Author: Kipa Katsina

Power Sector

The development of the Power Sector remains key to the development of other sectors of the economy not just for Katsina State but for the whole Country. The challenges in the sector include inadequate power generation, transmission and distribution capacities.

Power Sector used to be the exclusive preserve of the Federal Government which currently has capacity to generate about 6000MW which is about 10% of national demand.

There is improvement in the power generation in the Country, but the challenges of transmission and distribution account for losses of the power generated thereby aggravating the cost of operating the sector.

The sector has been transformed with the passage of the Electric Power Sector reform with the transmission distribution being run by the Private Sector. The transformation also opened up the Sector for Private Individuals and State Governments to partake in the generation chain. This will step up the availability of power generated and improve on its consumption thereby reducing losses and improving generating cost recovery.

What all these means is that there are ample opportunities for investment by the Private Sector.

The current demand for power in Katsina State stands at about XXXMW

With the anticipated increase in industrial activities the power requirement is going to increase which could widen the demand gap further the question is who fills in the gaps.

The Government of Katsina State is currently partnering with Messrs Pan Africa Solar Power Limited and Nova Solar Power Limited for the generation of 250KVA using Solar Technology. There is also the wind mill 10MW power generation at Lambar Rimi which is about to be commissioned. After this arrangement comes on board, there will still be some gaps in the power requirement for the State making further Investment in the sector feasible.

Investment Opportunities

From the foregoing, there is huge Investment opportunities in the sector and for it to be run effectively, to be affordable by consumers (industrial as well as residential), to be environmentally friendly, the sector should be driven by the private sector. The Government of Katsina State, on its part, is ready to give all the necessary support in this regard.

Property Development

The potentials for property development in the State are quite high and attractive. The State has been opened up with a good network of roads especially the State Capital that has been complemented with a 40KM Ring Road encircling the City. With a population of about 7Million out of which over 50% in young and growing, opportunities in property development will continue to grow as well.

Since the State’s creation in 1987, the Government has been largely the driver in housing delivery through its policy of building mass low-cost housing units particularly to Civil Servants in the State.

Investment Opportunities

It is high time for the Private section to assume the pivotal role in housing delivery to match the growing need in the State. The Government will continue to support the effort of the Private Sector in achieving the goal of providing housing for all at affordable cost.

Beside residential estate development opportunity abounds in other commercial property like Hotels and Shopping Malls. In particular, the Government has taken the initiative in constructing the Katsina – Dubai International Market and Katsina City Mall. Modern Markets were also constructed in all the 34 Local Governments in the State.

For the efficient running of these Markets Government will be willing to enter into any arrangement with the Private Sector.

Incentives

In addition; Government is committed to providing Land for mass housing and for commercial development by the private sector through Public – Private Partnership.

  • Government is committed to provide basic infrastructure such as roads and drainages, water, electricity supply etc at all sites designed for housing development.
    • The services of the Government machinery through the appropriate MDA (Ministry of Land and surveys, Katsina State Housing Authority, Katsina State Investment and Property Development Company) will be appropriately deployed to support private property developers with all the necessary requirements for developing the sector.
    • Up to 100% ownership of housing is allowed for both foreign and local investors.

Tourism

The State has rich cultural heritage, therefore it has potentials for the development of the Hospitality industry. Its rich history and culture have endowed it with tourism attraction sites.

These include monuments like the Gobarau Minaret in Katsina City, Kusugu Well in Daura Town, Old Katsina College, the two Emirs’ palaces, Durbi Takusheyi at Mani, etc.

Recreational Packs, Resorts and game reserves could be established on locations close to water reservoirs (Jibia, Ajiwa, Mai’ruwa dams) and forest reserves (Runka).

In this regard, Government has already shown commitment with the establishment of Charmah Park at Jibia located by the Jibia Dam. Investors will be welcome to partner with the Government in developing the Park into an international standard facility.

With the ultra modern 35,000 capacity multi-purpose stadium completed, Katsina is a hub for the development of Hotels including 5-Star.

In addition, the Sallah festivities marking the end of Ramdan fasting and the advent of the Holy Pilgrimage are very popular and celebrated in the two Emirates of Katsina and Daura. Daura also celebrate, in grand style, the Maulud of Nabii (Sallar Gani) which gives grandeur to the existing historical heritages of the Hausa people at large.

Besides the main sallah display of skillful horse riding on the Sallah days (Id-Fitr and Adha), the following days are celebrated with Durbah display called Hawan Bariki in Katsina town and Hawan Daushe in Daura town during Sallar Gani (both of which are literally paying homage to the State Government).

