Issues
State Of The Nigerian Economy
Nigeria is the most populous country in West Africa with an
estimated population of about 137,253,133 million people that b elong to more
than 250 ethnic groups. Nigeria came into being in October 1, 1960, when she
declared her Independence from the British rule.
As the country marks her 52nd Independence Anniversary
today, it becomes necessary to x-ray the state of her economy in order to determine
her growth and development rate.
The economy of a country speaks volumes about the well being
of such a country. In the case of Nigeria at 52, we will look at the state of
her economy in relation to her investment profile, jobs creation efforts, the fate
of the manufacturing sector and the quality of her local content.
Nigerian Investment, Promotion Council (NIPC) has worked
tirelessly to raise the investment profile of the country to make it attractive
for the foreigners seeking to partner with Nigeria in one business or the
other.
At the 12th meeting of the Honourary International Investors
Council (HIIC) at the Presidential Villa on Thursday July 5th 2012, President
Goodluck Jonathan commended the council for its unrelenting efforts to raise
Nigeria’s investment profile and also make the country a preferred investment
destination.
The President is quoted as saying “We are steadily building
up our Excess Crude Account and our Foreign Reserves. We are also on the verge
of launching the Sovereign Wealth
Fund.” He also made the council know that the government’s
transformation agenda is about turning Nigeria’s huge potential into
developmental realities.
Nigeria, however, operates a market economy that is
dominated by crude oil exports with the revenue earnings accounting for about
90 per cent of foreign exchange and 65 per cent of budgetary revenues. Nigeria
ranks the 12th largest producer of petroleum in the world and the 8th largest
exporter and founding members of OPEC.
The country also export cocoa, palm oil, groundnuts, cotton,
timber and rubber, though there are opportunities for the exploitation and
export of natural gas, limestone, coal, tin, gold, silver, lead-zinc, glass
sand, iron-ore among others.
Nigeria according to statistics, offer a large market in
sub-Saharan Africa with a population of about 120 million people, with a market
potential that also stretches into the growing West African Sub-region.
The government has also created a favourable climate for
business and industrial venture. Administrative and bureaucratic procedures
have been greatly streamlined as policies and programmes that guarantee a free
market economy has been put in place.
Tremendous investment opportunities also exists in other
natural resources like agricultural sector products which include groundnuts,
coconut, citrus fruits, maize, millet, cassava, yams and even leather and
textile.
In the midst of this robust investment opportunities in the
country, one of the greatest challenges of the nation at 52 has been the problem
of unemployment. This problem has resulted to anti-social vices, ranging from
militancy, Boko Haram, prostitution, armed robbery among other societal ills.
Successive administrations always have the agenda of
eradication of unemployment in the society, but the problem has persisted till
now.
The leadership of President Jonathan thought it wise to
fight against the menace through encouragement and involvement of the private
sector which he alleged will have multiplier effect on the economy.
“The present administration is committed to creating jobs
for Nigerians. And jobs can be created through direct employment by government
and her parastatals and agencies, but we believe that a more sustainable
approach to job creation, is encouraging the private sector. “And to do that,
we need to build young entrepreneurs who will be able to employ five or more
people and that multiplier effect will give us more job opportunities than even
government expanding the parastatals that will make them less productive. That is
one of the cardinal points of youths enterprise with innovative in Nigeria
(YouWin), “ President Jonathan said in one of the YouWin inaugurations.
Under the phase, 1,200 women (entrepreneurs) would receive
between N1m and N10m over the next 12 to 18 months.
Federal Government also has kick-started the provision of
370,000 jobs across Nigeria through Federal Government Community Service Scheme
held in Yola.
The Minister of Finance and Coordinating Minister of the
Economy, Mrs Ngozi Okonjo-Iweala said the project is under the Subsidy
Reinvestment and Empowerment Programme (SURE-P). Each state is expected to have
10,000 job with each participant getting N10,000 monthly.
The President has also appealed to International development
partners and private sector to support his government’s effort to create jobs
for the youths.
Job opportunities also exist in the oil and gas sector using the local content
policy. Government has passed a local content law which says that Nigerian
indigenously formed oil company must have nothing less than 40 per cent stake in the oil
industry so as to enable citizens to have access to their money.
Experts think that the operation of cartel in the oil
industry is affecting the job opportunities that abound in this sector, hence,
the need for whatever efforts made by stakeholders in the quest to reduce or
eliminate unemployment in the country to be backed by government through the
enforcement of the constitutional instrument of the Local Content Policy Act.
