Strategies for development: New policies focus on economic diversification and raising standards of living

With a rich endowment of natural resources and an entrepreneurial mindset, Anambra State is becoming an economic model for the rest of the country. In a region known for dominant oil operations and related security challenges, Anambra State has kept on a steady course towards economic diversification over the course of the last few years.

Hitherto, the absence of production oil in the state – given the lack of development of reserves – has undoubtedly pushed the diversification efforts, and the state government has been making progress, paving the way toward economic self-sufficiency. On August 30 2012, Anambra became the 10th oil producing state. A number of sectors, including agriculture, industry and petrochemicals, are likely to help the state’s economy grow from among the smallest in the country to a medium-sized one.

PROFILE: Today’s Anambra State is a smaller version of the old Anambra State that was created in 1976. Reorganisation of the Nigerian territory in August 1991 divided Anambra into two states: present-day Anambra and Enugu. The state is located in the southeast geopolitical zone, bordering Delta State to the west, Imo State and Rivers State to the south, Enugu State to the east and Kogi State to the north. It is home to the Anambra Igbo people, who make up 98% of the local population, and has an estimated population of around 4.7m, making it Nigeria’s eighth most populated state and the second most dense.

The state’s name derives from the anglicised version of “Oma Mbala”, the native name of the Anambra River. The capital and the seat of government is Awka, while the commercial and industrial hubs are in Onitsha, Nnewi and Awka, the so-called ONA industrial axis. While oil production is slated to begin this year, the state’s lack of the profitable natural resource thus far has pushed it to pursue a model of economic diversification. Successful planning and budget allocation in recent years has had a substantial impact on the development of road networks, agriculture and agro-processing, education, health and manufacturing. “Efforts like these have substantially contributed to the state’s poverty reduction and youth empowerment,” Shamsuddeen Usman, the federal minister of national planning, told OBG.

RECENT POLITICAL HISTORY: Despite its relatively young life, modern-day Anambra State has seen the rise and fall of various leaders appointed by either military or civil administrations. These include Joseph Abulu, a Navy captain, who was the first to govern the state; an elected civilian governor, Chukwuemeka Ezeife; and Chinwoke Mbadinuju, who was elected for a four-year mandate on May 19, 1999.

The state then entered a challenging period in its political process. Peter Obi ran on the platform of the All Progressive Grand Alliance (APGA) against Chris Ngige of the People’s Democratic Party. Despite what appeared to be overwhelming support for Obi, Ngige was declared winner of the elections and was subsequently sworn in as governor.

Obi contested the results and after three years of legal proceedings he won the case and was inaugurated as governor in 2006. Seven months into his governorship, he was impeached for charges of malfeasance. Obi once again contested the judgment and succeeded in winning back his governor’s seat. Shortly after that the Independent National Electoral Commission (INEC) judged that Obi’s four-year tenure had ended, basing its decision on the first election round that saw Ngige wrongfully sworn into office. New elections were organised and Obi was excluded from participation. This led to the election of Andy Uba of the People’s Progressives Party who subsequently replaced Obi from office on May 29, 2007. Obi, once again, returned to the courts and pursued his case to Nigeria’s Supreme Court, which ruled in his favour. Obi was reinstated on June 15, 2007, 17 days after his departure.

Much of that year was spent on public appointments and the promoting of Obi’s simultaneously integrated development policy for the state. As such, the full implementation of the budget didn’t start until 2008, two years after the start of Obi’s term. Obi was re-elected in 2010 for a four-year term.

DEVELOPMENT STRATEGY: In 2008 Obi’s administration launched the state’s economic master plan, titled the Anambra Integrated Development Strategy (ANIDS). The plan is modelled after the UN Millennium Development Goals (MDGs) and aims to achieve visible and sustainable development that will touch all sectors of the state’s economy. ANIDS mainly seeks to improve the quality of living for the citizens of Anambra, focusing on raising education and health indicators in the state.

The strategy aims to transition the state’s economy from a supply-driven to a demand-driven model for budget planning and implementation. The government is engaging stakeholders from all levels of society, ranging from town unions to international donor agencies such as the EU, UNDP and UNICEF, which provide much-needed budgetary support to carry out the strategy. Anambra is the first state to involve its citizens and traditional rulers in a budget forum aimed at crafting results-based budgeting.

