The Strategic Plans for Enugu State Economic Growth

Written by Emmanuel Ezema

According to the 2019 annual state viability index released in July of 2020, Enugu state was listed among the six states in Nigeria that can survive off its internally generated revenue, without depending on federal allocation.

Enugu generated N31 billion compared to the Federal Account Allocation of N103 billion representing 29%. This reflects greatly on the present governor of the state, Ifeanyi Ugwuanyi.

Enugu State has witnessed growth in different sectors and we will focus specifically on its economy in recent times.

Lately, economies around the world have faced hard times which were heightened by the Covid-19 pandemic and the impact continues to show to date.

In 2019, all the 36 states in Nigeria, including the Federal Capital Territory had a collective Internally generated revenue of N693.9 Billion from January to June of 2019, as stated by the National Bureau of Statistics.

But in 2020, there was an 11.7% dip in IGR resulting in the generation of N612.87 Billion of IGR in the first half of 2020.

In Enugu state, this was concerning, as the generation of revenue was becoming more difficult. Enugu state was not among the top 10 states when the IGR was being considered in the year 2020.

This development is owed to the reduction in the internally generated revenue of the state, as there was a decrease in economic activities within the state.

In addition, what was generated was channeled to the health institutions and public palliatives in order to cushion the effects of the Covid-19 pandemic.

Also, the reduction in oil prices in 2020 due to the reduction in demand contributed to the stunted economic growth we have had recently.

Despite the obvious challenges which the government of the state faced, one can say that the government has remained steadfast under the leadership of Ifeanyi Ugwuanyi.

Several developmental projects, aimed at achieving a more stable economy are still being carried out across the state and are highlighted below to include:

Tourism Booms

One of the major projects, which was delivered amidst the shortage of funds caused by the pandemic was the renovation of the Akanu Ibiam International Airport, which was opened on the 30th of August 2020. This was achieved by the governor of the state in collaboration with the Minister of Aviation, Hadi Sirika.

The closure of the airport had limited the movement of investors into the state within the period and also closed the option of having any form of revenue generation from activities within the airport.

Enugu state, according to the National Bureau of Statistics has been said to be the most economically viable state in the Southeast. This has been achieved despite the limited major industries in the state.

The major sources of revenue generation for the state remain taxation, transportation, state-owned market structures, and tourism. Many states within the country still cannot thrive without the annual revenue being pulled from the federal level. This of course is mostly generated from oil sales. The achievements of Enugu state are worthy of commendation.

At this point, one might wonder what the state does differently from other states within the country. The answer might be found when we pay attention to the way the governor has prioritized his duties within the state.

When we look at economic analysis, we see only figures. These figures rise and fall depending on the performance of the sector, state or institution. But one of the driving forces behind any economy of the world is the people.

Their performances determine whether the figures will go low or high. With this said, one will want to pay attention to the governor’s relationship and control of the human factor within the economy.

Since humans are the major driving forces behind any economy, as there is no economy without the people, the governor of Enugu State, Ifeanyi Ugwuanyi has paid attention to giving adequate incentives.

Timely Salaries

The pandemic had made it a little difficult for some state governments to pay workers’ salaries, yet this is something that has not been witnessed in Enugu state. This gives the state workers the adequate incentive to do what they ought to do when they ought to do it.

The governor has taken an extra step to implement the 13th-month salary scheme. This timely payment of salaries removes the chances of industrial actions such as strikes, which will limit or waste productive time and resources within the state. All these contribute to the proper flow of the economy, since the civil servants, who are the key drivers in a state are cared for.

Minimal Loans

As a country today, we are witnessing a high intake of loans at the federal level. This, however, is something that has been avoided to a great extent by the Enugu state government. Governor Ugwuanyi has adopted initiatives to prevent the state from running into unnecessary debts which can possibly affect the state’s resources. This makes for a stronger state in terms of its economic strength.

Improved Infrastructure

The role infrastructural development plays in the actualization of a stable economy cannot be over-emphasized. Steady electricity, portable water supply, good roads, and a host of other things are factors that encourage the growth of an economy and Enugu State continues to positively pursue the improvement of these factors.

Security Checks

The safety of residents and visitors in any location is paramount and another of the crucial factors that the government of Ugwuanyi uses to help stimulate Enugu state is security.

Road Projects and Flyover

In the past few years of the present administration, road projects especially in rural areas have been widely prioritized and undertaken by the present government.

Within Enugu North, the good condition of the Opi Nsukka road is a result of the proactive decision of the government. As a result of this, Enugu state has been rated as the state with the highest direct foreign investment in the Southeast.

Furthermore, in a bid to enhance the tourism and hospitality sector, Governor Ugwuanyi has made obvious efforts which are reflected in the renovation of the popular Nike Lake Resort Enugu.

The administration of Governor Ifeanyi Ugwuanyi of Enugu State, at the end of 2021 Q1, announced the commencement of the first-ever flyover bridge project by the state government, to be situated at the Abakpa Nike/Nike Lake T-Junction road, in Enugu East Local Government Area of the state. This would go a long way to show the role that favorable environments play in ensuring economic growth.

Tax-Friendly Policies

As is almost usually the case, the poor ones, who are the most vulnerable are neglected whenever economic policies are being drawn up. Their welfare is not always taken as a priority. But in recent years in Enugu state, the governor has taken steps to ensure that these vulnerable ones are well protected.

This was achieved by the waiving of the income tax for low-income earners within the state. This was followed by the waiving of the income tax for all workers within the state in order to help them adjust to changes brought about by the pandemic in the year 2020.

Digitized Revenue Channel

In a bid to ensure the proper collection and management of revenue generated via tax, the present Enugu state government went ahead to institute the Enugu state Internal Revenue Service. Since its institution, the Enugu State Internal Revenue Service has been one of the major funding arms of the Government since tax is one of the basic sources of revenue for the state.

It has been charged with the duty of handling the challenge of increasing the Internally Generated Revenue of the State. This they have done by the adoption and implementation of various strategies which are being directed at enhancing the scale of revenue generation and ensuring secure collections.

This mandate has been achieved through ENICS (Enugu State Internally Generated Revenue Central System) which is an online system designed to tackle the issue of tax collection.

Enugu State Taxpayers can now confirm their Enugu State Social Benefit Numbers (ESBN), Demand Notices, Payment Receipts, Tax Clearance Certificate as well as locate revenue collection banks and tax offices.

Taxpayers can also start the process of obtaining an ESBN from anywhere they are in the world. All these are aimed at having a more stable and transparent means of collecting and handling the state’s finances.

The Enugu State Government understands that the welfare of the masses would equal a more stable economic environment. And with the people-oriented policies being implemented, we have seen that it has been nothing but successful.

Enugu state today stands proudly as one of the best performing economies within the country. Its stable environment will help in drawing the attention of external investments. This way, more jobs, and other expansion opportunities will come to the state. Investors, both local and international are encouraged to tap into the opportunities being presented in order to make the best out of it.

When we consider all the strategic avenues adopted by the current government of Ugwuanyi, we have shown that the present government of Enugu state is one that is people-oriented. As the people continue to remain cooperative with the commendable government led by Ugwuanyi, the sky will only be but a starting point for the great achievements that will continue.

Originally published at http://discoverenugu042.wordpress.com on June 29, 2021.