March 29, 2024

Foundation preaches against capital flight in Kogi State; launches “Spend Kogi Money in Kogi” campaign

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A foundation, Mentor Box has iterated the need to encourage citizens and other people doing business within Kogi State to ensure they purchase goods and services within the state in order to stimulate the local economy.

The co-founder of the foundation, Miss Eunice Emmanuel-Bagi made the call today, Monday, in Lokoja at a Press Conference held to launch the campaign; “Spend Kogi Money in Kogi.”

Miss Eunice said her foundation’s incubator program at Mentor-Box offered them the opportunity to carry out sector focused research on business ecosystem in Kogi State particularly among the Small and Medium Enterprises.

According to her, findings from survey forms and interviews they conducted gave clear indicators that Kogi state has a significant problem of resident capital flight; a problem that has, to a large extent, created adverse effects on the state’s local economy.

The Spend Kogi Money in Kogi campaign, she stressed, was created out of the necessity to create a paradigm shift that would get everyone involved in the process of shaping Kogi State’s economy for positive growth and development.

Miss Eunice, while further highlighting the effects of capital flight noted that it weakens growth potential and leads to economic instability; manifesting in a number of ways which include rise in state budget deficits, increase in account deficit and increased inflation.

She added that contraction in economic activity and lack of opportunities or profitable investment in the local economy as funds taken outside Kogi state could not be taxed, thereby causing loss of revenue for the state government.

Making clarifications on some of the deliberate efforts of the current administration of Governor Yahaya Bello to actually ensure that Kogi money was spent in Kogi State, the Chairman of Kogi State Internal Revenue Service, Mallam Aliyu Nda Salami said the government has introduced an extant executive order that provides that major government contractors sourced their resources within the state.

He said the administration of Governor Yahaya Bello has shown concern for socioeconomic growth of the state by evolving policies and programmes that would ensure that local economy was stimulated for the benefits of the citizens.

Speaking, the Chief of Staff to the Governor, Hon Edward Onoja lauded the foundation for the initiative, stressing that it was time for everyone in the state be encouraged to spend the money they make in the state for the development of Kogi State.

He lamented a situation in recent past where some leaders and their cronies siphoned money in the state and invested same in other parts of the the country and other parts of the world.

One of the co – founders the foundation, Happy Rugbere said they were committed to using the project to encourage citizens of Kogi State to spend their monies in the state to enhance the state’s economy.

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