Governor Simon Lalong has said Plateau State will continue to partner the Federal Government through the Industrial Training Fund (ITF) to create jobs and entrepreneurs.
The governor, who spoke at the Abuja International Trade Fair, said the state as the home of solid minerals would soon establish a solid minerals processing plant, adding that training and capacity building of indigenes will be needed to actualise the objective.
The Deputy Governor, Prof. Sonni Tyoden, who represented Lalong, visited ITF’s stand at the fair where he said the state would seek greater ties and collaboration with ITF in its quest to industrialise the state and create jobs for its people through the acquisition and deployment of vocational and technical skills.
Harping on training and development as a prerequisite for economic growth and industrialisation, the governor listed some of the minerals abundant in the state to include kaolin, gemstone and lime, adding that the government would complete its mineral museum and international lapidary complex to serve as training and laboratory centres.
According to him, establishing mineral processing plants in all localities they exist in the state will help to eliminate bottlenecks associated with processing them abroad, while also creating jobs and economic opportunities for the people.
The governor explained that private entrepreneurs will be supported by the state to ensure that agricultural products were produced in commercial quantities for the benefit of the state, noting that it was in this light that manpower development became imperative.
ITF Director-General, Dr. Juliet Chukkas-Onaeko said ITF’s participation at the Fair was one of the ways the agency was using to pass its message of skills acquisition to every parts of the country.
Represented by the Head of Public Affairs Unit of the agency, Mrs. Ifeoma Ihezue, she said the Fund has initiated many strategies that will eliminate youth unemployment and the challenges of inadequate skills from the country.
According to her, ITF has also created a jobs portal that will connect entrepreneurs and employers with youths, while new trade areas have been introduced to expand access and opportunities for technical and vocational skills acquisition.
The ITF DG said the forthcoming National Skills Summit being planned by the agency will change the face of skills acquisition in the country, as the summit which is expected to be declared open by President Muhammadu Buhari in Abuja, will involve all stakeholders within the skills development ecosystem inside and outside the country.
She also said the summit will for the first time in the history of the country identify and discuss key issues and proffer lasting solutions to the challenges inhibiting skills development in the country.
Despite the challenges facing the energy sector over the past decades, it still remains the nation’s cash cow, holding the key to unlocking the potentials that will make the country attain its aspiration of becoming one of the world’s 20 industrialised economies, writes EMEKA UGWUANYI.
Nigeria has made tremendous progress in the energy sector over the past 55 years despite the challenges in the sector. Starting from a production of 5,100 barrels of oil per day (bpd) in 1958, its current production stands at over two million bpd. Nigeria still leads in hydrocarbon development and remains the oil and gas hub in the Gulf of Guinea.
The nation’s oil output would have reached three million barrels, with reserves reaching 40 billion barrels if not for security challenges including militancy and issues of kidnapping, oil theft, pipeline vandalism and insurgency, as well as some constraining policies.
The oil and gas industry hitherto controlled by foreigners has gradually started to shift position. Indigenous firms and operators are increasingly participating in exploration and production (E&P) and in the service sector.
The divestment of oil blocks by the multinational oil firms such as Shell and Chevron, and the marginal field policy boosted local players’ equity in the E&P sector substantially. Indigenous stakes in the upstream are growing; the service sector is reasonably controlled by the locals, which is a development that should be encouraged.
Over the past five decades, over 20 oil fields have been divested by the international oil companies (IOCs), some marginal fields have been re-streamed, and this enhanced the contribution of indigenous firms to the nation’s total daily oil production, rising from zero to about 20 per cent now. In the downstream, over 95 per cent of the sector is controlled by Nigerians.
Because Nigeria produces high value, low sulphur content, light crude oils – Antan Blend, Bonny Light, Bonny Medium, Brass Blend, Escravos Light, Forcados Blend, IMA, Odudu Blend, Pennington Light, Qua-Iboe Light and Ukpokiti, its oil is the toast of refineries, despite the current lull in the international price of crude. To derive maximum value from the nation’s oil, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr Ibe Kachikwu said the Corporation will strive to secure long term contracts for the crude. According to him, the reason Nigeria’s crude sometimes doesn’t see buyers is because it is contractors that lift the oil and they (contractors) don’t have already secured buyers.
However, to address some of the sectoral issues, the Federal Government must tackle the contentious provisions in the Petroleum Industry Bill (PIB) including part of the fiscal regime, which is unacceptable to the multinational oil firms, and the 10 per cent Petroleum Host Communities Fund, which is meant for the development of oil producing communities, which Northern legislators vehemently opposed. These among others, are some of what have been stalling the passage of the bill believed to be the solution to some of the oil industry’s woes.
Some areas that need urgent attention and remedy include reduction of contracting period for projects. The contract cycle in Nigeria is among the longest in the world. Policies that will support renewed aggressive exploration should be encouraged without delay. Oil reserves and output are declining and need to be replaced. Natural gas exploitation and utilisation especially in the area of improving domestic consumption, and elimination of gas flaring need to be fast-tracked. There is also need to properly position the NNPC as a true national oil firm that can effectively compete with its contemporaries across the globe.
The oil and gas industry cankerworms including oil theft and pipeline vandalism, massive importation of refined products and the attendant subsidies, and fuel scarcity need urgent solution. Having been in oil exploration and production in the past 55 years, Nigeria is supposed to be a net exporter of refined petroleum products but today, it is the only country in the Organisation of Petroleum Exporting Countries (OPEC) that imports products for domestic consumption.