The problem is that vacancies and related openings that
exist annually at the various levels and in different capacities in the oil
companies that are meant for Nigerians are not given to them as a result of
lack of specialised certification and prerequisite training.
The Managing Director of Backlang Technical Development Company, Dr. Chudi
Egbunike, who was a former executive member of the American Welding Society
said the implication is that the deficiencies in knowledge, training, exposure
and certification will now expose foreigners to the jobs, especially those from
India, China, Philipines and Lebanon.
He said that the way out is to create massive employment
opportunities for Nigerians and open up the sector for more of the Local
Content Act to be effective, especially in the area of getting more employment
openings for Nigerians by exposing them to specialise trainings and
certification.
The quality of Nigeria Local Content also affected by
pricing policy, bidding practices and cost factors, where NAPIMS directive to
the operating partners said all contracts should be awarded to the lowest
bidder’s price.
This encourages non-professionals to under-cut prices in
order to win a contract that cannot be executed at the bidded prices which
causes Nigeria to end up paying more for their wells for a rework.
Petroleum Technology of Nigeria (PETAN) suggest that the
only way forward to successfully implement the Local Content Policy is to build
local capacity where stakeholder must review the current bidding pricing and
award strategies.
Meanwhile, the country and its leadership has been trying to
also exploit the non oil sector in order to avoid the country’s over dependence
on the oil sector and to expand the economic base of the nation. Government has
also pursued economic reforms marked by the privatisation and deregulation
which seek to transfer state ownership of institutions to the private sector,
so as to engender efficiency in the productive sector.
At 52 Nigerian manufacturing sector has not made any
impressive mark or contribution to the Gross Domestic Product (GDP). As at 2011
the manufacturing sector’s contribution to GDP according to The National Bureau
of Statistics is less than 5 per cent, 4.1 per cent in 2010.
The efforts of past and present administrations to boost the
sector through various policies has not yielded the desired results.
The inability to effectively control the allocation of
import licenses and foreign exchange to have also largely aggravated the pace
of industrial decline.
Manufacturing sector has refused to respond to critical
structural transformation necessary for it to play a leading role in economic
growth and development.
Bureau Statistics pegged the issues affecting the sector to
inadequate infrastructure, shortage of skilled manpower, poor linkage of
industrial sub-sectors, over dependence on the external sector for raw
materials and capital goods which were discovered in 1970s.
In 2012, most of these problems still persist like
infrastructural decay, lack of steady power supply, insecurity and economic
instability.
The fate of the sector thereby lie in the solution to the
challenges facing the sector, especially inadequate infrastructure and power
supply. There is also the need for consistent and persistent efforts to be made
by government to check the importation of goods that can be produced locally.
If the words of the President is anything to go by, the
manufacturing sector need to poise for competitive production at competitive
prices.
President Jonathan said “We are vigorously pursuing the
implementation of our road map on power sector reforms.
“We must, therefore, begin to upgrade our production
technologies to save energy and produce quality goods at very competitive
prices in tune with modern global practices.”
This is an open letter to the Minister of the Federal Capital Territory, Chief Nyesom Wike.
Your Excellency,
Sir, ordinarily, I would not be writing an open letter to you, but like a wise man once said, “Silence would be Treason.” So I prefer to stay alive than face the consequences of silence in the face of crime. With each passing day, and as the socio-political tides continue to turn, it has become more pertinent that more people speak up in a concerted MANNER to prevent the death of our party, the Peoples Democratic Party (PDP), as we appear to be, in the words of W. B. Yeats, “turning and turning in the widening gyre” heading for an end where the falcon will no longer hear the falconer
It is unfortunate that since losing control of the Federal Government, with the loss of President Goodluck Jonathan at the poll in 2015, our party, the Peoples Democratic Party (PDP), has continued on a downward spiral. It is much more painful, that where it is expected that leaders within the party should rise to the challenge and put an end to this decline of our great party, some have instead taken up roles as its undertaker.
It will be hypocritical to claim aloofness to what I believe is your grouse with the PDP and I am not a hypocrite. It will be uncharitable on my part to discountenance the role you have played in strengthening the PDP from 2015 up until the last Presidential primaries of the party. It is my belief that your grouse against certain members of the party who you perceived worked against the party and abandoned it in 2015 and then came around much later to take control of the party, is justified. Also know that your decision to remain in the Party and stifle its progress on the other hand, as a sort of payback, stands condemned. For a man of your pedigree and stature, it is a dishonorable act, highly dishonorable and stands as testimony against all you claim to stand for.
