ABIA ECONOMIC DEVELOPMENT BLUEPRINT (2015 – 2025)

ABIA 

ECONOMIC 

DEVELOPMENT 

BLUEPRINT 

(2015 – 2025) 

Version 8

Abia State Government 

Economic Blueprint 

EXECUTIVE SUMMARY 

Introduction 

Details of the framework for achieving the desired economic growth and economic development 

of the State is set-forth in this Economic Development Blueprint. Focus is on specific sectors 

through which this growth and development will be attained riding on the comparative 

advantages of the State. 

The Vision and Mission for the State are “to be the premier destination in Nigeria, West and Central 

Africa; for investors, shoppers, workers and tourists” and “to uplift the lives of Nde Abia” respectively. This 

provides a general outlook on the purpose of this plan. 

Background / Planning Context 

Global Trends 

Global growth remains moderate, with uneven prospects across some countries and regions. It is 

projected to be 3.5 % in 2015, in line with forecasts in the January 2015 World Economic 

Outlook (WEO) Update. 

Health spending is estimated to have increased by 2.8 % in 2013 — a rise from 2% in 2012 — to 

total $7.2 trillion, or 10.6 % of global gross domestic product (GDP). As the global economy 

recovers from prolonged recession, health spending is expected to accelerate, rising an average of 

5.2 % a year in 2014-2018, to $9.3 trillion. 

The world population is projected to rise beyond 9.6 billion by 2050, despite a slowing rate of 

growth; while on trade, growth in the volume of world merchandise trade will pick up only 

slightly over the next two years, rising from 2.8% in 2014 to 3.3% in 2015 and eventually to 4.0% 

in 2016 according to the World Trade Organisation (WTO). 

Large supplies and a strong US dollar have kept international food prices under continuous 

downward pressure. The world food import bill is forecast to reach a five-year low in 2015. 

As for technology, worldwide IT spending is spiralling towards a total $3.8 trillion in 2015, a 2.4 

% increase from 2014; however, this growth rate is down from earlier projections of 3.9 %. The 

slower outlook for 2015 is largely attributed to the rising U.S. dollar as well as a modest 

reduction in growth expectations for devices, IT services and telecom services. 

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External Environment 

With a landmass of about 923,773 square kilometres (357,000 square miles), Nigeria is the 12th 

largest country in Africa. After a democratically-elected government assumed power in May 

1999, Nigeria has had five smooth transitions of power. Its most recent elections have been 

characterized by observers as one of the freest and fairest in the country's election history and 

have further consolidated the democratic rule. 

With a population of about 170 million people, Nigeria is the most populous country in Africa 

accounting for 47% of West Africa’s population. The country accounts for 20% of the total 

population of Sub-Saharan Africa with GDP estimated at USD594.26 billion in 2014. It is also 

the biggest oil exporter in Africa, with the largest natural gas reserves in the continent. 

The Nigerian economy has witnessed significant growth in the last fifteen (15) years as a result of 

stable political climate and several ambitious reform agenda such as the setup of the Excess 

Crude Account (ECA) and Power Sector Reforms. Today, over 10 power generation and 

distribution companies are successfully privatized while the transmission company is placed 

under a management contract awarded to a reputable international company selected on a 

competitive basis. 

Nigeria recently became the largest economy in Africa following the rebasing of national 

accounts largely driven by the non-oil sector: services, industry (apart from oil mining) and 

agriculture. GDP moved by 79% from $285billion estimates of 2013 to $509billion. 

The country has also witnessed massive surge in information and communication technologies 

adoption. As at 2000, there were only 74 Internet Service Providers (ISPs) and an estimated 

140,000 Internet users among a population of 120 million people. However, the pace of 

information technology adoption has increased within the last decade with the number of 

internet users growing from 140,000 in 2000 to 57.7 million in 2014 and an estimated upward 

trend to 84.3 million by 2018. 

The sharp decline in oil prices since the third quarter of 2014 has however posed major 

challenges to the country’s external balance and public finances, especially for development. Oil 

accounts for close to 90% of exports and about 75% of Nigeria’s revenues. 

Abia State-Current Assessment 

Abia state used to be known as a Pan-African business hub. The industrial impact of Aba smallscale 

artisans earned it the name "Japan of Africa'. The products of these micro-industrial 

concerns were sold all over Nigeria and abroad. People from every part of Nigeria and the West- 

African sub-region flocked to Aba to buy the products. This was a major boost for the economy 

of the state in the past. 

The current economic situation of Abia is a story of contrasts. On one hand, the state boasts of a 

thriving commercial hub (perhaps the biggest in West Africa), fertile line for agriculture, a 

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thriving garment and leather works industry. On the other hand unemployment, underemployment 

and poverty levels are high with the majority of the people living below the poverty 

line. 

According to the most recent computation of Gross State Product (similar to GDP 

computation), Abia has a GSP of N307.32bln making it the 22 nd in the country; with about N6, 

235.35bln gap from the 1 st state (Rivers state). 

Mixed farming of crops and livestock is the common practise in the state but yield levels are 

rarely up to 50% of their potential. The state has the potential to develop significant agribusiness 

ventures. This potential has been recognised by previous administrations in the State 

and efforts were made to invest in agriculture by set up state owned farms 

Despite the efforts of the previous administrations to encourage commercial large scale farming, 

the state is still largely dominated by peasant farmers who face many challenges. 

Crude oil and gas production is a prominent activity in Abia as it contributes 39% of the State’s 

GDP. Despite being the largest contributor to GDP in the state, experts are unanimous that 

Abia State’s oil and gas potentials have been under-exploited; nevertheless, with the increased 

success of the federal government’s marginal field’s development, investors have been 

encouraged by the state government to explore the 53 marginal fields in the state. 

Aba has always been identified as the commercial nerve centre of southern Nigeria. The 

commercial significance of Abia State in the region is boosted by its geographic location at the 

heart of the eastern region (bordered by seven (7) states) with direct access to the sea, as well as 

concentration of vibrant industries. Irrespective of huge economic potentials these markets 

portend, their neglect in the past years has turned them to unattractive places to visit. 

The deterioration of security infrastructure in the last 2 decades, the perennial challenges of 

electricity supply, coupled with the gradual general infrastructural decay in the state (especially in 

the transport sector) has forced the shutdown of several industries and scuttled many start-ups in 

the state. 

New Strategic Direction (Abia Tomorrow) 

This section presents the new overall strategic direction for achieving the Vision for the State. It 

highlights strategies and initiatives that will be implemented under the focus sectors and enablers. 

It discusses the vision, values and core theme to be implemented. 

The focus sectors are specific economic areas where the State will actively canvass for 

investment inflows by building out infrastructure, disseminating information and generally 

supporting the private sector. The enablers, on the other hand, are generic areas of development 

required to achieve an environment which will promote economic growth and social wellbeing. 

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For each focus sector and enabler, budget specific strategies and expected benefits are discussed. 

Focus sectors include agriculture, commerce, industry, oil & gas and education. 

Agriculture: This section gives a general overview of the vision of the state in agriculture and 

expounds key vision highlights by providing specific strategies and initiatives that will aid the 

achievement of the State’s objectives in Agriculture in full. The section narrows down on some 

cash and food crops like cocoa, palm oil, cassava and grains based on the State’s comparative 

advantage. 

Commerce: The section details the specific strategies and initiatives that will aid the 

achievement of the strategic objective the State has for the sector. Specifically the strategies will 

be focused on building on the State’s heritage as a commercial hub to enhance the standards of 

the existing 14 major markets and new ones in Abia. 

Industry: This section focuses on specific areas of proposed industrial development in the State. 

Strategies will focus on development of industrial cities for garments and leatherworks based on 

the state’s historical strength as well as setting up a framework for standards enforcement to 

enable local firms and producers compete globally 

Oil and Gas: The section details the specific strategies and initiatives that will aid the 

achievement of the strategic objective the State has for the sector. Proposed strategies will be 

focused on oil and gas production potential of the State while leveraging on the State’s proximity 

to Port-Harcourt, the Imo and Abia rivers in securing potential operational/logistics base for oil 

& gas firms. 

Education: Details of key initiatives that will aid the achievement of the strategic objectives of 

the State in education are highlighted in this section. Specifically, the strategies will be focused on 

making Abia state the education hub in Nigeria. 

To achieve the desired end state, enablers such as the ease of doing business, housing, health, 

infrastructure and security have been identified. 

Ease of Doing Business: This section starts with and overview of ease of doing business in 

Abia State and then spells out the strategic objectives and initiatives that will bring about 

improvements in the ease of doing business in the state for interested investors. 

Housing: The section builds on the findings on housing under “Abia state’s current 

assessment”. Strategic objectives stemming from the overall vision lists initiatives that will bring 

about improvements in housing in Abia state. 

Health: This section details strategic objectives and initiatives that will improve the state’s 

healthcare services. Increased healthcare services are inevitable in a growing economy provided 

by influx of investors. Therefore, adequate plans and initiatives must be in place to cater to 

health needs. 

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Infrastructure: This section details plans to improve the current infrastructure of the state by 

integrating creative PPP models, in order to build a strong competitive edge for the state. 

Security: The section builds on the findings on security under “Abia state’s current assessment”. 

It sets strategic objectives for this enabler and lists initiatives that will bring about improvements 

in the safety of lives and property in the state. 

Chapter five emphasises on the Financial Strategy and details the funding requirements necessary 

for the execution of the sector specific strategies and objectives. It outlines the funding and the 

steps required to attain the financial milestones for implementing policies, strategies, and 

fulfilling the vision of the State. 

A final chapter on Implementation, Monitoring and Review outlines the Implementation 

Strategy Framework for the blueprint. It covers the implementation plan, Capacity Building, 

Monitoring and Performance Review. The Implementation Framework applies to all focus 

sectors and enablers. 

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UPLIFTING THE LIVES OF NDE ABIA 

The state is gradually recovering from perennial violence and insecurity that has characterised it 

in the past decade and hampered development and economic growth for several years. The State 

is now positioned for the launch of an economic revolution that will transform it into an 

economic pillar for Nigeria as well as the West and Central African regions. 

Dr. Okezie Ikpeazu’s vision for the State over the next 10 years is to create a private-sector 

driven economy in the state, characterized by the ease of doing business and world class security 

as well as other key enablers to improve standard of living and the general economy of the state. 

1.1 Vision and Mission 

The key outcome of attaining this vision will include the following: 

• Abia will become ‘the destination of choice for businesses by 2025’ 

• The State will reverse the East to West population migration; 

• Attract businesses better than other states 

• The economic potential of the state will be unleashed not just for the benefits of residents of 

Abia but for the good of the South East, Nigeria and Africa. 

• The state will continue to expand physically with Aba and Umuahia being focal points. Aba 

will be developed to meet Umuahia on one end and on the other end will be developed 

towards Port Harcourt. On the other hand Umuahia will be developed towards Ohafia. An 

Umuahia-Ohafia corridor would offer the opportunity to secure equitable development 

across the state. 

1.2 Purpose and Scope of the Plan 

The benefits of having a long-term plan that provides an integrated approach to development, 

based on clear assessment of needs, comparative advantage and what can be realistically achieved 

has been widely accepted as a requirement for development by all sectors, including international 

donors. 

The justification for the development of a blue print for the State is predicated on the need to 

build on the successes of previous administrations in the restoration of security and rebuilding of 

basic infrastructure in the State. There is also a need to harness the obvious comparative 

advantages of the state and launch an economic revolution over the next 10 years. 

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The purpose of this blueprint is to provide overall direction for the growth and development of 

the State. It will provide a clear set of policies and strategies that will guide public, private and 

civic investment in economic, infrastructural, social and environmental programmes. The 

blueprint will also serve as a tool through which the State Government can communicate to the 

general public the direction in which the administration intends to advance development over 

the next ten years. 

Finally the plans set in this blueprint will also set the tone for how all sectors of the economy – 

public, private and civil society - can direct their energies and contribute to the improvement of 

the quality of life Nde Abia as well as serve as an important framework for international 

assistance. 

The comprehensive scope of the plan covers all the major drivers of development: economy; 

infrastructure; society and environment in the state. The plan is about vision and strategy; that is, 

where the State wants to be by 2025, what it will do and how it will get there. The plan will not 

describe the details of every project or programme that the State intends to implement; the 

details are to be developed and contained in the various short and long term strategy documents 

of MDAs and annual budgets. 

The blueprint sets the overarching policies, strategies and targets for the development of Abia 

that will be regularly monitored and reviewed. The plan process to be adopted for the Abia 

blueprint development will follow a typical set of stages normally undertaken in developing any 

plan. The process (which is illustrated below) will begin by looking at the main issues and 

challenges currently facing Abia. This was drawn from previous state reports and current 

statistics, especially those published by the Nigerian Bureau of Statistics. 

Stage 1 Stage 2 Stage 3 Stage 4 

State 

Sectorial 

Annual 

Implementation, 

Development Plan Strategies Budget 

Monitoring and 

Reporting 

Quarterly, half 

yearly, annual 

implementation 

plan and 

monitoring 

reports 

Yearly Spending 

plan for MDAs 

Medium Term 

Sectorial Strategies 

for Ministries, 

Departments and 

Agencies 

Long term 

policies and 

strategies 

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BACKGROUND / PLANNING CONTEXT 

2.1 Trends in the Global Economy 

Global trend is discussed under the following topics: Economic Growth, Health, Migration, 

Terrorism, Technology, Trading and Food. 

Economic Growth 

Global growth remains moderate, with uneven prospects across some countries and regions. It is 

projected to be 3.5 % in 2015, in line with forecasts in the January 2015 World Economic 

Outlook (WEO) Update. 

Relative to last year, the outlook for advanced economies is improving, while growth in emerging 

market and developing economies is projected to be lower, primarily reflecting weaker prospects 

for some large emerging market economies and oil-exporting countries. As global growth 

remains moderate, a number of complex forces are shaping its outlook. These include mediumand 

long-term trends, global shocks, and other country or region-specific factors. 

The net effect of these forces can be seen in higher projected growth this year in advanced 

economies relative to 2014, but slower projected growth in emerging markets. Nevertheless, 

emerging markets and developing economies still account for more than 70 % of the projected 

global growth for 2015. 

Health 

Health spending is estimated to have increased by 2.8 % in 2013 — a rise from 2% in 2012 — to 

a total of $7.2 trillion, or 10.6 % of global gross domestic product (GDP). As the global 

economy recovers from prolonged recession, health spending is expected to accelerate, rising an 

average of 5.2 % a year in 2014-2018, to $9.3 trillion. This increase will be driven by the health 

needs of aging and growing populations, the rising prevalence of chronic diseases, emergingmarket 

expansion, infrastructure improvements, and treatment and technology advances. As 

demand rises, the pressure to reduce costs and demonstrate value is intensifying. As a result of 

these contradictory forces, spending is likely to increase slightly more slowly than in the past 

decade, when growth averaged 7 % a year. 

Migration 

The world population may rise beyond 9.6 billion by 2050, despite a slowing rate of growth. 

Most of the increase is likely to occur in urban areas in developing regions. Growing and 

younger populations in the developing world, the global growth of an affluent middle class, and 

ageing populations in developed countries will influence migration flows, creating a mixture of 

benefits and risks in developed and developing regions. Demographic trends are also likely to 

increase global resource demand and related environmental pressures. 

Terrorism 

The threat picture is continuing to evolve, increasingly shaped by flows of foreign fighters to 

different terror groups (particularly Syria) that are unprecedented in scale and international reach. 