For the first since its establishment, the NNPC is undergoing drastic reforms to be positioned as an independent and profitable enterprise that can have capacity to borrow money from banks to run its operation. The Corporation chief Kachikwu has started sanitizing it, to create sustainable processes, reduce the size of the workforce and make it efficient, retire the aged members of staff and hire the younger energetic ones.
To enthrone transparency in the Corporation, Kachikwu said he would bring back the auditing firm, PricewaterhouseCooper to fully audit NNPC, as a step to making its books clear and reliable.
The gas sector is also being developed impressively. Previously all the associated gas was flared for lack of storage and utilization, but today, operators look for non-associated gas assets. The volume of flared gas has been significantly reduced. Many industrial concerns in Nigeria have switched to natural gas-as fuel to power their machineries for power generation to run their operations.
Nigerian Content Act
To substantially increase indigenous participation, ownership and control of assets in the upstream, the Federal Government passed the Nigerian (local) content into law in 2010. Many indigenous firms have been empowered through the Act and lots of capacities and capabilities have been developed by Nigerians.
Because access to funds constitutes a major challenge to indigenous players in the oil and gas industry, the Nigerian Content Development and Monitoring Board (NCDMB) that foresees the implementation of the Nigerian Content Act, created the Nigerian Content Development Fund (NCDF). The Fund as at the end of April, was above $540 million, and the Board said it is gradually growing to reach $700 million at the end of December this year.
The Fund started with only $50 million in 2010. “The projected growth chart was that by 2011, it would rise to $70 million and $150 million by 2012 and to $350 million by 2013 while we were looking at $450 million and $700 million by end of 2014 and 2015 respectively.
“Considering the current growth potentials of the Fund, we expect a continuous increase in its size and its capacity to attract other sources of funds both locally and internationally to support Nigerian oil and gas content development,” the Board said.
The Fund, according to the Board could have helped a lot of Nigerian firms if not because of the challenges encountered at its formative year. Banks were not willing to lend under the programme because some bankers demonstrated limited understanding of oil and gas business and the peculiarities; therefore, they gave all manner of conditions that could not be met by the emerging and growing Nigerian companies. This resulted in consistent delays in concluding transactions and often stalled some applications, but the story has changed today, the Board added.
Power
The power sector has undergone series of transformations and reforms but with little results. Over N5 trillion is estimated to have been spent on Nigeria’s power sector in the last 16 years. This figure includes expenditures on the defunct national utility, the Power Holding Company of Nigeria (PHCN) before it was unbundled into 18 successor companies – six generation, one transmission and 11 distribution companies.
Following the inefficiency of the PHCN and near total blackout in the nation, the Federal Government created the National Integrated Power Project (NIPP), which is supervised by a special purpose vehicle, the Niger Delta Power Holding Company (NDPHC) Limited. The NDPHC was created to fast-track the attainment of stable power supply in the country when all efforts, financially and technically pumped into the PHCN to make it efficient failed. The PHCN formerly the National Electric Power Authority (NEPA) was ranked as one of the most corrupt agencies.
The NIPP programme was conceived in 2004 and the NDPHC created in 2005. The project was also enmeshed in alleged that $16 billion embezzlement and was also engulfed in controversy and litigation because of the alleged unexplained utilization of the fund. In view of those issues surrounding the project, the government in power suspended the NIPP programme dismissing it as huge fraud and drainpipe but after two years, the suspension was lifted and the government continued with the project.
Following the alleged outrageous corruption in PHCN, the Federal Government began a process of privatisation of the power sector. The Federal Government on November 1, 2013, ceded 60 per cent equity of the distribution companies to the private sector, and 100 percent equity of some of the generation plants to the private sector. The privatisation was considered the most outstanding achievement of the government in recent time and a major milestone, by industry experts. The privatisation marked a gradual but total handover of the sector to the private sector. The 18 successor companies unbundled from the defunct PHCN have all been privatised except for the transmission company, which hopefully will be privatised with time.
However, the Federal Government also secured funds for the power sector from different international development organisations and companies to develop the entire value chain of the power sector. For instance, the development of some projects such as the Zungeru hydro electric power plant with installed capacity 700Mw was funded by such funds. The Federal Government in 2012 spent a total $377,723,701.31 plus ¥3,701,664,848,66 plus N44,007,398,398.00 equivalent to N162,990,364,379.30 to implement the project.
The Exim Bank of China shouldered 75 per cent of the project while the counterpart funding of $309 million was kept with the Ministry of Power. The project was being implemented by a Chinese consortium, CNEEC-Sino Hydro.
The Kashambilla hydro dam has reached about 95 percent completion and the construction of the Mambilla hydro dam is on course. The plant is targeted to generate 3,000Mw.
For renewable energy, there is an inter-governmental organisation: International Renewable Agency (IRENA) supporting countries in development of sustainable energy future. Besides budgetary allocations, interventions by different development organisations such as the European Union, JICA and GIZ directly undertake the projects they choose to work on. Last year, several supports from bilateral partners in form of loans such as $700million from the World Bank, $200million from JICA, $370million from African Development Bank, $500million from EXIM China and $1billion from Contractor financed Turkey Projects flowed in into the power sector development.
The African Development Bank also released a loan of $100 million to Transmission Company of Nigeria (TCN) for critical transmission projects. Last year, it was estimated that the TCN required about US$3.7billion to increase power transmission capacity, make the network more stable and reliable, and improve efficiency of electric power supply by reducing transmission technical losses.
