The path to Nigeria’s industrialisation

We are in the era of change. President Muhammadu Buhari’s administration is commendably committed to reviving the textile and allied industries in general. Organized labour supports him wholeheartedly in achieving this goal of industrial revival.

The importance of industry cannot be overemphasised. The key to real transformation and economic recovery lies in manufacturing. Oil and gas, and the new entrants, solid minerals, are exhaustible resources. What Nigeria needs is to turn abundant raw materials into finished goods for the huge domestic market and export just as China, Singapore (countries without oil and gas) have done. The vision of the founding fathers of Nigeria was that of a producing economy that creates millions of decent jobs for the citizens, not of a consumer of imported smuggled goods. The advantages of industrialization include lessening of dependency on imports, employment creation and saving scarce foreign exchange. It is also linked to the growth of education.

Europe and America developed on the tripod of agriculture, construction and textile. Even after they have moved to high-tech industry, Europe and America still jealously hold on to their primary industries through protective measures of different dimensions because they are also central to employment creation and security.

Buhari must hit the ground running to revive industry

Having sent the list of ministerial nominees to the National Assembly, President Buhari should hit the ground running to fix the economy through revival of industry. With the best of marriages, five months honeymoon is more than enough. Having taken an oath in May as the 4th democratically elected president in this dispensation, the honeymoon for President Buhari is over with respect to revival of industry. No president is well quoted on the revival of industry like PMB.

He once said, “Recall with clarity that at some point, the textile industry in Nigeria was employing about 320,000 Nigerians. But today, the same industry employs less than 30,000 people and the factories operate below capacity or they are completely closed. I have made a promise to Nigerians that jobs will be created as part of efforts to revive the economy and that promise will be fulfilled.”

It is now time for the president to walk his promise. The president, to borrow his own words, “must…move as fast as we can to resuscitate the textile and mining industries, and also improve production in our agricultural sector…we cannot allow industries and factories to close down”. We commend the efforts of Mallam El-Rufai, governor of Kaduna State, in complementing the efforts of the president to realise his vision of industrial revival.

Beyond fighting corruption

So far President Buhari has done well on halting criminal theft of commonwealth through corruption. EFCC and Code of Conduct Bureau in particular have been active enforcing accountability. Beyond these anti-corruption agencies, Nigeria will watch with keen interest the performance of the incoming ministers of power and industry, transport, and agriculture. The incoming ministers must hit the ground running and support the current administration to realize its three-point agenda of anti-corruption, security and economy. President Buhari in the next few months will be judged on account of how new industries are established in the country and how they protect the existing ones from total collapse.

Suggested measures

Visit the industries – November 20th is Africa Industrialization Day as declared by United Nations Industrial Development Organization. It is a day to raise awareness about the need for Africa to produce what it consumes through industrialization. On this day, governments and other real sector organizations in many African countries examine ways to stimulate Africa’s industrialization process. It is also an occasion to draw worldwide media attention to the problems and challenges of industrialization in Africa.

I suggest that as part of the activities in Nigeria this year, the president and the vice president, all state governors, ministers, all 500+ legislators must be encouraged to visit closed and surviving factories and see internally abandoned factories (IAFs) with the pledge to reopen them. Nigeria must urgently first reopen the existing closed factories. And this must start with direct factory visit.

We applaud Governor El Rufai for the historic visit to all the closed factories in Kaduna in May this year after he was elected and well before he assumed office.

Stop smuggling

The bane of the industry is unfair competition from China. Nigeria’s smuggling is made possible by 152 land smuggling routes (Customs says it is actually 149 routes as at 2002). The new comptroller general of Customs, Hameed Ibrahim Ali, must justify the popular confidence reposed on him by commencing a total war against smuggling. Government must equip the Customs and provide generous incentives to motivate confiscation of the contraband. We must treat smugglers as insurgents who are destroying thousands of lives.

No industrialization without electrification

According to a BusinessDay report, despite improvement in power generation, importation of generator sets in Nigeria is still growing. It will grow to about N151.16 billion ($950.7 million) by the year 2020. Nigeria still remains the largest market for diesel and gas generator sets in Africa. We cannot drive industrialization with generators. Power sector must urgently be fixed.

Patronize made in Nigeria

Government should patronise made-in-Nigeria textiles for uniforms for schools, military and para-military organisations. The key to reduction in prices of domestic fabrics does not lie in exposing domestic products to unfair imports but in lowering domestic cost of production by providing cheaper and efficient infrastructure and initiating industry-friendly policies such as reduction of interest rate, among others.

Fix the infrastructure (railways and roads) and connect them to industries

We commend President Buhari for performing the groundbreaking ceremony for the construction of the 260km dual carriageway to link Calabar to Northern Nigeria on October 20. The road estimated to cost about N700 billion is scheduled to be completed within the next four to five years. When completed, the road, which starts from the seaport and terminates at the boundary between Cross River and Benue States, will link the southern part of Nigeria to the North-Central, the North-East and ultimately Central Africa. Nigeria needs good roads for industrialization.

However, the president must give urgent attention to the existing unacceptable 200,000 unmotorable roads across the nation instead of flagging off new ones. Nigeria is not short of new road projects even as old ones are criminally in disrepair. President Buhari needs a new paradigm shift on infrastructure. However, all said, the roads new or old must lead to industry and industrial areas before they can add value for development.

Who benefits from Nasarrawa cargo airport?

Nassarawa State governor, Tanko Almakura, just recently signed a contract for the Chinese to build a cargo airport in the state. Which goods is Nassarawa producing for exports? This cargo airport may further facilitate underdevelopment of Nigeria through dumping of cheaper inferior goods from China.

Nigeria must hit the ground running towards revival of the railway and iron and steel industry, failing which industrialization will elude Nigeria. The Buhari administration offers the last chance for Nigeria’s industrialization and development.

Being remarks at the 3rd international conference and award of fellowship of Association of Textiles Technologists of Nigeria, at Kaduna Polytechnic, Kaduna, October 21, 2015.

COMRADE ISSA AREMU