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ISIL has become and remains a powerful draw for extremists across the globe, and continues to 

grow despite stronger measures against it, underpinning increasing levels of instability in the 

region. Other terrorist groups with senior leadership structures, including Al-Shabaab, Boko 

Haram, Al-Qaida, remain intent and capable of causing harm to investors, whether through 

kidnapping or terrorist attack-planning. 

Technology 

Consumer hunger for new technologies has been driving tech sector growth for years. Going 

forward, enterprises will take the lead as they harness new technologies to improve efficiency and 

strengthen competitive advantage. 

Worldwide IT spending is estimated to total $3.8 trillion in 2015, a 2.4 % increase from 2014; 

however, this growth rate is down from earlier projections of 3.9 %. The slower outlook for 

2015 is largely attributed to the rising U.S. dollar as well as a modest reduction in growth 

expectations for devices, IT services and telecom services. 

Trade 

According to the World Trade Organisation (WTO), growth in the volume of world 

merchandise trade will pick up only slightly over the next two years, rising from 2.8% in 2014 to 

3.3% in 2015 and eventually to 4.0% in 2016. 

The WTO's forecasts of 3.3% growth in the volume of world merchandise trade for 2015 and 

4.0% growth for 2016 are premised on consensus estimates of world real GDP at market 

exchange rates from other agencies. These figures imply multiples of trade growth over GDP 

growth slightly greater than 1 in 2015 and 2016, higher than the rough 1-to-1 ratios for 2012-14 

but still well below the 2-to-1 ratios that were common. 

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Exports of developing/emerging economies are forecast to grow 3.6% in 2015, while their 

imports are expected to increase by 3.7%. Meanwhile, a 3.2% rise is anticipated for developed 

economies in both export and import business activities. 

Food 

Large supplies and a strong US dollar have kept international food prices on downward pressure. 

The outlook for the coming season is unlikely to differ much from the current situation, but 

currency movements and macroeconomic developments may have important implications for 

markets again in 2015/16. Against this backdrop, the world food import bill is forecast to reach 

a five-year low in 2015. 

2.2 External Environment (Nigeria) 

Nigeria is a coastal West African state on the shores of the Gulf of Guinea, nestled between the 

tropics of Cancer and Capricorn. It lies between Longitude 3 0 and 14 0 East and between Latitude 

4 0 and 14 0 North. Nigeria is bordered by the Atlantic Ocean to the South, and by the 

neighbouring countries of the Republic of Benin to the West, Republic of Niger to the North, 

Chad Republic to the North East and the Republic of Cameroon to the East. 

With a landmass of about 923,773 square kilometres (357,000 square miles), Nigeria is the 12th 

largest country in Africa. However, Nigeria is by far the most populous African country with an 

estimated 140 1 million people as at 2006. With a population about 170 million people, Nigeria is 

the most populous country in Africa accounting for 47% of West Africa’s population. 

Politics 

In May 1999, a democratically-elected government assumed power after general elections held in 

February 1999. There have been four smooth transitions of power since May 1999 the latest of 

which was ushered in by the fifth consecutive national elections which held in March and April 

2015. The elections which were characterized by observers as one of the freest and fairest in the 

country's election history, was largely successfully as it further consolidated democratic rule. 

Economy 

The growth and economic prosperity of any country are dependent upon the diversity of the 

nation’s economy and the ability of its government to establish and support sustainable market 

sectors within the economy. It is also the biggest oil exporter and the country with the largest 

natural gas reserves in the continent. With its large reserves of human and natural resources, 

Nigeria has the potential to build a prosperous economy characterized by rapid economic growth 

that can significantly reduce poverty, inequality and improve standards of living of the 

population. 

The Nigerian economy has witnessed significant growth in the last fifteen (15) years as a result of 

relative political stability and several economic reforms. The most far reaching of those reform 

agenda was to base the budget on a conservative reference price for oil, with an excess saved in a 

special, Excess Crude Account (ECA). Recognizing that improving the power sector’s 

performance is critical to addressing development challenges, the government embarked on a 

1 2006 National Housing and Population Census 

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power sector is critical to addressing development challenges, the government embarked on a 

power sector reform in 2005. To date, over 10 generation and distribution companies were 

successfully privatized while the transmission company was placed under a management contract 

awarded to a reputable international company selected on a competitive basis. 

After registering strong economic growth averaging around 6.5% annually, Nigeria recently 

become the largest economy in Africa following the rebasing of national accounts largely driven 

by the non-oil sectors’ services, industry (apart from oil mining) and agriculture. The sharp 

decline in oil prices since the third quarter of 2014 has posed major challenges to the country’s 

external balance and public finances. Oil accounts for close to 90% of exports and an estimated 

75% of Nigeria’s revenues. 

The decline in oil prices has caused downward pressure on the national currency which resulted 

in a 30% depreciation of the Naira and a decline in gross foreign reserves from $39 billion in July 

2014 to just under $30 billion in March 2015. Similarly, oil revenues accruable to the Federation 

Account dropped by 6% below budgeted figures towards the end of the 2014 fiscal year. The 

country’s fiscal reserves in the Excess Crude Account (ECA) had declined to $2.1 billion by 

December 2014, down from $4.1 billion in August 2014. Declines in budgetary revenues created 

difficulties for the Federal and State budgets in late 2014 and early 2015. The federal government 

has cut planned capital spending in the order of 60%, and consequently some States have been 

unable to fully pay staff wages and pensions with some states having backlog of over seven 

months. 

Inflationary pressures have moderated in the last few years; with year-on-year inflation staying 

within a single digit bracket since January 2013. Both the core and food components have 

contributed to this decline. While headline inflation declined from 12.2% at end 2012 to 8.1% at 

end-2014, core inflation dropped from 13.7% to 6.2% within the same period while food 

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inflation dropped from 10.2 to 9.2%. This trend in inflation is in line with the monetary 

authority’s goal of single digit inflation. 

Compared to 2010, poverty has declined over the last five years by about 2.3%. The share of 

people living below $1.25 PPP poverty line declined by an average 0.5% per year from 32.7% in 

2010 to 30.4% in 2015. Growth has been an important driver of poverty reduction, yet at this 

rate of reduction, due to the rapid population growth close to 3%, the actual number of the poor 

seems to be on the increase. According to estimates, the number of poor people would increase 

from about 61% in 2010 to 67% million by 2016. 

The current low oil prices will continue to pose strong challenges for public finance at all levels 

of Government during the year, and will also represent a major constraint on the ability of the 

new Federal Government to launch some of its ambitious programs. This and the current 

security challenges in the North East notwithstanding, the economy is still widely expected to 

grow at a rate of the range of 5% in 2015 (Q1 2015 results show a growth rate of 3.9%). 

Key Indicators of the Nigerian Economy is given below; 

Indicator Value 2013 2014 2015* 2016* 

GDP Growth (Constant 5.394% 6.966 % 5% 7.178 % 

Prices, National Currency) 

GDP (Current Prices, USD) US$ 521.812 Bn US$ 594.257 Bn US$ 657.218 Bn US$ 702.248 Bn 

GDP Per Capita (Current US$ 3,082.49 US$ 3,416.49 US$ 3,677.34 US$ 3,824.14 

Prices, USD) 

GDP (PPP), USD US$ 972.646 Bn US$ 1,057.83Bn US$ 1,155.83Bn US$ 1,262.13Bn 

Investment (% of GDP) 14.72% 14.988 % 15.224 % 15.357 % 

Inflation (Ave Consumer 8.476 8.292 8.739 8.24 

Price Change %) 

Population 169.282 Million 173.938 Million 178.721 Million 183.636 Million 

*Projected figures. Economic information sourced from Economy Watch 

Information Technology 

Information and Communication will continue to play an important part in Nigeria economy. 

One of the reasons for the growth witnessed in the recently rebased GDP is the performance of 

the ICT sector. The sector contributed 5.6% to the GDP and this is estimated to grow to 15% in 

2015. ICT is part of our everyday life today. 

According to research, as at 2000, there were only 74 Internet Service Providers (ISPs) and an 

estimated 140,000 Internet users among a population of 120 million people. However, the pace 

of information technology adoption has increased within the last decade with the number of 

internet users growing from 140,000 in 2000 to 57.7 million in 2014 and estimated to grow to 

84.3 million by 2018. This depicts a Compound Annual Growth Rate (CAGR) of approximately 

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54% penetration from 2000 to 2014. A few sectors, including banking and oil and gas, have been 

the forefront runners in adopting technology to achieve operational efficiencies. 

ICT has changed business outlook in Nigeria. Internet penetration with mobile penetration 

(which currently stands at 74.1%) has revolutionised businesses in Nigeria and created a new 

sector, e-commerce. 

Despite the improved adoption and growth of e-commerce, the use of electronic payment is yet 

to reach an advanced stage; as a result, cash transaction is still prevalent. Other major ICT 

milestones in Nigeria include: 

• Increased internet awareness and usage in the country has resulted in a recent boom in E- 

commerce; 

• 78% of Nigerian now access the internet everyday with 67% of them spending at least 3 

hours on the internet daily and 92% accessing the internet via mobile phones; 

• Mobile internet usage outweighs other sources (Mobile – 69.74%, Desktop – 26.24% and 

Tablet – 4.02%) 2 

• Online activities include, Search and News – 31%, Social Media – 26%, Education – 21% 

and sports – 20% 

• Social media is now an important avenue for promotion of brands; 

• 40% of Nigerian internet users are very active on social media, with chatting (78%) being 

the most frequently activity; 

• 63% of Nigeria’s internet users have made online purchase. 

• Websites and blogs are now used as alternative means of communicating with customers; 

Infrastructural Development 

Despite a strong economic track record, poverty is significant, and reducing it will require strong 

non-oil growth and a focus on human development. Constraints to growth, such as the 

investment climate; infrastructure, incentives and policies affecting agricultural productivity as 

well as quality, and relevance of tertiary education must be improved. Basic primary and 

secondary education is still the exception rather than the rule in many parts of the country. This 

as well as creation of productive jobs through private sector growth must be improved if poverty 

must be eradicated. 

While social infrastructural development in Lagos State has been the major positive development 

in Nigeria, bringing millions out of poverty in recent years, the government needs to ignite 

similar growth in other major cities, as well as increase productivity in rural areas. Recent 

research has identified weak infrastructure as one of the key constraints facing business 

operations in Nigeria. The infrastructural challenges in Nigeria include; unreliable electricity 

supply, poor road and transport infrastructure, limited water infrastructure, low 

telecommunications coverage, slow operations at ports and harbours amongst others. 

The Nigerian government is pursuing a multi-stakeholder strategy towards tackling the country’s 

infrastructural challenges. A review of these strategies and approaches is presented below: 

2 gs.statcounter.com 

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• Power Sector Act: This act liberalised the sector, allowing for private sector participation in 

power generation, transmission and distribution. 

• Electricity Generation: The target was to generate 10,000 megawatts of electricity by 2007. 

The government is currently implementing various initiatives to boost power generation to 

make up for the huge deficit. 

• Transportation Bill: A new transportation bill has been presented to the legislature to 

establish a regulatory authority over the concessioned ports. 

• Aggregate increases in budgetary provisions to ensure timely completion of various ongoing 

road projects. 

The government also partners with the private sector through privatisation, concession and 

other institutional arrangements such as Build-Operate-Transfer (BOT), Build-Own-Operate- 

Transfer (BOOT) and Rehabilitate-Operate- Transfer (ROT). Recent initiatives include the 

concession of the major sea ports in the country to the private sector and the passage of the bill 

for public-private partnership in infrastructure provision. 

In spite of successful initiatives in human development, Nigeria may not be on track in achieving 

most of the Millennium Development Goals (MDGs). Underpinning these challenges is the core 

issue of governance, in particular, at the state level. Fiscal decentralization provides 36 states and 

774 local governments considerable policy autonomy, control of 50% of government revenues, 

and responsibility for delivery of public services. Capacity is weak in most states, and improving 

governance will be a long term process. 

Corruption 

Corruption still remains a challenge in Nigeria. From the most recent corruption index compiled 

by Transparency International in 2014, Nigeria ranks 139 of the 175 countries surveyed. 

Corruption has attained an endemic status in Nigeria, robbing the citizens of a share of the 

common wealth of the Nation. 

2.3 Key Success Factors in Governance 

There are strategic and verified ways to make success out of governance as demonstrated by 

many of the developed economies of the world. Some of the lessons learnt from a study of 

successful governments such as percentage of PPP in running the economy include: 

• They don’t have to do things all alone 

• They learn to take advantage of what others have done and make it relevant to their 

environment 

• There is need to understand the role of money/finance and how to creatively access it 

• The need to make sure that every aspect of the plan has the “perfect’’ timing 

• The need to focus on identified goals because focus will radiate and cause the desired change 

• The need to understand the importance of stability through continuity 

• The need to identify the gifts of nature and leverage them by harnessing their incredible 

potentials. 

From these basic lessons, five (5) key success factors for successful governance can be identified. 

These factors are germane to and shared by seemingly successful states all over the world 

regardless of their geographical location or size. The factors are: 

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• Leverage 

Successful states leverage on numerous things that are within their reach and make their 

institutions more viable. They leverage on: 

• Other people’s knowledge to develop their own states. Harnessing of intelligent and 

inventive minds that are home and abroad to realize logical and practical goals and 

objectives of the state. 

• Other people’s money: Developing strategic relationships and partnerships to access 

funds for the development of the state. 

• Nature which includes the natural endowments each state possesses and how these can 

be harnessed to bring about prosperity in different facets of the economy. 

• Continuity 

This demands numerous proactive plans with a convergence of past and present 

events/activities and their purposeful projection for the future. The plans are consistent and also 

reflect changes in the host economy and that of the world. 

• Focus 

Successful states focus carefully on chosen areas where they have comparative advantages and 

ride the future by appreciating trends. The focus mostly hinges on 

• Specifics – Carefully selected area of focus 

• Excellence – Areas the State can excel 

• Timing 

Successful states understand the essence of adequate scheduling of undertakings. They also do 

the right things at the right time. They initiate programmes with specific time frame in mind and 

these programmes are tailored towards specific results. Their emphasis on time is characterized 

by: 

• Quick wins which are short timeframe projects that satisfy the urge of the populace 

and give a pointer regarding the overall project direction; 

• Foundation plans which are plans laid for projects over either the short or long term. 

• Creative Funding. 

Successful states always find a way to incorporate Private sector investment in their plans. These 

investments can either accelerate or make possible investment in infrastructure and public 

services that would otherwise not take place or be significantly delayed. This partnership can 

either be with local or foreign firms. 

2.4 Conclusion 

Notwithstanding the uncertainties on the security front, Nigeria’s economic prospects are 

relatively favourable. Projected increase in oil prices and increases in domestic production of oil 

and gas will keep the fiscal and external positions healthy. The successful conclusion of the 

political transition exercise in May 2015 is expected to further strengthen economic performance 

and the attractiveness of the Nigerian business environment to foreign investors as it is expected 

that the new administration will tackle the security issue, and focus on institutionalising the 

various reform programmes which were initiated by the past administrations. 

The foregoing analysis of the global and national economy throws up some interesting 

opportunities and challenges for any State. These include 

15



ABIA STATE-CURRENT ASSESSMENT 

Abia State is a state in the South Eastern part of Nigeria. It is one of the five states in the 

Southeast geo political zone of Nigeria and one of the nine constituent states of the Niger 

Delta region. The capital is Umuahia and the major commercial city is Aba. The State is made up 

of seventeen (17) Local Government Areas. 

