By

Nebeife Peter

Petroleum Engineering Expert

Bolton Gate Petroleum Limited, Lagos.

nebeifepeter@boltongatepl.com

PREAMBLE

More often than not, the first thought in the mind of an average Nigerian, and indeed an African man, regarding huge financial investments for rural development efforts is the influx of ‘foreign investors’. This view however tends to depict us as a people that are incapable of independent thinking and invention. While we must give credit to the foreign nationals for industrial revolution, Africans nay ndi-Omor should never try underrating their God-given talents, skills, educational potentials, experience and enlightenment over the years.

Nigeria is now being widely promoted as the world’s last market frontier². In simple terms, it’s a new fast – emerging market, a little bit as China a few decades ago. While many investors from developed economies of the world focus their investment beam light on Nigeria, care must be taken to ensure that the reported incident of Sri Lanka ceding some major national assets to the Chinese (southern deep-sea port of Hambantota to be managed by China for 99 years)⁶ due to inability to repay development loan, does not become a familiar story in our nation.

However, I think that the most profitable investments that will ensure a steady and consistent growth in any community is either by government, like the lower Anambra irrigation project located in Omor, or largely driven by the local investors. Some may argue that a project of such magnitude as that of the Anambra Imo River Basin Development Authority (AIRBDA), which lies on several thousands of hectares of land developed for rice farming under controlled irrigation, wouldn’t have been possible with only local investors. We should also not forget that the role of the indigenous people around the massive rice field may have been possibly reduced to those of mere labourers if it were developed by foreign private investors.

Omor community is located in one of the arable farmlands in Anambra State with a wide range of opportunities for raw materials supply to the industry. The spectrum of industrialization in Omor is quite extensive with a proven return on investment (ROI). There are many varieties of natural resources and agricultural by-products that are generated in large quantities in the community which can be transformed into wealth by obtaining more information, and through further scientific research and innovation.

While the magic of Omor becoming an industrialized town overnight is not part of the expectations for this piece, the major intent is to provide relevant information and inspiration with a view to encouraging investment in multiple areas by indigenous sons and daughters of the community. Huge investments from external sources is a very big boost to any economy, but an autochthonous and controlled industrialization effort ensures a decreased tendency of future crises, and is always much more sustainable.

The Concept of Industrialization

The concept of industrialisation has been largely construed by many to mean the building and running of minerals exploration and exploitation machines with the activities that employ man-power, and in-turn produce raw materials in commercial quantities. This understanding of industrialization may have been one of the reasons why Nigerian leaders over the years have consistently celebrated so many industrialization efforts with little or no visible impacts. Hence, researchers are right when they insist that any efforts on industrialization that does not include production will have a very little impact on the society⁴. Every investment towards industrialization usually must have a sort of calibration benchmark that measures its success. The major aim of industrialization therefore is wealth creation via production.

Lessons from Industrialized Economies

On a careful observation of some developed nations, one will discover that there is hardly a thriving economy that is developed by outsiders. This means that most of the investments that lead to the positive developments in any economy by non-nationals were largely done for the financial benefits of the investors. Any benefits to the locals are mere fall-out of business activities.

A clear example of the above assertion is the development of agricultural farms in Zimbabwe. The foreign nationals who developed those farming fields were thriving on Zimbabwean soil while most of the natives were just labourers with little or no experience in real farming. The country’s land reform between 1991 and 1996 which returned the farming fields to the natives under Economic Structural Adjustment Program (ESAP) brought about a sharp decline in their food production partly due to lack of capacity of the people at the time, and other factors⁵. Thus, a scenario where foreign investors practically control the economy of any nation or community presents a volatile growth that may not be described as being sustainable because the rising of the natives will eventually come and possibly destabilize the once growing economy.