These Durbar displays are procession of colorful horses and their skillful riders in harmonious panoply with cultural drummers, singers and dancers. These Durbar events have proven irresistible and must-watch by foreigners on personal visits to Katsina State or by special invitation of the Government or the two Emirate Councils of Katsina and Daura.

Investment Opportunities

There are investment opportunities in the Hospitality industry by developing commercial tourism infrastructure and related services. These include:

  • Hotels Development of all categories
    • Holiday Resorts
    • Games Reserves
    • Tourist Guide Agencies
    • Travel Agencies
    • Transportation
    • Development of Private Zoo.

Incentives

The Government will welcome any investor interested in developing the Tourism Industry and will make the following available in this regard.

  • Provision of Land and basic infrastructure
    • 5 – year tax holiday
    • Full equity ownership especially by foreign investors

Solid Minerals

SOLID MINERALS

The mineral potentials of Katsina State are enormous, the national demand for industrial materials and associated products, as industrial input is very high.

The part which the development of solid minerals can play in accelerating economic, political and social growth within the State or indeed the Nation is immerse, self reliance in industrial minerals raw materials requirement, not only saves foreign exchange used in the importation of often over-priced and over specified materials, but also gives valuable technological job-training, provides gainful employment.

Solid minerals can provide ultimate funds for investment in other sectors of the economy and generate foreign exchange for the Country.

Investment Opportunities in Solid Mineral Sector 

The following are recommended areas of investment:

  1. Ceramic Industry to provide electrical insulators (see table 2 on import and local production) and tiles that are presently imported in the country. This will also take advantage of the power generation programme of the Federal Government.
    1. Glass Industry as the State has the main raw materials (Silica Sand and Feldspar) and there is still a supply gap in the Country (see tales 3 on import and production of glass)
    1. Kaolin processing to produce pharmaceutical grade as well as for paint, plastics and detergent industries.
    1. Granite Cutting and Polishing
    2. Chalk Making
    3. Paint Making

Agricultural Sector

Agricultural Sectors

Katsina State is an agrarian State and Agriculture, in the form of crop and livestock production is the main employer of Labour. It also provides food and income earning for majority of the people.

There is wide scope of investment in Agricultural crop production in the state; investors may well look into the possibility of establishing large scale commercial production farms or utilization of local farmers as out growers to source for commodities in commercial quantities, development of modern storage facilities and value adding factories, procurement of external markets and transportation of the commodities either fresh or processed.

4.2    Agricultural Productivity

  1. Production Environment

Katsina State lies entirely within the tropics (latitude 11o00′ to 13o25N Longitude 6o45′ to 9o05E) with distinct rainy season (May to October) and dry season (November to April).  Though the weather conditions can be chilly and dusty in December and January, there are no frosts or freezing temperatures to deter plant growth.  The soil varies from deep clay loams to sandy loam with gentle topographic features over much of the State.

The critical determinants of plant growth (and hence agricultural production) are the availability of suitable land and adequacy of water supply, thus, with development of its natural water resources and irrigation infrastructures, the State has capacity of cultivating various types of crops and livestock production year-round.

This gives the State the comparative advantage of producing and supplying fresh, organic products on demand in any season of the year by using its rain-fed and irrigation agriculture in complimenting each other.

  1. Rain-fed Agriculture

The State covers a land area of 24,192 square kilometers of which 67% (about 1.60 million hectares) is devoted to cultivation within the season. The state has been divided into three agro-ecological production zones.  This offers advantage of growing a wide range of crops.

  1. Irrigation Agriculture

The irrigation calendar begins where the rain-fed cropping season terminates with cessation of rains, which is, generally by the end of October. The irrigation season continues till commencement of rains in May of the subsequent year.  There are several irrigation sites distributed all over the State and more areas are being developed for dry season farming to compliment rain-fed agriculture.

Since irrigation is a farming system with human controlled moisture environment regimes, almost any type of crop can be grown under irrigation depending on market demand. However, by tradition, farmers in But, by their tradition, farmers in the State concentrate on production of horticultural crops, such as tomatoes, pepper, onion, cabbage, lettuce and various kinds of melons.

The availability of various types of crops cultivated in the State provides an opportunity for setting up of agro-allied industries.  As previously stated, Cotton, Beans, Tomato and Pepper, Groundnut, Millet, Maize and Guinea corn are raw materials for various types of industries.  Leather and shoe manufacturing industries are feasible because of the availability in commercial quantity of hides and skin in all the nooks and crannies of the State.

Funtua textiles factory which employs over one thousand workers depend heavily on cotton being produced in Funtua, Bakori, Dandume, Sabuwa, Faskari, Danja, Dutsin-Ma, Kurfi, Malumfashi and Kafur local government areas of the State.