16



History and Population 

Abia State is an offshoot of the former Imo State. It was ceded from Imo State in 1991. The 

name "Abia" is an abbreviation of four of the state's densely populated regions Aba, Bende, 

Isuikwuato, and Afikpo-currently Ebonyi State. Abia people are of the Igbo ethnic group (95% 

of population) who predominates much of the South Eastern part of Nigeria. The traditional 

language is Igbo. Abia has a population of 2.833 million (2006 Census) people who are 

mainly Christians. 

2006 

Local Government Area Male Female Totals 

Aba North 53,733 53,755 107,488 

Aba South 227,595 196,257 423,852 

Arochukwu 87,555 82,651 170,206 

Bende 97,789 94,322 192,111 

Ikwuano 66,965 71,028 137,993 

Isiala-Ngwa North 76,684 77,050 153,734 

Isiala-Ngwa South 67,040 67,722 134,762 

Isuikwuato 56,831 57,611 114,442 

Obi-Ngwa 90,284 91,155 181,439 

Ohafia 122,704 122,440 245,144 

Osisioma-Ngwa 111,256 108,376 219,632 

Ugwunagbo 39,705 42,913 82,618 

Ukwa East 30,136 28,729 58,865 

Ukwa West 45,284 43,271 88,555 

Umuahia North 112,102 108,558 220,660 

Umuahia South 69,235 69,335 138,570 

Umu-Nneochi 79,295 84,633 163,928 

Source: NBS Statistics 2012. 

Total 1, 434, 193 1, 399, 806 2, 833, 999 

17



Estimated Population 2008 – 2016 (million) 

3.35 

3.00 3.09 3.17 3.26 

2012 

2011 

2010 

2009 

2008 

3.44 3.53 3.63 3.73 

2016 

2015 

2014 

2013 

4.00 

3.50 

3.00 

2.50 

2.00 

1.50 

1.00 

0.50 

Pop (million) 

Estimates were computed based on NPC growth rate of 2.74% 

Year 

0.00 

It should be noted that these projections are based upon a much lower growth rate of 2.74% per 

annum than the higher rates believed to have pertained in the past. Nevertheless this estimates, 

provides a basis for planning in Abia. If projections are made on the same assumption of a 

2.74% p.a. growth rate then Abia should be planning for a population around 5 million by 2025. 

Geography 

Abia State is surrounded by seven other states, Anambra, Enugu, Ebonyi, Imo, Cross River, 

Akwa Ibom, and Rivers State, and has a landmass of 5,834. The southern part of the State lies 

within the riverine part of Nigeria. It is low-lying tropical rain forest with some oil-palm brush. 

The southern portion of the state gets heavy rainfall of about 2,400 millimetres (94 in) per year; 

which becomes intense between the months of April through October. The rest of the State is 

moderately high plain and wooded savannah. The most important rivers in Abia State are 

the Imo and Aba Rivers which flow into the Atlantic Ocean through the Niger Delta. 

2.4.1 Economic Development 

Abia state in the past, boasts of a thriving commercial hub (perhaps the biggest in West Africa), 

fertile line for agriculture, a thriving garment and leather works industry, but today, the economic 

situation of Abia is a story of contrasts. The unemployment, under-employment and poverty 

levels are high with the majority of the people living below the poverty line. According to the 

most recent computation of Gross State Product (similar to GDP computation), Abia has a GSP 

of N307.32Bn making it the 22 nd in the country. 

18



GSP Growth in 2012 

Lagos 

FCT Abuja 

Kano 

Niger 

Benue 

Katsina 

Sokoto 

Zamfara 

Kaduna 

Jigawa 

Nasarawa 

Borno 

Oyo 

Ondo 

Kebbi 

Ogun 

Enugu 

Edo 

Kwara 

Bauchi 

Gombe 

Anambra 

Ekiti 

Adamawa 

Osun 

Plateau 

Imo 

Yobe 

Abia 

Kogi 

Cross River 

Ebonyi 

Taraba 

Rivers 

Delta 

Bayelsa 

Akwa Ibom 

891.33 

233.80 

216.36 

212.74 

202.48 

190.79 

181.73 

167.72 

151.70 

146.25 

82.13 

70.79 

64.31 

58.10 

55.53 

44.38 

41.07 

39.05 

31.96 

28.10 

28.09 

28.09 

27.87 

26.39 

26.20 

26.09 

20.54 

20.15 

20.01 

19.17 

16.92 

16.27 

12.56 

(2.77) 

(13.57) 

(26.06) 

(80.62) 

(500) - 500 1,000 

N'Bn 

Rivers 

Lagos 

Akwa Ibom 

Bayelsa 

Delta 

Niger 

Kano 

Benue 

Ondo 

FCT Abuja 

Katsina 

Sokoto 

Zamfara 

Jigawa 

Kaduna 

Nasarawa 

Borno 

Cross River 

Kebbi 

Imo 

Oyo 

Abia 

Edo 

Enugu 

Ogun 

Gombe 

Kwara 

Ekiti 

Bauchi 

Anambra 

Adamawa 

Plateau 

Osun 

Yobe 

Kogi 

Ebonyi 

Taraba 

6,542.67 

5,761.69 

3,617.68 

2,433.31 

2,372.11 

1,609.80 

1,564.76 

1,555.25 

1,495.76 

1,494.76 

1,469.60 

1,405.60 

1,294.22 

1,127.99 

1,095.94 

583.51 

528.90 

455.15 

414.24 

403.55 

381.12 

307.32 

280.24 

257.44 

227.26 

206.64 

195.27 

191.46 

188.02 

179.66 

173.30 

161.27 

155.59 

143.88 

124.33 

113.16 

84.44 

- 2,000 4,000 6,000 8,000 

N'Bn 

GSP 2012 

Source: Economic Associates 

Whilst a specific economic growth rate is not available, the latest national growth rate of 6.3% 

(2014) 3 for Nigeria provides a basis of a likely growth in the economy of Abia. At 7% p.a. the 

economy of the state can be doubled by 2025. 

While the doubling of the state’s economy is possible, it is however important to stress that the 

Abia economy operates within the Nigerian economy, which in turn is subject to the global 

economic conditions. Hence, the state is subject to many macro-economic factors beyond its 

control. Some of these factors include the oil price, national policies and inflation to mention a 

few. 

Apart from external factors, other major challenges to unlocking and growing the Abia economy 

includes, unemployment, underemployment and poverty. Using the Q1 2015 unemployment 

national statistics of 7.5% unemployment and 16.6% underemployment, it can be assumed that 

3 ADB Analysis 

19



at least 270,000 and 598,000 Abians are unemployed and underemployed respectively. Statistics 

on poverty in Nigeria show a worsening trend in recent years. A research on Harmonised 

Standard of Living Survey conducted by NBS, it shows that 0.8m Abians are extremely poor, 

1.6m are absolutely poor, 2.1m are food poor. This statistic is further buttressed by the 2012 

NBS Abstract of Statistics which shows that 86% of the working population in Abia receive 

N20, 000 or less monthly from all sources. 

The main economic activities that drive the economy of Abia are detailed below and classified 

into Agriculture, Oil and Gas, Commerce and Industry sectors. A concluding section looks at 

Micro, Small and Medium Enterprises (MSMEs) that also takes the informal sector into 

consideration. 

Agriculture 

Representing 27% of the GSP, agriculture, which employs 70% of the state workforce, is the 

second economic sector of Abia. Although the third smallest state in the country in terms of 

landmass, Abia has adequate seasonal rainfall and arable land good for agriculture. The state’s 

major produce include yam, maize, potatoes, rice, cashew, plantain, and cassava. Oil palm is the 

most cultivated cash crop in the state. Production data for major crops produced in the state is 

shown below: 

Crop Area Cultivated (‘000Ha) Production (‘000Tons) 

Beans 2.06 1.34 

Cassava 45.50 14.19 

Cocoyam 25.08 142.38 

Maize 46.47 73.84 

Rice 4.86 4.21 

Yam 58.15 798.69 

Cocoa 14.49 3.34 

Oil Palm 53.51 46.53 

Source: NBS Annual Abstract of Statistics 2012 

Mixed farming of crops and livestock is the common practise in the state but yield levels are 

rarely up to 50% of their potential. The state has the potential to develop significant agribusiness 

ventures. This potential has been recognised by previous administrations in the State 

and efforts were made to invest in agriculture by setting up state owned farms. Some of the 

farms set up include: 

• Abia Golden Chicken Limited, Ogwe, Ukwa East 

Land Area - 360 Ha 

Project - Poultry Production 

• Abia Livestock Farm, Okoko Item, Bende 

Land Area - 75Ha 

Project - Poultry production, Cattle, Piggery, Sheep and Goat Rearing, Honey Production, 

Fishery and sundry related products. 

• Abia Cashew Company, Mbala, Isuochi, Umunneochi 

Land Area - 160 Ha Planted, 28Hc Fallow 

20



Project - Cashew Nut, by-product Production 

• Abia Palm Estate, Ohambele, Ukwa-East 

Land Area - Ha 

Project – Oil palm nursery and plantation. 

• Abia Cocoa Estate, Agbaozu, Uzuakoli, Bende 


Projects - Cocoa and Cocoa Beans Production 

• Abia Farm, Lodu Ndume, Umuahia North 


Projects - Fish Production, Vegetable Production 

Despite the efforts of the previous administrations to encourage commercial large scale farming, 

the state is still largely dominated by peasant farmers who face many challenges. According to 

the NBS and Ministry of Agriculture and Rural Development’s most recent survey in 2011, the 

farmers in Abia consider access to funding as their biggest challenge. Other challenges include, 

lack of access to modern storage and processing facilities, access to agriculture extension 

services, lack of access to improved crop varieties and poor infrastructure. However, land 

ownership is not a challenge in the state as shown by the survey report. According to the survey, 

162,800Ha of the 212,063Ha used for farming in the state belong to the owners of the farm. 

Consumption of animal-sourced protein in the State is less than the 34 grams per person per day 

recommended by the Food and Agriculture Organisation. Livestock production is dominated by 

poultry and goat rearing, however beef which is sourced from cattle from outside the State 

dominate consumption. There is thus an imperative need for a modern meat processing facility 

in the state, in view of the fact that the current abattoir may not meet globally accepted hygiene 

standards. 

Oil and Gas 

Crude oil and gas production contributes 39% of the State’s GDP. Abia State is one of the nine 

constituent states of the Niger Delta region and a key oil producing state. Oil/Gas is a usual 

occurrence in most parts of Ukwa West and Ukwa East local government areas. Oil giant, Shell 

holds most of the licenses for about 103 oil wells in the state, of which about 50 are producing 4 . 

Despite being the largest contributor to GDP in the state, experts are unanimous that Abia 

State’s oil and gas potentials have been under-exploited. This trend is largely due to the 

concentration on high yield fields by oil majors and the federal government. Shell Petroleum 

Development Company Limited (SPDC) who is the major operator of the fields in the state has 

concentrated on the estimated 50 wells that are considered high-yield. The rest are considered 

marginal fields. Much of the gas produced is flared while the Crude Oil is piped to the existing 

refineries in the country. 

However, with the increased success of the federal government’s marginal field’s development, 

investors have been encouraged by the state government to explore the 53 marginal fields in the 

4 Channels Television Report 

21



state. This is beginning to yield fruits as a Dubai oil Firm, Alkamali Petroleum and Techno Oil 

have indicated interest in exploring the fields in the state. 

Commerce 

Aba has always been identified as the commercial nerve centre of southern Nigeria even before 

independence. Aba markets were one of the earliest organized and popular markets close to the 

Gulf of Guinea, supplying goods and services to inland southern Nigeria and other cities along 

the West African coast line. The Aba River, which has direct link to the Atlantic, became one of 

the busiest business routes at the time. Consequently, Aba and Port Harcourt became the 

commercial and industrial hubs of Southern Nigeria during the first Republic, a position it is 

currently striving to reclaim and consolidate on with the current economic plans of the new 

government. 

Abia’s commercial significance in the region is boosted by its geographic location at the heart of 

the eastern region (bordered by seven (7) states) with direct access to the sea, as well as 

concentration of vibrant industries. Other markets within the region depended on supplies from 

Aba. Aba markets (Ariaria, Shopping Centre, etc) became household names within the region 

and West Africa. Irrespective of huge economic potentials these markets portend, their neglect 

by previous administrations has turned them to unattractive places to visit. 

Industry 

South East alone contributes about 47% of the overall Nigerian industry output in the 2010 

GDP baseline, the highest industry concentration in Nigeria. Industrial cities like Aba, Nnewi 

and Enugu as well as the commercial city of Onitsha drive approximately 42% of the industries 

and 70% of commerce in the region. The industrial prowess of the Aba medium and small scale 

industrialists and artisans were so well known that it earned it the name ‘Japan of Africa”. 

Abia State in particular contributes a fair percentage to the concentration of industries in the 

region with a number of large scale enterprises including; Nigerian Breweries Plc, Golden 

Guinea Breweries Plc, Aba Textile Mills Plc, International Glass Industries Plc, Aba Ogwe 

Golden Chicken Farms Ltd, Abia Palm Ltd, Unilever Plc, PZ Plc, International Equitable 

Association Ltd, Guinness Nigeria Plc, as well as several other medium and small scale 

industries. These industries directly feed the markets and contribute to the vibrant commercial 

activities in the state. 

However, the deterioration of security infrastructure in the last 2 decades, the perennial 

challenges of electricity supply, coupled with the gradual general infrastructural decay in the state 

(especially in the transport sector) has forced the shutdown of several industries and scuttled 

many start-ups. 

Micro, Small and Medium Enterprises 

Presently, the Micro, Small and Medium enterprises (MSMEs) constitute about 70% of the 

industrial sector of the state’s economy. However, they are mainly small scale production units 

that make extensive use of family labour, with very low capital base. This leads to the production 

of low quality products for clientele with low purchasing power, poor management due to lack 

of interpersonal skills to effectively manage labour and other resources, low financial literacy and 

22



financial management skills, and lack of proper accounting records. The table below gives a snap 

shot of the impact of SMEs on the economy of Abia State. 

Employment Created 

SME Type Description Population 

Male Female 

Micro Employs less than 10 persons 904,721 1,093,463 874,947 

Small Employs 10- 49 persons 1,769 

28,851 11,062 

Medium Employs 50- 199 persons 40 

Ease of Doing Business 

In understanding how convenient it is to do business in Abia State, we shall employ the Ease of 

Doing Business Index published by the World Bank. This index is an aggregate figure that 

includes different parameters which define the ease of doing business in an economy. It is 

computed by aggregating the ‘distance to frontier’ scores of different economies. Specifically we 

shall look at the period of time taken, monetary cost and number of procedures measured across 

four key business indicators: Starting a Business, Dealing with Construction Permits, Registering 

Property, and Enforcing Contracts. 

Starting a Business: In Nigeria today, starting a business is most difficult in three States: 

Ondo, Kano and Abia. Abia State ranks 35 out of 36 States In Abia, it takes 11 procedures, 

41 days, and 66% of income per capita to register a company. The first six processes are 

federal requirements and are uniform across the country while the rest are handled by the 

State authorities. 

