Ekiti state is located in the southwestern part of Nigeria, and it has borders with Kwara state to the north, Kogi to the northeast, Ondo to the south and southeast, and Osun to the west.
Nicknamed the Fountain of Knowledge, in this post, we take a look at the economic profile of Ekiti, its population distribution, its Internally Generated Revenue (IGR), and the Gross State Product of the state known to have produced eminent academics in Nigeria.
Overview of Ekiti State Economy
Agriculture plays an important role in the economy of Ekiti State, particularly the cultivation of yams, rice, cocoa, and cassava.
Lumbering and tourism are significant contributors to the local economy of the state.
Ekiti according to the National Bureau of Statistics (NBS) has a total IGR of NGN6, 588, 391, 065.65 and a total GDP of $2.8 billion.
When compared to Sao Tomé and Principe, a country with a GDP of $472 million, Ekiti State’s GDP of $2.8 billion is 5 times larger.
Moreover, Ekiti has a GDP that surpasses that of both Sao Tomé and the Gambia combined.
The Gross Domestic Product (GDP) of Gambia is $1.902 billion, Cape Verde is at $1.704 billion, and the beautiful tourist destination Nation of Seychelles has a GDP of $1.125 billion.
The economy of Ekiti generates nearly the same amount of money as Liberia’s, which is $2.95 billion.
Most part of the Ekiti is located in a highland area, more than 250 meters above sea level. It is situated on a bedrock of metamorphic rock.
It’s a hilly region of the country, with a terrain characterized by stepped outcrops and ridges, either alone or in clusters.
The areas of Aramoko, Efon-Alaiye, Ikere-Ekiti, Igbara-Odo-Ekiti, and Okemesi-Ekiti are particularly rich in outcrops of this type of granite.
Ikere-Ekiti Hills in the south, Efon-Alaiye Hills on the western border, and Ado-Ekiti Hills in the middle are only a few of the rocky hills that dot the State.
Population Distribution of Ekiti State
By population, Ekiti is one of the least populated states in Nigeria. According to the 2006 population census, Ekiti had 2,398,957 people but the 2016 estimates put the number of people in the state at 3,270,798.
By land area in Nigeria, the state is the sixth smallest in the country.
There are more males in Ekiti than females, according to NPC data from 2006 to the 2016 estimates as can be seen in the table below:
IGR of Ekiti State
Contributing to IGR include taxes such as the Pay-As-You-Earn system (a progressive type of personal income taxation), the Direct Assessment system (a form of personal income taxation for self-employed individuals), the Road Tax, MDA revenues, and other taxes.
Each year, PAYE and Direct Assessment account for the vast majority of IGR collected in most states.
NBS 2021 estimates put Ekiti State’s total IGR at 6, 588, 391, 065.65, which are further broken down in the following ways:
What is Ekiti’s GDP?
Currently, Ekiti state has a total GDP of $2.8 billion. When compared to Sao Tomé and Principe, and many African countries.
Allocation from Federal Government
Ekiti state is one of the states that receive the least amount from the federal purse. Currently, based on recent disbursement from the federal government, the state receives NGN4 billion monthly.
This figure is a result of the resources and amount of income the state remits to the federal purse.
Ekiti state is not an oil-producing area nor does it have giant companies that remit the huge amount of money to the federal government coffers unlike other states like Lagos and Rivers.
Major companies or businesses in Ekiti State
Following are some companies in Ekiti state:
- Igbemo Rice Processing Company
- Commercial banks including Access Banks, GTB etc
- ASKAR PAINTS (NIG.) LTD
- BEULAHLAND TRAVEL & TOURS LTD
- O’ LA-KLEEN HOLDINGS LTD
- TRUST YIELDS SECURITIES LTD
- Afe Babalola University
Absolutely, without a doubt, Ekiti has laid the groundwork for a cutting-edge, prosperous economy.
An up-to-date administration of Civil Justice Law, a Sustainable Development Goals law, a Tourism and Hospitality law, a Property Protection law, and an amendment to the Ekiti State Board of Internal Revenue Law enacted in 2020 that, among other things, allows the service to collect all taxes due the State Government and all fees owed to the State Government are all necessary building blocks for a strong IGR.
