Ubiomor rewrites President Buhari, urged him to establish Nigerian Industrial Development Fund (NIDF)
5th December, 2019
Attention: President Muhammadu Buhari GCFR.
Mr. President I am writing you the 2nd time this year to advise your Government to prioritize industrial development in Nigeria by establishing Nigerian Industrial Development Fund that a minimum of 10 percent of revenues generated in the Federal Republic of Nigeria would be committed to for the sole purpose of developing infrastructure framework and policies for private sector driven industries in all States of Nigeria this is with a view to diversify the Nigerian economy.
Tough times calls for superior ideas to solve our so many problems as a people. This is one key objective, why I am writing you this note. Mr. President I am not by this note calling on Nigerians to re-invent the wheel. There are simple but proven approach by different parts of the world which we can apply to solve our problems. What is important if for we to learn from history and apply body of knowledge available to develop concepts and programs so solve our many problems.
Historically, before the Industrial Evolution in Europe and America (1760 to 1840), it can be said that Africa was on same level of industrial development and civilization with Europe and America with agriculture development dominating global trade and commerce. The industrial evolution set into motion the road map from which Europe and America dominance of the new world started. Economic historians are in agreement that the onset of the Industrial Revolution is the most important event in the history of humanity since the domestication of animals and plants. It set the stage for technology development and advancement. Without an Indigenous technology, no nation can be truly great.
Even though China didn’t benefit directly from the era of industrial evolution in Europe and America, China’s industrial revolution, which started 40 years ago, is perhaps one of the most important economic and geopolitical phenomena since the original Industrial Revolution 250 years ago. The reason is simple: Less than 10 percent of the world’s population is fully industrialized; if China can successfully finish its industrialization, an additional 20 percent of the world’s population will be entering modern times. Along the way, China is igniting new growth across Asia, Latin America, Africa and even the industrial West, thanks to the country’s colossal demand for raw materials, energy, trade and capital flows.
China’s rapid growth has puzzled many people, including economists. How could a nation with 1.4 billion people transform itself relatively suddenly from a vastly impoverished agricultural land into a formidable industrial powerhouse when so many tiny nations have been unable to do so despite their more favorable social-economic conditions? Nigeria in particular, after about 59 years of democracy, the Government and people have not even clearly know the root cause of their economic problems and backwardness, let along to finding solutions to them. Over the years, successive Governments of Nigeria has highly misplaced national priorities and chasing the wrong programs or taking the wrong route to solving Nigeria economic problems in a globalized world that is highly competitive and complex. This has resulted into poor economic development when compared with some other nations like South Kora, Brazil, Malaysia Nigeria was once in close economic competition with. With all due respect Mr. President, the policies direction of your Government has not been able to inspire the confidence of some of us as it is not driven by industrial development.
If we take another example with Saudi Arabia, a country that is among the top producers of crude oil in the world, Its government has attached great importance to the industrial development by providing all kinds of encouragement and facilities to the industrial sector. As a result, the Saudi industry has made significant progress that was clearly manifested in the growth of industrial investment since the establishment of Saudi Industrial Development Fund (SIDF). An analysis of growth of industrial activities illustrates the progress in the number of producing factories, volume of investments and number of employees between 1974 and 2018 has experienced an average growth of 1000 percent. Within same period of time that all established industries in Nigeria has folded up.
It is my recommendation to the Government and people of Nigeria that Nigeria economic planning should be centered on Industrial development and every other sectors investments development should be planned to provide input into development of industries in Nigeria. To this end, I will recommend to the people and Government of Federal Republic of Nigeria that the Nigerian Industrial Development Fund (NIDF) should be established to by law receive and invest 10 percent of the revenue generated in Federal Republic of Nigeria in industrial development. The mandate of the NIDF should include but not be limited to the five below outlined goals:
1. Revise the Nigerian Gas Master Plan to ensure that there is a gas pipeline system from the Niger Delta to all States of the Federal Republic of Nigeria with a view to supply gas to all parts of Nigeria as source energy to industrial development.
2. To establish and master plan at least one Industrial City with Free Trade Zone (FTZ) Status for Industrial localization and development in each state of the Federal Republic of Nigeria.
3. To develop a minimum of 5000 hectares of agricultural plantations for development of agriculture production agro-allied raw materials to serve as source of raw materials to the private sector driven industries to be established in the Industrial Cities/Estates.
5. Development of transportation and logistics infrastructure like roads, rail and de-centralisation of our ports for easy transportation of goods and products from the industrial estates.
5. Specifically develop the Nigerian solid mineral and steel industry. To act as source of raw materials to other industries to be established in the Industrial Cities all over the Federation.
Mr. President if this advise form the basis of our national development planning and agenda of your Government, Nigeria shall then truly become the giant of Africa and the pride of the black race. We shall set into motion a process to solving other socioeconomic, sociopolitical and socio-cultural problems of Nigeria, including the problem of insecurity, lack of employment opportunities for our youths, poor Government revenue and decline in FDI to Nigeria.
– Vice President of Federal Republic of Nigeria.
– President of Senate, Federal Republic of Nigeria.
– Deputy President of Senate, Federal Republic of Nigeria.
– Speaker of House of Representative, Federal Republic of Nigeria.
– Deputy Speaker of House of Representative, Federal Republic of Nigeria.
Roland E. IDIMI (UBIOMOR),
Natural Resources Development Consultant,