Dealing with Construction Permits: In this regard, Abia State ranks 29 out of 36 States in the 

Federation. It takes 63 days and 14 different procedures and cost 611% of income per capita 

for this procedure to be done. Abia State currently ranks among the lower 10 States under 

dealing with construction permit and this is a big disincentive for business. Making it easy to 

deal with construction permits helps the construction industry expand. This expansion leads 

to more construction related employment and the purchase of more materials and services 

from local suppliers. 

Registering Property: Abia State currently holds the record for being the worst place to 

register property in Nigeria. It takes 108 days which is more than 3 times the number of days 

it takes to register property in Zamfara State. 13 different procedures are needed to register 

property while 15.9% of the value of the property is used to process this registration. 

Enforcing Contracts: A transparent and efficient court system is essential to sustaining 

entrepreneurship and promoting business growth. In the absence of transparency and 

efficiency, businesses are less inclined to transact with clients not vetted through previous 

interactions, thus limiting expansion of business activity. In Abia State today, the time, cost 

and procedural complexity of resolving a commercial lawsuit between domestic businesses 

are excessive. On the average, it takes 464 days (1.2 years), 51.7% of the claim and 41 

different procedures to enforce contracts 

23



2.4.2 Infrastructural Development 

Infrastructure investment consists of capital-intensive projects, which in most countries are 

largely publicly owned and regulated, and these also provide the backbone of the production and 

distribution system. They are often regarded as the wheel of economic activity because of the 

crucial role they play in providing the foundation upon which production and distribution stand. 

Nigeria has made important progress in improving much of its infrastructure in recent years. 

Compared to a number of Sub-Saharan countries, Nigeria has relatively advanced power, road, 

rail and information and communications technology (ICT) networks that cover extensive areas 

of the Country. 

The story of infrastructural development in Abia State is two sided. On one side, there have been 

improvements in some infrastructure, on the other hand some infrastructure have suffered 

neglect. While there has been considerable investment in power, road network in the state is in a 

deplorable state despite the notable road construction and rehabilitation efforts of the state 

government. The State lacks basic recreational parks and facilities. Most of the areas initially 

mapped out for development as parks have been turned into residential and commercial areas. 

The major drivers of infrastructure in the state are considered below. 

Roads 

Public and private roads of varying standards, quality and efficiency exist in Abia State. They 

either link small communities with state road networks, or connect villages with each other 

providing access to farms, markets, streams and recreation/tourist centres. Construction and 

rehabilitation of roads in the State, to make them functional and safe, is the responsibility of 

both the communities and the three tiers of government. 

Findings show a predominance of earth and gravel-coated local government roads in the state 

(71.8%). Almost all the Federal roads in the state (92%) are bituminized. The length of the 

Federal Government roads in the state as at 2006 was 34,341.25 kilometres (NBS, 2007). 

The table below shows the types and number of roads in Abia State, classified as Federal, State 

and Local government (LGA) roads, and re-classified by type of surface-earth, gravel, and 

bitumen. 

Average Road Mileage by Type of Surface 

Federal Roads (Km) State Roads (Km) LGA Roads (Km) Total (Km) 

Bitumen 668.91 1,406.84 37.2 2,112.95 

Earth/Gravel 55.2 1,202.56 4,157.46 5,415.22 

Total 724.11 2,609.4 4,194.66 7,528.17 

24



Electricity 

Abia State is at an advantaged position as far as power generation is concerned. The State at the 

moment enjoys an average of about 12 hours of electricity per day. However, by the time all the 

measures being taken to shore up power generation comes to fruition, the state should be one of 

the first States nationwide to enjoy uninterrupted power supply. 

Abia State Government is vigorously partnering with Geometric Power incorporated to ensure 

the speedy realization of the Aba Independent Power Project. The project, designed to generate 

and distribute 188 Mw of power to Aba and surrounding cities attained 95% completion as at 

October 2011. Similarly, a National Integrated Power Project (NIPP) Power Plant is close to 

completion at Umuobasi, Ugwunagbo LG.A, near Aba as at 2011. The 480Mw Power Plant is 

one of the special intervention projects of the Federal Government to boost power supply in 

Nigeria. The project attained 90% completion and was on track to be commissioned by the end 

of 2011. The drive towards rural electrification was equally intensified by distributing electricity 

transformers to about 700 communities in Abia State to ensure that they are connected to the 

National Electricity Grid. This is in addition to Rural Electrification Works carried out in 48 

Rural Communities in the state. 

Water Resource 

Currently, the State is struggling to maintain the existing water works while also opening up new 

Regional Water Schemes in various communities in the state. Some of the water schemes in the 

state include; Umuahia Regional Water Scheme, Aba Regional Water Scheme, Uzuakoli Water 

Scheme, Elu-Ohafia Water Scheme, Ehimiri Water Scheme, Abiriba Water Scheme, Ubakala 

Water Scheme, Afugiri Water Scheme, Ariam Usaka, Nnono Water Scheme, Igbere Water 

Scheme, Mbawsi Water Scheme, Mbutu-Ngwa Water Scheme, Umuagbai Water Scheme, Ogwe 

Water Scheme, Nkwo-Amiyi Water Scheme, Uturu Water Scheme, Olokoro Water Scheme, 

Mbutu-Ukwu Water Scheme 

Despite these investments in the various water schemes, NBS Socio Economic Survey shows 

that majority of Abians do not have access to pipe borne water. 

Percentage Distribution of Households in Abia State by Major Sources of Water 

for Drinking and Cooking From 2008 to 2010: 

Year 2008 2009 2010 

Pipe-borne water (treated) - 0.6 2.4 

Pipe-borne water (untreated) 1.4 0.3 2.4 

Borehole/ Hand pump 53.4 65.5 52.6 

Well/Spring (protected) 0.1 - 1.7 

Well/Spring (Unprotected) 0.2 - 0.2 

Rain water - 0.3 19.3 

Streams/Pond/River/Rain water 43.4 29.1 17 

Tanker/Truck/Vendor 1.3 4.2 3.9 

Other sources 0.1 - 0.6 

Source: NBS/CBN/NCC Socio Economic Survey on Nigeria. 

25



From the table it is clear that the pipe borne water system has been totally neglected over the 

past years; and this has made Abians resort to other sources of water supply. In order to keep 

pace with the growing population and increasing industrial drive in the state, the government has 

to pay attention to the installation and sustenance of a proper pipe borne water system in 

strategic areas. 

2.4.3 Social Development 

The first step in social development is the identification of the present state of social institutions 

in the State. We will therefore be looking at the present state of the following key areas of social 

development: Education, Health, Security and Justice. 

Education 

Education is important for sustenance and development. With education, people are able to 

acquire the capability to fend for themselves as well as serve their communities. Abia State is 

conscious of the importance of education, having been involved in, and benefited from western 

education during the early post-colonial period. Today, education in the state is held in high 

regard by a vast majority of its population. 

With over 800 primary schools and 160 secondary schools, a teacher’s training college, 5 (five) 

technical colleges and a College of Education (Technical), a State owned university and 

polytechnic, a staff training school, a Federal University of Agriculture and other educational 

institutions like the Schools of Nursing and Midwifery and an agricultural research institute 

(National Root Crops Research Institute - NRCRI), the state was rated by the National Bureau 

of Statistics in its National Literacy Survey, 2010, as the State with the highest literacy rate of 

95.6 percent. 

But literacy rate only tells the percentage of people who can, with understanding, read and write 

a short, simple statement on their everyday life. It however does not tell on the standard of 

education an individual has obtained. According to the Nigerian Education Data Survey 

(NEDS), 2010, 18% of Abians between the ages of 15 and 19 have completed only primary 

school, 64% of Abians between this same age-bracket have completed secondary school. For 

Abians between the ages of 20 and 40, only 18% have completed primary school while 51% have 

completed secondary school. 

On the schooling status for children between ages 5 – 16, 1% of males and 1% of females have 

never attended any form of school, 3% of males and 2% of females have dropped out or left 

school 2+ years ago, 12% of males and 10% of females have had pre-primary education, 57% of 

males and 54% of females have had education at the primary level and 27% of males and 33% of 

females have had secondary or higher education. 

This trend in Abia’s education sector is a threat to the future of Abia State. To escape the 

imminent danger of this situation, strategic steps must be taken to attract more Abians of 

schooling age to school and improve investments in this sector across the primary, secondary 

and tertiary levels, with these efforts coalescing into the core areas of teaching and learning 

which are students, teachers and infrastructure. 

26



Health 

Successive Governments of the state have made efforts to improve the health situation in the 

state. Through a series of plans and initiatives, modest progress has been made. The National 

Bureau of Statistics in its Social Statistics Report, 2012 showed that with a population of 

3,278,699 Abia State has only 615 Healthcare Facilities (19 Healthcare Facilities per 100,000 of 

its population). The points below are indicative of some of the health challenges in the state. 

70 – 60% of the Household Population in the state have access to improved drinking water 

sources while only 40% of households’ population make use of an improved sanitation 

facility. 

Since 2007, there has been a trend of increasing number of reported case of malaria infection 

in the state. By the year 2014, between 30 – 40% of Abian children under 5 years slept under 

insecticide – treated bed nets. 

The 2014 MDG survey report shows that in Abia state about 70 in every 1000 live births die. 

 

 

Abia State also has a HIV prevalence of 7.3% and is one of the “12+1” high burden, high 

priority states in Nigeria. There are an estimated 139,517 people living with HIV in the state 

which makes it one of the states with the highest burden of people living with HIV in 

Nigeria. 

The 2013 Nigerian Demography and Health Survey, shows that Abia has 50% vaccination 

coverage. 

27



Security 

Security today in Abia State has greatly improved due to the efforts of the previous 

administration. The rehabilitation of the abandoned Ohafia Barracks, now re-named Goodluck 

Ebele Jonathan Barracks also contributes to the improved security situation in the state. 

Kidnapping which was the major security challenge in the state has been kept at bay. However, 

other violent crimes such as child trafficking are gradually spreading in the state. Criminals have 

been intercepted with children that are likely to be sold. 

Justice 

In Abia, the state judicial power is exercised by the state courts which adjudicate in disputes 

arising between individuals, businesses and governments in their inter-relationship with one 

another within the state in accordance with the laws. 

The judicial arm is made up of judges, magistrates and other officers that help in the 

administration of justice and related activities within the State. It is headed by the State’s Chief 

Justice. Nonetheless, judicial pronouncement of the State’s tribunals is subject to the appellate 

review of the Court of Appeal and the Supreme Court of Nigeria. 

The Abia State legal system comprises; 

The compendium of Constitutional provisions applicable to the State as one of the 36 

States that constitute the Nigerian Federation; 

Laws made by the Federal Legislature applicable throughout the entire federation or 

specifically to Abia State; 

Laws made (or deemed to have been made), by the State’s legislature; 

Customary laws or other customs of the market place applicable under the operation of 

Law; 

Laws made by Local Government Legislative Councils within the State; 

Judicial precedents of the courts of the State and of appellate courts with jurisdictions over 

its tribunals like the Court of Appeal and the Supreme Court of Nigeria; 

Judicial precedents of federation tribunals like the Federal High Court, the National 

Industrial Court, Code of Conduct Tribunal, Investments and Securities Tribunal and so on 

to the extent to which their mandates allow. 

Law enforcement institutions, law enforcement officers, judges, legal practitioners, judiciary 

workers, other professionals and persons recognized at various levels as part of the justice 

administration complex of the State. 

The Social Statistics Report, (NBS, 2012) reports that Abia state had only 15 male and 10 female 

judges in the state high court (the fourth highest in the country), 1 female and 3 male judges in 

the state customary court of appeal. These numbers reveal the inefficiency of the judicial system 

in handling related matters. 

Also, in the same year, no political office holder or civil servant between grade level 12 and grade 

level 17 declared their assets in the state compared to Taraba and Kogi state that had 12,828, and 

10, 239 declarants respectively. 

28



There has to be an improvement in the capability, accountability and responsiveness of key 

organisations in the justice sector of the state. The state government also need to support them 

in working together, alongside civil society and oversight institutions, as part of a coherent, 

coordinated sector. 

The table below shows the number of judges in Abia state Judiciary between 2008 and 2011. 

18 

16 

14 

12 

10 

8 

6 

4 

2 

0 

16 

15 

13 

13 

10 

10 

9 

10 

3 

3 

3 

3 

1 

1 

1 

1 

Male Female Male Female Male Female Male Female 

2008 2009 2010 2011 

High court 

Customary Court 

Source: NBS Social Statistics Data 2012 

2.4.4 Environmental Development 

Safeguarding the environment, in the course of economic development, represents a guarantee 

against exacerbation of poverty in view of the inter-dependence between the environment on the 

one hand, and livelihood activities of the people on the other. In order to achieve sustainable 

economic development therefore, every aspect of development planning must mainstream 

environmental sustainability. 

Adequate attention seems not to have been accorded to environmental protection over the years 

in the state. This laxity has led to the enormity of environmental degradation hampering the 

sustainable development of the state. The major factors clogging the wheels of progress in the 

environmental development of the state are hereunder discussed: 

Flood 

Abia state been massively devastated by soil erosion and flood menace, hence erosion gullies 

have been identified within the various Local Government Areas of the state. From an ecological 

and economic perspective, erosion and flooding are urgent environmental threats in the state. 

Abia State has invariably suffered seriously from ecological degradation ranging from loss of 

agricultural soil fertility, displacement of communities, to the disruption of the eco-bio-diversity, 

essentially caused by unabated natural and artificial pressure on land. Sheet, erosion rills, and 

gullies have cut off and displaced many communities and hamlets. The menace of landslides 

cannot be over-emphasized. Many buildings and relevant infrastructures have collapsed into the 

gullies in recent times. 

29



The flooding of the city could be traced to a number of factors which include non-maintenance 

of urban drains and flood routes, rapid expansion of the city without commensurate expansion 

of the drainage system, erection of buildings along drainage systems. These are factors that must 

be addressed as a way of tackling the flood problems of the state. Addressing them will also 

imply the elimination of flood - related diseases such as malaria, typhoid, cholera and dysentery, 

which afflict residents of flood-prone areas. 

The Government of Abia state need to pay attention to eliminating all forms of impediment to 

the sustainable development of a healthy environment in order to make Abia the premier 

destination in Nigeria, West and Central Africa; for investors, shoppers, workers and tourists. 

This will involve actions like clearing and expansion of the drainage system, and even creation of 

new ones to adequately handle evacuation of storm water. 

Waste Management 

Abia State has been grappling with the problems of solid waste management over the years. The 

indiscriminate dumping of wastes of all categories, and the poor waste management has 

downplayed the efforts of government and the huge sums of money annually budgeted for 

environmental mangement. The urban population growth rate and living standards of the people 

of Abia state have led to a substantial increase in the quantity and diversity of the solid wastes 

being churned out, on a daily basis, from various households, markets, industries hospitals, 

offices, restaurants and other business centers. As a consequence, the rate of generation of these 

wastes now far exceeds the rate of their evacuation, leading to the littering of all nooks and 

crannies of the state with heaps of refuse. 

Below is a statistics of use of refuse disposal (%) and methods in Abia state within 2007 and 

2010. 