This is significant for two reasons: first, it facilitates electronic, decentralized payment; second, it addresses head-on the problem of competing for tax authorities.
Also, the climate is favourable for business, with Ekiti coming in at number 18 out of Nigeria’s 36 states and the Federal Capital Territory (FCT) in the country’s first “Subnational Ease of Doing Business Baseline Survey.”
The survey was commissioned as an update on the relative attractiveness of state business environments for SMEs.
Ekiti State’s average scores on the Skills and Labour and Infrastructure & Security indices were 5.35 and 5.05, respectively, indicating that these were its areas of greatest strength.
Furthermore, in the most recent World Bank Doing Business sub-national study on Nigeria released in 2018, Ekiti ranked 4th in the entire nation in the category of “Dealing with Construction Permit.”
Therefore, the evidence is strong, and most importantly, there is a dedication to a private-sector-led economy.
Forgive the pun, but governments should stay out of the way of business as much as possible and instead facilitate or at best collaborate with the private sector.
After 40 years of dormancy, the State Government of Ekiti sold 76% of its interest in the Ikun Dairy Farms to a commercial dairy firm, Promasidor.
As a result, the company currently produces over 80,000 litres of milk per month from a herd of just under 500 cows.
Furthermore, the recent concession of hospitality facilities like the famous Ikogosi Warm Springs is further evidence of this. The concept that the private sector ought to take the helm of the economy is a crucial one.
Mineral resources in Ekiti state
A great deal of Ekiti’s IGR comes from the region’s abundant natural resources even though they are yet to be fully utilized.
- iron ore,
- gold coal (in small quantities).
These resources are mostly stashed in various communities in Ijero, Ekiti West, Ado – Ekiti, Ikole, Ikere, Ise-Ekiti, and other LGAs.
Also, their rivers serve as a source of livelihood to fishermen who rely on rivers like Ero, Osun, Ose, and Ogbese are just a few of the many examples of the Land’s abundance in this regard.
Fountain of knowledge also has some nice attractive centres and tourist centres such as the Ikogosi Warm Springs, the Arinta Water Falls, the Olosunta and Oriole hills of Ikere, the Erin-ayonugba River in Erijiyan Ekiti, the Fajuyi Memorial Park in Ado – Ekiti, and many others.
Ikogosi’s tourist hub is the most developed and well-liked among these tourist centres.
A variety of facilities have been built around the warm spring to make people visit the park and enjoy the most of the facility.
Interestingly, the spring is currently being used by a private company, UAC Nigeria, to produce bottled water for sale which is another source of income for the state government and a source of employment for the labour force in the state.
Furthermore, Cocoa is the primary cash crop in this area coupled with other rich agricultural resources in the state.
It was widely known that more than 40% of the chocolate produced in the renowned old Western Region came from Ekiti state.
Ekiti state has an area’s forests prominence in Obeche which usually is of high economic importance and a source of income to the state.
Challenges of doing business in Ekiti
Doing business in Ekiti state comes with its challenges which is one of the major problems that is being faced by every business owner from across the federation.
Following are some of the challenges any start-up or business owners may face while planning to do business in Ekiti state:
Poor Capital Funding:
Unlike other states of the federation or anywhere in the world, sources of capital, grants, and soft loan for a start-up business are rarely available and if available come with a huge interest rate.
One of the reasons businesses flourish and will be able to do well is if such business is properly financed and has a source of loan to procure heavy equipment such business may need.
Bad Road Network:
This state is known for its poor road network which makes transporting raw material from its sources to either factory or final consumption a herculean task for any business owner.
Poor implementation policies:
Ekiti state has witnessed several political Tsunamis which most times have led to bad leaders coming on board, and the formulation of harsh and unfavourable policies that may harm many small businesses and giant companies that may be interested in starting up a business in this area.
The economy of Ekiti state can do better than is currently doing if the government looks inward by exploring the potential of the mineral resources it is blessed with.