A closer example in Ayamelum local government area is the Austin Farms and Allied Industries Limited (Ekenedilichukwu Farms) Anaku. An honest answer on the positive effects of the farm on the economy of the host community, Anaku, and the benefit to the investors will further buttress my earlier assertion. Hence an autochthonous approach to industrialisation, either by way of financing or policy formulation is still the best form of industrialisation.

Filling the Gap

There is a general decay or widely spread lack of basic amenities across various cities in Nigeria (lack of electricity, poor road network, lack of portable water, functional schools and hospitals, etc.). Acknowledging these realities and while continuously engaging the government to improve the social amenities through relevant bodies, there is a lot that individuals and corporate organisations can do to uplift the living standards of the people of Omor community, as well as engender development in any little way.

In this write-up, three major hindrances to building of sustainable industries have been identified to include: lack of relevant information and research, educational system, and lack of incentives. These factors need to be addressed with proper strategies and plans for future results.

Lack of Relevant Information and research

Due to the absence of proper planning and organization in Nigeria, a significant percentage of the populace does not have the privilege of accessing relevant information or witness alternative investment options that require small to moderate investment capital with huge promise of return on investment.

Also, it is no more news that there is a low drive towards scientific and industrial scale research in Nigeria. This may be attributed to many factors including Nigeria’s system of education, lack of incentives as well as unfavourable and unstable government policies. We should also bear in mind that the quick succession of model changes that we witness today among major manufacturing companies – including cars, mobile phones, etc. – could not have been possible without consistent and massive investment in research.

Educational System

Considering the foundations of the various institutions of higher learning in Nigeria, one can infer that those institutions were, more or less, not built on the foundations of practical research approach to learning. Over the years, Nigerian universities have been producing graduates annually that have very little or no foundation for research and innovation. As a result, the main ingredients, which support sustainability of industrial operations and growth may be lacking in an average graduate from Nigerian educational institutions. The fallout of this and other errors in our educational system is the dearth of interest in research among the youths, and even among lecturers in many Nigerian universities.

In addition, the decline of interest in innovative education and research can also be attributed to the poor learning environment and the attitude of some teachers in Nigeria’s institutions of higher learning. For instance, it is a rare occurrence to find a well-equipped research centers in Nigerian universities. Also a lecturer with little or no interest in research will most likely discourage any student under his or her care from embarking on any real research project. In many occasions, some lecturers in universities and polytechnics barely have papers and articles worthy of publication in national journals. Hence, the students who are unfortunate to be mentored by such misfit teachers are likely to be denied the exposure to the field of research and its benefits.

Lack of incentives

The bedrock of sustainable growth of any economy is research and development (R&D). However, sustained efforts in research and development can only be achieved by compulsory incentives from the government, corporate organizations and other interest groups through policies, plans and management. Many countries of the world vote huge sums of money annually to research and development. In the same vein, many corporate organizations that are seen to be doing well, also budget reasonable amounts into research.

Conventionally, a significant portion of these funds allotted to R&D end up in academic institutions where professors lead the research train, and those moneys serve as incentives for masters and doctoral research students under the relevant professors. Unfortunately, such incentives are either not available for scholars in Nigeria or are often misappropriated.

During the Nigeria Annual International Conference and Exhibition (NAICE) organised by Society of Petroleum Engineers (SPE) in August 2013, which held in Lagos, we presented a paper titled ‘Promoting University – Oil Industry Research Collaboration in Nigeria. During the buildup of the research, I discovered that most corporate organizations in Nigeria, including the multinational companies, do not have Nigerian university – based research funding in their budget. This in-turn puts the full weight of industrial development research on the Nigerian government whose limited funds are largely voted for recurrent expenditure over the years. As a result of the above and other factors, the students and the youths are either not introduced to the rudiments of industrial scale research, or are left to provide the funding which greater percentage of them cannot afford.