The National Integrated Power Project (NIPP) programme has also seen the completion of 10 midsized power plants, which were being privatised before the privatisation process was stalled. The 10 power plants include Alaoji, Ihovbor, Egbema, Gbarain, Calabar, Geregu, Ogorode, Olorunsogo, Omoku, and Omotosho.
The NIPP projects are funded from the excess crude account, with the Federal Government contributing 47 per cent of the funds, while the 36 state governments contribute 35 per cent and the 774 local governments 18 per cent. As at May this year, about $11.1 billion has been committed to the project,
The introduction of the National Integrated Power Project (NIPP), helped to boost power generation, transmission and distribution. Currently, power output stands at above 4,600 megawatts (Mw), though inadequate but a huge improvement over about 2,000Mw a few years ago.
For the country to be fully industrialised, it must start from machine tools production and migrate to agricultural tools, such as tractors, trailers, Chairman, O.T. Otis Engineering Limited, Otis Anyaeji, has said.
He spoke at the induction of the Third Construction Industry Hall of Fame organised by Century 21 Communications, publishers of Construction and Engineering Digest (CED) magazine in Lagos.
Anyaeji, who was the guest speaker, spoke on ‘’Engineering and Economic Prosperity of Nations.”
He explained that rather than depending imported goods, there are a lot of resources in the country that could be harnessed that will lead to economic prosperity and create jobs for the unemployed youth.
“If Nigeria harnesses what it has in the agricultural sector through engineering, it will yield more income than oil,” he said, adding that there is a need to get the government to be interested in the innovation process if this is to be achieved. He reiterated that the Nigeria infrastructure master plan estimatd that about N2.9 trillion will be needed to provide for the infrastructural need.
Chairman of the occasion, Ibikunle Ogunbayo, who said without a viable construction industry, the economy of any nation will not develop, noted that infrastructural provision is also very important to national development.
“We are here to open a window to those who are not yet a member of the Construction Industry Hall of Fame. We are here to celebrate those members of the construction industry whose despite all odds, still perform excellently well,” he added.
An inductee Ambassador Jerry Ugbokwe noted that two major problems confronting the country are indiscipline and corruption. He said Nigerians must imbibe discipline and eradicate corruption.
“It’s important for professionals to emphasise the need to put square pegs in square holes. We must be the change we want to see,” he stressed.
Publisher of CED, Mr. Kenneth Odusola-Stevenson, noted that if technology and knowledge form the basis for meaningful economic development, given that globalisation is radically accelerating the pace of change and raising the long-term stakes, it is clear that success in knowledge-based economies depends largely on the capabilities of people who are credible in meaningful and consistent ways.
He said many experts in the industry, including the inductees, have pulled resources, their intellectual and professional capabilities, to build infrastructure across the country from road, housing, oil and gas, aviation and maritime to space technology, among others.
“Above all, they have all made remarkable contribution to nation building by developing and building enterprises that are given opportunities and space to young professionals to engage their talent,” he said.
Eighteen professionals were inducted. Among them were Dr Joseph Folayan, Olumuyiwa Ajibola, Kashim Ali, Chrales Akindayomi, Alabo Dagogo Fabur, Ayo Akindeinde, Jerry Ugokwe, George Okoroma and Joseph Agbenla.
Others are Dr Bosun Ayinde, John Okodi-Iyah, Anietie Umana, Nurudeen Rafindadi, Abdullahi Sani, Sampson Ivovi and Okokon Essien.
In the corporate category are O. T. Otis Engineering and Advanced Concrete Technologies Limited.
The business community in Akwa Ibom State has expressed readiness to partner the state government towards effective implementation of key policies and programmes on industrialisation.
Speaking in an interview in Uyo, the Akwa Ibom State capital, the President, Building Materials Association (BMA), Uyo branch, Elder Ubong Bassey Obot, expressed hope that Governor Udom Emmanuel’s industrialisation policy would work if the right steps were taken.
Obot, who doubles as the Managing Director, UBOTEX Nigeria Limited, said the business community in the state has been galvanised to create the enabling environment for the policy to thrive.
The businessman, who said plans have been concluded for Alhaji Aliko Dangote to fully invest in Akwa Ibom, said the entry of Dangote Group into the state has brought in its wake some market dividends, including the drop in the prices of cements from N1,700 to N1,500 per bag.
Towards a smooth industrial take-off in the State, Elder Obot advised the governor to work with seasoned entrepreneurs with a view to achieving success in the industrialisation drive.
On his business trips abroad to woo investors, Obot urged the governor to always travel on such trips with seasoned businessmen instead of politicians, explaining that the contributions of entrepreneurs would go a long way to aid the development of industrial culture and entrepreneurial spirit in the state.
Akwa Ibom State Governor Udom Emmanuel has said his administration is building a new Akwa Ibom that will be industrialised and become more worker-friendly.
The governor said he had been building enduring infrastructure across the state since he assumed office to actualise the plan.
Emmanuel spoke on Friday night during a broadcast to the people on his 100 days in office.
He said: “I came into office with a Five-Point Agenda of wealth creation, economic and political inclusion, poverty alleviation, infrastructural consolidation and expansion, and job creation.”
These are encapsulated under the broad theme of industrialisation, he said.
“We have spared no effort in putting blocks and bricks together to build a truly magnificent edifice that we all fervently desire Akwa Ibom to be,” Emmanuel added.
The governor said in his first 100 days in office, he performed the ground-breaking ceremonies of new industries and resuscitated some moribund others.
“Powered by foreign direct investment policy, my administration has laid the foundation for an automobile industry, a LED factory, Shoprite mall, a broadcast complex and a fertiliser company,” he said.
