Industrialization Roadmap

An Industrialization Roadmap has been prepared by the Corporation to articulate Government's industrialization policy objectives and the strategies to guide the orderly implementation of the Industrialization programme. The Roadmap recognizes the universal pre-conditions for sustainable industrial take-off, including:

• The existence of a vibrant middle-class of entrepreneurs. The growth of the entrepreneurial class with enough capital to start small businesses and the willingness to take risks;
• A literate workforce, with the ability to function in modern factories and installations, with disposition to adopt new techniques and ideas;
• Availability of adequate infrastructural development, covering investment in transportation (such as road, bridges, drainage systems, airports, seaports), information and communications technology, power and utilities, etc., to facilitate economic interaction within the State and Nation;
• Appropriate and enabling institutional environment which is conducive to growth and investment through Public-Private Partnership (PPP), including existence of a vibrant financial services sector, and effective Rule of Law, which ensures that contracts can be enforced, and guarantees political stability, security and social order.

The State Government has invested substantially over the years to meet the above pre-conditions for industrial take-off. These include massive investment in physical infrastructure, free and compulsory education up to Senior Secondary level, the growth and empowerment of the business class, adoption of the Public Private Partnership (PPP) framework, safe and secure business environment; and the restructuring of Akwa Ibom Investment and Industrial Promotion Council (AKIIPOC) into Akwa Ibom Investment Corporation. The Corporation is a Special Purpose Vehicle (SPV) established to facilitate the accelerated industrial development and investment promotion in the State.

In this regard, the current Focus of the Corporation’s Intervention and Advisory activities is in four areas of Entrepreneurship and Investment:

1. Existing Industries which are doing “relatively well”, but require some level of assistance to consolidate, break even and expand operations, to meet market competition and ensure improved and sustained profitability.
2. Those industries which are no longer producing, for whatever reasons, but owners want to recommence production, and have made representations to government for financial support. Many of the industries have accumulated bank loans as liabilities which have to be cleared. 
3. Potential Investors who have indicated interest and demonstrated the capacity to establish new industries, but require technical guidance and management advice; in some cases, the need to source for technical partners. Feasibility Study Reports and Business Plans are necessary documents for orderly project appraisal, and final investment decision.
4. Ailing and abandoned industries (some for upwards of 20 years), inherited by the present Administration which may have to be reactivated, subject to certain conditions being met. Established in the 1980s, in certain cases, Technology may have become obsolete. The process may require engaging Consultants to carry out Plant and Equipment Audit, to determine their current status and condition, as a basis for preparing the Reservation Plan.

In recognition that the private sector is relatively weak in Akwa Ibom State, the Corporation is currently providing the much-needed enterprise development support services in these activity areas:

• Entrepreneurial capacity building, through sensitization and awareness creation programmes;
• Nurturing new enterprises to maturity;
• Mentoring individual entrepreneurs;
• Provision of technical and management support services to Micro, Small, and Medium Enterprises (MSME);
• Promoting industrial culture, achievement motivation and value-orientation among our entrepreneurs;
• Mobilization of the business class to key into Governor Akpabio’s “Uncommon Transformation Agenda”, with industrialization as the strategy for ensuring the accelerated socio-economic development of the State.

Thus, the stage is set for the effective implementation of the industrialization policy and programme of Government in the State. The Industrialization Roadmap covers:

• Policy Objectives;
• Implementation Strategies;
• Industrialization Financing Models;
• Investment Opportunities in Akwa Ibom State
• Incentives offered to Investors.

Policy Objectives

• Government would nurture the entrepreneurial class in the State to create wealth for the citizenry;
• Promoting and supporting industries that would generate employment;
• The combined effect of wealth creation and employment generation would lead to poverty reduction;
• Government would empower the youth with opportunities of skills acquisition and entrepreneurial culture;
• Improving the living standard and quality of life of citizenry;
• Repositioning the State economy for competitive edge within the national economy
• Reducing the cost of doing business in the State by the huge investment in the infrastructural development to facilitate production and access to market centers;
• Diversification of the State economy to reduce the dependence oil revenue;
• Spreading economic development in the State by supporting the establishment of industries in the 31 Local Government Areas based on their comparative advantages.

Implementation Strategies

• Nurturing and strengthening of the Organized Private Sector (OPS) in the State through sensitization and empowerment programmes;
• Provision of soft loans to Micro, Small and Medium Enterprises (MSME) in the State through the N4.0 billion Akwa Ibom State/Bank of Industry MSME Fund;
• Using the Public-Private Partnership (PPP) Model to intervene in strategic sector of the economy such as power, oil and gas, maritime and aviation;
• Privatization of existing State-Owned Entreprises (SOE’s)
• Reactivation of ailing industries

Industrialization Financing Models

The Corporation uses any or a combination of the following funding models to facilitate a seamless financial close to its investment and financing decisions:

• The establishment of industrial fund to support MSME, to be administered by the Corporation in collaboration with Bank of Industry (BOI)
• Build, Operate and Privatize: Governmentt would set up strategic industries, run them later sell them to private entrepreneurs;
• The private sector to partner with Government to establish strategic industries under the PPP arrangement;
• Bonds can be floated to raise funds for the development of industrial estates and parks in the State;