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Viewing cable 08LAGOS441, NIGERIA: IMO STATE PROMOTES MICRO-ENTERPRISES

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Reference ID Created Released Classification Origin
08LAGOS441 2008-11-10 05:57 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Consulate Lagos
VZCZCXRO7038
RR RUEHMA RUEHPA
DE RUEHOS #0441/01 3150557
ZNR UUUUU ZZH
R 100557Z NOV 08
FM AMCONSUL LAGOS
TO RUEHC/SECSTATE WASHDC 0282
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHUJA/AMEMBASSY ABUJA 9929
RHEHNSC/NSC WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RUEWMFD/HQ USAFRICOM STUTTGART GE
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK
UNCLAS SECTION 01 OF 02 LAGOS 000441 
 
SENSITIVE 
SIPDIS 
 
STATE FOR AF/W 
 
E.O. 12958: N/A 
TAGS: PGOV SENV SOCI NI
SUBJECT: NIGERIA: IMO STATE PROMOTES MICRO-ENTERPRISES 
 
1. (U) Summary:  In an October 17 visit to the Consulate, Imo 
State Executive Assistant to the Governor on Youth and 
Empowerment, Ambrose Obioha, claimed the state is focused on 
building the capacity of its youth and making strides to tap 
the potential of its natural resources.  Entrepreneurship 
programs are focused on enhancing micro-enterprises in the 
state, as the governor is making efforts to turn Imo into the 
business hub of the South East.  End summary. 
 
2. (U) On October 17, Ambrose Obioha, Executive Assistant to 
the Governor on Youth and Empowerment, met with Poloffs to 
discuss the efforts in Imo state to develop micro-enterprises 
for the state's youth, expand economic development, and tap 
into natural resources to generate power and strengthen 
industry.  His position focuses primarily on capacity 
building, increasing youth employment, and entrepreneurship 
training, but he presented an optimistic view of other areas 
of development in Imo State, and claimed that Governor Ikedi 
Ohakim is taking steps to make Imo the business center of the 
South East region. 
 
Programs Build Capacity Among Imo Youth 
--------------------------------------- 
 
3. (U) Obioha described efforts made by his office to develop 
businesses of young college graduates, particularly in 
communities affected by rampant unemployment.  He organizes 
entrepreneurial and micro-enterprise seminars for college 
students that promote small business development.  The state 
government has partnered with NGOs such as Network for Peace 
and Development and has recently initiated a relationship 
with Good Morning Africa, a U.S. organization working on 
social entrepreneurship in Africa. 
 
4. (U) One scheme that the state is heavily promoting is the 
Ohakim Business Plan, a program sponsored by the Governor,s 
office to award USD 100,000 to young business leaders to fund 
their proposed micro-enterprises.  Obioha said, contests like 
this will continue over the next several years to get youth 
active in advancing the business environment in the state. 
The state has also built partnerships with two Nigerian 
banks, First Bank and First Inland Bank, to give loans to 
these small businesses over the next three years.  Obioha 
stated that through these micro-lending projects, the state 
government hopes to create one million jobs within the next 
eight years. 
 
State to Develop Power Plant 
---------------------------- 
 
5. (U) Obioha claimed that the Governor has made substantial 
progress in developing gas and coal deposits, and researching 
methods to improve the quality of palm oil production in Imo 
State.  The state is currently working on a memorandum of 
understanding with a South African company to build the first 
power plant in western Imo.  Power currently comes from Aba, 
Abia state, but with this development, Imo would generate its 
own power to enhance the manufacturing and natural gas 
industry. 
 
U.S. Petrochemical Plant Sought 
------------------------------- 
 
6. (SBU) Due to the conflict and turmoil in the Niger Delta, 
Obioha claims that there has been an influx of businesses and 
residents moving north into Imo State, where the living 
conditions and business climate are not hindered by violence. 
 (Note:  In recent meetings in Edo State, contacts have also 
reported people fleeing from the violence of the Delta and 
transfering businesses to Edo.  End note)  The Governor 
believes these conditions will increase international 
investment.  Obioha emphasized the importance of a recent 
contract with a U.S. company, Royal Oak, to build a USD 250 
million petrochemical manufacturing plant.  (Note: Despite 
Obioha's claim and a press release for this contract on the 
Imo State Government website, an internet search for the U.S. 
company yielded no results.  This casts some doubt on whether 
this is an established petrochemical company and raises 
questions about the viability of the project.  End note)  The 
government is working hard to attract investors and plans to 
 
LAGOS 00000441  002 OF 002 
 
 
host their first economic summit in February 2009, Obioha 
reported. 
 
7. (SBU) Comment:  The entrepreneurial and micro-enterprise 
programs Obioha described are a practical step toward 
reducing unemployment and avoiding the problems that have 
plagued states in the Niger Delta.  It remains to be seen 
whether the state will be able to attract the power and 
petrochemical investors it hopes for.  End comment. 
 
8. (U) This cable has been coordinated with Embassy Abuja. 
BLAIR