Emmanuel said he boosted the state’s industrialisation drive with the Peacock Paint Industry at Etinan, which had been moribund for about 15 years.
The governor said his administration was reviving other ailing industries.
On infrastructural development, he said his administration started the construction of various roads and various components of the Ibom International Airport to improve its facilities.
Emmanuel said his administration had intervened in other projects, following some natural disasters.
The Central Bank of Nigeria’s (CBN) policy restricting importers of 41 items from sourcing funds from the official forex market is crucial to Nigeria’s industrialisation drive, says the Managing Director/Chief Executive Officer, Tempo Paper & Packaging Limited, a manufacturing firm based in Sango Otta, Ogun State, Seun Obasanjo. In this report, he tells Senior Correspondent COLLINS NWEZE that the policy will also enable the country look inwards, build capacity and transform from consumption-based economy to production-based.
For most people in the industrial sector, the Central Bank of Nigeria’s (CBN’s) policy restricting the import of 41 items with funds sourced from the official forex window could boost the country’s industrialisation.
Experts believe the policy has implications on whether or not the country will leapfrog from being a consumption-based economy, to production-based economy, and perhaps, over time, become a net exporter of finished goods.
One of such experts is Managing Director/Chief Executive Officer (CEO), Tempo Paper & Packaging Limited, Seun Obasanjo, who believes the CBN acted well by banning the import of the items, including toothpicks, private jets and rice from using official forex window to fund such consumption.
For him, such controls would help stabilise the naira, replenish reserves and boost manufacturing, thereby giving the economy the boost it needs to transform to an industrialised nation.
Merits of the CBN Policy
Obasanjo told The Nation: “With regard to the 41 items on the restriction list released by the CBN, it is a step in the right direction. No nation can develop without industrilisation. What the CBN is saying is why can’t we produce these items locally?
“Although it is going to be tough because of poor infrastructure, especially the port congestion, poor power supply, and poor skilled manpower, among others, but the bigger picture remains that Nigeria is headed to be a globally recognised industrialised country by instituting this policy. The policy will help us look inwards to build capacity.”
He believes that to get the local industry into the league of big players where it can begin to act with full capacity in the production of goods and services, the government should provide the infrastructure.
“It is not a one direction approach. All hands must be on deck to get Nigeria to its desired destination of being an industrilised nation. By fixing power alone, the cost of production of goods and services will drop significantly, helping the operators to compete in the global market. The same thing applies to low interest rate which is needed to make the manufacturers also compete favourably by reducing the cost of their operations,” he said.
On the claim by some manufacturers that some of the banned items are their raw materials, Obasanjo said the Common External Tariff being implemented in Africa covers the entire region. “What is seen as my raw materials can be someone else’s finished goods. The principle of the policy is to drive local production and create jobs for the population,” he said.
Continuing, he said: “If I am producing everything in Nigeria, it means Nigerians will be employed starting from drivers, cooks, secretaries, cleaners, gardeners and even security personnel. That is a major contrast if the goods are imported. By producing goods locally, so much value will be added to the domestic economy.”
“If the farmers are producing locally, it will improve their capacity overtime and also creates job. It will help Nigeria to leapfrog from consumption-based economy to production-based economy. We can even become a net exporter of several items.”
On other benefits to local production, he said being the net exporter of goods and services, places the country in a vintage position to earn huge forex. Hence, instead of scrambling to buy dollars, the manufacturers can earn dollars and boost the domestic currency.
• Obasanjo
But achieving this, Obasanjo said, would require the co-operation and support of all stakeholders. “It has to be a coordinated effort and the policy needs to be encouraged. The support should come from all stakeholders. Although some people are going to lose out in the short term because they are importing these items, if we boost the local production capacity, in the long-run, we will all be better off,” he promised.
To show that it is possible, Obasanjo, who manufactures corrugated cartons and flexible packaging for various items, such as confectionary, bread, noodles, spaghetti among others said there are multinational companies that have continued to produce locally over the years, employing millions of Nigerians.
For instance, Nestle, Procter & Gamble, PZ, and Coca Cola are manufacturing companies producing and manufacturing their products as well as employing millions of Nigerians.
“These companies are examples that should be followed by those still importing goods into the country. A lot of people are pushing for a complete liberalisation of the economy but that will open our ports to outsiders. Such policy, will simply finish our local producers because the economic dynamics are not the same,” he said.
Explaining further, he disclosed that the interest rate in China is not the same with that of Nigeria. “If I am producing in China, I borrow at two per cent, electricity is stable among other favourable factors. But in Nigeria, you will borrow at over 20 per cent and still you generate your own power. There is additional costs attached to goods produced in Nigeria, hence they cannot compete favourably if the ports are opened for foreign goods to enter,” he said.
Why govt must reduce cost of operation
Obasanjo insisted that it was high time that the government focused on reducing cost of operation for the local industry. “We need to focus on productivity and increasing our efficiency in all the economy. It is when we have done that, that will be able to compete favourably in the global market,” he predicted.
For him, the forex restriction by the CBN is one major step to taking Nigeria on its industrialisation promised land.
He regretted that many real sector operators were boosting job opportunities in other countries and depriving their citizenry of jobs by making some frivolous imports while also calling on the government to diversify the economy.
“How can Nigerians be importing cement, margarine, palm kernel, vegetable oil, poultry products (chicken, eggs and turkey), Indian incense, tinned fish in sauce (Geisha, Sardines), cold rolled steel sheets, galvanised steel, roofing sheets, wheelbarrows, head pans, metal boxes and containers, and enamelware which can be produced locally. It is a good thing that the CBN is correcting this anomaly,” he said.