INFRASTRUCTURE PLANNING: Infrastructure development, in particular access roads in rural areas, has gone in tandem with poverty reduction programmes. Roads to and from industrial areas, such as the Onitsha Industrial Harbour Estate, are being put in place as well to ensure investors efficient and cost-effective access. A total of 610 km of roads have been constructed in the past six years and the state government has set an objective of constructing 100 km of new roads per annum.

Despite the progress here, infrastructural challenges remain, in particular at the level of the federal roads, which cross through the state and link it with surrounding regions. Under-investment and neglect in the state, as well as in the South-East Region – which includes the states of Abia, Ebonyi, Enugu and Imo – has caused federal roads in the area to be declared “among the country’s worst” by a Senate ad-hoc committee established to investigate the transport sector. This was led by Senator Heineken Lokpobiri, who visited the region in February 2009.

One such example of neglect is the Onitsha-Enugu highway. This road is of strategic importance as it connects Onitsha’s trading hub with the rest of the south-east of Nigeria. As Anambra State doesn’t have its own airport yet, access is heavily reliant on Enugu Airport, which connects to the state via this road. Built during the military regime of Olusegun Obasanjo, between 1976 and 1979, the road had not seen much rehabilitation until some months ago. Works are currently under way to restore a dual carriageway, but progress has been slow and remains subject to irregular funding. Besides the poor allocation of funding and insufficient project management, the greatest threats to roads in the south-east are soil erosion, river bank erosion and unregulated transport of cargo that exceeds weight restrictions.

Recent strides have been made in conducting regular soil evaluations in preparation for the projects. Additionally, local contractors with proven experience in road construction on difficult terrain are being encouraged to get involved in the projects.

POVERTY REDUCTION: Proper planning and prudent resource management is at the centre of Anambra State’s development policy. One of the first steps taken by the Obi administration was a state-wide poverty mapping exercise. This identified the local government areas (LGAs) most in need of budgetary aid and provided the foundation of the state’s anti-poverty programmes. “In our economic development strategy we have focused on the remote LGAs in particular that have traditionally been ignored and where poverty is defined by the lack of access to what is happening in the rest of state,” Chinyere Stella Okunna, the state’s commissioner for planning and budget and chief of staff, told OBG.

In line with these efforts the World Bank’s FADAMA III programme has facilitated the provision of capital and equipment support to hundreds of subsistence farmers. Capital support has also been given to underprivileged members of society, such as widows, the physically challenged, caregivers of orphans and vulnerable children. Between 2007 and 2010 a total of N49m ($313,600) was distributed to more than 10,000 women and widows to enable them to either start or expand their trading or farming businesses. Revolving loans worth over N330m ($2.1m) have been made available to 670 cooperatives across the state to facilitate the establishment of small-scale agro-based businesses such as poultry farms, fish ponds, pig farms and cottage industries. Training programmes have been established to help the unemployed optimise their chances in the job market.

JOB CREATION: Government policies to reduce poverty are complemented by employment creation through domestic and foreign investments. Aside from large-scale public-private partnerships which include a neem-based organic fertiliser plant, the construction of a brewery by conglomerate SABMiller and the completion of the second phase of the Onitsha business park – the state government has also initiated a dedicated N2bn ($12.8m) intervention fund through the National Bank of Industry aimed at the development of microbusinesses and small and medium-sized enterprises.

ONITSHA: The trading hub of Onitsha, with the Onitsha River Port Complex, has strong trade links with other parts of the country and with many foreign countries; its market is described as one of the largest in West Africa. Onitsha is a key vector in Anambra’s industrial development plans. An established commercial centre, Onitsha is the main hub for goods coming upstream from the Niger River delta and those transported downstream from towns on the Niger and Benue rivers.

Arguably one of the largest commercial nerve centres in Africa, linking the West African hinterland with Europe and Americas since the 1600s, it has been an international trading centre for almost 200 years. Onitsha became a British trading post in the 18th century, acting as a link between commodities coming from the northern part of West Africa and Niger River hinterland. The city also played host to the Portuguese and Dutch. Today, it still boasts its nationwide reach. Roads connect the city to nearby urban centres Enugu, Owerri and Asaba linking it all way through Benin City to Lagos in the south-west. Its strategic position between the country’s East and West has made it the second-biggest trading centre in the country, after Lagos.

