By John Mayaki

The raging debate over the collection and distribution of VAT revenue in the country has had unintended consequences for even some of its initiators: states are now challenged to not only give account of their contributions to the federal purse but also their scorecard on the goal of securing self-sustenance.

Energized by the debate, the public and experts alike have beamed a probe light on the economic policies pursued by the state governments to assess for impact, using key indicators such as the harnessing of local advantages and value addition to create jobs and raise IGR.

After all, regardless of the side that emerges top at the end of necessary contention, the crux of the matter lies in the health of the economy of the sub-national governments and what the state governments are doing in the interim to wean off the “federal feeding bottle”, address and anticipate changing economic dynamics, and position their states to leverage available opportunities now and in the future.

Not many will welcome this dimension of the debate because it poses difficult questions. Governor Ben Ayade of Cross River state is, however, a remarkable exception. To all the complex questions, he has impressive answers backed by well-conceived policy goals and visible achievements.

The United Nations proclaimed him a champion of industrialization. It’s a title he has more than earned. His emergence as Governor has witnessed a single-minded focus on spurring sustainable economic development and independence through industrial growth. This has resulted in the establishment of 33 industrial projects across Cross River state, a number of which have begun to yield fruits. This is unprecedented in the history of the state and perhaps the country altogether.

On a personal note, the studious and professorial Ayade has long bemoaned Nigeria’s economic quagmire. Despite being home to numerous natural resources, the country is the world’s poverty capital according to some reports because of its obsession with oil and the resource’s cyclical loop of boom and bust. Long stricken by what is called the ‘Dutch Disease’, the country has failed to power growth in other sectors or build a truly robust and resilient economy capable of providing job opportunities to millions of youths in desperate search of any.

There is no other sector where this is all the more obvious than agriculture. Previously the mainstay of Nigeria’s economy before the discovery of oil, the sector is now almost synonymous with poverty. Farming is mostly subsistent, crippled by the absence of a rewarding value chain, the kind created and maintained by industries that invest in harvests and transform raw materials into finished goods.

It is here too that Governor Ayade has made the most impact, demonstrating the transformative power of his vision and the practicality of his approach. Take the Ikom chocolate factory established by his administration, for instance.

From tree to bar: the 30,000 tonnes per annum processing plant is built with the capacity to process cocoa beans, straight from harvest, to chocolate bars. This solves a variety of problems. First, it provides a ready and profitable market to the state’s teeming cocoa farmers – and indeed those of neighboring states. Importantly too, to run, the factory needs at least 500 hands in direct jobs alone. Then it launches Cross River, and Nigeria by extension, into a more prominent position in the continent’s chocolate and confectionery market worth billions of dollars. The market had been long dominated by South Africa and Ivory Coast owing to investments similar to the one now provided by Governor Ben Ayade.

There is also the vegetable oil plant with a projected capacity to mill 12,000 liters per hour, producing natural and healthy vegetable oil from groundnut harvested by local farmers.

When the pandemic struck last year and states scrambled to enforce mask mandates in the face of limitations such as statewide availability and cost, Governor Ben Ayade’s garment factory made all the difference. The state reaped the benefit of the investments as the Governor directed the mass production of masks and other essential items for distribution to all residents.

Of note too is the state’s 140-bed specialist hospital already at an advanced stage of completion in Obudu. Built in partnership with renowned global health stakeholders such as Siemens and Coscharis, the hospital, upon completion, is set to possess world-class equipment manned by foreign-trained local professionals. It targets Nigerians in search of quality healthcare, thus curbing the export of local funds abroad for medical tourism. Its siting in Obudu is also strategic: the area is a choice destination for a lot of tourists, many of whom are high-earners.

Governor Ayade’s sprawling industrial agenda invites questions on funding. No doubt that such massive constructions, carried out concurrently, will throw up problems in the accounting books of any state. But he has managed this with smart partnerships that significantly cut down cost, reduces the state’s exposure and manages it over time. It also ensures that the treasury remains capable of meeting other state obligations. He calls it “intellectual money”. His model is worth studying.

In a race against time, it remains uncertain whether or not Governor Ayade will commission all factories before his tenure winds up in 2023. But one thing is known for certain – the people of Cross River can be assured of a secured and prosperous future with the path of industrialization Governor Ayade has set the state on.

Mayaki is a Journalist, Historian, Diplomat, Archivist, Documentalist, Communication, Culture and Media expert (Coventry University, England). He’s also an Oxford and Cambridge University-trained entrepreneurship, leadership and sustainability expert. A Professional Consultant on Communication, Management and Strategy (Chattered Management Institute, England).