Introduction
It is often said that Imo is largely a public/civil service state with education as its main economy. This appraisal has coloured most evaluations producing negative stereotypes that tend to negate industrial productivity. Incidentally, perception is potent in influencing business outcomes and investment decisions. It will be important to find out whether this has been the case in the Imo business environment.
This essay interrogates the condition of these public notions of the Imo economy in seeking to find out circumstances in which the economy has defied low expectations and come good. This can offer insight into what lines of industry have thrived against odds and which offer hope for specialization along the lines of comparative cost advantage. The Imo economy has shown uncommon tendency to be resilient and productive against ‘the run of play’. A 2013 MSME National Survey put Imo ahead of Anambra and indeed all south-east states in terms of preponderance of SMES.
Imo had 1,296,386; Anambra 1,223,395, Enugu 1,064,893, Abia 904,721 and Ebonyi 597,216 (SMEDAN and National Bureau of Statistics collaborative survey: selected findings, 2013). This speaks to the higher level of enlightenment, improved quality of the population, and appreciable strength of its institutions. The relative success story is instructive about the kind of unexpected behaviours of the Imo economy, and how markets are responding to these. Interestingly, recent NBS studies of 2017 affirm the 2013 report.
In what other areas can we spot unexpected performances?
1. Entertainment, Hospitality and Tourism
Imo has shown strength in the tourism and hospitality industry. It has become a major destination for relaxation and tourism. It has developed resources in this regard that tend towards a budding specialization. Hotels are built at such a density that out-competes the distribution in Lagos and Abuja. The private capital deployment in this industry is also remarkably high. This trend is significant for a number of reasons. Whereas due to security concerns, most Nigerian states are backtracking on nightlife, consumption of nightlife still thrives in Imo indicating a better management of social life than what exists in many other parts of the country. The relative peace the state continues to enjoy in spite of the recurring security challenge that confronts the nation is also a critical investment asset.
In addition, whereas the economy has tended to shrink across Nigeria, Imo’s hospitality landscape, surprisingly, has a thriving premium market. It is beyond expectations that the premium quality nightlife by the Cubana Group was first launched in Owerri. Imo is therefore at the forefront of promoting cultural products and experiences that many other states hope to scale up to.
If one looks at the earning potential of a cross section of Imo people, one may not find the potential clientele to support those types of industries. Incidentally the offering of a relatively safe and secure place within reasonable distance to major commercial hubs of Aba, Onitsha and Port Harcourt has made Imo a choice location to attract patronage from most parts of eastern Nigeria.
2. Real Estate Development
Most parts of Imo State are witnessing large-scale real estate development. Much of this is from repatriated capital — products of disinvestment in other Nigerian towns and from remittances from the Diaspora. This is indicative of the very polished tastes of the Imo person and the fact that the real estate market is yet very much untouched. The displacement of the low-level civil servants, for which the World Bank intervention designed the World Bank Estate in Owerri, by the middle class shows what unmet demand for quality housing still abounds. In recent time, some of the most successful estate developments such as Graceland Estates and Egbeada, have seen Imo investors committing tens of millions of naira in single units of residential lots. The success of the property market in Owerri and other parts of Imo State is a puzzle to even real estate professionals.
3. Retail Chain Development
Imo has recorded successes in retail development that show that absolute numbers in population strength is a poor index of consumption. Effective demand is more important. The expansion of retailers such as Everyday Shoprite and Priceless Stores testifies to what potential lies with the Imo market. Cultural taste is critical to retail development and Imo does not show deficiency in sophistication. Just as the big retailers have expanded in the last ten years, other distributorships that have discovered the viability of the Imo market have also been attracted. The penetration of retail trade and its value chain across Imo is total and deep. In all villages and towns, there are retail outlets and the capacity for employment in retail trade is high and growing.
4. Industry Leadership
Imo played a leading role in the development of water bottling and packaging. As water production was being revolutionized in Nigeria with the advent of Ragolis and SWAN, Imo initiated a quick response with UZZI from the natural springs of Obowo. This demonstrates an uncommon readiness to seize the moment and an early example of successful public-private partnership in commercializing a community-based, shared resource (natural springs). The fact that UZZI water made commercial success at a time water packaging was at infancy indicates the potential inherent in the Imo business community in terms of vision, and technical competence.
Grounds for Optimism
A number of facts justify optimism on the Imo economy. There is the great success of the Imo Transport Company (ITC) beyond the level attained by sister transport companies of other states such as Delta Lines of Delta State and Benue Links owned by the Benue State government. When the fortunes of Delta Lines had floundered, leading to their entering into a public-private partnership with GTDC, ITC has grown in fleet size and route development. With Geometric Power Plant, Aba set for commissioning in September 2022, Imo can be expected to play host to a gas-powered plant; given its regional affinity. It can leverage the gas value chain expected to develop from the gas fields of Asaa, Ohaji Egbema.
If anything, Dangote Refinery in Lagos has shown the capacity of private capital investment in the downstream section of the oil and gas industry. Along the learning curve, and with doubts cleared about workability of this model, Imo refinery has the capacity to attract key investment.
Finally, there is a demonstrated role for teaching entrepreneurship, particularly in agriculture and its value chain. Fisheries and piggeries are being developed through this important role. The potential can only grow.
Conclusion
In conclusion, in many ways the Imo economy shows that it does not fit into the stereotypes of bookmakers. It has on many fronts surpassed expectations yielding high returns where it is not expected and developing an entertainment and hospitality niche with expanding patronage within its national and sub-regional catchment. This signals the possibility of a brighter future for the economy of the state and the attendant impact on the general wellbeing of the people.