Why Enugu Emerged as Largest Economy in South East
Gov Ugwuanyi
By Jeff Ejiofor
It is no longer news that Enugu state is the largest economy in south east and the 5th best in the whole of Nigeria. This rating, and its proclamation as one of the six largest economies in Nigeria that can survive without federal allocation according to 2019 States Validity Index by Economic Confidential did not come to many as a surprise considering the sound economic policies of the state government under the able leadership of Gov. Ifeanyi Lawrence Ugwuanyi. Although Enugu has for long carried the toga of conservative civil service state being that it does not host mega industries or belong to the league of oil producing states, the entry of the current administration revolutionized its socio-economic status and took it to the committee of viable economic giants in Nigeria. It has through a stint of hard work and resilient leadership been transformed to a latent economic hub with average annual IGR base of 31 billion naira.The attendant multiple opportunities and potentials inherent in this economic reality will manifest fully with time.
It’s quite obvious that these things don’t happen by chance, but usually as a result of proper economic planning through aggressive rejiging of the entire revenue generation architecture. It involves careful plugging of loopholes and leakages of all sources of revenue generation. As a matter of fact, every state in Nigeria can attain such a height through self search for internal sources of revenue generation but requires a visionary leader versatile in prudent financial management to do that. It definitely requires a highly organized leader of men and resources to harness the economic potentials of a given political entity. This informs the reason I personally get amused when some politically uninformed folks make unnecessay comparisons between Enugu and states that cannot even survive for a month without federal subventions. In short, it suffices to say that the political economy of Ugwuanyi’s policies is undisputable and second to none in Nigeria.
The above result which placed Enugu, a state without multinational oil corporations or federal government aided mega industries as the 5th most economically viable state in the whole of Nigeria is a clear evidence. It can only take a prudent and dogged leader like Ifeanyi Ugwuanyi to achieve.
Undoubtedly, Enugu state is lucky to have such a pragmatic political leader endowed with immense wisdom at a perilous time like this when Nigeria and the globe are at the threshold of economic emasculation. It’s unarguable also that since 2015, the world economy has been intermittently slipping into recession, leading to sustained glut in crude oil market which accounts for 95 per cent of the Nigeria’s foreign revenue earnings. This development has led to serious socio economic deficit, thereby forcing many states in Nigeria to go bankrupt in an effort to meet their financial commitments. As a matter of fact, Nigeria as a country has been in economic distress since then and has resorted to borrowing in order to sustain and keep the system running.
Consequently as a result of this obvios reality, many states cannot meet their financial obligations as regards payment of workers’ salaries not to talk of project execution. In most cases, their major concern is how to sustain their recurrent budgetary expenditures.
This development once led to federal government bailing out a particular state with 10 billion naira to offset accumulated salary arrears in order to enhance the electoral chances of an incumbent governor who was standing for election. This is a perfect reflection of what obtains in most Nigerian states this period of economic recession.
*Ejiofor wrote from Enugu
It is no longer news that Enugu state is the largest economy in south east and the 5th best in the whole of Nigeria. This rating, and its proclamation as one of the six largest economies in Nigeria that can survive without federal allocation according to 2019 States Validity Index by Economic Confidential did not come to many as a surprise considering the sound economic policies of the state government under the able leadership of Gov. Ifeanyi Lawrence Ugwuanyi. Although Enugu has for long carried the toga of conservative civil service state being that it does not host mega industries or belong to the league of oil producing states, the entry of the current administration revolutionized its socio-economic status and took it to the committee of viable economic giants in Nigeria. It has through a stint of hard work and resilient leadership been transformed to a latent economic hub with average annual IGR base of 31 billion naira.The attendant multiple opportunities and potentials inherent in this economic reality will manifest fully with time.
It’s quite obvious that these things don’t happen by chance, but usually as a result of proper economic planning through aggressive rejiging of the entire revenue generation architecture. It involves careful plugging of loopholes and leakages of all sources of revenue generation. As a matter of fact, every state in Nigeria can attain such a height through self search for internal sources of revenue generation but requires a visionary leader versatile in prudent financial management to do that. It definitely requires a highly organized leader of men and resources to harness the economic potentials of a given political entity. This informs the reason I personally get amused when some politically uninformed folks make unnecessay comparisons between Enugu and states that cannot even survive for a month without federal subventions. In short, it suffices to say that the political economy of Ugwuanyi’s policies is undisputable and second to none in Nigeria.
The above result which placed Enugu, a state without multinational oil corporations or federal government aided mega industries as the 5th most economically viable state in the whole of Nigeria is a clear evidence. It can only take a prudent and dogged leader like Ifeanyi Ugwuanyi to achieve.
Undoubtedly, Enugu state is lucky to have such a pragmatic political leader endowed with immense wisdom at a perilous time like this when Nigeria and the globe are at the threshold of economic emasculation. It’s unarguable also that since 2015, the world economy has been intermittently slipping into recession, leading to sustained glut in crude oil market which accounts for 95 per cent of the Nigeria’s foreign revenue earnings. This development has led to serious socio economic deficit, thereby forcing many states in Nigeria to go bankrupt in an effort to meet their financial commitments. As a matter of fact, Nigeria as a country has been in economic distress since then and has resorted to borrowing in order to sustain and keep the system running.
Consequently as a result of this obvios reality, many states cannot meet their financial obligations as regards payment of workers’ salaries not to talk of project execution. In most cases, their major concern is how to sustain their recurrent budgetary expenditures.
This development once led to federal government bailing out a particular state with 10 billion naira to offset accumulated salary arrears in order to enhance the electoral chances of an incumbent governor who was standing for election. This is a perfect reflection of what obtains in most Nigerian states this period of economic recession.
*Ejiofor wrote from Enugu
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