Nigeria’s economy has experienced series of reforms in the last 54 years. The annual indices on growth of Gross Domestic Product (GDP) from 1960 to 1970 was 3.1 per cent. In the 1980s, the economy on average recorded high rates of inflation but with low rate of unemployment.
In 1980, inflation rate was about 10 per cent while the growth of GDP was 4.2 per cent. The rediscount rate was 6 per cent and the level of unemployment in the system was 6.4 per cent. So, from the 80s up to 1991, the economy achieved relative full employment, as inflation remained double digit, except for the years between 1990 and 1998 up to 2000.
Between 2000 and 2011 inflation rate, though double digit was still within the accepted threshold. As the economy grew by 7 per cent, unemployment was still high, from about 13.1 per cent in 2010 to 23.9 per cent in 2011. In 2012, unemployment became prevalent in the system with a substantial part of the labour being idle.
The on-going reform in the banking sector is yielding positive results but our financial system is not developed like the advanced economies. For instance, net credit to the nation’s economy dropped from 59.2 per cent in 2009 to about 10 per cent in 2010, while the credit to private sector grew by 27 per cent in that 2009 to about 4.1 per cent in 2010, increasing rapidly to 31.6 per cent in 2011. This shows vividly that the credit to private sector as a share of GDP is on the increase while credit to the core private sector-GPD is a dominant trend from 2010 to 2011 fiscal year.
The economy attracted more Foreign Direct Investments (FDIs) in 2013 and 2014 compared to previous years. The rate of unemployment stood at 24 per cent while poverty increased to 70 percent in the third quarter of 2013. The growth of GDP in 2013 and 2014 is between 7 and 8 per cent. The non-oil sector that grew by 7.8 per cent in the previous year, declined to 7.4 in 2013.
The manufacturing sector grew by 7 percent in 2013 and contributed only 4.2 per cent to the GDP. The agric sector experienced marginal growth of 5 per cent in 2013, compared to 4.5 per cent the sector recorded in 2012. The contribution of oil and gas stood at 13 per cent in 2013. Building and construction grew by 15 per cent in the third quarter of 2013 in contrast to a growth rate of 12.5 per cent it had in early 2013. The sector contributed just 2 per cent to the GDP.
Looking at the economy generally, the macro-economic fundamentals appeared much better in the second quarter of 2013. Now in 2014, the inflation rate is single digit as the economy witnessed marginal increase in various sectors. But unemployment is still high, especially among youths, as unemployment rate is about 37 per cent for youths. To tackle the rising unemployment rate in the country, the Federal Government recently approved the National Integrated Infrastructure Master Plan (NIIMP), designed to create 30million jobs across various sectors of the economy.
Since its approval, the Master Plan has received divergent views. While some economic experts advised government to diversify the economy into non-oil export and agriculture, others said entrepreneurial development is what government needs to create jobs for the economy to optimise outputs. An experienced entrepreneur and Chancellor, Akpabio Centre for Leadership Development, Bassey James, a Non-Governmental Organisation (NGO), established over seven years ago for capacity building and entrepreneurial development, spoke on the need for government to invest extensively on Small and Medium Enterprises (SMEs), man-power training in order to create jobs and transform the economy for greater productivity.
As an entrepreneur and Chancellor of a capacity building Centre in the country, what measures would you advise government to put in place to create 30million jobs for the citizens in few years?
To start with, we must adopt a pragmatic approach. This means for government to achieve its target on job creation, entrepreneurial development must be given proper focus. We need to train the citizens on various skills capable of enhancing individual development and the economy at large.
This also requires investing in Small and Medium Enterprises (SMEs), for industries to spring up in different places across the country. The concept of skills acquisition as well as man-power development is paramount to economic development everywhere in the world and Nigeria must key into the concept.
Training the citizens, especially youths on various skills is important because that would enhance sustainable development. This is what our Centre stands for. We believe in skills acquisition as a good strategy to tackle unemployment in the system.
For instance, we are currently making arrangement for over 1.000 artisans to be trained on various skills in the Centre. Therefore, for our economy to thrive, we must train and empower our people, especially youths to enhance sustainable development.
54 years after independent the economy is still experiencing some challenges and government’s developmental agenda is anchored on economic transformation of different sectors. So, what aspect of skills acquisition do you think would be viable for rapid economic growth?