At least, it can be argued that those who you hold this grudge against, abandoned the party completely and did not sit back while actively working to destroy it from within. But what then can be the argument on your own part, seeing that those you are currently working with against your party are the same people who set in motion, and executed surgically, the plans that not only ended our Party’s leadership at the centre, but ended up dislodging the first Niger Deltan to occupy Aso Rock as Commander in Chief of the Armed Forces. Is this not akin to “cutting off one’s nose to spite one’s face?” That will be worse than folly. Let us not throw away the baby with the bath water because we do not like the soap used in bathing the baby. It will be a grave mistake.
Honourable Minister, sir, it is rather unfortunate that of all people, you have also decided to play the role of an undertaker not only for our party, but for our dear Rivers State.
I will like to take you down memory lane a little. Let me remind you of your emergence as Guber candidate of the PDP in Rivers State, against all fairness and justice in 2014. You will remember that despite the reality being that you as an Ikwerre man was poised to replace a fellow Ikwerre man in Governor Chibuike Rotimi Amaechi in our multiethnic state, Rivers people overwhelmingly stood by you and pushed for your emergence as Executive Governor of Rivers State in 2015. I dare say that your popularity in the entire Niger Delta region was at an all-time high at this point.
I want you to understand why you were loved across board leading to your eventual emergence as Governor of Rivers State in 2015; it was because when it looked like all were against the second term ambitions of the first Niger Delta man to emerge as President of Nigeria, you became not just a pillar but a beacon of resistance by standing for Goodluck Jonathan. Rivers people, as grateful and rewarding as they can be, paid you back by ensuring your electoral victory against the incumbent All Progressives Congress (APC) led by your predecessor. On your emergence, where there were second term Governors in the region, you, a first term Governor, was seen by the people as not just the leader of the PDP, but the leader of the entire Niger Delta region. You earned it, and no one could dispute it.
In 2019, when your re-election bid was being challenged ferociously, Rivers people once again stood solidly behind you. Many were killed in the process of defending your votes. Do you remember Dr. Ferry Gberegbe that was shot and killed while trying to protect your votes in Khana Local Government Area? There are many more unnamed and unrecognised sons and daughters of Rivers State who sacrificed their lives so that you could emerge as a second term Governor of Rivers State.
In 2022/23, Honourable Minister, you oversaw a party primary across board that saw some candidates imprisoned and internal party democracy jettisoned for your wishes, leading to the emergence of flag bearers of our party all singlehandedly picked by you. You have on more than one occasion publicly stated that you paid for all their forms. Even those shortchanged in this process licked their wounds and continued to play their roles as party members to ensure the success of the party at all levels. In what will go down as one of the most keenly contested elections in recent Rivers history, with formidable candidates like Senator Magnus Abe of the Social Democratic Party (SDP), Mr Tonye Cole of the All Progressives Congress (APC), and the vibrant youth driven Labour Party (LP), PDP emerged victorious across board except for Phalga Constituency 1 that was lost to the Labour Party. (Not that you did not loose in some other LGA’s but let’s stick to the official figures declared by INEC).
It begs the question, why then do you want to burn down Rivers State, when everyone who now holds political office emerged through a process designed and endorsed by you? Is it that you do not care about Rivers people and you are all about yourself? If so, I am forced to believe that those around you are not telling you the truth. The truth being that in a state where your words were law; where houses and businesses could be demolished or closed down without any recourse to legalities, where Executive Orders could be deployed to stifle the opposition, that your popularity is now at an all-time low. Probably because they are afraid of you, or of losing the benefits they gain from you, they fail to tell you that what you might perceive as a battle against your successor, has slowly but gradually degenerating into a battle against Rivers State and Rivers people. You know, there is a popular saying that, a man can cook for the community and the community will finish the food, but when a community decides to cook for one man, the reverse is the case.
LEAVE FUBARA ALONE
You have gone on and on about being betrayed by Governor Siminalayi Fubara. You point fingers forgetting that some of those same fingers quick to spot betrayals point straight back at you. It is not Governor Fubara that has betrayed the PDP by working against it in the just concluded General Election, and working with the opposition at the State and Federal level to destabilise the party. It is you, Honourable Minister. It is not Governor Fubara that betrayed Rivers people by instigating a political crisis with propensity to escalate ethnic tensions in Rivers State. It is you Honourable Minister. It is not Governor Fubara that has declared himself God over all in Rivers State and has no qualms with burning the state to the ground to prove a point. It is you Honourable Minister. It is you Honourable Minister who told the world that the APC was a cancer and you can never support a cancerous party. It is you Honourable Minister who ended up facilitating the emergence of the same “cancerous” APC that has accelerated the economic decline of this country and further impoverished our people with no remorse. All so you can be a Minister of the Federal Capital Territory? The lack of self awareness is gobsmacking.