However, under-investments have led to a deterioration of facilities and health hazards. Traders complain of a lack of power supplies, running water and safe surroundings, thus the state has enacted a plan to bring the trading hub and its surrounding infrastructure up to modern standards. Various projects are on the way, including the installation of a running tap water network and the construction of a wastewater treatment plant that will process sanitary waste into manures. In addition, a modern landfill is to be built to contain discarded materials, refuse and solid waste. A recycling centre will also be constructed. Power supplies are also being addressed in collaboration with the Federal Ministry of Power.

While Anambra State is not rich in mineral resources, some commercial quantities known to exist have not yet been exploited. Some examples of this are tungsten, which is found at Oba; lignite, large deposits of which are located in Onitsha, Idemili and Nnewi; and kaolin, which is mined in the Ukpor-Ihiembosi axis and supplied to the ceramic industry at Umuahia in Abia State. Further kaolin deposits await exploration at Aguleri. Additionally, the industrial town of Nnewi has made great strides in becoming the automobile spare parts supplier for the nation, and boasts a growing industrial centre.

INVESTMENT POTENTIAL: Anambra State’s economy is built on a foundation of skilled labour, considerable entrepreneurial ability, and relative easy access to nearby natural resources. Moreover, large established markets within the state’s borders provide investors with nearby locations and opportunities for both procurement and sales activities.

Opportunities for setting up large, medium and small-scale industries are therefore increasingly available. A variety of local agricultural produce is at the disposal of agro-based industries, for example. Proven but unexplored mineral resources are potential areas of investment in industrial development, while four decades of oil exploration is only now coming to fruition with significant business opportunities for related industrial and service activities.

Incentives to prospective investors in manufacturing and processing industries are provided by three industrial estates that have been established at Onitsha, Awka and Ozubulu. The state’s development plans include proposals for similar estates at Nnewi, Awkuzu, and Abatete. The state government’s focus on the development of indigenous businesses, witnessed by local sourcing clauses in foreign investment deals, has encouraged local industry. Many of the state’s privately owned industries are currently located in the Onitsha-Nnewi axis. These include textiles and garments, food processing and animal feeds, breweries (beer and soft drinks), detergents, pharmaceuticals, petrochemicals, auto spare parts, machine tools and building materials industries.

OIL EXPLORATION: Although the state has thus far not benefitted from oil revenues, exploration efforts in the sector have been carried out since 1967. Significant commercial reserves have been discovered in both oil production licences (OPLs) 915 and 916, with current reserve estimates for these reaching as high as 1bn barrels of oil and 30trn cu feet of gas. OPLs 915 and 916 cover some 2158 sq km, the bulk of which lies in Anambra State, while the rest is in parts of Enugu, Kogi, Edo and Delta States. The site is landlocked and distant from processing facilities elsewhere in the region, thus estimates for investments in pipeline infrastructure are over $400m, which long kept investors away. This changed in 2001 when Orient Petroleum Resources (OPR), an indigenous oil and gas company, was established.

From the outset, OPR’s objectives was to capitalise on the state’s oil and gas reserves by constructing a scalable refinery on-site using the output of OPLs 915 and 916, which the company was granted by the government on a sole risk basis, and other surrounding sites as feedstock. Besides minimising capital investment in the construction of long-distance pipelines, the proximity of the refinery would also safeguard production activity from the disruptions that are frequently experienced elsewhere in the south-eastern and southern parts of the country.

OPR’s plans to build a refinery with a capacity of up to 55,000 barrels per day gained federal approval in 2002. In 2005 OPR was awarded EIA certification, the first indigenous company to do so, after which construction of the project began in earnest.

FINANCING THE REFINERY: The project’s engineering procurement and construction (EPC) contract was awarded in December 2006 to the Beijing Petrochemical Design Institute at a value of $550m. China’s EXIM bank financed up to 85% of the amount with UBA acting as the repayment guarantor. The remaining 15% has been financed by OPR itself through a combination of private equity investments and bond-financing. The total project value is estimated at some $660m, with a mere 2% in the hands of the state government. OPR, after a number of unsuccessful efforts to mobilise funds for early construction of its refinery, decided early in 2011 to split the refinery to two modules, starting with 20,000 barrels per day and to fast-track the development OPLs 915 and 916. Now that it has commenced crude oil production, the company is confident to raise the necessary funds to enable it complete the construction of the refinery by the end of 2013.