Policies that are needed
He said aside the restrictions, the apex bank had overtime, instituted some policies meant to boost the real sector and enhance local production.
He listed the intervention products in power, aviation, manufacturing, small and medium enterprises as good examples of the CBN’s roles in building a vibrant and productive industrial sector.
He said he would continue to support the growth of the economy and the reforms in the power sector, as well as small businesses and agriculture.
For power sector, the CBN linked the challenge faced by the sector to unattractive pricing of domestic gas and legacy debts that has inhibited investment in gas supply and infrastructure.
These challenges are interconnected with the unexpectedly large revenue shortfalls in the industry, which needed to be fixed. That prompted the CBN to institute the Nigerian Electricity Market Stabilisation Facility (NEMSF), where N213 billion has been mapped out and is being disbursed to settle legacy gas debts and shortfalls in revenue for operators to boost power supply.
Besides, the CBN has, to unlock the potential of the real sector to engender output growth, value added productivity and job creation established a N300 billion Real Sector Support Facility (RSSF).
The facility will be used to support large enterprises for startups and expansion financing needs of N500 million up to a maximum of N10 billion. The real sector targeted by the facility are manufacturing, agricultural value chain and selected service sub-sectors. The fund is expected to improve access to Small and Medium Enterprises (SMEs) to fast-track the development of the manufacturing, agricultural value chain and services sub-sectors of the economy.
It will also increase output, generate employment, diversify the revenue base, increase foreign exchange earnings and provide inputs for the industrial sector on a sustainable basis.
There are also the N200 billion Commercial Agriculture Credit Guarantee Scheme (CACS), N300 billion Power and Airline Intervention Fund (PAIF) and N200 billion Small and Medium Enterprises Restructuring and Refinancing Facility (SMERRF). All these funds provided by the CBN are meant to boost economic development, and come at single digit interest rate.
The CACS was meant to fast-track the development of the agricultural value sector of the economy through the provision of credit facilities at a single digit interest rate to large-scale commercial farmers; the PAIF was meant to resuscitate power and aviation sectors while the SMERRF is for supporting small businesses financially.
But Obasanjo believes the apex bank should not stop there, but must follow up to ensure the funds are well utilised, adding that more of such funds are needed.
He said the forex policies and provision of the real sector funds are in tandem with the regulators’ long term vision for the economy.
But he insisted that the CBN can only handle the monetary policy and not the fiscal policy. “CBN is not in charge of fiscal policy like taxation. The federal government can provide tax holiday and help more people come in and start local production. What the CBN is doing has to be supported with fiscal policies,” he said.
He cited the automobile policy as one that should be replicated in other sectors of the economy, adding that government’s efforts in that sector is yielding positive results as local assembly of vehicles has started.
“The Federal Government should see how the local production of the banned items will start. This will help reduce the demand for dollar and lead to stronger naira. The only way you can make the naira stronger is to have less demand for dollar,” he said.
“The price of crude oil has fallen from over $100 per barrel to below $60 per barrel. The farmer does not care whether oil price drops or not. These are value-chains that do not involve dollar. That is where we should develop the economy from and grow it”.
Continuing, he said: “We have a huge population base that is productive and intelligent. A majority of the most intelligent people in the world are Nigerians. We have fertile land and most of the populations are able-bodied people that can work. So, nothing should hinder us in our road to industrialisation.”
Standardisation as a panacea for growth
However, Obasanjo said for Nigerian products to attract the needed patronage, there must be standardisation. He admitted that such could be gained with time and experience.
“Standardisation is a function of advancement in technology. In 25 to 30 years ago, nobody wanted to buy Taiwan products. Today, Taiwan is producing world-class products. It is now Chinese products that people runaway from buying but in the next 20 years, Chinese products will become standardised. That is why I want Nigeria to begin to produce locally those things it is importing today. The local guys in China and Taiwan are learning the know-how and will continue to produce. That is why I want Nigeria to begin to produce to give our people opportunity to develop our own standards,” he said.
He said the Standards Organisation of Nigeria (SON) can encourage local companies to improve on their standards. It is not going to happen overnight. It takes time but Nigeria will be better for it. “If we keep consuming foreign goods, we have conceded defeat,” he said.
President Muham-madu Buhari has not only declared his intentions to fix the economy; he is also intent on industrialising the nation.
Besides making promises in that direction during his election campaigns, he specifically directed the Federal Ministry of Defence a fortnight ago to produce a plan for the establishment of a modest military industrial complex for the local production of weapons to meet some of the requirements of the armed forces.
He declared that it was unacceptable for Nigeria to continue to over-depend on other countries for critical military equipment and logistics.
Seeing the products being manufactured by the National Agency for Science and Engineering Infrastructure (NASENI) last Thursday, President Buhari was not in doubt that the Agency could be exploited to realise his desire for local weapons’ production and industrialisation of Nigeria.
In a statement issued by the Senior Special Assistant on Media and Publicity, Garba Shehu, the President directed NASENI to immediately explore ways of working with the Defence Industries Corporation, Kaduna, towards manufacturing of the light weapons it has designed.
The President had observed that unless the Agency’s inventions were adopted and further developed by manufacturers, the country and ordinary Nigerians will not enjoy the fruits of its good work.
“Looking at your work…, the laboratory equipment, the weapons designs…., these are things that can save us resources if you can coordinate with existing specialist agencies and work together,” Buhari had told the Executive Vice Chairman of NASENI, Professor Mohammed Haruna.
