NIGERIA: IMO STATE PROMOTES MICRO-ENTERPRISES

UNCLAS SECTION 01 OF 02 LAGOS 000441 SENSITIVE SIPDIS STATE FOR AF/W E.O. 12958: N/A TAGS: PGOV SENV SOCI NI SUBJECT: NIGERIA: IMO STATE PROMOTES MICRO-ENTERPRISES ¶1. (U) Summary: In an October 17 visit to the Consulate, Imo State Executive Assistant to the Governor on Youth and Empowerment, Ambrose Obioha, claimed the state is focused on building the capacity of its youth and making strides to tap the potential of its natural resources. Entrepreneurship programs are focused on enhancing micro-enterprises in the state, as the governor is making efforts to turn Imo into the business hub of the South East. End summary. ¶2. (U) On October 17, Ambrose Obioha, Executive Assistant to the Governor on Youth and Empowerment, met with Poloffs to discuss the efforts in Imo state to develop micro-enterprises for the state's youth, expand economic development, and tap into natural resources to generate power and strengthen industry. His position focuses primarily on capacity building, increasing youth employment, and entrepreneurship training, but he presented an optimistic view of other areas of development in Imo State, and claimed that Governor Ikedi Ohakim is taking steps to make Imo the business center of the South East region. Programs Build Capacity Among Imo Youth -------------- ¶3. (U) Obioha described efforts made by his office to develop businesses of young college graduates, particularly in communities affected by rampant unemployment. He organizes entrepreneurial and micro-enterprise seminars for college students that promote small business development. The state government has partnered with NGOs such as Network for Peace and Development and has recently initiated a relationship with Good Morning Africa, a U.S. organization working on social entrepreneurship in Africa. ¶4. (U) One scheme that the state is heavily promoting is the Ohakim Business Plan, a program sponsored by the Governor,s office to award USD 100,000 to young business leaders to fund their proposed micro-enterprises. Obioha said, contests like this will continue over the next several years to get youth active in advancing the business environment in the state. The state has also built partnerships with two Nigerian banks, First Bank and First Inland Bank, to give loans to these small businesses over the next three years. Obioha stated that through these micro-lending projects, the state government hopes to create one million jobs within the next eight years. State to Develop Power Plant -------------- ¶5. (U) Obioha claimed that the Governor has made substantial progress in developing gas and coal deposits, and researching methods to improve the quality of palm oil production in Imo State. The state is currently working on a memorandum of understanding with a South African company to build the first power plant in western Imo. Power currently comes from Aba, Abia state, but with this development, Imo would generate its own power to enhance the manufacturing and natural gas industry. U.S. Petrochemical Plant Sought -------------- ¶6. (SBU) Due to the conflict and turmoil in the Niger Delta, Obioha claims that there has been an influx of businesses and residents moving north into Imo State, where the living conditions and business climate are not hindered by violence. (Note: In recent meetings in Edo State, contacts have also reported people fleeing from the violence of the Delta and transfering businesses to Edo. End note) The Governor believes these conditions will increase international investment. Obioha emphasized the importance of a recent contract with a U.S. company, Royal Oak, to build a USD 250 million petrochemical manufacturing plant. (Note: Despite Obioha's claim and a press release for this contract on the Imo State Government website, an internet search for the U.S. company yielded no results. This casts some doubt on whether this is an established petrochemical company and raises questions about the viability of the project. End note) The government is working hard to attract investors and plans to LAGOS 00000441 002 OF 002 host their first economic summit in February 2009, Obioha reported. ¶7. (SBU) Comment: The entrepreneurial and micro-enterprise programs Obioha described are a practical step toward reducing unemployment and avoiding the problems that have plagued states in the Niger Delta. It remains to be seen whether the state will be able to attract the power and petrochemical investors it hopes for. End comment. ¶8. (U) This cable has been coordinated with Embassy Abuja. BLAIR