There are so many skills such as, a good use of computer for Information communications technology, which is vital not just in Nigeria but globally, fabrication, which is big business in the oil and gas sector, mechanic, tailoring, bead-making, wood-work/furniture making, soap making and many others.
Cosmetics sub-sector is a big industry that government should equally give attention. Others include capacity building for operators of SMEs in the manufacturing sector. For example, there are many Nigerians today who specialised in making palm oil, which is a good product for export.
These people buy palm fruits and process the fruits into palm oil, which we consume in every household in Nigeria. This category of people should be well trained and empowered to acquire sophisticated equipment needed to process palm oil in large quantity for local consumption and export for foreign exchange earnings.
Man-power development must not be left for the Federal Government alone, the Central Bank of Nigeria (CBN), commercial banks, the 36 States, corporate organisations and various agencies of government should support entrepreneurship by funding capacity building programmes at different stages.
For instance, N100million can train and empower many people on small scale businesses. The interest of youths is paramount all over the world and our government must key into this through entrepreneurship development. We need both political and economic structures to produce a strong economy.
Politics without economic growth would not guarantee sustainability. If we build political leaders without economic experts, unemployment would persist. Every Nigerian must be ambassador of investment for our economy to move forward.
Your Centre was established over seven years ago. What are your contributions to economic growth and development?
The Akpabioism Centre for Leadership and Development is built on 100,000 square meters of land, with a view to having 100 percent concentration of man-power development. More than 20 Professors are already keying into the project to enhance effective capacity building programmes.
Recently, we organised the Akpabioism Economic Summit Lagos 2014, with the theme, ‘Sustaining Economic Development through Good Governance.’ At that economic summit, we had investors from South Africa, China, Ghana and Indonesia among others. We hold economic summit regularly to bring in foreign investors and open up our economy for Foreign Direct Investments (FDIs).
At present, three Universities are already talking about partnering with the Centre to establish a good library as a tool for effective entrepreneurial development. We have trained many youths on various skills. The Centre just awarded scholarship to some youths, even as 300 people have been selected for entrepreneurial training. Also, we just got100 names for another round of scholarship. Our aim is to drive the consciousness of people on economic development now and for the future.
How do you source for funds to run such a big project?
Our major source of funding is from the banks. We have just concluded arrangement with three banks to get more money. Right now the banks are doing documentation and once that is done, they would release more money for the project. We have a Board of Trustees and the project is done in phases.
Our hall is more than 6,000 sitting capacity and is one of the biggest training centres in Africa. The Centre is a carefully packaged project aimed at entrepreneurship development and job creation. It is a new consciousness for people to focus on building the economy and a place of skills acquisition for people to brainstorm on important economic issues. We have members in over 31 States in the country.
We also have members in Ghana, Indonesia and other parts of the world. The synergy is for investors to come into Nigeria and open factories to create jobs, not just to invest in tourism and housing. We need technology transfer to move our economy forward like what obtains in developed countries.
What informed the name Akpabioism?
The Centre is located in Akwa Ibom State. In the South West we have Awoism and everyone from this part of the country respects late Obafemi Awolowo, for his vision in developing the South West, especially for his free education programme.
When I got the idea, the governor of Akwa Ibom State, Godswill Akpabio, did not even know about it. Akwa Ibom is better than China in terms of landmark, transportation system through the waterways, man power availability, road network and infrastructure. For instance, the International airport is where everyone is coming in to invest in the State. From Akwa Ibom you can invest in Delta, Cameroon, Cross River, Abia and other places because it is a central place for investments.
How do you assess the governor of the state?
He has done well in building infrastructure and opening up the State for FDIs. He has re-branded the concept of leadership by giving every indigene an identity. He has done away with the house-maid syndrome and provided free and compulsory education for the people. For many people, the governor is a face of change and has put his State in the World map.
He had received more awards than any other governor in the history of Nigeria and even the CBN honoured him with award of leadership. Nigerians should not only criticise but must learn to celebrate their leaders like South Africans are celebrating Nelson Mandela. I personally appreciate people from the South West for celebrating the legacy of Awolowo.
- Culled from http://www.vanguardngr.com
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