Year 2007 2008 2009 2010 

Bin Collected by Govt. Agency 1.4 0.2 2 5.2 

Bin Collected by Private Agency 1.3 3 3.9 2.5 

Government Bin or Shed 10.8 4.7 0.6 7.3 

Disposal within Compound 51.6 28.9 32.3 57.7 

Unauthorized Refuse Heap 29 34.4 53.6 19.7 

Other types 5.9 28.8 7.6 1.5 

None - - - 6.1 

Source: NBS statistics 2012 

From the foregoing, it can be deduced that Abians have maintained a culture of dumping waste 

at unapproved locations, hence, a requirement for speedy intervention from the present 

Government to save the state from any further degradation. Enforcing stiffer penalties for 

defaulters is required to curb this menace. Government also has to evolve an integrated response 

to solid waste management which could include among others use of approved dump sites, 

recycling, waste to wealth initiatives etc. 

30



2.4.5 Abia SWOT Analysis 

Strengths 

 

 

 

 

 

 

 

 

Stable polity. The state has been 

relatively peaceful and secure for lives 

and property 

There is common language and 

culture 

Abundance of natural resources such 

as crude oil, iron ore, limestone etc. 

Skilled and unskilled manpower that 

can be developed 

Tourism and hospitality potentials 

Large market and hub for interregional 

and international trade 

Arable farm lands 

Highly entrepreneurial citizens 

Opportunities 

Weaknesses 

 

 

 

 

 

 

 

 

 

 

 

Fiscal indiscipline 

Non-inclusive governance 

Weak infrastructural base 

Low IGR base 

Lack of recreational facilities 

Underdeveloped ICT system 

Low computerisation of Government 

Access to finance challenge to grow 

economic activities 

Limited access to capital market 

Grossly inadequate data for planning 

Poorly networked industries 

Threats 

 

 

 

Underutilisation of local production 

capacity 

Large market for industrial output 

Proximity to good power resources 

Strong legacy of industry and 

commerce 

Source: Emerald Analysis 

 

 

 

 

 

Ecological threats, including erosion 

and environmental pollution 

High cost of doing business 

High unemployed youth likely to 

increase crime rate 

Threat of HIV/AIDS, Malaria and 

other diseases 

Teacher training 

31



NEW STRATEGIC DIRECTION (ABIA TOMORROW) 

The path to achieving Abia’s vision requires a framework that will midwife the process. As 

earlier stated, the key success factors of a successful government are: 

Leverage; 

Continuity; 

Focus; 

Timing; and 

Creative Funding 

Rooted on these fundamentals, as well as leveraging on the state’s comparative advantage with 

respect to a vibrant people; strategic proximity to 7 other states; infrastructure; security for lives 

and property, the state can strategically craft a viable framework tagged “Abia Growth Model” 

that will aid the achievement of its vision of moving the State to the next level and positioning it 

as a global and local force to reckon with. 

This framework will be achieved through two broad thrusts of development, namely; focus 

sectors and economic facilitators. The figure below illustrates the framework: 

Vision 

“The premier destination in 

Nigeria, West and Central Africa; for 

investors, shoppers, workers and tourist” 

Mission – Uplifting the lives of Nde Abia 

AGRICULTURE 

Leverage nature/ 

focus on major 

cash and food 

crops /integrated 

farming/ value 

chain play; 

Establish 

marketing 

board/system 

COMMERCE 

Re-establish Abia/ 

heritage as a 

commercial hub / 

market expansion; 

Capacity building 

and 

institutionalization 

of resources to the 

SMEs across the 

state 

INDUSTRY 

Establish and 

enforce global 

industrial 

standards; 

Create industrial 

cities for our 

historical strengths 

in garments and 

leatherworks; 

EDUCATION 

Make Abia an 

education 

hub/destination 

Reform public 

education system; 

Drive Education 

for employment - 

TVET 

OIL & GAS 

Explore presence 

of and potential 

for exploration of 

crude oil deposits 

Economic 

Facilitators 

 

 

Health Care 

Infrastructure 

 

 

Ease of Doing Business 

Communication & Public Enlightenment 

 

 

Security 

Housing 

2.5 Focus Sectors 

Focus Sectors (economic pillars) are the economic areas where the State will actively canvass for 

investment inflows by building out infrastructure, disseminating information and generally 

supporting the private sector. The five sectors on which the State will focus are discussed in 

detail below. 

32



2.5.1 Agriculture 

Agriculture has always played a major role in the major economic development of south eastern 

Nigeria. However, just as obtained in the whole country, the state has not maximized its 

potentials with respect to agriculture. The sector currently contributes about 27% to the State’s 

GDP although it provides employment for about 70% of the workforce. 

Although the third smallest state in the country in terms of landmass, Abia has adequate seasonal 

rainfall and arable land to support agriculture which can make the state a hub for agricultural 

activities. 

Strategic Objectives 

 

 

Leverage on the State’s natural advantages to focus on key cash and food crops through 

integrated farming; 

To be among the top 3 states in production of the 6 focus crops in Nigeria. 

Specific Targets 

Rice 

State 

Land Mass 

Cultivated (‘000HA) 

Volume of 

Production(MT) 

Production 

Rank 

Yield 

T/H 

Kwara 152.46 502.30 1 st 3.29 9 th 

Kogi 62.29 492.441 2 nd 7.91 2 nd 

Ebonyi 114.57 404.78 3 rd 3.53 7 th 

Edo 13.71 129.3 13th 9.4 1 st 

Yield 

Rank 

Abia (Current) 9.04 23.8 35 th 2.63 10 th 

Abia (Expected) 72.32 679.808 1st 9.4 1 st 

Abia currently occupies the 35 th position (23.8MT) in rice production. To be number one, we need 

to surpass the production of the top state – Kwara, by improving the volume of production from 

23.8MT to 679.8MT. To improve the volume of production, we need to improve yield per hectare 

from 2.63T/H to 9.4T/H and increase the land mass cultivated by 700% from a current level of 

9.04HA to 72.32HA over the next four (4) years. This implies that there must be a 175% annual 

increase in production area during the next four (4) years holding the yield constant at 9.4T/H. 

33



Cassava 

State 

Land Mass 


Volume of 


Production 

Rank 

Yield 

T/H 

Cross River 357.3 5956.657 1 st 16.68 7 th 

Kogi 22.23 4406.65 2 nd 198.2 1 st 

Yield 

Rank 

Enugu 288.67 3685.241 3 rd 12.77 15 th 

Abia (Current) 150.01 702.093 22 nd 4.68 27 th 

Abia (Expected) 150.01 29731.9 1 st 198.2 1 st 

Abia currently occupies the 22 nd position (702.093MT) in cassava production. To be number one, 

we need to surpass the production of the top state – Cross River, by increasing our yield per 

hectare from 4.68T/H to 198.2T/H holding constant the cultivated land mass. This will ensure that 

our volume of production jumps from a current level of 702.093MT to 29731.9 over the next four 

(4) years. 

Cocoa 

State 

Land Mass 


Volume of 


Production 

Rank 

Yield 

T/H 

Ondo 321.97 92.22 1 st 0.286 8 th 

Osun 251.3 74.1 2 nd 0.295 7 th 

Yield 

Rank 

Cross river 327.91 69.42 3 rd 0.212 17 th 

Rivers 0.18 0.3 15 th 1.667 1 st 



Abia currently occupies the 10 th position (3.34MT) in cocoa production. To be number one, we 

need to surpass the production of the top state – Ondo, by increasing our volume pf production 

from 3.34MT to 96.60MT. To achieve this new volume of production, we need to improve yield 

per hectare from 0.231T/H to 1.667T/H and increase the land mass cultivated by 300% (from 

14.49HA to 57.96HA) over the next four (4) years. This implies that there must be a 75% annual 

increase in production area for the next four (4) years holding the yield constant at 1.667T/H. 

34



Oil Palm 

State 

Land Mass 


Volume of 


Production 

Rank 

Yield 

T/H 

Yield 

Rank 

Akwa-Ibom 172.82 135.82 1 st 0.786 10 th 

Imo 164.28 124.44 2 nd 0.757 13 th 

Delta 130.21 104.73 3 rd 0.804 9 th 

Abia (Current) 53.03 49.23 15 th 0.928 1 st 


Abia currently occupies the 15 th position (49.23MT) in oil palm production. To be number one, we 

need to surpass the production of the top state – Akwa-Ibom, by increasing the volume of 

production from a current level of 49.23MT to 147.69MT. Abia currently has the highest yield per 

hectare in oil palm production (0.928T/H), by simply increasing its land mass cultivated by 200% 

(from 53.03HA to 159.09HA) Abia will be able to attain a volume of production of 147.69MT. This 

implies that there must be a 50% annual increase in production area over the next four (4) years 

holding the yield constant at 1.667T/H. 

Maize 

State 

Land Mass 


Volume of 


Production 

Rank 

Yield 

T/H 

Yield 

Rank 

Kaduna 404.8 792.61 1 st 1.96 14 th 

Niger 417.6 662.64 2 nd 1.59 20 th 

Plateau 262.1 645.53 3 rd 2.46 7 th 

Borno 94 632.92 4 th 6.64 1 st 



Abia currently occupies the 30 th position (90.49MT) in maize production. To be number one, we 

need to surpass the production of the top state – Kaduna, by improving the volume of production 

from 90.49MT to 844.54MT. To improve the volume of production, we need to improve yield per 

hectare from 1.25T/H to 6.64T/H and increase the land mass cultivated by 75% (from 72.68HA to 

127.19HA) over the next four (4) years. This implies that there must be an 18.75% annual increase 

in production area over the next four (4) years holding the yield constant at 6.64T/H. 

35



Cashew 

State 

Land Mass 


Volume of 


36 

Production 

Rank 

Yield 

T/H 

Kwara 31.49 38.98 1 st 1.238 3 rd 

Yield 

Rank 

Imo 11.86 8.48 2 nd 0.715 14 th 

Enugu 8.07 7.66 3 rd 0.949 9 th 

Kaduna 4.69 7.24 4 th 1.544 1 st 


Abia (Expected) 27.17 41.95 1 st 1.544 1st 

Abia currently occupies the 26 th position (0.28MT) in cashew production. To be number one, we need 

to surpass the production of the top state – Kwara, by improving the volume of production from 

0.28MT to 41.95MT. To improve the volume of production, we need to improve yield per hectare from 

0.196T/H to 1.544T/H and increase the land mass cultivated by 1800% (from 1.43MT to 27.17MT) 

over the next four (4) years. This implies that there must be a 450% annual increase in production 

volume for the next four (4) years holding the yield constant at 1.544T/H. 

Recommended Strategic Targets: 

The analysis above reveals the current position of Abia State in the cultivation of rice, cassava, 

cocoa, oil palm and maize. To be the leading state in the production of these crops, the following 

strategic objectives must be achieved. 

Improve Annual Production Volumes 

Abia currently occupies the 35 th position (23.8MT) in rice production, 22 nd position 

(702.093MT) in cassava production, 10 th position (3.34MT) in cocoa production, 15 th position 

(49.23MT) in oil palm production, 30 th position (90.49MT) in maize production and 26 th 

position (0.28MT) in cashew production. To improve the annual production volumes, the 

following strategies are recommended: 

Rice Production 

Improve yield per hectare from 2.63T/H to 9.4T/H 

Increase land mass cultivated by 700% from a current level of 9.04HA to 72.32HA over 

the next four (4) years through an annual increase of 175%. 

Cassava Production 

For cassava production, improve the yield per hectare from 4.68T/H to 198.2T/H. 

Cocoa Production 

Improve yield per hectare from 0.231T/H to 1.667T/H. 

Increasing land mass cultivated by 300% from a current level of 14.49HA to 57.96HA 

over the next four (4) years through an annual increase of 75%



Oil Palm Production 

Increase the land mass cultivated by 200% (from 53.03HA to 159.09HA) over the next 

four (4) years through an annual increase of 50% 

Maize Production 

Increase the land mass cultivated by 75% (from 72.68HA to 127.19HA) over the next four 

(4) years through an annual increase of 18.75%. 


Cashew Production 

Increase the land mass cultivated by 1800% (from 1.43MT to 27.17MT) over the next four 

(4) years through an annual increase of 450%. 


Increase Profitability by Value Chain Optimization 

Ensure Optimality of Production Volume Modifiers 

For Abia State to be at the forefront in the cultivation of the outlined crops, several modifiers 

of optimality need to be ensured. These modifiers include the quality of seedlings, technology, 

knowledge, soil type, irrigation, soil upgrade (fertilizers) and accidents (pest and weeds). 

Ensure that the appropriate quality and quantity of fertilizer is accessible by farmers in a 

timely manner. 

Provide high yield seedlings well suited to the prevalent soil type. 

The current number of holders in Abia State that use improved seedling is 7,139 which 

amount to 0.73% of the total number of users nation-wide. Out of this number that have 

access to improved seedlings, 2,311 obtain them within their locality, 3,055 obtain them 

outside their locality but less than 10 km away and 3,332 obtain them outside their locality 

more than 10 km but less than 50 km away. 

Improve current trend in the funding of agricultural activities. 

A review of this trends reveals that only NGN3.37 Billion which amounts to 1.59% of 

funds available nation-wide to farmers are accessed by farmers in Abia State. 

Mechanization of farming processes 

In Abia State today, 230,084 farm holders still use crude instruments like hoes, cutlasses 

and animal drawn plough in cultivation. Sadly, only 396 farm holders use motorized 

ploughs. 

Land Acquisition 

In view of the current land area of Abia State which is 6,320 Sq. Km (632,000HA), we may 

need to procure land for agriculture in other states. 

37



Specific Strategies 

1. Promote Large Scale Agriculture by providing a conducive operating environment for the 

private sector. In this area, Government will strictly avoid investing directly in any business 

other than the provision of access to land. 

• Select focus produce – Cassava, Oil palm, Cocoa, rice and maize 

• Undertake a land inventory to identify potential land for investors, and evolve a strategy 

to provide free or subsidized land for large investors or cooperatives of small to medium 

sized farmers. 

• Establish a one stop shop for land processing to significantly reduce the turnaround time 

for land allocation, or retrieval where initial understandings have been breached. (This 

will tie in to the initiatives for ease of business) 

2. Support medium to subsistence agriculture 

• Undertake a detailed review and evaluation of the agricultural development strategies of 

the current administration and design strategies to enable the State benefit from them. 

• Partner with local and international agricultural research institutions (Cocoa Research 

Institute of Nigeria -Ibadan, National Root Crops Research Institute – Umudike, 

National Cereals Research Institute amongst others) to provide advanced seedlings and 

extension services to small holder farmers. 

• Identify and support agro clusters for commercial and mechanized farming within the 

State and provide support by developing irrigation, storage and transport infrastructure 

o 

o 

o 

Consider adoption of creative irrigation options such as rain capture. 

Evaluate the feasibility of integrating aquaculture with the irrigation schemes for 

promoting the growth of small to medium scale aquaculture 

Leverage PPPs to build or roll out key infrastructure for the agro clusters 

• Establish crop Marketing Boards to ensure fair and stable pricing, thus insulating 

medium and small scale farmers from pricing shocks, affording them improved access to 

markets as well as market and commodity information. 

• Collaboration with Microfinance banks and Bank of agriculture to provide agro-credit to 

small farmers through the operation of a mini- credit bureau between financiers and 

recognized farmers and agro cooperatives. 

• Invest in acquisition of farm equipment for hire, to give agro clusters up to an identified 

minimum size, access to farm mechanization. 

o Consider supporting investment in locally developed processing technologies for 

processing of output to reduce wastage and facilitate packaging e.g. drying, fish 

smoking etc. 