Some days back I came across a video where you talked about death and how you do not cry when you hear about the death of some people because you have no idea what might have caused it considering many a politician swear “over dead bodies” and still go back on their words. Those words made me think, and I could see the reason behind them. You see, in chosing to be God in the affairs of Rivers people, you have closed your eyes and ears to reason; you see nothing and hear nothing that can cause you to rethink on the path you have chosen. In your quest to “show Fubara” you have unwittingly united a vast majority of Rivers people behind him, so much that even those who despised him because of you, now like or love him, because of you too. In your scheming, I will advise you not to forget that “the voice of the people is the voice of God”.
Note that the war which you have or are waging against Governor Fubara, has gone beyond being merely political as you might see in your minds eye. It is now one that, fortunately for some and unfortunately for others, has evolved into a war against Rivers people. It is good to point out that no one has taken a stand against Rivers people and won. No one has gone against God and won. In your defiant characteristic manner, it will be unfortunate if you believe your own hubris and that of those around you on the possibility of you being the first to successfully go against Rivers people. It will be a needless gamble; one where if you win you create more enemies for yourself than you can withstand on your political journey, and if you lose, your legacy becomes an inglorious and irredeemable one in Rivers State, the Niger Delta, and Nigeria at large. For your sake as regards posterity, it is my greatest wish that you have a moment of sobriety and a deep reflection and introspection on this path you have chosen.
Honourable Minister, sir, what is left of your legacy is on the brink of being completely desecrated and relegated to the dustbin of our political history, and it will be a sad end to what I will say has been a wonderful political career that many can only dream of. The ball is in your court, and may God Almighty have mercy on us all and forgive us for our shortcomings.
Gabriel Baritulem Pidomson
Dr Pidomson is former Chief of Staff, Government House, Port Harcourt and former member, Rivers State House of Assembly.
In 2015, I made a conscious decision to invest my financial resources, my time, and energy into supporting Nyesom Wike’s gubernatorial campaign. I poured my heart and soul into ensuring Nyesom Wike emerged victorious even at the risk of my personal safety.
Again in 2019, I doubled down on my commitment. I invested a significant amount of money to procure campaign outfits for all twenty-three Local Governments Areas of Rivers State. I spared no expense in supplementing Wike’s election efforts in my own local government, and once again putting myself at great risk to safeguard the fairness and transparency of the electoral process.
However, despite my unwavering loyalty and sacrifices, I found myself abandoned and forgotten by Wike. Throughout his eight-year tenure, he failed to acknowledge my contributions or fulfill his promises and agreements. Even as a former Deputy Governor, Wike denied me my severance benefit.
My investment in Wike’s governorship was not just financial – it was a commitment of passion, dedication, and belief in a better future for Rivers State. Yet, his leadership style of dishonesty, greed, drunkenness and rash abuse of senior citizens brought me nothing but disappointment, misery and losses.
By the grace of God, today I speak not as a victim, but as a hero. I have accepted my losses, and I have moved on. And as I reflect on my experience, I cannot help but urge Wike to do the same and allow peace and development to reign in Rivers State.
Nyesom Wike, when you speak of investing in Governor Sim Fubara’s election, remember those like me who also invested in you. Remember the sacrifices I made, the risks I took, and the promises and agreements you left unfulfilled.
It is time for you, Wike, to let go of the past and allow Governor Sim Fubara the breathing space he needs to lead Rivers State forward. Allow him to focus on the challenges of good governance and the aspirations of the people. Spare him these unwarranted and ill-conceived political manoeuvrings founded on personal agenda and not for general good of Rivers State and her people.
I may have lost my investment on Wike, but I have not lost hope in the future of Rivers State. And together, we will continue to strive for a brighter tomorrow.
Long Live the Governor to Rivers State, Sir Siminialayi Fubara!
Long Live the Good People of Rivers State!!
Long Live the Federal Republic of Nigeria!!!
Engr Ikuru is former Deputy Governor of Rivers State.
Tele Ikuru