Nnaemeka Nwawka, OPR’s managing director and CEO told OBG that the company had completed the technical and geological surveys, as well as the civil engineering works for installation of refinery equipment. Overseas procurement, shipment of long lead items and on-site fabrication of storage tanks have been completed and, once delivered later this year, the facility will start its production of a diversified portfolio including gasoline, domestic kerosene, jet fuel, diesel fuel and liquefied petroleum gas.

According to Nwawka, the refinery’s output will allow the state to replace 10% of currently imported refined products. The refinery will be located within the boundaries of OPL 916, about 30 km from the nearest well. “We expect that by the end of 2013 we should be refining 20,000 bpd and gradually after that we will build up to 35,000 bpd, then 55,000 bpd and possibly higher,” Nwawka told OBG.

With the progress of the refinery already well on its way, OPR decided in early 2011 to fast-track a staged development of the oil blocks by completion and production testing of one of the already drilled oil wells and 3D seismic data acquisition on both OPL 915 and 916. At present a total of 18 wells have been drilled, of which five are producing.

The official inauguration of the refinery by President Goodluck Jonathan occurred in the end of August. In recognition of strained relations between oil producers and local communities, experienced in other parts of the country, the company has committed to setting aside 2% of the revenues for local development projects. OPR conducts regular meetings with local stakeholders to estimate where the funds are most urgently needed and how designated projects are progressing. “This marks the first time crude oil is produced in an inland basin in Nigeria and seeks to generate employment, develop the host community and contribute to the local and national economy,” Nwawka told OBG.

The emerging oil activities have given impetus to a range of supply chain and infrastructure projects. One example is the partnership between the Anambra State government and OPR to build an airport at Umuleri, located in the refinery project core catchment area. While the master plan is currently still in the development stages, the licence to start with the preparatory studies has already been awarded.

INDUSTRIAL DEVELOPMENT: Various recently concluded partnerships between the Anambra State government and foreign investors have boosted the state’s industrial base, creating jobs for the local population as well as contributing to the state’s exports to the rest of the country. Ranking at the top of the investment deals is the construction of the SABM iller beverage production facility, valued at some $100m. The venture is divided among several stakeholders, with the Anambra State government holding a 10% share, a group of local investors holding 15% and the majority share held by SABM iller.

The brewery opened on August 30, 2012, with capacity fixed at 500,000 hl of beer, malt beverage and bottled water. Production levels are expandable to 1.8m hl if market conditions are favourable. The plant will significantly increase the brewer’s Nigerian presence and is an addition to its investments in the country, including Pabod Breweries, in Port Harcourt, and Voltic Nigeria in Lagos.

According to Peter Stuttard, the firm’s business development manager, the factory will initially directly employ 180 people. This figure is expected to reach 450 as production volumes increase.

A STRATEGIC LOCATION: The site of the plant had been chosen because of its strategic position in the country’s south-east, home to a quickly growing beer market and close to Onitsha, Nigeria second-biggest trading hub after Lagos. “Onitsha is among the biggest trading capitals of West Africa and buzzes with people,” Stuttard told OBG. “Given the relatively high level of consumption rates and favourable demographics offering further potential for growth, we are primarily aiming at the local market.”

The site, along the Niger River, bordering Delta State, is also well supplied with water and electricity. According to Stuttard, another reason the area was picked based on the presence of a 132,000-volt line to a sub-station in the vicinity – a major advantage given the difficulties often encountered in finding reliable power sources in the country.

Stuttard said every effort would be made to locally source the raw materials needed to produce beer in the plant. The project is also slated to attract substantial investment and jobs into its supply chain. “In general terms, for every person employed in the brewery business, another 20 to 100 people are employed indirectly, depending on the circumstances,” Stuttard told OBG.

The venture faced cumbersome procedures to get the necessary licences and approvals in place before breaking ground, in particular with regards to federal regulations with respect to work permits. However, Stuttard said the Anambra State Government has been very facilitative with regard to ensuring that there are sufficient road connections to the site and helpful in providing assistance to resolve problems that occurred during the construction phase.

VEHICLE MANUFACTURING: A second major industrial development is that of the Innoson Vehicle Manufacturing Company (IVM) based in the town of Nnewi. The company manufactures up to 10,000 vehicles per year for the domestic market and exports, with Ghana ranking as the biggest foreign buyer. The product line includes heavy duty vehicles, middle and high level buses, as well as environment-friendly vehicles. The firm is partnered with pars providers in China, Italy and Germany.