Possible Industrialization Drive in Omor Community

There are many possible drives that will stir and sustain industrialization in Omor community and each is interconnected to the growth of the community and Anambra State. They include:

• Community Investment (Capital and Manpower)

There are a hundred and one investment opportunities that could thrive well in Omor community. The serene environment and the friendly disposition of Omor people are quite supportive for growing investments. Thus we should invest a significant portion of our economic value back into our home community, thereby creating opportunities for meaningful economic engagement and creating positive factor in the lives of the people.

Some of the possible skilled areas of investment include; Silk worm farming, Ceramic wares manufacturing, Palm plants value chain exploitation, Fodder production, Vegetable farming, Starch, flour, ethanol and glucose syrup production (from cassava), poultry farming, herbs and spices production, et cetera. Consistent investment into these areas and more will significantly contribute to the overall activities that drive industrialization.

• Empowerment

Job creation and skills acquisition programmes will strongly improve capacity building among the people. We should champion trainings and skills acquisition for the youths and women to improve their effectiveness and productivity. This therefore should be one of the core values to transform our people and the community.

• Funding and Loan

One of the most vital elements in community development is leveraging on the initial fund and capital for business start-up and entrepreneurial ventures.  There is need for a common public purse organised and controlled by the community. While this idea may seem impossible, we all should agree that the role of accessible funds to every entrepreneurial effort is irreplaceable, and therefore have to devise means to fill up business funding gaps. More emphasis on Common Public Purse is presented below under ‘Role of the Natives’ section.

• Strategic Plans and Policies

The policies and plans for the investors should be accommodative; polices and regulations that create incentives and motivate private investments in the community, and could induce funders to steer their capital towards social good and development should be prioritized. Developing a strategic plans and flexible policies that will initiate and promote the desired community development is another vital motivation that will drive investment.

• Infrastructural development

Every economy needs reliable infrastructure to connect supply chains and effectively move goods and services across borders. The positive impacts of favourable infrastructure to industrialization cannot be overemphasized. While we all admit the deplorable state of virtually all infrastructures that support economic growth in Nigeria, all hands must be on deck towards ensuring a relieve from these impacts to businesses.

Provision of basic amenities is one of the roles of government and in fairness to them, Omor community has electricity and relatively good internal road network, although there is much that needs to be done in terms of infrastructure.

However, experience has shown that increase in business activities gives rise to more participation in the provision of basic amenities by philanthropist. Many of us voluntarily participate in providing electricity transformer as well as building roads in our various locations of our businesses across Nigeria.   

• Good Social System

This involves continuous and ongoing community engagement and meaningful dialogue as a key to a better understanding of the people’s actual potentials and perceived impact. A good social system helps to build trust and relationships among the communities, settlers and external investors.  We can create and sustain socio-economic programs that will focus on education, public health and social behaviours especially for the youths.

Role of the Natives

There is seemingly over-dependence on governments at all levels in Nigeria in terms of spearheading rural industrialization. Government officials and politicians have harped on this fact to their benefits by creating employment positions for rural inhabitants (some without specified duties) as a form of empowerment.  While one cannot downplay the role national and subnational governments in providing basic amenities, policy formulation and economic control in rural development, a different approach is being advocated through this piece.

Mobilising mass volunteers for community development projects is a common phenomenon in Omor community. The most outstanding of such altruistic services is the security team instituted by Oganiru Age Grade (OAG). After building the first town hall for the community, the group instituted a voluntary security team without any discussions of remuneration whatsoever. The voluntary security team of Oganiru Age Grade operated for over two decades with the attendant peace and development to the community without structured salary to the members. In addition to the outstanding efforts of the security team, there are so many other voluntary projects in Omor over the years.

In the same vein, assembling a more robust and structured body comprising multidisciplinary professionals, which can drive industrialization in Omor community is not impossible from this generation. This will ensure that the altruistic efforts of our aging generation towards the development of our community are continued even in a more advanced manner.  From the foregoing, the natives of Omor community are encouraged to play a part in the development of the community through establishment of Omor Industrialisation Committee.