Buhari’s directive to NASENI also included production of other equipment and implements that will largely secure and fast track Nigeria’s industrialization, lessen dependence on other countries and reduce capital plight.
In the area of power generation, President Buhari after seeing samples of small hydro power and turbines, 15 KVA transformer, Gordian AVR stabilizer, pole-mounted transformers, solar rechargeable lamp, solar inverter, solar street light and propeller hydro-turbine, charged NASENI to publicize its works and collaborate with state governments towards electrification of their states.
The Agency’s agricultural products including integrated cassava processing plant, mobile cassava grater, rotary dryer, seed oil expeller, fruit milling machine, deep well hand pump, and manual drilling rig, also largely fit into the President’s planned agricultural revolution in the country.
For the area of education, the President has also directed the utilization of the scientific kits being produced by NASENI for intervention in the education sector.
The Agency, which is manufacturing mobile science and integrated science laboratories equipment known as the science kits for primary (PSK) and Junior Secondary Schools (JSK), was said to have also designed and produced wood master for woodworks and for teaching woodwork in technical schools.
It was said to have also set up Advanced Manufacturing Technology Centres in nine universities under the Niger Delta Development Commission (NDDC) states sponsored by Skill ‘G’ and the Nigerian National Petroleum Corporation (NNPC).
NASENI, in the area of transportation, was also said to have designed and manufactured the first made in Nigeria motor cycle (NASENI – M1), first made in Nigeria tricycle both passenger and cargo models (Keke NASENI) and the necessary motor and motorcycle spare parts.
It is also planning, through collaborations with relevant foreign organizations, to pioneer the establishment of manufacturing plants for aircrafts, armoured vehicles, CNC machines, electric transformers, Unmanned Aerial Vehicle (UAV), Electric Vehicles (EV), and their component parts and accessories.
Speaking with State House correspondents after making presentation to President Buhari, Professor Haruna said: “He directed that we must collaborate with relevant MDAs to ensure that there is synergy. Other MDAs such as Defence, Ministry of Trade and Investment to liaise with us such that the technologies that are mature in our system, SMEs can be supported to take them to the market.”
“So many other directives were given that will ensure successful industrial revolution of Nigeria.” He added
Nigerians definitely are praying that all these desires and plans will manifest and they will depart sharply from some of the moves toward industrialization by the immediate past former President Goodluck Jonathan’s administration.
The administration, which spoke so much about local production of Made-in-Nigeria cars, appeared not to have advanced beyond the drawing board.
Apart from the then Minister of Trade and Investment, Olusegun Aganga, who drove around with such locally assembled jeeps, they were never available in large quantity for Nigerians.
It is really hoped that with these new moves, Nigeria, in no long time to come, will be technologically developed and meet up with nations like Indonesia, Thailand, and Malaysia.
Presidential citation for CDS
The new Chief of Defence Staff (CDS), General Abayomi Gabriel Olonishakin must be a very lucky man.
Besides been appointed to the new position on the 13th of July, 2015 based on merit without lobbying for it, he had the special privilege a month later, on 13th of August, of having his citation read by the Commander-in-Chief of the Armed Forces and President of the Federal Republic of Nigeria, President Muhammadu Buhari, before decorated with his new rank.
While none of his predecessors can be remembered to have got such honour before been decorated with their ranks in the past, General Olonishakin, was singled out for such citation among his other three service chiefs who arrived with members of their families for decoration with their new ranks at the Council Chamber of the Presidential Villa, Abuja last Thursday.
President Buhari rose to the occasion to fill in the gap and disconnect created by the Master of Ceremony (MC) at the brief event.
The MC, who ought to immediately proceed to reading the citation of the CDS after making opening remark to kick start the function, hesitated as he sought for President Buhari’s permission to proceed with the ceremony.
But noting the abnormal silence that ensued in the Chamber and to save the day, President Buhari, who also had a copy of the citation, ended the long silence as he stepped in immediately to read the citation of the CDS.
Even though as a military officer he was standing at alert and his straight face not showing any sign of gladness when the President reel out his citation, Olonishakin’s heart that morning must be filled with joy for the honour.
He was decorated with his new rank before other service chiefs’ citation were read by the MC.
The Service Chiefs, who did not enjoy having their citations read by the C-in-C, included Lt-General T.Y. Buratai – Chief of Army Staff, Vice Admiral Ibok-Ete Ekwe Ibas – Chief of Naval Staff and Air Marshal Sadique Abubakar – Chief of Air Staff.
But they were all decorated with their new ranks by President Buhari assisted by Vice President Yemi Osinbajo and the officer’s wife.
Africa’s abundant resources will make other continents envious. But the continent cannot harness these to achieve sustainable development through high value added activities. Instead, it remains a raw materials supplier and a destination for finished products. Expe0rts at the 1st International Business Development Summit organised in Lagos by the Institute of Business Development (IBD), point the way forward for Africa’s industrialisation, reports, Assistant Editor CHIKODI OKEREOCHA.
The statistics are inspiring and intimidating. Africa offers a consumer base of more than 900 million people. And the demographics bode well for the continent as a market, as more than half its population is under 24 and highly entrepreneurial. The continent also boasts of tremendous agricultural and mineral resources, holding, for instance, 60 per cent of the world’s uncultivated arable land. It is also rich in oil & gas, complimented by a growing middle class with spending power, and an increasingly stable polity. Regrettably however, Nigeria and other economies in Africa have not been able to harness these resources to achieve sustainable development through technology-intensive, high value added activities.