38



o With regard to rice production, approach an existing miller e.g OLAM, Stallion or 

Dangote to process the output, with the ultimate aim of siting a modern mill in Abia 

State 

• Boost agro extension activities by employing additional staff to align with internationally 

recommended staff to territory ratios, training and retraining of Staff, and provision of 

appropriate equipment including; vehicles, instructional tools, communication devices 

etc. 

• Evaluate current availability of improved agro inputs for focus crops, and consider 

investing (via PPP) in planning material reproduction operations to generate planting 

inputs for re-sale to small and medium farmers. 

o Actively promote the establishment of high quality fish hatcheries in the state to 

facilitate the growth of aquaculture. 

3. Promote agro processing in addition to value chains and linkages of focus agricultural 

products for export 

• Determine secondary and tertiary agro products for production with regards to the 

resource-based comparative advantage of the State and product market analysis. 

• Develop market entry strategies for identified markets. 

• Drive investment into this sector from private sector investors (local and foreign) and 

development partners using tax and infrastructure incentives and the specialized 

processing zones strategy. 

o Investments are to cut across both primary industries (engaged in the initial 

processing of agro products) and secondary industries (undertake further 

manufacturing operations on intermediate products made from agro products). 

• Develop a framework to expand production capacity of local focus-crops farmers 

through the provision of more farmlands and advanced seedlings. 

• Collaborate with development partners and private investors on knowledge exchange 

mechanism between them and local participants in the entire agro processing value chain. 

Broad Targets 

A vibrant commercial agricultural and agro-allied processing sector; 

Agricultural extension services and partnerships with foreign donor agencies and 

development finance institution 

Large scale mechanized farming of rice, cassava and palm oil 

Enhanced Internally Generated Revenue (IGR) through agricultural services and produce 

marketing 

Increased GDP per capita 

Sustainable economy with reduced dependence on FAAC in view of global drop in oil price. 

39



2.5.2 Commerce 

Commerce is an important aspect in the economy of any society. It is a key aspect of Abians and 

they have shown tremendous entrepreneurial skills over the years. 

For example, Ariara main market is reputed to be one of the biggest retail markets for garments 

and shoes in Africa. However, the neglect by previous administrations in terms of investment in 

the markets regeneration, provision of basic infrastructure and modernization has harmed the 

place of the market as well as other major markets in the sub-region. With progressive 

investment in the upgrade and maintenance of the markets, Ariara market for instance should 

ideally be a top player in garment and shoe industry worldwide. 

Strategic Objective 

Re-establish Abia, building on its heritage as a commercial hub through market expansion and 

capacity building. 


1. Target E-commerce for Made-in Aba Products: 

Nigeria currently ranks 1 st in the region and 7 th in the world in e-commerce; with 37.59% 

internet penetration (estimate 67 million people have access to the internet). The state 

can leverage on this by promoting the Made-In-Aba website to drive traffic towards the 

Made-in-Aba products. 

Attract 50% of the estimated 30 million Nigerians currently shopping online (with 

average annual spending per user of $285 and annual worth of $3 billion) to buy from 

the website in the next 15 months. 

2. Modernize the State’s Physical Markets: 

Transform Ariaria International Market and at least 4 other major markets in the state 

into ultra-modern markets (in the category of Tejuosho Ultra-Modern Market, Yaba) in 

the next 4 years. 

Create adequate social amenities – parking lots, toilet facilities and fencing for all the 

markets in the state in the next 2 years. 

Facilitate the construction of industrial parks along the Aba-Umuahia axis in 3 years 

Promote major commercial activities in other cities (Umuahia, Ohafia, Arochukwu, 

Isikwuato) to enhance development 

3. Rebrand Made-in-Aba Products for Global Acceptance: 

Set up Made-in-Aba malls and stores in cities such as New York, Los Angeles, London, 

Dubai, Songhai, Tokyo, and Johannesburg in the next 4 years. 

Begin massive media sensitization for Made-in-Aba products in international media in 

the next 6 months. 

40



4. Attract most Shoppers in the Country to the City: 

Begin the drive for in-country rebranding project for Made-in-Aba products in the next 3 

months. 

Set up of Standards Organisation of Abia in the next 3 months. 

Rehabilitation of all the roads that lead to the state’s major markets in the state. 

Develop and design the marketing policies and framework for the Abia State Marketing 

Agency 


1. Enhance accessibility of all key commercial areas especially Aba by repairing all key 

access roads and providing sustainable plan for servicing the drains 

2. Pursue the activation of the Aba dry port to ensure seamless clearing of imported goods 

3. Re-plan all major markets in Abia to make shopping a pleasure e.g. by widening and 

resurfacing internal roads, re-opening drains, enforcing proper waste disposal and 

treatment 

4. Adopt PPP approaches where possible to build and maintain key infrastructure in the 

markets e.g. toilet facilities, parking spaces, hospitality facilities, business centers etc. 

5. Encourage formation of co-operatives and business clusters among traders in the major 

markets 

6. Collaborate with the private sector to introduce capacity building and institutionalization 

among SMEs across the State. 

7. Improve capacity of local Government Councils to manage the markets under State 

government supervision and regulation. 

Broad Targets 

Aba will become a commercial centre that can be compared to Lagos, with at least 5 modern 

global standard markets serving West and Central Africa; 

Aba will be a strong hub for Nigerian content activities for the trade and commerce sector. 

Enhanced Internally Generated Revenue (IGR) 

 

Drastic reduction in the number of unemployed Abians. 

2.5.3 Industry 

Industrialization involves manufacturing and value adding processing activities. It is the engine 

for true economic growth in any society. Our vision to industrialize our state stems from the fact 

that we wish to exploit the unique entrepreneurial and technical capabilities of Abians in leather 

and garment industry to build an industrial hub that will serve the needs of our people and that 

of other states, leveraging on our geographical advantage. This will position our state as an 

export base and create massive employment. 

For real industrialization to take place, we intend to look into the agriculture sector which is the 

mainstay of our economy. As such, integrate our agro business into processing clusters and lay 

the necessary foundation for our planned industrial revolution. 

Thus, the first step will be the processing of local produce to stimulate growth of other 

industries hence value addition and higher income generation for the state. 

41



Strategic Objectives 

 

 

Establish and enforce global industrial standards; 

Create industrial cities as centres of excellence from our historic strength in garments and 

leatherwork; 


1. Strengthen the state’s micro, small & medium enterprises 

2. Produce for at least 2% of the world’s leather and shoe market needs 

3. Produce for at least 2% of the world’s garments need 

4. Attract 10 multinationals to the state in 4 years 

5. Abia will leverage on the success of e-commerce in promoting the Made-in-Aba products and 

attract 50% of the ecommerce traffic in Nigeria to Made-in-Aba products (especially in 

leather and garment industry) in the next 2 years. 


We will embark on the following strategies to achieve our strategic objectives; 

1. Attract established corporations and industries 

• Study and mediate in dispute between Geometric power and Enugu Distribution 

Company to unlock the currently untapped capacity of the Geometric power plant and 

light up Aba for the return of heavy industries. 

• Consider the opportunities for privatization of viable state owned industries. If they 

have been previously privatized, the performance of previous buyers will be evaluated. 

Where performance is below expectation, strategies for intervention to revitalize the 

company’s operations will be designed and implemented. 

• Adopt an aggressive value unlocking stance including consideration of unbundling 

and/or liquidation for an unsalvageable enterprise to facilitate the unlocking of 

resources. For example, such liquidated enterprise could generate land for feasible 

investment 

• Promote the establishment/reactivation of at least one large Industrial estate within the 

greater Aba area to re-awaken Aba as a big industrial center. This strategy would be 

based on a site and services model i.e. 

o Government acquires land and invests in base infrastructure e.g. roads, drainage etc. 

o Major infrastructure is concessioned via PPPs e.g. Power, water, waste evacuation 

and treatment etc. 

o Large Companies acquire and erect buildings/factories while medium sized 

companies rent smaller plots from government 

• Governor to maintain an open door policy to meet any intending external investors 

• Constitute a one-stop-shop (for the facilitation of investments in Abia) to facilitate 

investment by external investors. The agency will serve as a high powered marketing 

/lobby group to attract investors into Abia State by selling the State’s comparative 

advantages. This agency will among other things, consider the following possible 

actions: 

o Organize an annual Abia investors’ forum 

42



o Engage affluent Abians via their community groups to invest at home 

o Make strong proposals to large corporates in other states to encourage investment in 

Abia with incentive packages etc. 

o Remove all regulatory or social bottlenecks investors might face in operating in the 

State 

2. Foster the growth of SMEs 

a. Encourage the establishment of industrial clusters via PPPs especially for the garment 

and leatherwork businesses. This will start with the urgent relocation of these businesses 

to a new sustainable purpose built location already earmarked for them along the 

Umukalika axis 

b. Design State wide capacity building programs for managers of SMEs aimed at teaching 

management skills collaborating with suitable partners in the private sector, BOI, CBN 

and multilateral agencies. This will be achieved by developing attractive propositions to 

catalyse buy in and participation by Abia based SMEs 

c. Establishment of a State standards Board to help regulate and uplift production 

standards with a view to making ‘Made in Aba’ a badge of honor. The State Standards 

Board will collaborate with SON, NAFDAC and other National standard enforcement 

agencies in improving standards of made in Aba products by acting as a force multiplier 

for these agencies i.e. the Board will avoid any conflicts or duplications of activity with 

the national agencies. 

d. Establish an industrial growth committee to liaise with UNIDO, IFC, BOI etc. and any 

other multilateral agencies on possible partnerships especially in areas such as: 

o Access to Technical partnerships and other capacity building opportunities 

o Product quality improvement efforts 

o Industrial cluster related services 

o Access to Finance 

Broad Targets 

Customer confidence and brand loyalty for ‘Made-In-Aba’ products. 

Improved customer experience and satisfaction.as products and services meet quality and 

product safety requirements. 

Promotion of innovation amongst local enterprises and entrepreneurs 

Attraction of investments from both local and International investors 

Increase in State’s internally generated revenue. 

Increase in the State’s gross domestic product caused by Industrial growth. 

Economic development. 

Reduction in the rate of unemployment. 

2.5.4 Oil and Gas 

2.5.5 Strategic Objective 

Explore presence of and prospects for discovery of valuable hydrocarbons in the State and also 

encourage other oil and gas related investments in the State. 

43




1. Attract the most qualified investors for long run investment in the State’s marginal oil 

wells: 

Begin exploration of the 50 unexplored marginal oil wells in the state within the next 2 

years; attract independent investors to manage the wells. 

2. Encourage private sector establishment of refineries: 

Attract at least three refineries to the state in the next 4 years; 

Refine at least 50% of the state’s production capacity in the next 8 years. 

3. Optimal use of gas: 

Nigeria contributes 40% of total gas flared in Africa, which amounts to $7 billion. 

Abia state will target to be the first state to absolutely stop gas flaring within the next 4 

years by converting the flared gas to liquefied gas for domestic and industrial uses by 

facilitating investment in gas separation plant within the next 3 years. 

Become the leading state in energy production by facilitating the erection of a gas-topower 

plant of 5000MW capacity within the next 6 years. 

4. Solid minerals: 

Conduct a comprehensive feasibility study on the quantity and purity level of limestone(s) 

and lead/zinc deposits in Abia state within the next 6 months; 

Conduct a feasibility study to determine other solid minerals deposit and their production 

capacity in 8 months; 

Attract at least 3 big corporations to begin exploration of the State’s limestone and 

lead/zinc in the next 2 years; 

Develop a framework for licensing each of the available solid mineral deposits with 

immediate effect. 

44




1. Maximize the full potentials of hydrocarbon production in Abia 

• Establish an expert panel to evaluate records of exploratory activity in Abia 

• Collaborate with the relevant agencies of the Federal Government, to facilitate the 

development of any un-exploited reserves. 

• Consider the development of investment strategies for ‘non-commercial finds’ in Abia 

State e.g. modular refineries, modular CNG processing and distribution facilities etc. 

2. Promote investments in Abia to serve the oil Industry 

• See Industry (--- investment promotion strategies) 

• Revisit Obuaku City or similar mega real estate concepts in partnership with a private 

sector developer to establish a link-up between the economies of Abia State and the oil 

and Gas Companies in Port Harcourt. 

3. Develop industrial gas city in the state as base for gas related industries 

• Obtain approval of application for the development of an industrial city and an 

Operating License (OPL) from the Free Zone Administration. 

• Assess identified location for quality, availability and suitability of the above. 

o Conduct an environmental impact assessment to ascertain the suitability of the land 

mapped out for the industrial gas city. Two important criteria for determining the 

suitability of land will be sustainability and ratio of benefits to costs. 

• Develop land use model for identified location 

o Develop a functional prototype with the layout of minimum activities and 

infrastructure. 

o Develop a model with all planned activities, commodities, and floor space types, to 

coarsely calibrate the model, and test the sensitivity of the model to some land use 

policy 

• Design an infrastructure development strategy and implementation plan 

o Plan and design a framework for the development of the industrial gas city 

o A monitoring and control system to ensure the effectiveness of the implementation 

plan is to be developed. All aspect of the projects will be monitored to ensure 

compliance with the implementation plan. 

• Design financing model 

o Identify infrastructure development partners 

• Develop communication and marketing strategy to ensure direct and indirect 

communication on the existence, purpose, opportunities and benefits of the industrial 

gas city. 

Broad Targets 

Establishment of an industrial gas city at Owaza serving as a base for gas related industries 

and businesses; 

Exploration of existing and potential hydrocarbon reserves as well as other 53 oil wells in the 

state; 

Improved electricity supply through gas exploration and conversion to electricity. 

45



2.5.6 Education 

Education is a major catalyst for self-realization, capacity building and economic growth. 

Nationally, Abia state ranks high in education. This is due to the state’s ranking as top three 

(2012) in secondary education nationally according to ServeAfrica. This ranking was based on 

the educational facilities present in the school; the teaching aids; the success the schools have 

achieved in WAEC, NECO and other mathematical examinations. This also draws from the 

laudable initiatives of the past administration and these records must be entrenched and 

improved upon. The state’s national rating notwithstanding, the quality of education in the state 

remains a far cry from global standards. 

If the administration’s vision of building Abia into a preferred business destination must be 

achieved, optimum quality and global best practices in the education sector must therefore be 

institutionalized within the State, just as compulsory basic education is a sine qua none. Another 

reason for this improvement is hinged upon the fact that prospective investors must have 

schools to which to send their children. Also, as the government intends to attract migration 

from the West and other locations, adequate infrastructure and social amenities as well as 

standard education at all levels must be made available for the state to compete advantageously 

against other states. 

To achieve this, improved investments in the sector must be multipronged and cut across the 

primary, secondary and tertiary levels of education, with these efforts coalescing into the core 

areas of teaching and learning - Students, Teachers, Infrastructure and Education Administration 

(Ministries and Agencies). 


To promote the emergence of Abia as: an education hub/destination, home to Nigeria’s largest 

private school hub, the State with the best managed public education sector in Nigeria and the 

first choice education location for South-East and South-South Nigerian families. 


1. Encourage and promote private sector investment 

• Identify and map out suitable locations for location of large boarding schools considering 

accessibility, land availability, conducive environment etc. These schools will draw 

thousands of students from Abia and neighbouring states, and thus attract capital inflows 

to the state through funds transfers to students by parents and guardians; 

• Facilitate land acquisition by private schools to enhance market entry; 

• Develop base infrastructure around the school clusters including access roads, the 

proposed Abia Airport, etc. 

o Encourage the establishment of hospitality businesses to house visiting parents etc. 

