Breaking News!!!: Governor Otti is reportedly struggling
The rapidity of the Governor of Abia State on fostering collaboration between banks, financial institutions, and local businesses in Ohafia, Aba, and Umuahia, is amazing and the media isn’t focusing so much attention on it. It was heartwarming to watch the President of the Federal Republic of Nigeria praise our governor’s numerous efforts an even symphatize with him as he operates from his private residence. The President understood the centrifugal forces at work here in Abia. My job has been to report the most times, under reported activities of the inner workings of Abia Government especially the Governor as regards his daily struggles to make to Abia State a globally accepted place to transact billions of dollars worth of business. Most times, I report his inner struggles that he’s shy to share. I pray with him daily to ensure every idea His Excellency births, succeeds.
Now, it is essential to consider historical context, current economic realities, and modern strategies that Dr Otti is fleshing out for economic development.
1. Historical Context and Current Challenges
Aba as has been an Industrial Hub for decades: Aba has historically been known as the “Japan of Africa” due to its thriving small and medium-scale industries, particularly in leatherworks, garments, and manufacturing. However, inadequate access to finance has limited the growth of these businesses.
*Umuahia as the Administrative Capital: When Abia State was created, Umuahia has since served as the political and administrative hub of Abia State, with potential for growth in services and agro-based industries. *Ohafia’s Agricultural Potential: Ohafia is rich in agricultural resources but lacks the necessary financial infrastructure to support agribusinesses and value chain development.
Statistics*: According to the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), over 80% of businesses in Abia State are SMEs, yet only 20% have access to formal credit. This gap worries Dr Otti as he strives to close the gap because he knows it stifles growth and innovation.
2. Otti’s most potent economic schemes to transform the MSMEs landscape via multiple Collaborations
To address these challenges, the Governor is implementing and strengthening the following strategies:
a. Vigorously Sustaining the Public-Private Partnership (PPP) Framework
Otti’s Objective: He wants to create a platform where banks, financial institutions, and local businesses can smoothly collaborate under government supervision.
As a seasoned banker, Dr Otti’s passion is to partner with commercial banks and microfinance institutions to reduce interest rates for local businesses.
He wants seamless processes to provide guarantees for loans to reduce the risk for financial institutions.
By God’s grace as he ends his tenure in 2031, Otti prays to God to have promoted over 89% Financial Inclusion in Abia State
He’s have worked out perfectly modalities to increase access to financial services for underserved populations.
They are in discussions right now to encourage the establishment of more bank branches and ATMs in areas like Ohafia LGA.
Policy instruments are being fine tuned to promote more mobile banking and agent banking services to reach unbanked populations.
Governor Otti has concluded with aides to float a conference with fintech companies to provide tailored digital payment solutions for small businesses.
His aides charged with supporting Agribusiness and Manufacturing have been mandated to urgently to boost more economic activities in key sectors such as provide grants and low-interest loans to agribusinesses in Ohafia LGA to modernize farming practices and improve value chains.
In their series of consultative meetings, the governor emphasized the need to support Abia’s manufacturing sector by facilitating access to working capital and equipment financing.
He specifically wants to establish industrial clusters in Ohafia, and Umuahia to attract investments and create economies of scale.
Non political Capacity Building and Training*
Governor has not particularly been optimally happy with trainings so far. He told a close associate that he wants to target on the field serious and non-political beneficiaries of all Abia State trainings henceforth. He particularly harped on equipping local businesses with the skills to access and manage credit, by organizing workshops on financial literacy, business planning, and loan management, partnering with institutions like the Bank of Industry (BOI) and SMEDAN to train entrepreneurs.
Otti is hugely inspired to Leverage Technology and Innovation so as to modernize their business operations and financial transactions by promoting the use of digital tools for inventory management, accounting, and marketing. His face brimed with smiles as he further harped on encouraging banks to develop tailored products for MSMEs, such as invoice financing and trade credit.
Otti’s Expected Outcomes*
Economic Growth: He’s confident that there will be increased access to finance will boost productivity and create jobs in Ohafia, Aba, and Umuahia.
Poverty Reduction: Otti concluded that financial inclusion will empower low-income earners and reduce poverty rates.
Revenue Generation: In his words and I humbly quote: “A thriving SME sector will increase tax revenues for the state government.”
As an associate Professor of Economics, I am confident that as the government continues to implement, Abia State will unlock more economic potential of Ohafia, Aba, and Umuahia, positioning itself as a model for SME-driven development in Nigeria.
Dr Chukwuemeka Ifegwu Eke writes from the University of Abuja Nigeria
