Governor Sheriff Oborevwori’s recent investment drives to China and Brazil have, quite predictably, been subjected to all manner of distortions and misinformation by his traducers. Political jobbers, professional armchair critics, paid political hirelings, and the traditional mischief makers are falling over themselves to pick holes with this laudable move by the Governor. In the world of these political dissemblers, reason is substituted with hateful rhetoric, factual analysis is nefariously laid on the slaughter slab of vile propaganda, and facts are sacrificed on the altar of political expediency. I wonder how long it would take for some of these people to realise that gaining political relevance or achieving their political ambition requires more than spewing hatred and propaganda. No matter how far a lie travels, truth will eventually catch up with it – and overtake it. Then the merchants of falsehood will be exposed for who they are – liars, hypocrites, and deceivers.
I hear some of them talk as if Foreign Direct Investment (FDI) is something you can just buy off the shelf in a supermarket. They have been mischievously asking to see the investors Oborevwori’s investment drives to these countries have brought to the state. In fact, some started asking the jejune question before the Governor even touched down in the state capital, Asaba. How puerile! Anybody remotely familiar with the investment process knows that attracting local or Foreign Direct Investment is not like going to the neighbourhood convenience store to buy groceries. It is a laborious process that includes elaborate and frequent meetings, consultations, and extensive documentations involving prospective investors, financial institutions, and the relevant government agencies responsible for driving the process.
The attraction of FDIs is a cardinal objective of governments seeking to prospect the resources where they have competitive advantage, accelerate economic development, create employment, and enhance their business competitiveness. After initial meetings, familiarisation visits, and discussions, the best-case scenario for actualisation of FDIs often ranges from six to eighteen months, and even more sometimes, depending on the nature of the business. During that period, both parties will agree on the framework for investment through a Memorandum of Understanding (MoU). The MoU is the working instrument that provides the investment framework and defines the roles of both parties.
The prospective investor is also expected to submit a Feasibility Plan and Business Module that will be rigorously evaluated by the government to ensure that it aligns with its expectations and aspirations. Often, the government will engage a technical expert in the form of a transaction adviser to carry out this function on its behalf. Funding is another critical aspect of the investment process because the prospective investor will need the support of banks who, in turn, will have to do their due diligence before committing their resources or guaranteeing any facility by the prospective investor. From the foregoing, it is self-evident that to successfully attract FDIs is not a walk in the park; it is a painstaking process that requires rigorous planning, creativity, diligence, commitment, patience, transparency, accountability, and good faith from all the parties involved.
Several critical factors determine a nation’s ability to attract FDIs. The combination of such factors as the existence of strategic resources, the presence of skilled work force, sound financial management, relatively well-developed infrastructure, a functional security architecture, and the rule of law make Delta State a good choice for prospective investors. Infrastructure plays a vital role in attracting FDIs. It helps to reduce operating costs of companies, facilitate trade and commerce, and improve market access for businesses and investors. Governor Oborevwori’s massive investment in road infrastructure across the state should be seen in that light. As at the last count, a total of four hundred and thirty-one (431) road projects, with a cumulative length of two thousand, five hundred and ninety-five (2,595.56) kilometres are being constructed by this administration. Also, under construction are drains with a combined length of eight hundred and twenty-two (822.47) kilometres. By interconnecting the various towns and rural communities, including the riverine areas, through extensive road network, Governor Oborevwori is making the state an attractive bride for FDIs.
Similarly, the Governor’s emphasis on fiscal discipline and sound financial management are big incentives for investors. They derive comfort and confidence from knowing that the government they are dealing with is not profligate with public finances, and operates according to global best practices. Furthermore, the automated central billing system for taxes and levies, establishment of six small claims courts for resolution of business disputes, and the Delta State Public Private Partnership Framework are some of the measures that have bolstered ease of doing business in the state. Even more significantly, the Governor’s commitment to enhanced peace and security means that investors have nothing to worry about when it comes to their personal safety or security of their investments. It is not for nothing that Delta State was adjudged the Safest State for Oil and Gas Investments in Nigeria in 2024 by the Federal Ministry of Petroleum Resources.
As the Governor has repeatedly said, Delta State is open – and ready – for business. The foundation has been laid, the infrastructure is in place, and the incentives are spot on. With the prevailing macro-economic stability in the country, Delta State is bound to reap positive dividends from Governor Oborevwori’s recent investment drives sooner than later.
ABOUT THE AUTHOR:
Ekwugum is Manager, Communications, Government House, Asaba.