• Evolve a high powered marketing team to approach high profile private schools with 

offer for expansion, specifically targeting schools mainly based in the West, but who 

would welcome an opportunity to access the large and lucrative markets in the South 

East and Niger Delta. 

2. Reform public school system to achieve improved quality of outputs 

• Review the school curriculum at all levels with a view to enhancing them without 

deviating from Nationally accepted minimums with particular emphasis on 

46



o Vocational Education 

o Special needs learning 

o Infusion of ICT as a subject area and as a learning tool 

• Boost the development of learner attitudes to improve uptake of instruction by students 

o Evolve an incentive scheme for students at all levels to encourage focus in schools 

including the following 

– Free Education as far as possible 

– Sports and extra curricula activities etc. 

o Revive guidance and counselling in public schools leveraging on the large population 

of Abia State professionals and persons of proven track record 

• Enhance Teacher quality and commitment 

o Conduct detailed studies on the evolution of a parallel extra –service payment system 

for teachers to supplement their traditional civil service based pay 

o Identify suitable international partners to design a robust teacher training and retraining 

program for all teachers 

o Institute periodic teacher assessment programs tied to extra compensation 

o Introduce teachers conferences and other peer to peer events to facilitate role 

modelling and experience sharing 

• Strengthen the Education For Employment (E4E) platform in the state 

o Revive Vocational Training centres such as Boys Technical College, Girls Technical 

College etc. 

o Equip the various vocational schools with the required equipment that will facilitate 

learning 

o Institute certification programs with globally acceptable certificates 

o Equip unemployed youths with the required technical know-how to meet future 

employers’ expectations. 

• School Governance 

o Implement workshops and symposia to retrain school management staff in the state 

o Re-constitute school boards to give increased prominence to old students 

associations as well as volunteer groups 

o Institute a peer review and learning system to allow for sharing of best practices 

• School Regulation 

o Re-empower school inspector services across all levels of the education system 

• Enhance School infrastructure 

o Develop and Rebuild Abia Schools to achieve a practical, sustainable but ‘no frills’ 

learning environment, based on agreed goals regarding number of students per class, 

science equipment, learning aids, teaching aids etc. 

o Re-activate/Establish at least one technical school in each senatorial district of the 

State 

o Promote via PPP an ICT focused private University or Mono-technic under the aegis 

of the Abia State University to drive the adoption of ICT as a medium for job 

creation and entrepreneurship by the youth of the State 

47



Broad Targets 

To make Abia home to Nigeria’s largest private school hub and the State with the best 

managed public education sector in Nigeria; 

Abia as the first choice education location for South-East and South-South Nigerian families 

all over the World; 

Improved employability of youths and graduates of technical colleges through the Education 

for Employment (E4E) programme; 

Manpower development and capacity building; 

 

 

Lesser cost of manufacturing due to available trained manpower skills; 

Restructuring of Technical colleges in the state to international standards; 

2.6 Enablers 

Generic areas of development required to achieve an environment which will promote economic 

growth and social wellbeing. 

2.6.1 Ease of Doing Business 

In today’s world, business thrives on several factors like the availability of capital for 

investments, human capital, necessary infrastructure etc. One other very important factor is the 

Ease of Doing Business. Sound business regulations are necessary for a thriving private sector 

which is also important for economic development. Having the right business regulations and 

related institutions is therefore essential for the health of an economy. For the economy of Abia 

to thrive as envisioned, the ease of doing business must be improved. Specific strategies that will 

help achieve that are identified below. 


To put in place measures, that will improve business processes and make Abia the first choice 

for business location in Nigeria. 


1. Develop and provide a single comprehensive document defining a business climate reform 

strategy based on best practice e.g. in OECD countries. 

2. Provide targeted support in the implementation of the reforms on demand for all relevant 

MDAs to leverage 

3. Work with the Federal government and private sector throughout the process to increase 

buy-in for business climate reform. 

4. Ensure coordination amongst Ministries and government agencies through a detailed selfevaluation, 

and improved process. 

5. The Governor and his executive will set the tone by maintaining an open door policy in their 

interaction with the public. It should be possible for a potential investor to see the Governor 

within 24hours once it is clear to the protocol team that this is a genuine request. 

2.6.2 Housing 

Abia State is a major commercial center, perhaps second only to Lagos. However, despite the 

laudable effort of previous administration on housing, there are still gaps to be filled if the sector 

48



must provide the housing needs of the state in achieving its vision. Below are specific strategies 

that will be used to improve the state of housing in the state. 

Strategic Objective – deliver sufficient housing and urban infrastructure to transform urban 

centres into economic hubs and improve housing challenges drastically 


1. Aba Renewal 

• Redesign and rebuild drainages 

• Reconstruct major roads to ensure all season accessibility of all major segments of the 

City 

• Major City Modernization plan which would involve landscaping and aesthetic upgrade 

of the major cities in the state including Umuahia, Aba, Ohafia, Arochukwu etc. 

• New area projects which would entail the opening of new cities around the current major 

towns, with effective linkages to the older cities 

2. Other Urban Centers 

• Plan and execute lighthouse projects in select urban areas across the senatorial zones. 

These projects (which are to be unique to South East/ South South) would signify the 

new cosmopolitan nature of Abia State, and would be executed via PPP efforts. Options 

would include any of the following: 

o 5 Star Hotel 

o 18 hole golf course with associated club and hospitality facilities 

o Zoological garden and Amusement park 

o Standard Sports Stadia 

o Standard shopping mall with multiplex Cinema etc. 

3. Housing 

• Map out land areas around select cities for private sector or PPP land development 

• Promote increased development of affordable housing through the provision of 

necessary infrastructure 

• Optimize the Land and Title Registration process to encourage increased investment in 

the sector. 

• Attract private and corporate home developers to build in Abia State, and ultimately 

mastermind a ‘reverse brain drain’ which will see a majority of Ibo families moving their 

primary abode back to the state from other states. 

2.6.3 Health 

There is a correlation between the economic growth of a nation or a state and the health of the 

people that live and work in it. Improving the health of a nation’s citizens can directly result in 

economic growth; because, there will be more effective workforce. Maintaining quality 

healthcare will guarantee a healthy work force that will drive the five economic focus sectors. 

Focusing on health as an enabler also enhances the achievement of the Governor’s vision of 

“uplifting the living conditions of the Ndi Abia”. Specific strategies that will be used to overcome the 

current health challenges in the state are discussed below. 

49




Introduce access to world class healthcare for Abia State Residents 


1. Reform public healthcare in line with the FG primary healthcare plan which has the 

following thrusts 

• Improve collection and monitoring of health data to facilitate decision making and 

early warning of dangerous health trends 

o Identify and train relevant staff on data collection and management 

o Implement relevant data management platforms to facilitate data collection 

o Analyze the data and communicate outcomes to support decision making 

o Where necessary disseminate resulting information to the public to help update 

public health management system 

• Improve personnel development 

o Organize and implement requisite capacity building programs for doctors, nurses, 

regulators, administrators and facility management staff to help improve 

healthcare delivery 

o Sponsor the state’s healthcare professionals to leading local and international 

healthcare conferences 

o Promote cross posting or technical partnership programs to make for 

opportunities to work with international specialists 

o Rejuvenate healthcare training schools especially nursing schools to provide 

sufficient trained manpower to manage the State’s hospitals etc. 

o Develop Abia Healthcare portal to enable information sharing amongst 

professionals and information dissemination to the public 

• Enhance healthcare facilities and services 

o Develop/revitalize secondary and tertiary healthcare facilities into centres of 

excellence for selected specialties e.g. Heart, Kidney, Orthopaedics etc. 

o Boost generic practice areas e.g. maternal and child care, basic eye care etc. across 

all healthcare facilities in the state to make for improved access to these areas of 

specialty. 

o Identify relevant service areas for subsidy, cost recovery and financial surplus (to 

be operated via PPPs) based on feasibility. Thus earnings from surplus segments 

can supplement subsidy segments 

• Ensure the provision of essential drugs 

o Promote an essential drug availability program aimed at ensuring the availability 

of essential drugs at affordable prices in all healthcare facilities in the State with 

the aid of drug revolving fund 

o Partner with private sector pharmacies to operate dispensaries in public health 

facilities under a well regulated arrangement, to offer agreed drugs at agreed 

prices 

o Establish a subsidized dispensary scheme through the private partners for 

vulnerable and less privileged citizens 

• Improve on immunization programs 

50



o Institute appropriate recordkeeping including the implementation of an 

immunization Information Systems (IIS) 

o Leverage recommendations and reinforcement by other caregivers to encourage 

immunization e.g. where doctors recommend a given vaccine for a child 

o Introduce reminders and recalls to patients using suitable media e.g. SMS or town 

crier in rural areas 

o Develop a system of reminders and recalls to providers i.e. reminding them to 

prepare for the day’s patients 

• Promote prevention and treatment of communicable diseases 

o Redevelop and upgrade community health centres 

o Build capacity of health inspectors and upgrade their resources 

o Disseminate information on communicable diseases and prevention measures to 

the populace 

2. Promote investment in healthcare by the private sector 

• Issue concessions to Private sector partners to run specialist offerings e.g. 

secondary/tertiary diagnostic centres, Endoscopy clinics, dialysis units, high-end 

mortuary services etc. 

• Procure international partnerships to run government owned special care centres under 

management contracts 

• Actively invite air and vehicular ambulance operators to cover Abia in their service 

plans 

• Establish government funded and managed casualty and trauma centres in the major 

cities/ LG HQs 

3. Re-double regulation of the private sector healthcare organizations by taking the following 

actions: 

• Revise and update published healthcare institution regulations and standards 

• Encourage public reports of any infractions by private clinics 

• Institute a robust inspection service to monitor private clinics with an exhaustive and 

rigorous visitation schedule. 

2.6.4 Infrastructure 

Infrastructure entails amenities that promote economic activities ranging from ultra-modern 

classrooms for learning, modern markets, motorable roads and other means of transport, 

healthcare facilities, affordable housing, portable water etc. Over the years government have 

given insufficient attention to infrastructural development in the state, thus creating a lacuna in 

the state of the economy. 

The new administration has taken infrastructure as a major enabler to enhance the achievement 

of its economic vision to ensure growth and development of the state and restore Abia to its 

rightful place as the leading commercial centre in the Country and Sub-Saharan Africa. 


Install and maintain sufficient infrastructure base to support economic growth 


51



1. Roads and Drainages 

• Prioritize key state roads tied to key segments of the economic growth blueprint e.g. 

airport connection, access to industrial clusters and parks, Aba development area, State 

Capital, Agro clusters etc. 

• Establish and equip a robust road maintenance agency 

• Revamp Aba drainage networks by 

o Evaluating the existing sub-surface drains to determine the most appropriate 

approach e.g. clearing and expansion or total replacement 

o Dredging of the Aba river to serve as a terminal point for the drainage network 

o Consider the implementation of temporary solutions e.g. using networks of artificial 

and natural sinks linked through pipes and pumping stations. 

2. Rail 

• Liaise with the Nigerian Railway Corporation (NRC) to ensure commencement of train 

trips across Abia from Enugu and PH 

3. Air 

• Plan for the establishment of an Abia Airport to drive development 

4. Others 

• Engage private concessionaires to ensure the commencement of operations in the Aba 

dry port project. 

• Revitalize pipe borne water projects for major cities and LG HQs 

• Develop an emergency power plan leveraging on the following concepts for industrial 

estates/parks, high priority Government facilities e.g. street lighting, healthcare facilities 

etc. 

o Small IPPs 

o Distributed power generation leveraging small plants 

o Compressed natural gas fuelling etc. 

2.6.5 Security 

Achieving adequate security from the current security status of the state requires aggressive 

policy initiatives and implementation focused on delivering maximum security in the shortest 

time frame. It will involve a multi-pronged approach to undoing the threats to lives and 

properties within the state, hence promoting patronage from outside investors. 


Implement security measures to make Abia State safe for living, work and leisure 


1. Engage a security expert team e.g. ex-Police IGs, Commissioners of Police etc. with good 

grasp of the Nigerian environment to undertake a security study of Abia and recommend 

strategies for improved including: 

• Supplementing the funding requirements of the security agencies especially for special 

reaction squads against violent crimes; 

• Special equipment procurement focusing on high ‘pay off’ investments e.g. 

communications gadgets, surveillance equipment; 

52



• Accumulation of a security fund under a PPP arrangement to address the special needs 

of urban areas like Aba and Umuahia, and key corridors like the main highways, 

collaborating with the Banks and other private sector operators and high net worth 

individuals; 

• Other initiatives as might emerge from the report of the expert team. 

2. Implement the proposed Abia identity management program, to be tied to the National 

program wherever possible to avoid duplication of efforts or avoidable conflict. 

3. Reposition the Abia State judiciary through the engagement of additional judges and 

magistrates. Introduction of a fully automated judicial system leveraging a Centralized 

Information Management system, an automated Workflow Court Calendar, Case File view 

etc. In addition to this, we shall ensure the improvement of the remuneration and welfare 

packages of our judicial workers to improve morale and drive efficiency. 

4. Engagement of an expert team of legal practitioners to review and revise the standard court 

processes to make for efficiency and enhanced processes. 

53



FINANCIAL STRATEGY 

The need to fulfil the vision of making Abia State the premier destination in Nigeria, West and 

Central Africa for investors, shoppers, workers and tourist has necessitated the development of 

long-term strategies for its achievement. 

This economic development and growth vision of the State is to be achieved through an 

integrated approach to development over the next 10 years, based on clear needs assessment, 

comparative advantage, achievable outcomes, appropriate policies and strategies to guide public 

and private investment in economic, infrastructural, social and environmental programmes. 

However, the strategy for transforming Abia State into an economic giant requires a significant 

aggregation of sustained investments over the period of its implementation. Necessary 

investment must be attracted, and required resources mobilised to finance these plans. 

This chapter therefore outlines the requisite steps for attaining financial buoyancy for 

implementing policies, strategies, and fulfilling the economic vision. Our expected final 

outcomes include: 

• The State has the financing ability to implement the strategies set out in this blueprint; 

• The State has the required human and organisational capacity in finance to implement 

the plan; 

• The State budgeting, planning and coordination system is realistic and responsive; 

• The Government’s financial administration has in-built accountability mechanisms. 

Investment and Financing Requirements 

Understanding the investment and funding requirement for the implementation of the long-term 

strategies is very important, although the computation of accurate financial projections of this 

magnitude may not be possible. The exact amount or very realistic estimates can only be drawn 

up in each MDA’s strategic document. However, the extent to which the State's financial sector 

and budget can respond to the demands that will be placed on it, including the capacity of the 

State to meet some of the costs from its own budget and how much needs to be raised through 

partnerships with others such as the private sector and international agencies will be assessed. 

The basis for the required level of investment and scale of capital expenditure in focus economic 

sectors is presented below: 

Agriculture 

Investments by the State government in the agriculture sector is only expected to be directed at 

providing a conducive operating environment for private sector participation. Focus will 

therefore be on providing access to land for both large investors and cooperatives of small to 

medium sized farmers and the development of irrigation, storage and transport infrastructure to 

support commercial and mechanized farming in the State. 