At moment, the continent is largely a raw materials supplier, with little or no value addition via processing. Africa consumes mostly imported finished products and the situation, according to development experts, constitutes a stumbling block to Africa’s quest for industrialisation. “We are basically raw materials exporting people; we are supplying raw materials, we don’t process them into finished products. We sell at a pittance to other industrialised countries that process them and sell back to us at cut throat prices. We don’t have a choice,” President/Chairman of Council, The Institute of Business Development (IBD), Mr. Ifeanyi Obibuzor, said, pointing out that the arrangement creates jobs for citizens of the processing countries, leaving citizens of raw materials-endowed economies in Africa poor.
Obibuzor made the remarks in his welcome address at the 1st International Business Development Summit for Africa 2015 held last week in Lagos, Nigeria. Obibuzor, who was one of the experts drawn from across Africa to brainstorm on how to harness the continent’s abundant human and natural resources for sustainable development, described the theme of the summit, ‘Business Development in Africa: Regional Integration for Sustainable Comparative Advantage’ as “apt and timely.” He said there’s no better time for such thought-provoking seminar aimed at overhauling African economies with clear shift towards technology-intensive, high value added activities than now. He stated that Africa must look towards processing their primary products into finished goods rather than remain basically a raw materials exporter.
For a start, Obibuzor said African economies must make conscious and concerted efforts to develop their science and engineering infrastructure base. According to him, a robust science and engineering infrastructure base, which consist of the capabilities and physical plants that allow a prolific machine and equipment design and production to take place in the country, is the tonic to stimulate job creation through the proliferation of industries. He said the acquisition of endogenous capability in science and engineering infrastructure would also enable African economies produce basic necessities of life including, but not limited to food and shelter.
The IBD Council Chairman observed that Nigeria and indeed, Africa’s failure to develop her science infrastructure base is responsible for some of the challenges it is currently facing such as inability to refine and distribute crude oil, translate her agric policy into actual measurable production of food items in sufficient quantities, and outright sale or abandonment of strategic industries in the iron and steel industry. It is also responsible for the unacceptable level of unemployment with its obvious implications, as well as inability to keep the factories/industries, which are employment creators, running. “The old factories cannot be sustained due to lack of endogenous capacity to reproduce spare parts,” he said.
As Obibuzor explained, the first component of national engineering infrastructure involves the development of well-motivated technical manpower and experts, through local and overseas training, in order to raise the required critical mass of development engineers, technologists, technicians, and managers who possess the necessary know-how and practical skill. The second, he said, involves the establishment of many sectoral Engineering Infrastructure Development Complexes (EIDCs), which develop technologies by research and development (R&D) and by technology adaptation; and the generation of associated private sector satellite industries.
According to him, there is need to deliberately and carefully encourage, nurture and protect private-sector owned satellite industries and tertiary industries until they mature and thrive. He said they are essential parts of the national engineering infrastructure. While noting that although, the Nigerian government has, over the years, been undertaking some important elements of the national engineering infrastructure initiatives, which are highly commendable such as the Ajaokuta Iron and Steel Complex, Aladja Steel Project, Oshogbo Machine Tools, and the Aluminium Smelter Project, among others, he said such initiatives must be vigorously pursued, completed, and put to full and efficient production.
Obibuzor was emphatic that “Unless African economies evolve endogenous engineering infrastructure they will continue to pay all the moneys to foreigners and that is what we call capital flight.” He said developing a robust engineering infrastructure would resolve the crisis in Nigeria’s power sector, for instance. “We have a problem with electricity. We can’t generate, transmit or distribute. These are engineering. If we have indigenous capability to design and repair machines that will generate, transmit, and distribute power, we can translate that to other sectors,” he told The Nation on the sideline of the seminar.
He, however, pointed out that the task of developing Africa’s engineering infrastructure must be done by government because it takes a long gestation period. “There must be commitment from the top to the last person. We must get our priorities right; if we get it right every other thing will follow. That is why I call it ‘Premium Mobile’ (the first thing that moves every other thing). If we develop our engineering infrastructure you multiply chances of jobs in the industries,” he admonished, adding however, that what is required is the political will.
Registrar/Chief Executive Officer, IBD, Mr. Paul Ikele, could not agree less on the need for governments in Africa to muster the necessary political will to develop the continent’s economy on a sustainable basis placing emphasis on areas where it has comparative and competitive advantage. “We have a lot of resources; we have the manpower, but we are not harnessing it,” he said, pointing out that the problem of Nigeria, which is three fold, namely corruption, dearth of infrastructure, and insecurity, also confronts other African countries.
“The problem of Nigeria is also the problem of Africa. Nigeria is a giant, but because of corruption, insecurity and under-development of infrastructure, her development is hampered. But let us not bother ourselves about these challenges. A journey of one thousand miles starts with a step. We need to create competitive advantage in areas we have the strength. From there we can see how we can resolve areas we have weaknesses,” he told The Nation.
Mr. Ikele explained that while last year’s summit was focused on Nigeria, the institute decided to focus on Africa this year because “Africa is the next level of the world. We want to bring Africans together; lets us know what we have and then plan on how to develop them.” He said the idea of the summit came up from what happens in the United Kingdom (UK) where the ‘City Week’ is held every year, drawing up about 2, 500 participants mostly intellectuals and government officials to discuss everything about the UK and the European Union with the aim of finding solutions to their peculiar problems.
President, World Federation of Business Development Organisations (WFOBDO), Dr Mohammed Kafafy, admitted that the potential in Africa is indeed, huge. While pointing out that Africa is of increasing strategic interest to the global economy, he said China and India, for instance, are rapidly increasing their business dealings with the continent and are often beating out American and European firms.
