Investors Ask Amosun to Focus on Industrial Cluster

Femi Ogbonnikan in Abeokuta

Just as the curtain is drawn at the two-day Ogun State Investors’ Forum 2018, investors and industrialists have advised the Senator Ibikunle Amosun-led administration in the state to focus mainly in the development of industrial cluster areas spread across the state in order to enhance rapid growth and development.

A handful of industrialists who spoke one after the other at different sessions of the two-day programme, expressed reservations at the deplorable state of roads in the industrial areas, especially the Atan-Agabara road.

This was contained in the communique issued and presented by the state Head of Service, Abayomi Sobande.

The speakers at the sorum also challenged the government to encourage private investment in infrastructural development and to review introduction of new taxes in the state.
The communique read in part, “Ogun State needs to encourage private investment in infrastructural development. The sState should review the way new taxes are introduced in the state.

“Ogun State’s giant leap in infrastructure was commended but also urged to continue in the development of key infrastructure with a focus on industrial cluster areas.”

However, Governor Amosun in his closing remarks shortly before the communique was read, disclosed that about N23 billion Naira was required to fix the roads.

The governor told the investors that the roads had earlier been awarded at the cost of N14 billion before the contract was reviewed from an asphalt road to a concrete road.

He also explained that about five billion naira has so far been committed to make the road passable.

“The road between Atan and Agbara, they gave me about N14 billion to award the road but I said I don’t have that N14 billion. Instead, I said, what we can do is to be giving it in tranches and we have been doing that.

“They came back and said the weight on the road, because of the vehicles, we need to do concrete road as against the asphalt that we were doing and they came back with about N23 billion.

“This is a federal road but there are no federal people but there is nowhere I can get N23 billion because the highest we have got is about N1.9 billion but we just have to find the formulas to do it.

“I will want to engage all of you there, because it will be to your advantage, like the security fund, if we collaborate, we will enjoy ourselves the more. I am going to knock on your doors and challenge you again to contribute certain percentage, while we also add the remaining percentage.

“While we are still looking for money. I don’t have N23 billion. We can go to bank and borrow but the next day what you pay back is over what you collected. But to fix for road completely, we don’t have the money.
“As we speak now, we have committed about N5 billion on that road and we need N23 billion and those are borrowed fund. We know we should provide all those things but the monies are not there,” said Amosun.

The communique read further, “Ogun State should encourage companies to invest in the youth by establishing collaborations with schools and Vocational Training Centres towards ensuring the availability of skilled manpower.
“Ogun State Government needs to ensure the development and implementation of investment friendly policies in order to continue to motivate investors.

“Ogun State needs to adopt a flexible payment system to facilitate the payment of taxes which will improve its Internally Generated Revenue (IGR).

“Ogun State should build a system driven government that is not extractive but inclusive.”
On the ease of doing business, though Ogun State was said to have moved from 35th to fifth position, investors want the state government to introduce tax incentives as a way of attracting more investors.

“Ogun State should introduce tax incentives and a simplified taxing system that attracts investors into the state.
“The current administration is urged to put in place a process that will ensure continuity and sustainability of the current development process beyond the present administration

“The process of land acquisition should be wholly handled by the state government to prevent crisis with land- grabbers.”