Advanced seedlings and extension services would also be provided for small holder farmers 

through partnerships with local and international research institutions. Farm equipment would 

54



also be acquired by the State for hire by farmers and financial support for locally developed 

processing technologies would be made available. A fair and stable pricing system with the help 

of Marketing Boards will ensure that the State provides agro-credit to small farmers in 

collaboration with Microfinance banks and the Bank of Agriculture (BOA). 

Other initiatives will include the development of an outfit for land processing and the 

employment of additional staff in line with internationally recommended staff-to-territory ratios 

to boost agro extension activities. These should cost the State about NGN3 billion. The State 

will therefore leverage on PPPs to build out key infrastructure for this sector. 

Commerce 

An estimate of about NGN18 billion is needed to enhance the accessibility of key commercial 

areas through the rehabilitation of transport infrastructure. The activation of the Aba dry port 

for seamless clearing of goods, the redesign of 5 major markets as well as capacity building of 

local SMEs and Local Government Councils across the State in collaboration with the private 

sector will be at the cost of NGN44.56 billion. 

Industry 

The State aims at jumpstarting its desired structured industrial development with a good blend of 

public and private investment directed at the development of an industrial hub to exploit the 

unique entrepreneurial and technical capabilities of the people of Abia, especially in leather and 

garment production. 

One large Industrial estate within the greater Aba area is to be established at the cost of 

NGN750, 000,000 to re-awaken Aba as a key industrial centre. This strategy would be based on a 

site and services model in which Government acquires land and invests in base infrastructure e.g. 

roads, drainage etc., while major infrastructure is concessioned via PPPs e.g. Power, water, waste 

evacuation and treatment etc. 

Industrial clusters will also be established at sustainable purpose-built locations via PPPs 

especially for the garment and leatherwork clusters. Capacity building programs at an estimated 

cost of NGN100, 000,000 for SMEs across the State in collaboration with suitable partners in 

the private sector, BOI, CBN and multilateral agencies will be implemented. A state Standards 

Board will help regulate and uplift production standards. An annual Abia investors’ forum to 

facilitate investment by external investors will be instituted. 

Oil and Gas 

Spending on the prospective oil wells for hydrocarbons will require major investment over the 

next 10 years. This investment is estimated to be at NGN2, 985,000,000 per oil well. The 

remaining 53 wells in the State are expected to be explored. Considering the possibility of finding 

non-commercial quantity of crude oil and natural gas, modular refineries which may cost 

between NGN199,000,000 and NGN2,985,000,000, Compressed Natural Gas (CNG) 

processing and distribution facilities at NGN53,730,000,000 may also be considered for 

development. 

55



On the other hand, investments will be made to serve the oil and gas industry; for example, the 

establishment of an industrial gas city at about NGN3,184,000,000,000 which will function as a 

base for gas related industries and businesses. PPPs will be developed to embark on a mega real 

estate concept to establish a link between the economy of Abia State and the oil and gas 

companies in Port Harcourt. 

Education 

For the rapid development of the education sector of Abia State, improved investments which 

cuts across the three levels of education and promotes the emergence of Abia as an education 

hub/destination is to be applied. 

Private sector investment will be encouraged by providing suitable locations for siting large 

boarding schools considering accessibility, land availability and a conducive environment. A 

dedicated outfit to facilitate land acquisition and market entry and the base infrastructure around 

the school clusters which includes access roads at NGN 171.4 million per km will be developed 

while the proposed Abia Airport at an estimated cost of NGN11 billion will be constructed. 

Suitable international partners will design robust teacher training and re-training program and 

implement workshops and symposia to retrain school management staff in the state at an 

estimated cost of NGN75, 000,000. 

To achieve a practical and sustainable’ learning environment, existing State Schools will be 

rebuilt along with new State schools which may cost between NGN250 million to about 

NGN500 million based on agreed goals regarding number of students per class, science 

equipment, learning aids, teaching aids etc. At least, one technical school in each senatorial 

district of the State will also be developed at the cost of NGN1.2 billion. 

Enablers 

To achieve a business friendly environment, several variables must be set to promote economic 

growth and social wellbeing. These variables include the ease of doing business, which can easily 

be identified. Other enablers include housing, healthcare, infrastructure and security. 

In terms of housing requirements, the Aba Renewal Projects and the lighthouse projects in 

selected urban areas across the senatorial zones will cost NGN117 billion. For healthcare, 

capacity building, provision of essential drugs, redevelopment and upgrade of community health 

centres and the enhancement of both secondary and tertiary healthcare facilities may cost the 

state about NGN50 billion. 

On infrastructure, the State will need to achieve the Water Sector objectives of supplying major 

cities and LG HQs with potable water. The power requirements of Abia State currently stand at 

about 3500MW at an estimated cost of USD1.3 million per MW which will require investments 

worth USD 4.55 billion. 

The State will also require major spending of about NGN40 billion on Security for the full 

automation of the judicial system, implementation of the proposed Abia identity management 

56



program, special equipment procurement and supplementary funding requirements of the 

security agencies. 

The deployment outlook of the implementation of these economic development strategies is 

good as an estimated number of 15, 000 permanent jobs are expected within the implementation 

period. 

S / N SECTORS SOURCE OF FUNDS ESTIMATES 

(NGN) ‘’000’’ 

1 Agriculture 

Advanced seedlings 

Extension activities 

Farm equipment for hire 

Financial support (locally processing technologies and agro-credit) 

2 Commerce 

Bank of Agriculture (BOA) 

Local research institutions 

Public private partnerships 

Multi-lateral agencies 

3,000,000 

Aba dry port 


9,912,500 

Redesign Five (5) major markets Debt financing 

34,500,000 

Capacity building (local SMEs and Local Government Councils) Multi-lateral agencies 150,000 

3 Industry 

An Industrial estate 


Capacity building programs (SMEs) Bank of Industry 

100,000 

Annual Abia investors’ forum 

4 Oil and Gas 

Oil wells development 

Debt financing 


750,000 

2,985,000 (per oil well) 

Modular refineries Debt financing 

199,000 - 2,985,000 

Compressed Natural Gas (CNG) facilities 53,730,000 

Industrial gas city 3,184,000,000 

5 Education 

Abia Airport 

Debt financing 

11,000,000 

Capacity building (teachers and school management staff) Public private partnerships 75,000 

Rehabilitation and construction of state schools Private sector investment 250,000 - 500,000 

Rehabilitation and construction technical schools (senatorial Multi-lateral agencies 1,200,000 

districts) 

57



S / N SECTORS SOURCE OF FUNDS ESTIMATES 

(NGN) ‘’000’’ 

6 Enablers 

Housing 


117,000,000 

Power Debt financing 

905,449,140,830 

Healthcare Multi-lateral agencies 50,000,000 

Security 40,000,000 

Roads 18,004,140 

Revenue Projection 

The following are variables that will determine the amount of resources available to finance the 

above stated expenditure: 

• Internally Generated Revenue 

• Federal Transfers 

• Capital Receipts 

• Debt Financing (internal and external loans and bonds) 

Projected State Revenue 2016 – 2026 (NGN Millions) 

S/N SOURCE 2015 BUDGET 2016 BUDGET* 2025 BUDGET* 

1 Internal Revenue 22,756,142,517.00 36,000,000,000.00 60,300,000,000.00 

2 Federal Transfers 89,699,670,848.00 54,000,000,000.00 54,000,000,000.00 

3 

Capital Receipts (aids and 

grants) 

20,969,804,592.00 25,000,000,000.00 50,000,000,000.00 

4 Other Capital Receipts 120,000,000.00 3,000,000,000.00 10,000,000,000.00 

5 Debt Financing 2,400,000,000.00 40,000,000,000.00 20,000,000,000.00 

TOTAL 135,945,617,957.00 158,000,000,000.00 194,300,000,000.00 

*Projected Estimates - Projected internal revenue for 2016 and 2025 was estimated using a 7.5% increase per 

year. 

Financing Options and Direction 

• Internally Generated Revenue 

Abia State is far from her development goals and will need a large pool of funds to attain 

these goals. The internally generated revenue is at a current monthly average of NGN 

537,654,276.78 and this is not nearly enough to meet any significant portion of her goals. 

The State has therefore developed a strategy aimed at improving its IGR to a new minimum 

of NGN1.5 billion per month before the end of 2015 and NGN3 billion by the end of 2016. 

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This strategy includes steps to block all loopholes through which revenue accrued to the 

State had hitherto leaked. Technical cooperation is also being finalised with prospective nonbank 

technical partners as the State pushes to achieve the full automation of her revenue 

collection process. 

These plans as well as other strategic plans aimed at economic growth will ensure the States 

IGR hits NGN1.5 billion mark monthly by end of 2015, doubles by 2016 and grows at a rate 

of 7.5% per annum thereafter. 

• Debt Financing 

Infrastructural development goals in the State will also be supported with a multi-tranche 

debt issuance program which will be efficiently managed in order to enhance the quality of 

physical infrastructure. 

Necessary laws are to be put in place to give the State access to the national capital market to 

raise debt for financing key infrastructure projects and refinancing other short term loans. 

• Multi-Lateral Agencies Financing 

Partnership will be sought with development partners like the United Nations Children Fund 

(UNICEF), United Nations Development Programme (UNDP), United Nations 

Development Assistance Framework (UNDAF), Department for International Development 

(DFID) and International Finance Corporation (IFC) and other national development 

partners like the Bank of Industry (BOI), Bank of Agriculture (BOA) and The Nigerian 

Content Development Monitoring Board (NCDMB) to complement the State’s effort in the 

focus sectors. 

Funds from these agencies will come in form of long-term low interest loans and grants. To 

ensure transparency and accountability, performance monitoring mechanisms of these 

monies will be instituted. 

• Public-Private Partnership 

Public Private Partnerships have always been an effective and efficient way of meeting the 

infrastructural needs of States and Abia State has begun to initiate partnerships for win-win 

initiatives in this regard to stimulate economic growth. 

The pillars of the State’s economic development (focus sectors of economy) require major 

infrastructural development which will be achieved through PPPs structured to encourage 

Foreign Direct Investments (FDIs) and private capital flow into the State to complement the 

State’s effort. 

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IMPLEMENTATION, MONITORING AND REVIEW 

It is crucial to implement the Blueprint in a sequenced and phased manner with clarity and 

rationale. This is due to the fact that the Blueprint is a long term endeavour and is also the 

working tool required to achieve the State’s Vision. Since this is a long term plan, the indicators 

that will be developed will have to reflect the long term outcomes that are being sought and the 

extent to which the plans are on track to meet them. Some interim targets (100 days) that can 

measure progress towards the long term outcomes are therefore required. 

Monitoring the performance of the Blueprint will be vital to ensure that the plan is on track in 

terms of the intended sequencing such that any necessary adjustments and corrections can be 

made in time. Evaluating performance will involve a wider stakeholder engagement and will take 

a broader view of progress that could lead to changes in perspective and implementation plans. 

Objectives/Outcomes 

Sequencing and Phasing 

Processes which link the Blueprint to medium-term sector strategies and annual budgets are 

established; 

MDAs are made aware of linked and relevant policies and programmes of other MDAs in 

the Blueprint that relate to their activities; 

Establishment of milestones and targets that provide a basis for monitoring the Blueprint on 

a phased basis. 

Monitoring and Evaluation 

M&E of the Blueprint is effectively linked to existing systems used to monitor and evaluate 

medium-term sector strategies and other Government Plans; 

M&E activities undertaken help to assess whether or not Blueprint objectives/outcomes are 

being realized; 

M&E systems provide the basis for accountability to the citizens. 

Review 

Blueprint performance to be reviewed on a regular basis; 

Stakeholders (e.g MDAs) have access to reports on the Blueprint performance; 

Blueprint strategies are tracked and analyzed to determine whether they are achieving the 

government's desired outcomes; 

Revision of Blueprint strategies to make them more effective for delivering better 

performance results and outcomes for citizens. 

The Implementation Programme and Plan Sequencing 

While the Blueprint provides a general framework for the long-term development of the State, 

its implementation framework will be mainly set by the medium-term sector strategies and the 

annually reviewed and up-to-date medium-term budgeting backed by a pragmatic financing 

strategy. Though Government will be the pacesetter, there will be crucial partners in the process 

including the private sector, non-governmental and community-based organizations, 

international development agencies, and the entire citizenry. 

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Therefore, to ensure its success, there will be an implementation framework and an action plan 

specifying tasks, roles, key players and time frame. 

The Blueprint Implementation Programme 

The Implementation Programme will consolidate Blueprint efforts and bring about the following 

results: 

A list of projects and programmes for implementation; 

List of agreed priorities and their sequencing in terms of implementation; 

Realistic budgets which reflect agreed strategies and priorities that are able to adapt to 

changing circumstances; 

Action plans for the agreed priorities specifying tasks, roles, key players and time frame; 

Planning systems that provide an enhanced framework for improved well-being and greater 

opportunities for enterprise; 

Coordination mechanisms that ensure all partners and all MDAs are geared to achieving 

state-wide aims, strategies and policy directions; 

Monitoring and evaluation procedures that allow for an open and transparent performance 

management to be publicly reviewed and assessed through Blueprint level Key Performance 

Indicators, harmonized with those deployed in medium-term sector strategies and other 

mechanisms. 

Implementation is very crucial to the achievement of the vision, policies and strategies of the 

Blueprint. Implementation will be participatory with active involvement of all major 

stakeholders. It is envisaged that the use of medium-term budgeting, coupled with political 

commitment, good governance and active participation of major stakeholders will ensure 

effective implementation of the sectorial strategies. 

The implementation frameworks for key sectorial strategies are, therefore, the medium term 

sector strategies, medium-term budgets and the annual budgets with sufficient input from all key 

players. At the same time, reform programmes, coupled with continuous coordination, 

monitoring and evaluation will be pursued to provide an enabling environment for successful 

implementation. 

Monitoring and Evaluation 

Monitoring is the key activity in ensuring that the policy development and the review process 

result in changes that improve the quality and pace of the implementation of the Blueprint. The 

State will adopt a Result-Based M&E System. 

Reliable information will be an important input to the various review processes into which the 

Blueprint will now be a part of. These include the medium-term sector strategies that utilize 

Performance Management Review process and the monitoring of Performance Agreements. 

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Medium-Term Sector Strategies (MTSS) Monitoring and Review 

The central aspect of the M&E system is setting of the Key Performance Indicator (KPI) for 

each project. Each sector is required to develop an appropriate set of KPIs which will form the 

basis for monitoring, the results of which will be fed into Annual Performance Evaluation 

Report and Review process. 

The Review Process 

The Blueprint should be subject to Annual Performance Management Review along the lines of 

the recently agreed Performance Management Review Process for the State. It would be 

appropriate to conduct such Annual Reviews as a relatively simple exercise, noting trends and 

serious potential diversions from long terms aims and outcomes. A more thorough exercise, 

involving a thorough review with all stakeholders, may be held every 100 days. In both cases the 

basic approach will be the same. 

The Performance Management Report and Review process 

The Performance Management Report and Review process will: 

Periodically capture, document and report the performance of the Blueprint; 

Annually measure the delivery performance against a suite of established Key Performance 

Indicators and targets; 

Show whether the state's performance against a particular Key Performance Indicator is 

either good, average, or in need of improvement; 

Iydentify and recommend changes to the public service delivery system – procedures, 

processes, deliverables – that are required in order for the Blueprint to get back on track; 

Revise the MTSS and resource allocations (budgets) in a way that provides a closer 

adjustment to the plan. 

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ABIA ECONOMIC DEVELOPMENT BLUEPRINT (2015 – 2025)

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