As in the case of SABM iller, IVM has also given rise to a dynamic locally based supply chain. While vehicle assembly operations exist in several parts of the country, including Lagos and Kaduna, IVM currently boasts the nation’s largest output and has subsequently turned Nnewi into a centre for car parts suppliers, mechanics, service operators and the like.

Car assembly operations in Nigeria have faced some significant challenges over the past few decades leading to the demise of some manufacturers. Volkswagen Nigeria, once the nation’s biggest manufacturer, was forced to close down due to the high cost structure imposed by deficiencies in power supplies and road infrastructure. Cheaper imports have since taken the dominant share of the market.

While the old Volkswagen plant has been resuscitated by VON automobiles, a consortium led by Nigerian industrialist Stallion Holdings, since late 2011, its success will be largely dependent on the effective implementation of favourable industrial policies at the federal level.

AUTOMOTIVE POLICY: In 2012 Olusegun Aganga, the federal minister for trade and investment, announced that a National Automotive Policy had been proposed to the Federal Executive Council. The policy aims to give incentives for buying vehicles assembled in Nigeria and, when fully implemented, would fast-track the growth and development of the nation’s automotive industry. “We want to leverage the policy to develop our local automotive industry by ensuring that we patronise vehicles that are assembled here in Nigeria. By so doing, we will be able to boost the productivity of our vehicle-assembling plants, create jobs, generate wealth and transform our economy,” Aganga told local media.

Though the policy has yet to be passed, the outlook for car assembly operations in Nigeria is receiving attention, with the government mentioning the possibility of financial incentives for the industry.

To bring further investments into the state, the Onitsha Harbour Industrial Park is currently under design by the state government. The park is intended to attract large-scale capital projects from local and foreign sources, such as manufacturing, services and agro-processing. Various deals have already been struck, such as the construction of a pharmaceuticals production facility, a hotel and convention centre, and a modern shopping complex.

The first company to open in the industrial estate is Krisoral, which will produce a range of caps and packaging supplies for food and beverage industries as well as supply cosmetics, distilleries and pharmaceuticals. The factory was commissioned at the end of August 2012 and is starting off with a workforce of approximately 400 employees.

Oranu Chris Chidume, the CEO of the company, told OBG that he was positive about the state government’s support, in particular with regards to the construction of access roads and with assistance provided to reduce the cost of lending. However, energy supplies still remain deficient, forcing the plant to run on expensive generators.

TARGETING AGRICULTURAL DEVELOPMENT: Agriculture is a strategic sector for Anambra as it is both its largest employer and GDP contributor. The state has an abundant surface of arable land, naturally irrigated by inland and coastal waterways and a tropical climate with ample rainfall.

These conditions are supportive to the substantial yearly outputs of yam, maize, cassava, rice, and vegetables, among others. In 2011 the country produced around 1.73m tonnes of cassava, 960,000 tonnes of yam, 90,200 tonnes of maize and 36,300 tonnes of rice, according to a report by the National Programme for Food Security.

While the majority of the sector workforce is employed through small-scale subsistence farms, the state’s development policy has earmarked the need for private investments to increase the scale and scope of agricultural activity.

INCREASING SELF-SUFFICIENCY: Investments in the agricultural sector are in line with the nation’s priorities for increasing self-sufficiency of staples and agricultural input (see Agriculture chapter). In selecting its private partners for agricultural development, Anambra keeps a close eye on its ANIDS master plan.

“We are ready to fully support private partners by guaranteeing them an enabling business environment which can help us make further progress on the MDGs. Agricultural support is of critical value here,” Anambra State Governor Peter Obi told OBG.

At the top of the list of priorities ranks the privatisation and resuscitation of the Omor rice mill, which has a capacity of 15,000 tonnes, making it the biggest in West Africa. Following three years of negotiations with the federal government, the mill was handed over to the state government in May 2010. Since that time a total of N3.5bn ($22.4m) has been invested in the mill, coming from both federal and state funds.

In July 2011 a memorandum of understanding was signed with Wicklow Group, a Lagos-based agricultural investment firm, to run the facility. With over 50% of consumed rice imported, at a price of over N360bn ($2.3bn) a year, investments in domestic rice processing capacity are of national strategic value. The next step of the project is the renovation of the Anambra irrigation project, which will drive the mill.

