Nigeria is known to import many goods,some include textiles, tooth picks, bottled water, to mention a few. We also import refined sugar,98% of brown sugar used in Nigeria is being imported. According to the minister of trade, Mr Olusegun Aganga, Nigeria lost a revenue of over N500bn, in 2011 to other economies due to the importation of brown sugar, yet we have sugar cane plantations in the northern part of the country that if properly harnessed could produce an excess for the consumption of more than just the Nigerian populace. The loss accrued from importation includes the potential to create jobs and employment locally and develop modern skills to make the country economically relevant on the world stage, but of course the farmers, varied small medium enterprises don't get approved loans from the banks to invest in their business because of the lack of collateral and the frustration to the production chain process from start to finish including epileptic power shortage, the inadequate storage process ,the infrastructure, bureaucracy in the system, all point to the facts why they might be producing below capacity.
The Asian Tigers for example, are four economies in Asia notable for maintaining an exceptional high growth rate of over 7% annually from the 1960's to 1990's. They include Hong Kong,Taiwan,Singapore and South Korea. In this period they became industrialized even though they are not rich in natural resources.
Their economies are successful because they focused on developing it from their comparative advantage; Hong Kong and Singapore focused on being international financial centers, Singapore specialized in becoming a port hub, while Taiwan and South Korea on the other hand focused on manufacturing, with an emphasis on information technology. Today they are all leading exporters to the US and Europe, including Malaysia on the other hand, well known for a thriving agricultural export economy.
What we can also learn from the Asian tigers is the establishment of a banking system that favored them, in addition to limiting their foreign spending and solely investing in their own nations as opposed to capital flight and investing hugely abroad by Africans ie buying of holiday homes and other luxury goods. Recently also, the BRICS, four prominent and emerging economies; Brazil,Russia,India,China and its most recent member South Africa unveiled their plans to establish a development bank, even though the modalities are far from concluded, it is a welcoming idea as expressed by the president of the African development bank.
Building of political will, the goal of developing local production, indigenous businesses and manpower all entail a visionary leader leading to instill in the minds of all and sundry that a manufacturing, industrialized, producing culture is the only way we can develop and become a formidable economic power on to the rest world. This national drive must also be backed by laws, policies to enforce the culture in no time.
So back to Nigeria, to begin with there are only 24 items on the prohibitive list of imported goods and services of the nation. Nation with a staggering population which also doubles as its strength and an argument for a thriving home grown industry to meet their needs, but that is not the case, they live and survive on mostly imported goods.
Then there are the ills of importation experienced more often than not,i.e. poor quality of the goods due to substandard products and cheaper cost for mass production and supply which in turn endangers the consumers health,poor labeling and information ie expiry date, product composition,stifling and glut in local industries and production, poor wages of staff, the exposure of the human right abuses in some factories in China for example.
The Way Forward?
Nigeria urgently requires a strategic restructuring to areas of critical needs.People buy imported products due to reasons such as local incapacity,inconsistency to meet demands, poor standard of products,inconsistent government policy or lack of implementation/sustenance of policies to the sector,but these gives room for local product to develop, by introducing implementation, monitoring and evaluation technique to review the whole policies around the sector. Also other good practices working in other nations can be transferred and of course adapted to suit local content ie consumer rights, warranty , independent monitoring,laboratories for testing and product certification capabilities, furthermore the thorough implementation of government initiated strategies is crucial. A vivid example is the backward integration policy which is a new focus from importation to local production, which should be a welcoming decision and potential to drive investment in the right direction, increase job creation and employment, but so far it's been mixed feelings in the local cement industry, there has been a glut and profiteering in the cement industry which marks the policy seem ineffective and threatening of the local cement producers like Lafarge and Dangote into shutting down some of their plants and incurring debts from their heavy investment in the sector.
Strengths and Opportunities.
Nigeria does have an history of a local manufacturing sector once. While many have shut down some are still riding the storm in some parts of the country, the Aba,Onitsha commercial centers for example is well known for home made shoes,bags,textiles and other household items are to be promoted, they use to be a collecting point for agricultural products following the British made railway, running through it to the port. Nigeria is blessed with vast arable soil, land and natural resources too to thrive as local industries, we we fully embraced our agricultural sector, it is crucial that we build the political will. There is the opportunity to promote and develop our human capital from the foreign direct investment into these sectors crucial for our own development local content, employing local labor, training local people and developing their skills,from Multinationals and investors flocking the country.
If there was any learning of the potential in these and and the benefits to come in years to come it will be the outcomes from the growing success of our entertainment industry in such a short while,
It is therefore paramount that making education compulsory, innovative, diversified with strong emphasis on science, and technology as well as analytic thinking for the upcoming generation in Nigeria is also key.
Patronizing and promoting made in Nigeria products will take us further as a nation rather than an importing culture for virtually everything, who knows what is next?
Abimbola Junaid is an analyst and consultant in Africa sustainable developments through development solutions research, design, implementation, monitoring & evaluation and Review.. She promotes the economic and human capital development,good governance,inter regional relations & markets of Africa.