“Africa offers a consumer base of more than 900 million people. While more than half of Africa lives on $1 or less a day, the other half does not,and they are hungry for products and services. Even among the poor, there are surprising opportunities,” Kafafy, who was keynote speaker at the seminar said, noting that the demographics also bode well for Africa as a market, as more than half its population is under 24. “Whilst Europe’s population will lose 60 million people by 2050, Africa will add 900 million – creating opportunities,” he projected.
Kafafy, an Egyptian, said although, the risks of investing in Africa remain high, just as they are for most emerging markets, but that the perceived risk is much greater than the real risk. He however, said the key is the management of that risk. He also stated that as part of minimizing the risk, the culture of strategic alliance should be imbibed in Africa.
The development of the nation’s science and engineering infrastructure base holds the key to job creation and industrialisation, President/Chairman of Council, Institute of Business Development (IBD), Mr. Ifeanyi Obibuzor, has said.
Speaking at the “First International Business Development Summit for Africa” in Lagos, Obibuzor said the acquisition of endogenous capability in science and engineering infrastructure would create jobs through the proliferation of industries. It would also enable the country produce basic necessities of life including, but not limited to food and shelter, he added.
The summit with the theme, “Business development in Africa: Regional integration for sustainable comparative advantage” was aimed at bringing together experts, intellectuals, captains of industry, and government officials across Africa to brainstorm on how to harness the continent’s abundant human and natural resources for development.
Registrar/Chief Executive Officer, IBD, Mr. Paul Ikele, said: “We have a lot of resources; we have the manpower, but we are not harnessing it,” adding that it was the first international business development summit. He said last year’s summit was focused on Nigeria, but the Institute decided to focus on Africa this year because “Africa is the next level of the world. We want to bring Africans together; lets us know what we have and then plan on how to develop them.”
While describing the theme of the summit as “apt and timely,” Obibuzor said lack of a robust national science and engineering infrastructure remains the missing gap in Africa’s search for economic development.
According to him, engineering infrastructure consists of the capabilities and physical plants which are required to enable a prolific machine and equipment design and production to take place in the country.
“The first component of national engineering infrastructure involves the development of well-motivated technical manpower and experts, through local and overseas training, in order to raise the required critical mass of development engineers, technologists, technicians, and managers who possess the necessary know-how and practical skill,” he explained.
The second component, he said, involves the establishment of many sectoral Engineering Infrastructure Development Complexes (EIDCs), which develop technologies by research and development (R&D) and by technology adaptation; and the generation of associated private sector satellite industries.
“Private-sector owned satellite industries and tertiary industries are essential parts of the national engineering infrastructure, and have to be deliberately and carefully encouraged, nurtured and protected until they mature and thrive,” Obibuzor noted,
He pointed out that although, the Federal Government, over the years, has been undertaking some important elements of the national engineering infrastructure initiatives, which are highly commendable such as the Ajaokuta Iron and Steel Complex, Aladja Steel Project, Oshogbo Machine Tools, and the Aluminium Smelter Project, among others, such initiatives must be vigorously pursued, completed, and put to full and efficient production.
He said Nigeria’s failure to develop her science infrastructure base is responsible for some of the challenges she is facing such as inability to refine and distribute crude oil, translate her agric policy into actual measurable production of food items in sufficient quantities, and outright sale or abandonment of strategic industries in the iron and steel industry.
Obibuzor added that it is also responsible for the unacceptable level of unemployment with its obvious implications, as well as inability tokeep the factories/industries, which are employment creators, running.
“The old factories cannot be sustained due to lack of endogenous capacity to reproduce spare parts,” he said.
To fast-track its industrialisation, there is the need for Africa to focus on cross-border trade, the Economic Report on Africa (ERA) has said.
According to the report, “Africa needs to focus on cross-border trade and it must rise up the value chain”.
The report was launched by Minister of Trade and Industry, Ghana, Dr. Ekow Spio-Garbrah and Advisor to the Prime Minister of Ethiopia Dr. Arkebe Oqubay during the Conference of African Ministers of Finance and Economic Development in Addis Ababa, the Ethiopian capital.
According to Spio-Garbrah, this year’s report built on the key messages of the previous editions of ERA and focuses on industrialisation and structural transformation. He called on policy makers in the continent to translate the ERA recommendations into actions.
Oqubay said: “We need to focus on three issues to engage in the global market. One, improve and deepen exports. Two, ensure the domestic market is integrated. Three, be cautious on the overshooting of the service sector while manufacturing is yet low.”
Deputy Executive Secretary, ECA, Mr. Abdalla Hamdok, highlighted the importance of addressing the challenge of being stuck in the bottom of the global value chain.
He said: “There is empirical evidence of bi-directional relationship between industrialisation and trade. It is important to gear trade policies towards national development objectives and be selective in specific sectors as the endeavour is costly.”
He indicated that trade could reverse the course of industrialisation, unless carefully designed.
While discussing the growth in Africa, its prospects and challenges, Director, Macroeconomic Policy Division, ECA, Mr. Adam Elhiraika, said: “Africa’s growth prospects remain positive despite strong headwinds, with increased private consumption and investment being the key drivers of growth in the year.
“The account deficit is expected to remain high owing to trade deficits and increased demand for capital goods. Stable inflation underpins Africa’s economic performance may decline from 6.9 per cent in 2015 to 6.7 per cent in 2016. Private capital inflows are expected to remain strong in 2015, thanks to improved business climate and profit prospects.”
