state and boosting her IGR, thousands of jobs could come out of the value chains of the project.
At this point, a round of applause is in order for my State.


Thus, the NIPC ranking of the state is not a hoax. While it might seem like a fluke for the State to be where it is at the end of the quarter, it is one fluke that must be celebrated by all lover of development.
Regardless of your regard for the officials of the state, this is one big win that must be cherished and projected in the best light possible.
Meanwhile, I have a word for the state government and it’s not pleasant.
Since the release of the report, I have seen some state officials celebrate, in some cases wildly, and I want to say — carry on. Even if this is really a fluke, it’s your luck, enjoy it. I only want to add that, it is high time the state is seen in a different light. Enough of the drama.
Kogi cannot have the kind of potentials and natural advantages — 58% of cashew trees in West Africa, purest deposit of iron ore (Itakpe) in Nigeria, highly educated young population, naturally-well irrigated land for all-year-round farming etc. — and be where it is in terms of IGR, unemployment and poverty.
In the world of investment attraction, image matters. There is a silver lining somewhere in people’s disbelieve of the state’s Q3 investment performance.

If we are really smart, and we love the thrill of being ranked first in investment attraction enough to celebrate the way we have been, then we should see this moment as a wake-up call. A call to be honest with ourselves and do the damn right thing.
Remember, champions are defined not by a one-off victory but by their consistency being at the top of their games.
The state should seize the momentum by putting up a deliberate structure that not only consolidates the current achievement (provide a superior aftercare and seek for expansion), but also effectively go after every investment opportunity just like Kaduna, Ekiti and Nasarawa do.