Opinion
Reviving Moribund Industries In Rivers

The revival of moribund industries in Rivers State is the panacea for economic development and curbing high unemployment level.
I want to commend Governor Ezenwo Nyesom Wike for taking the bold step to revive the cassava processing plant located at Afam, Oyigbo Local Government Area. This is the beginning of good things to come in Rivers State and mitigating the army of unemployed youths.
The revival and sustenance of the Afam cassava plant is not the only industry calling for government attention.
There are other government companies that have been neglected for too long and which need to be revived.
A few of these firms are: Delta Rubber Company Ltd with three giant plantations located at Elele, Odagwa, Abara and other subsidiary plantations all in Rivers State; West African Glass Industries (WAGI); Rivers Vegetable Oil Company (RIVOC) in Trans-Amadi Industrial Layout; Rivers State Songhai Farm in Tai; Rivers State Fish Farm in Buguma; and Port Harcourt Airport Hotel.
Now that the government of Barr. Wike has started with the revitalization of abandoned industries, these few others should follow suit to help end the army of unemployed youths roaming the streets of Rivers State and to reduce criminality and other social evils perpetrated by some of these young men and women.
If government revives these industries as mentioned above, it will swallow unemployment and create revenue for the state and also put Rivers State on the map of industrialized states, thereby making the State an economic hub in Nigeria.
Though this may not be easy as it will require a large capital, it will also require strong political will which Gov. Wike is known to muster. Truly Gov. Wike has to consider this seriously in order to leave his name on the sands of time, just as Chief Alfred Diete-Spiff did in the old Rivers State.
There may be distractions and ethnic jingoism as it has denied Rivers State its fair share in the enclave called Nigeria, I urge Wike not to be bothered by these political distractions and forge ahead; for he has been found worthy to carry Rivers State to the promised land and to fulfill the yearnings of our founding fathers.
The Governor recently made it known that the Rivers State Government is contributing about 70 per cent of the total cost of the cassava industry at Afam, leaving 30 per cent to private investors.
This is a well thought-out development plan in this part of the world where government is the major financier of any project that requires a large amount of capital.
Let it be known to us that government is not a good businessman because of the intricacies surrounding the running of government businesses in Nigeria.
This is why management experts and economic managers have advocated for the various ways to run government business either through privatization, deregulation and commercialization.
However, Rivers State cannot afford to toe a different line in the management of its businesses, particularly the suggested industries to be revitalised.
As a follow up to this, I want to make the following contributions or suggestions to aid government in managing the revitalised industry and others that will come on stream.
Since government owns 70 per cent equity of the project cost, government should divest 40 per cent of their share holding in the company to the public (particularly Rivers indigenes who are willing to buy the shares of the company). This divested equity should be allocated to the 23 local government areas at 10 per cent to allow equal participation of the citizens in order to avoid one group taking absolute control of the management and board of the said company.
Government should revitalize all the mentioned companies since it has the financial muscle and list the companies in the stock market for indigenes and foreigners to buy their shares at 30 per cent to all the local government areas, 45 per cent to government and 25 per cent to foreigners who will provide the technical know-how, This will help to avoid the pitfalls of yesterday where government business is seen as nobody’s business.
On the appointment of the management and board members, government should put up enabling environment devoid of political interference and allow the shareholders appoint the board members and a proper recruitment exercise be conducted.
These companies should be supervised strictly by the parent ministry with a technical committee set up to monitor the running of the companies. However, the committee should avoid undue influence of government and board members.
Finally, government and the board, through the Ministry of Justice, should put up a stringent legislation punishable by 20 years imprisonment for any management, board members, including staffers of the company found to have embezzled or connive with anybody to defraud any the company of its finances or properties.
This will help to reduce constant liquidation of companies owned by government or a joint venture with other investors. Suffice it to say that if these suggestions are applied to the letter, and in line with the new realities of the Wike administration, there will be sanity in the management of government businesses in Rivers State.
Nwokugha is a management consultant in Port Harcourt.
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