If and when constituted, the Omor Industrialization Committee will ensure the following among others functions:

• Create information repository about investment opportunities in Omor community and publish same in a local journal.
• Identify various government policies relating to rural industrialization and optimize their implementation in the community.
• Liaise with the relevant government agencies at the local, state and national levels (e.g. Anambra State Small Business Agency), and presenting a unified need of the community for government interventions, including loans and financial assistance to the natives.
• Collaborate with non-governmental organisations (NGOs), both national and international, promoting developmental drives in the community.
• Running periodic public awareness for natives with a view to encouraging more informed and enhanced investment decisions.
• Create, maintain and disburse from a funding pool (community purse) for new investment frontiers in the community.
• Provide periodic assessment of existing factories/businesses, thereby gathering information for the government agencies and NGOs for possible assistance and intervention.

Discussions by such experts when constituted on the subject matter of investment will throw more light to the concept, and guide the members better for more wholistic considerations.

Investment by Individual Natives

The entrepreneurial disposition of an average man and woman from Omor community is never in question. This is evident in the level of development in the community relative to other towns in Ayamelum clan.

If a more robust business opportunity is created in Omor through directed efforts (e.g. via the Industrialisation Committee), there will likely be a disproportionate increment in the number of entrepreneurial drives in the establishment of rural industries.

However, all men and women of goodwill from Omor community are enjoined to consider extending their private investments to the community especially those who have businesses in other parts of  the country and in diaspora. Among other benefits, more employment opportunity will be provided for the youths, thereby encouraging more responsible future leaders.

Role of the Government

Primarily the government is established for the purpose of serving the people and their needs. They play major role in community social and economic development. Omor community can only go far if the government should implement and adhere to the formulation of policies and strategies that are aimed at enhancing the level and the scope of the integral community development. Government should provide the basic physical infrastructures like good road network, electricity, water supply, schools, market, public health care centers as well as environmental sustainability within Omor community.

Government should provide the legal and social framework within which the economy operates. They should take steps in promoting our locally made goods, products and materials.  In addition, security and safe environment should also be major action that the government should promote with the Omor community and the Ayamelum LGA.

Building a sustainable development in Omor community will also requires the government to promote specialized farming with support for farmers with extended loan and credits for their projects. This will encourage many people to move their manual processes into mechanical, thus improving productivity and efficiency in Omor-made produces.   

 CONCLUSION

In Anambra State, we are all aware that sustainability of the status of ‘the most industrialized city in Nigeria’ which the town of Nnewi is reputed for, may not be possible if they were waiting for some foreign investors. We should not forget that the principal motivation for most investors is their personal gain but many of the local investors will be ready to focus a little bit more on value addition to the community despite possible slim profit margin.

Therefore, there is a call for ndi-Omor to rethink and retrace towards community development. Thus, there is a need for a robust research awareness campaign among all Omor people both in the country and in diaspora, with a view to awakening grassroots interests towards a deeper understanding of our environment and the discovery of the hidden wealth in our land.

The time for focused and concerted efforts towards industrialization of Omor, be it small, medium and large scale is now. Individual investors should consider small scale productions that will utilize the various natural resources, agricultural products and by-products.

REFERENCES

1. Falode, O.A. and NebeifeP.C. (2013); Promoting University-Oil Industry Research Collaboration in Nigeria, Nigeria Annual International Conference and Exhibition organized by the Society Petroleum Engineers.
2. Iwuoha J. and Bokrezion H. (2014); 101 ways to make money in Africa, www.africa101book.com.
3. PAN America Silver Corp. (2018). Community Investment and Sustainable Development. Retrieved from https://panamericansilver.com/sustainabilityreport2018/communities/community-investment-and-sustainable-development/
4. Silbiger, S. (2009); The Jewish Phenomenon: seven keys to the enduring wealth of a people. M. Evans, Maryland.
5. https://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe
6. https://www.bbc.com/news/world-asia-40761732