The availability of these raw materials offers wide ranging opportunities for setting up more commercial ventures in the State.  The two oil mills situated in Katsina and Funtua depend on groundnut and cotton seed for their raw material requirements.

  1. Fruits Trees/Orchard Development

Because of its favourable tropical climatic conditions which permit plant growth year-round and its abundant water resources; the State is positioned to become a major producer of fruits for home consumption and export.

Wide variety of mangoes, citrus, guava, papaya and date palm are presently grown in small peasant holding for local consumption as fresh fruits.

With the expansion of irrigation farming system, the State Government is seriously looking for investors to partner in the establishment of commercial scale plantation estates for fruits production as well as the allied industries for packaging; value-addition processing and International Airport offer much credence to the proposal.

  1. Livestock Production

Due to the long history and tradition of rearing livestock dating back to antiquity, Katsina State is one of the leading supplies of live Animals and Animal-related products for the nation.

The State excels in ruminant production with capital asset of one million cattle, three million goats and two million sheep.

Allied to the livestock is production and conservation of fodder crops which constitutes significant component and contributes to the aggregate commodities and agricultural productivity of the State.

Fodder production and conservation is a lucrative income-generating vocation for the farmers under both the rain-fed and irrigation farming system.

  1. Katsina Songhai Initiative

The State has entered into an agreement with Songhai Farms (Benin Republic) to establish three centres at Zobe dam, Sabke dam and Mairuwa dam.  These centres will develop 15,000ha for the production of various crops, food process and animal husbandry.  The centres will also serve for training of youth in modern farming techniques. The Zobe Dam Centre has already been established.

Proposed Projects for Investment

The main goal of the Government of Katsina State is to harness the vast agricultural potential residing in the State, ensure food security for the people and lay a solid foundation for rapid industrialization and economic transformation of the State. The Government is therefore pursuing every opportunity to promote and support establishment of Projects that can diversify economic activities and open more avenues for employment in the State for the betterment of its people.  The Government has particular interest in agro-allied enterprises with priority focus on Projects such as:

  1. Commercial Crop Production for Domestic and Export Markets

Establishment of large scale production farms with focus on crops such as Maize, Sorghum, Beans, Soybeans, Potatoes, Sunflower, Sesame, Tomatoes, Pepper, Onion, Garlic, Wheat and Rice, etc.

  1. Commercial Livestock Production for Domestic and Export Markets
  2. Sheep breeding and multiplication ranch for production of feeders;
  3. Goat breeding and multiplication ranch for production of feeders;
  4. Fodder crop production and conservation farms for commerce;
  5. Sheep/Goat finishing feed lots for meat processing factories.
  1. Development of Orchard Plantation Estates

Establishment of large scale fruit production farms involving introduction of improved seeds/varieties of enhanced quality and standard with focus on Citrus, Mango, Guava, Cashew, Papaya (Pawpaw) and Date Palm.

  1. Value-addition, Processing and Packaging Factories
  2. Tomato handling factories – cold chain bulk storage and preservation processing/value addition and production of Tomato Puree;
  3. Oil extraction industries focusing on Sunflower, Sesame and Soy beans;
  4. Fruit extraction/beverage production and industries;
  5. Meat processing and packaging industries;
  6. Hides/Skin tanneries and related technologies.
  • Marketing and Provision of Agro-allied Services
  • Produce marketing and export services;
  • Manufacturing/Procurement of agricultural machinery, equipment, tools and spares;
  • Production/Dealership of inputs of production;
  • Linkages to technical service providers.

Projects Institutional Arrangement

Katsina State is an ideal place for agro-allied business enterprises with good enabling environment for growth. There are close to 50,000 hectares presently amenable to irrigation with possibility of cultivation of crops year round.

There are also 106,000 hectares of virgin forest areas in the State (See Table 4).  The State Government will be prepared to release these areas for agricultural development.

There are three possible institutional arrangements according to which Projects proposed above may be fashioned and managed.  The proprietorship of the Projects may take either of the following:

·        Foreign Direct Investment (FDI)

·        Public Private Partnership (PPP)

·        Contract/Out-grower Mobilization and Support.

Irrespective of whichever partnership is adopted, the Government will give full support to investors in all aspect of agro-allied businesses in the State.  The land policy in the State is liberal and flexible.  Government will facilitate acquisition and undertake development of social and public service infrastructures.  The latter includes developing access roads, domestic water supply, power supply and general security measures to safeguard the investments.

Our Mission

To be the most efficient State Investment Promotion Agency in Nigeria through responsive and knowledgeable stakeholders engagement thereby  creating wealth and improving the welfare of  citizens.