Nigeria’s long-term economic diversification needs aligned skills development programmes

Digital disruptions which are flattening the world, rendering some skills obsolete and throwing up new ones have led experts to predicate that the future of skills would be remarkably different.

To build a globally competitive economy and diversified economy Nigeria needs to clearly articulate a clear vision of where it wants to belong on the global human capital development value chain.

The options available to Africa’s largest economy are to be either a nation with highly skilled labour force ranging artisanal skills to intellectual skills. Or, it could become a nation that imports most of the skills it needs. Achieving the former requires an active participation of the private sector.

According to a report from the Boston Consulting Group, a U. S. A. based strategy firm, “one of the most effective ways to fight poverty and boost economic development is through job creation. About 200 million people are unemployed globally.

“As a result of demographic shifts, there will be a need for 600 million new jobs over the next 15 years to keep current employment rates stable, particularly in Africa and Asia. At the same time, many companies cannot fill positions because applicants lack the right skills, especially in developing countries.”

At an event early this year, Prakash Kanth, director, OLAM Nigeria Limited, decried the paucity of relevant work skills among graduates who apply to work at OLAM. “We spend enormous sums of money in retraining graduates who come applying for positions with us. The educational system needs urgent overhaul.”

The BCG suggests three pronged approach to closing the skill gap across three levels: within individual companies, along the value chain, and in the local community.

The “skills gap” constrains economic and social development, limiting the ability of individuals to get jobs and improve their living standard; of companies to improve productivity, competitiveness, and growth; and of countries to reach their potential.

Particularly in developing countries, the private sector needs to play an active role in closing the skills gap. The public sector, especially education systems, is often too stretched.

A South Asian food, fertilizer, energy, and petrochemical company has cofounded a technical-training college that offers both three-year diplomas and six-month vocational training and provides agricultural-training courses to thousands of small-farm owners.

The company also trains women to become milk collectors and agricultural extension workers, opening opportunities in historically male-dominated rural areas. To give back to the community and to improve community relations, the company invests in the education systems in locations where it makes fertilizer, which can be hazardous to produce.

Skills development in the private sector benefits not only the company but also its employees, whose living conditions and job prospects improve, and society, which benefits from the improvements in overall well-being, purchasing power, and tax revenues.

A link on the human capital development value chain, which sorely needs urgent attention and private sector involvement, is vocational training. The National Board for Technical Education appears to be working towards this direction but not fast enough. This is because it has spent over five years researching National Occupational Standards (NOS) around the world and succeeded in developing 22 NOS to date.

Some of the sectors covered by the 22 NOS include, plumbing, block laying, plastering, tiling and stone decorative works, electrical installation, carpentry and joinery, welding and fabrication, automobile mechanic, hospitality and catering, travelling and tourism, power system protection, turbine maintenance, mechanical auxiliaries’ maintenance, system electrical operation and electrical maintenance.

Others are: garment making, furniture making, leather works(shoe, bag making), computer hardware maintenance, satellite installation and maintenance, GSM repairs, refrigeration and air conditioning, motor and tri-cycle assembly, repairs and maintenance, agro-processing (rice milling) and office technology.

According to people familiar with the matter, today’s organisations hire people to perform specific tasks that help them in achieving their business goals. They do not want graduates that parade just certificates, but candidates with the right work skills who can contribute to the development of the organisation.

They want technical competence; they also want candidates properly equipped with complementary skills such as problem-solving ability, interpersonal skills, effective communication skills (oral and written), reflective and critical thinking ability, organising skills and ability to translate ideas to action.

STEPHEN ONYEKWELU