FERTILISER PLANT: Another project with strategic value for the state’s economy is a neem-based organic fertiliser plant. Construction on a facility with a capacity of 10,000 tonnes is currently under way with delivery scheduled for later in 2012. Raw materials for the plant will be entirely sourced from within the state. The project is being carried out through a partnership between the Nigerian government and the National Research Institute for Chemical Technology, which provides technical assistance.

Private sector players are also attracted in other agricultural sub-sectors. As such a memorandum of understanding was signed in July 2011 with Atamili Nigeria to construct state-of-the-art abattoirs in the state. Upon signing the agreement, the chairman of the company, Nnamdi Ezeani, stated that the project, is valued at $10m and conducted entirely in partnership with the state government.

Under the arrangement, Atamili will provide expertise, funds and technology, while the Anambra State government will provide the infrastructure. Atamili, which has done similar projects in the Seychelles, Zimbabwe, Cross River and Rivers States, will train butchers on proper and hygienic handling of meat and set up sales outlets across the state.

EDUCATION: In keeping with ANIDS, Obi’s administration has made improvements in the provision of public education and health care a key priority within the plans for the state’s economic development.

Since 2008 the approach has been based on short-term interventions by equipping educational institutions with ICT infrastructure, science laboratories, school buses, water and power supplies.

Buildings have been renovated with a focus on improving safety and basic comfort for students and teachers. This has involved the provision of water boreholes, toilet and sanitation facilities, computers and electricity generators in schools.

In addition, the state government has entirely withdrawn from managing schools. In earlier years, primary and secondary schools established and run by missionary owners had been taken over by the state government. Obi has reversed this and now, with the schools returned to the supervision of the missionary bodies, has committed to limiting his administration’s role to paying salaries of teachers as well as providing budgetary support to the running of the schools. A total of N10bn ($64m) has been allocated in the 2012 budget for this purpose.

Across the state there are about 4000 new classroom blocks under construction. The first phase of 1000 classrooms have been completed while the second phase of construction of another 1000 classrooms is slated to commence before the end of 2012. Other projects in the pipeline include the renovation and modernisation of the College of Agriculture, the renovation and expansion of the Igbariam University and the AS Teaching Hospital.

HEALTH: Maternal, child and reproductive health services have taken centre stage in the MDG and ANIDS policies, culminating in the renovation of five primary health care centres in each of Anambra’s 21 LGAs and construction of numerous new centres and general hospitals across the state.

The state government has also expressed its support for voluntary agency and mission hospitals and training institutions. It has provided necessary facilities to help medical centres secure accreditation, along with financial and logistical support, drugs and other equipment. A state university teaching hospital is under construction in Awka, working in close partnership with Onitsha General Hospital.

With a clear vision and well-articulated strategy in place, the government has placed its focus on attracting financing partners. So far, the emphasis has been on partnering with development agencies. Anambra State currently benefits from financial aid from agencies such as UNICEF in maternal health, immunisation and infant health; the World Bank for support in combating malaria and construction and equipping of health facilities; the UK Department for International Development in the continued implementation of anti-malaria programmes; and UN MDG funding to help with the construction, renovation and equipping of health facilities at primary and secondary levels, among other areas. The state has budgeted some N5bn ($32m) for the 2011/12 MDG programme, with much of this total now being directed into the health sector.

For instance, equipment installation and renovation of the Anambra State Teaching Hospital and the Onitsha General Hospital have totalled N1bn ($6.4m) and N19.5m ($124.000), respectively, while the hospitals at Umueri have benefited from the N323.5bn ($2bn) worth of investment into health care. Government funds have been distributed to voluntary agency hospitals and health facilities, through partnership with local church groups.

OUTLOOK: With clear development goals and a number of industries on the rise, Anambra’s economic growth model is likely to attract considerable interest from local and foreign business communities.

In a region that has long failed to benefit from the oil revenues enjoyed by its neighbours and neglected by federal governmental development efforts, Anambra has made great strides in assuring investors that they will find an enabling environment, security and an attractive return on investments. The conclusion of sizeable deals with various companies in agriculture, manufacturing, production and petrochemicals also bodes well for those hoping to tap into the state’s investment potential.

Nevertheless, close collaboration with the federal government in areas of road and power infrastructure is needed to sustain economic momentum. With the nationwide power sector reform well on its way and guarantees from the federal government to finally address the infrastructural challenges that remain in the country’s south-east, investors will keep a close eye on Anambra State to assess if its self-acclaimed slogan – “The Light of the Nation” – truly is an indication of a bright economic future.