Thursday, 2 May 2013

Sango Ota:a town under power shortage, folding companies



Emeka Ibemere
Positioning on the border of Nigeria with Benin Republic, is Sango Ota, an outskirt of Ogun State.
 It’s flooded with array of companies and among other establishments prettily located inside the heart of the community, is former President Olusegun Obasanjo’s farm, popular known as ‘Otta Farm’, Covenant University, Chelsea IDL establishment, Samjoy Venture’s and several other companies within the area.
Ordinarily, it’s supposed to serve as an Industrial Estate of sort, serving as hub of economic activities to two major states: Ogun and Lagos States.
Butin Sango Otta, what befall you are skeletons of these companies. Many are under keys andlocks, while the surviving ones are struggling to make it. As at the last count, six companies have taken flight to neighboring country in Benin Republic.
AMEEN International Gas Limited, Newen Frozen Company and Howen Bakery including others have eloped to Benin towns where business security and environment is flourishing and in existence.
Bad roads and other sundryin-fractural hiccups of development posed threats to doing business in Sango Otta,despite the fact that it has so many things going on for it- like the nearness of the International  border with Benin Republic, and a major mega-city, Lagos; the capital of trade and commerce in Africa.
These comparative advantages of Sango Otta over other communities in Ogun State, has being hindered by lack of electricity and poor accessible roads, making Sango Otta ghost industrial estate.
 The town which supposed to be booming in business activities for people in the community to enjoy life is suffering in abject power supply.
Recently, some of the businesses have relocated their base to Ghana and Benin republic where conducive, business environment has been provided.
For many years in Sango Ottain Ado/Ota Local Government Area, there has been no power supply in the locality.
Speaking with our correspondent, Mr Gideon Onukaogu, the Managing Director Samjoy Ventures, producers of polythene based product such as shopping Bags, carrier bags, waste bin bags and others shows signs of despondency about continuing business in the locality.
Onukaogu, 28, studied Computer Aided Engineering at the University of Hertfordshire University, United Kingdom butlater returned to Nigeria to invest and contribute his own quota to the economic growth of the nation, shared his experience with Daily Signpost.
 “It has been sour experience and full of different challenges doing business in Nigerianenvironment”. He said.
“The ways things are done in Nigeria is quite different from the ways it used to be in abroad. Notwithstanding, a lot of things needed to be restructured here, so that each sector of the economy at large could be a better place for every body and the government”.
Without mincing words, headvised both the Federal and State governments to provide constant electricity in the community, because some companies have folded up due to lack of constant power supply and some will soon fold up if constant power is not provided in the community.
He also urged the government to simplify the process of establishing a company in Nigeria, precisely in Ogun state, so that upcoming investors would be encouraged to venture into different sectors to contribute to the growth of the state and national economy.
“The tax system should be made in a way that investors will be absorbed into the community to invest without going through a rigorous stress”, he added.
“The tax system should be differentiated among themicro, small, medium and large scale industries. A small company like ours should not be levieda proportional taxlike the large scaleindustries in the economy”.
Specking on the challenges encountered in the area, Onukaogu said. “Ourmajorchallenges in Sango Otta are bad roads, lack ofelectricity, lack of portable water and many other infrastructure facilities. I would want the government to rectify the problem of electricity first, and then other things canfollow”.
In Sango Otta, an industrial strength of Ogun State, the supply of power in the areaespecially in the Ado/Otta LGA is on sharing bases and nothing is done to correct the discrepancies in sharing the light.
‘How can you be sharing light in an industrial area? Most staffs of PHCNare corrupt; before they could do anything for you; unless you put down your feet, nothing is going to be done in your regards’, another business man told Daily signpost.
The community presently is becoming nothing to write home about, for recent time, the area has been without power forcing some industries fold up as a result of their inability to cope with power supply.
‘While some of the industries are only managing and trying to break even’, according to Onukaogu, other companies in the locality are managing to survive in midst of the giants ones in the state capital and Lagos’,‘it is unfortunate that despite the lack of power supply,Power Holding Corporation of Nigeria (PHCN) still bring exorbitant bills at the end of the month for services not rendered. And we have nothing to do than to pay.But how could we be paying for services not received”?  He queried.
He opines that the state government should assist the small scale industrialists who with their own earned little resourcesdecided to come and establish a company in the country.
Onukaogu believes that, “when the power sector is fully in order; investors will come and invest, and the forces of demand and supply will create jobs opportunity for the jobless youth in the country”, he added.
“Most of our graduates are jobless and the government cannot afford to provide job opportunity to these youths alone. But any reasonable youth who in his own effort decided to establish a company, the government should make life easy for that person rather than making the sector difficult as the case of Nigeria”. Onukaogu queried.
“How coulda new companypower its plant for 24 hoursper- day and survive with the high cost of the petroleum products in this present economic situation”? According to him,
“I have tried to seek a solution to the problem of power failure by consulting PHCN Ota branch andin my discussion with the PHCN officer, he asked me to provide a transformer which I told him that my company and some of the small and medium firms within the environment have provided one.He thereafter asked me to write in this regard, which I did, but nothing elsehas been done since then”. He continued.
“Also, the community leaders are not doing anythingat all, as far as am concern. Although, I have not met them yet, but what borders me most is that, Covenant University, Obasanjo’ Ota  farm, Chelsea IDL company and a pharmaceutical company with the environment have constant power supply but we have been cut off from power. I don’t know how PHCN is distributing the sharing of power”, he said.
“Sharing of power should be done in a proportional manner, so that all companies should benefit from the source of power. It will be unfair for some companies to be enjoying power supply at the detriment of others”.
According to him, bureaucracy is a bottleneck, stifling economic growth in the country. He cited an example whereby in the local government, one has to pay for several documentations ranging from either trade or commerce to change of files, car levy, mobile advertisement, etc.  “You have to pay at different time and place for one tax but different payment as the case may be.Why not simplify all these taxations, so that one could do the payment at once under trade tax or company tax thereby, reducing the stress of time and cost wastages”.He counseled. “Double taxation is not fair”
Onukaogu appealed to the Ogun State government to ensure adequate supply of power in Ado/Ota local government area, so that micro, small and medium scale enterprises would survive in the economy rather than folding up due to lack of constant power supply.
Mr. Adelabu Olemeye, a sachet water producer, cried out over non-existence of power in the area. He lamented the cost of running his firms with generator and wondered what he would make out of it after paying tax and other sundry levies.




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