The Abuja Chamber of Commerce and Industry (ACCI) said on Tuesday that poor infrastructure, unreliable electricity supply, and insecurity have forced many businesses to close their operations in Idu Yard industrial hub, situated in the heart of the Federal Capital Territory, Abuja.
The ACCI President, Emeka Obegolu, said this at a press briefing in Abuja.
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Mr Obegolu said recent improvements in power supply have been noticeable in some areas, but it’s essential that similar attention is given to the Idu industrial area and other key business districts in Abuja.
“As we celebrate our achievements, it is imperative to confront the pressing challenges that hinder the full realisation of our industrial potential.
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“The industrial sector of the FCT with a focus on the Idu yard industrial hub, situated in the heart of the Federal Capital Territory, serves as a case study of the opportunities and obstacles in our industrial sector,” Mr Obegolu said.
He said once envisioned as a beacon of economic growth and job creation, the hub’s potential remains largely untapped due to neglect and systemic challenges.
“Poor infrastructure, unreliable electricity supply, and inadequate security have forced many businesses to close their operations. The state of the roads leading to and within the industrial layout is deplorable, making transportation costly and inefficient,” he added.
He noted that a reliable and stable power supply is crucial for businesses to operate efficiently, thrive, and contribute to the city’s economic growth.
“While we commend the administration for recent interventions such as the completion of a functional train station and the installation of streetlights, much more remains to be done.”
He said the recent passage of the Federal Capital Territory Administration (FCTA) 2024 Supplementary Appropriation Bill of N288 billion by the Senate offers a unique opportunity to address these challenges.
Mr Obegolu called on the relevant government agencies to prioritise industrial development in the implementation of the 2025 budget.
“We urge the authorities to prioritise the power needs of these critical business areas to unlock their full potential,” he said.
To unlock the full potential of the hub, the ACCI recommended an immediate repair and expansion of the primary and connecting roads to the Idu yard industrial hub to improve logistics and reduce operational costs for businesses.
The deployment of alternative energy sources to ensure uninterrupted electricity, which, he said, is crucial for industrial productivity.
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“Strengthening security measures within and around industrial hubs to restore investor confidence, introducing reforms to simplify taxation for businesses, thereby reducing their financial burdens and encouraging investment and initiatives to attract and train young people in industrial skills, creating a workforce that can sustain and grow these sectors,” he said.
The ACCI said it remains committed to advocating for policies that enhance the ease of doing business and create a thriving industrial ecosystem in the FCT and beyond.
“Together with the media, government, and private sector stakeholders, we can transform the industrial sector and other neglected zones into vibrant economic activity centres,” he said.
Nigeria has struggled with poor power supply for decades, a challenge that is estimated to cost businesses about $29 billion yearly, according to the World Bank.
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