The plan by the Nasarawa state government to introduce some tax relief measures as inducement to genuine investors is certainly a cheering news.  It is part of the overall government plan aimed at providing conducive environment for harnessing the state’s abundant resources, especially as regards solid minerals and agriculture.

The state commissioner for commerce, industry and cooperatives, Alhaji Abdullahi Yusuf Loko, disclosed this good news recently, at a one-day awareness workshop on “Shea butter for export”, organized by the Jos Zonal Office of Nigerian Export Promotion Council (NEPC) in Lafia

There is no denying the fact that Nasarawa state has what it takes to be a more developed place than what it is today.  The state has fertile land on which all types of crops could be grown, even on commercial scale that could be turned into profitable agro-allied industries and enterprises.  Unfortunately even with its comparative advantage, this sector is still largely under utilized.  The overwhelming percentage of farmers in the state still practices subsistence farming.  However, with adequate capital and skills they could engage in the more profitable large scale integrated farming. 

If agriculture in the state is still at subsistence level, its vast mineral resources are even in worst shape.  This state, appropriately called “Home of Solid Minerals” is deed blessed with abundant minerals but so far there is little to show for the act of Provenance in terms of boosting the economy of the state.  The minerals remain largely buried under its soils or where they are exploited, it is through illegal miners who bring little or no benefit to all to the state.  Which is why government’s plan to make the state attractive to genuine and committed investors is a welcome development.

Usually the first measure that most governments introduce to attract investors are tax relief or even tax waiver in some cases.  But important as tax relief or waiver is, what turns away most investors first and foremost is the poor state of infrastructure in a country rather than the burden of taxes.  Lack of or poor infrastructural facilities like water, transport network, manpower, and especially power supply are undoubtedly major hindrance to investors.  No investor will sink his hard earned money in an economy whose government has no comprehensive and sustainable programme for constant supply of electricity and provision of good and motorable network of roads and railways and water for domestic and industrial uses.

On this score, the Nasarawa state government is already moving in the right direction.  The state government has begun the construction of a number of roads, as well as the rehabilitation of dilapidated water schemes across the state.  Similarly, the government has declared its vowed determination to complete the multi-million naira Farin Ruwa Independent Power Plant, which will supplement the power being generated by the Power Holding Company of Nigeria (PHCN).

The other thing government must, as a matter of necessity, and urgency do, is to relax the laws and ease the process for land acquisition, especially for industrial purposes.  Not many potentials investors cannot stand the rigous of having to go through endless meetings with communities on whose lands enterprises are to be cited. Government should shoulder this responsibility and discuss with the potentials investors the terms on which the land would be allocated.

Thirdly, processing papers for establishing enterprises should be undertaken with dispatch to enable the prospective investors start their businesses in good time.  In other words, unnecessary bureaucratic bottlenecks for business registration and actual transactions should be eliminated or reduced to the barest minimum.

Above all, the government should ensure that its agents or officials perform their duties in a transparent manner, ensuring that due process is followed at times.  This will engender confidence in the prospective investor, lure him or her to bring in the much needed capital for the accelerated development of the state.  Nasarawa state could be on the road to a more prosperous future if this and other laudable policies of government are fully and properly implemented.