Industrialization transforms nations’ poverty to prosperity

This piece flows from last week’s article titled “Oil: A wealth provider, not wealth creator.”It was reflected that there is nothing exceptional about Nigeria’s natural resource base, particularly oil. This is because natural resources coupled with agitation for resource control and true federalism will not, on their own, evoke economic development. These are issues which may be necessary depending on one’s perspectives. That is why some eminent Nigerians are calling for constitutional reforms.

From the standpoint of industrialization in Nigeria or elsewhere, some of these issues are off target. The nation’s target henceforth must be how to industrialize. It is an industrial manufacturing economy that will determine the real value of a nation’s wealth, not oil. It does not mean that when a nation is industrialized, wealth distribution issues-resource control, true federalism, and corruption amongst others will disappear permanently. Rather, new ones emerge as societies get sophisticated. This is the beauty of nature.

For almost three decades, a curious observer will see able men early in the morning gather at newsstands to either read newspaper for free or for a token because they cannot afford the cover price. This is what you find in many major cities in Nigeria. These are mostly young men who want to work but have nowhere to go. It is either they have been sacked or are unemployable.

By the time you are reading this article, one year of APC-led federal government is gone. Time and tide won’t wait. Governing a country is not an easy task and is not akin to administering a business concern. At the national level, policy makers will be looking at the nation’s economy from the macroeconomic angle. The issues are huge starting from monetary to fiscal issues, etc. While at the business level, consideration will be given to economic issues at the microeconomic level.

At the end of the first year of the APC-led government, the federal government’s score card as reported by the Nigerian Bureau of Statistics is as follows: Nigeria’s GDP has contracted by about 0.36 percent in the first quarter of the year 2016. This is the lowest in 12 years. While unemployment and underemployment has risen to 12.1 percent and 19.1 percent respectively in the first quarter of 2016. Inflation rate is now 13.72 percent.

Since 29 May 2015, the federal government has been busy fighting corruption and Boko Haram. It appears the nation is winning the twin malady but the economy is nose-diving. It is not contentious that we need to win the fight on corruption and defeat Boko Haram concurrently. But we should look beyond corruption and remain focused on the bigger picture- economic development of the nation. The nation must be transformed from poverty to prosperity.

This writer does not support corruption. But most nations of the world are “fantastically” corrupt. According to Transparency International, “more than 6 billion people live in countries with a serious corruption problem.” With corruption some nations have developed. Corruption has not prevented the USA, China, UK and Germany amongst others from being wealthy nations. China, India and most Asian countries are industrialized despite corruption. That Nigeria is less developed is not because Nigerians are “fantastically” corrupt. It is because the nation is not industrialized. Now that the first year has gone with just a satisfactory performance in the fight against corruption and terrorism, what is next for the state and federal governments in the coming days?

The main focus of the APC government in the second year should be how its industrial policy will create wealth for Nigerians. State governments should understudy the Lagos state government’s template for generating wealth. If some states do not have qualified people to assist in generating revenues, their governors should not be shy from hiring qualified people from other states. That is why we are Nigerians. Though tribe and tongue may differ in brotherhood we stand. Is this not true?

It is an industrial manufacturing economy that will determine the real value of a nation’s wealth. Policy makers should match technological acquisitions with requirements of industrial institutions. If they are unable to do this, the nation remains poor. In fact, the acquisition of technological capability on which industry depends rests squarely on the dynamics within an industrial society. This is true only if Nigeria has a thriving capital goods sector.

As we delve into the second year of APC’s reign, policy makers are reminded that people create wealth. It is therefore imperative for the nation to invest in its people. You do not invest in people by sharing N5.0 billion monthly to one million indigent Nigerians. Is this sustainable? Is it not possible to invest such funds in education and health? When a nation exists only to distribute wealth without setting up fundamental governance structures that will create wealth, then all efforts towards economic development will be off-target.

As reflected in an article in this column –“Entrepreneurs: Looking beyond Business Capital,” in 2014, technological innovation is the ultimate in productivity and growth. It is the only proven way for economies to consistently forge ahead. Nigeria cannot be an exemption. It is true that Nigeria is suffering from industrial and technological backwardness due to the dearth of people with knowledge, skills, and competences required to design, build, operate, adapt, repair, and manage capital goods sector.

Any policy that cannot enhance industrialization in Nigeria should be reviewed or jettisoned immediately. There are models of how other nations industrialized. Nigeria should not be ashamed to adapt or adopt any of these models. The members of the 8^thNational Assembly and law makers in state assemblies should make laws that will enable wealth creation. Time is fast running. It is industrialization that can free Nigerians from the shackles of poverty and economic backwardness.

 

MA Johnson