South East Nigeria had something to cheer about recently when President Bola Tinubu approved the establishment of the South East Investment Company (SEIC), a vehicle that would finally lend firm roots to the new wave of efforts to develop the region with the backing of the Federal Government. For those who may not understand the import of this vehicle, SEIC is the critical component in the emerging master plan that will speed up the development process of the Southeast by mainstreaming efforts between the government and the private sector in a seamless flow to catalyze the development of the region. President Tinubu deserves our gratitude for doing what no leader before him has done. He may have endeared himself to the Southeast with this initiative and we are grateful for this gesture.
For by approving the formation of the South East Investment Company, President Tinubu has wittingly handed the initiative for developing the region back to our people with a guarantee of the support of the Federal Government. At close examination, the scenario reminds us of the Eastern Nigeria Finance Corporation of the Michael Okpara era which, along with similar economic instruments like the Eastern Nigeria Development Corporation and the Eastern Nigeria Marketing Board, made the economy of the old Eastern Region one of the fastest growing economies in the world in the 1960s. It was one of the administrative masterstrokes that made the Okpara era the golden era of Eastern Nigeria’s renaissance. That policy thrust unleashed rapid industrialization and economic growth that made some observers argue that the Eastern Nigerian economy was growing faster than China and Singapore at the time. While the SEIC may not necessarily have set out to reenact the past, its vision might just invoke it. And this is why…
In clear terms, SEIC was designed as a dedicated investment vehicle under the South East Development Commission (SEDC) to attract long-term finance and drive transformative economic projects in the region. The good thing is; the mission of SEDC perfectly aligns with Mr. President’s Renewed Hope Agenda. It also reflects his administration’s commitment to equitable development and economic inclusiveness of the Southeast region.
It is not surprising therefore that since its approval in June this year, the SEIC has raised hopes of a likely reinvention of the Southeast region. That is understandable if we consider some basic factors that undergird the establishment of the company. First, it was conceived SEIC as a professionally governed, private sector-led investment company that will eventually function independent of the usual annual budgets from government. This inbuilt financial independence is critical to its survival. Next, the company is designed to operate as a wholly owned subsidiary of the SEDC with a plan to develop into a full blown Public-Private Partnership, involving the commission, governments of the five states of the Southeast, the private sector, diaspora investors, and the development finance institutions. In much the same way, SEIC will essentially focus on distinct investment portfolios, targeting strategic assets, entrepreneurship development, global reserve holdings and special interventions for the acquisition of skills and education. These are important factors that form a wall around it!
Again, starting off with a projected N150 billion capital base, the company will mobilise resources through hybrid bonds, equity participation, and callable capital structures. SEIC will swing into full operation in the final quarter of 2025 with a strong governance system, ably supported by independent fund managers, custodians and auditors.
Offering clarity on the overall plan of the institution, Mark Okoye, the Managing Director/Chief Executive Officer said: ‘South East Investment Company is a long-term strategy to unlock private capital, de-risk investment and emplace sustainable economic growth in South-Eastern Nigeria. We are building an institution that will stand the test of time and one that will serve as a bridge between government priorities and private sector efficiency’.
Indeed, since news of its formation filtered in, there has been palpable excitement among many economists, development specialists and public affairs analysts in South Eastern Nigeria. There has also been a noticeable air of expectancy and the hunch that something big and dramatic is afoot. The is a growing belief that the SEIC is the game changer and that our people have been given more reasons to be hopeful; to look back longingly at the Okpara era and believe, not just in the colour of their dreams but in the hope that a rebirth is possible in South East Nigeria!
All fingers crossed!
