There is simmering sentiment by capitalists that the ubiquitous product lines in the Benue market by the Benue Investment and Property Company (BIPC) is “killing local businesses.”
The argument is that the government has no business doing business. This notion was aggressively sold to the Chief Olusegun Obasanjo administration, under the supervision of Alhaji Atiku Abubakar, Vice President and head of the Economic Team, leading to the sale of Benue Cement Company (BCC) Plc. to Dangote Group and the crumbling of not just the Benue economy but the north central economy. The consequence? Soon, prices of cement soared.
BIPC was incorporated on October 18, 1979, by the first civilian governor of Benue State, Mr. Aper Aku, with an initial capital of Five Million Naira (N5,000,000.00).
The mandate Mr. Aku gave BIPC, was to takeover, monitor, and manage investment due to the state; to provide business capacity development and consultancy service as well as promote commerce and industrial development in Benue State. In other words, BIPC is a strategic investment arm of the Benue State Government, dedicated to driving the state’s economic growth.
Unfortunately, the company’s fortunes would dwindle. In 2019, Mr. Alex Adum, the then Managing Director of the company, cried out that BIPC was facing liquidation. Adum had taken over from Mr. Alfred Adem, who was acting as the company boss following the resignation of Mr. Jak Mulya, for party politics. He resumed work on August 29, 2019, and by the next day, over 40 staff of the company were fired.
There was public outcry. Yet, Mr. Adum persisted, calling it recalibrating BIPC to make a profit. He was, therefore, concerned that one day, and soon, the company will be a burden to the state (and go the way of BCC). To save the company, Mr. Adum reckoned the “only option was to act fast to save it.”
“We didn’t establish BIPC. We should not kill it,” he had cautioned, going on to ask: “If the first generation of (the company’s) employees could sacrifice to make the company work, why are we not ready to sacrifice?”
Meanwhile, campaigns for the next round of elections were at the corner.
In October 2023, less than five months after coming into office as Executive Governor of Benue State, Fr. Hyacinth Alia approved the appointment of Dr. Raymond Asemakaha, “a highly accomplished professional and international finance consultant with experience in several sectors of the economy,” to lead BIPC as Managing Director.
With 16 years of experience in policy formulation, public finance, and project implementation in both public and private sectors, the governor was convinced that Dr. Asemakaha would deliver on the mandate and specifications of his job.
Evidentially, Dr. Asemakaha came with a mindset: That a true leader must not wait on call to make an impact; a true leader must lead the charge in unlocking the chains impeding growth and development.
He promised water and bread. He delivered. He promised a nails factory. He delivered. It cannot be overemphasised that between 2023 and now, the BIPC boss has delivered on “small, small,” but important product lines that are generating both direct and indirect employment.
Another impact of his “small small” projects is indirect price control. Before introducing BIPC Bread in the market, for instance, capitalists had capitalised on the war in Ukraine, leading to exorbitant prices of bread. It was worse in Benue State because most of the bread that was consumed in the state was brought in from outside the state, with the attendant impact on prices. Dr. Asemakaha gave the people of Makurdi a choice to eat BIPC bread at an affordable rate.
He also introduced competitions into the market. Bread producers now have to improve their quality, to beat what BIPC is supplying.
Most importantly, like the father of the industrialisation of Benue, Mr. Aku, whose vision in part was to see that widows in Makurdi have priority in the purchase of products from the State’s companies, hundreds of women within Makurdi alone, have found a means of livelihood in BIPC Bread factory.
In an interview recently, Sen Daniel Saror, former Vice- Chancellor, Ahmadu Bello University (ABU) Zaria, had this to say: “I remember he (Aku) told me (Prof. Saror) that he wanted widows in Makurdi to have priority in the purchase of eggs so they could sell locally and raise money to assist their children who were in school at that time.” This is exactly what BIPC has achieved.
By the time the Food Basket Brewery takes off, another competition will be introduced in the market. Entreaties by BIPC for Nigeria Breweries to resume production at former Benue Breweries Limited (BBL) did not yield results. Dr. Asemakaha says he will deliver before the end of the year.
Capitalists must not forget that Nigeria is a mixed economy. BIPC was incorporated to make a profit just like any other company that is limited by shares. It is not in the market to kill private businesses. It is in the market to maximise stakeholder value and deliver tangible social and economic benefits to the state.
Accept BIPC as a healthy competitor and improve your product offerings. After all, no one dictates to consumers which products they should purchase.
What is more? Fr. Alia, in his 10-year Development Plan for the state, envisions creating the enabling environment for businesses to thrive, encouraging home-grown businesses and innovation and investors with a business climate that prioritizes the ease of doing business.
