Nigerian Infrastructure Development and the Enterprise Revolution - An African Perspective

Author: peter osalor

The general state of infrastructure across the African continent and especially sub-Saharan Africa is acutely discomfiting. With the exception of South Africa, the continent's largest economy, the entire region is bogged down by severe infrastructure deficits that have frustrated development programmes and marred growth prospects. The Southern African Development Community (SADC) countries have been relatively better off in this regard with their efforts to drive area-wide development through trade agreements, resource pooling and multi-nation collaborations. Western Africa, on the other hand, has been bereft of similar benefits due to complex past and present exigencies. As a result, the economic potential of this region has hardly been scratched.
In June this year, the World Bank approved a $1 billion loan for Nigeria to fund multiple development programmes including expansion and enhancement of the country's massively deficient power sector. An amount of $200 million was earmarked for investment in networking and technical upgrades to improve electric supply. While this concessionary, interest-free funding comes as an undoubtedly welcome development, it amounts but to a tiny fraction of Nigeria's overall investment requirement in infrastructure. In August 2008, the Nigerian Debt Management Office (DMO) revealed that the country needed at least $100 billion in investment to develop four key infrastructure areas - power, rail, roads and oil & gas. The figure was calculated to align with the ambitious national goal of taking Nigeria to the top-20 world economies by 2020. Of the four sectors mentioned, power alone would require an estimated investment of between $18 and $20 billion over the next ten years. With a current installed capacity of 6,000 MW against the total requirement of 10,000 units, only 40% of Nigerians currently have access to electricity.
The collapse of basic infrastructure and social services was set off in the 1980s, after Abuja's unhealthy dependence on oil exports decimated its agriculture and light manufacturing sectors. The static oil economy wiped out traditional and emerging livelihoods, creating rampant unemployment, poverty and degraded living standards. By 2002, per capita income was below the level for 1960, when Nigeria gained independence from British rule. In terms of infrastructure decline, power happens to be the most hardly hit, but the government readily admits severe shortfalls in a many other areas as well. For instance, the rail network is in shambles and today accounts for only 1% of national transportation1. The port service likewise suffers severe bottlenecks and inadequate capacity optimisation. The over 100,000 km long road network is in disrepair at best and barely usable at worst.
Because of Nigeria's strategic location and the abundance of its natural resources, infrastructure development in the country has pan-African relevance. The human capital of 148 million that makes Nigeria the most populous African nation is a workforce of uncharted economic potential. The country's thriving informal sector, estimated to be as high as 75% of the total economy, also conceals tremendous possibilities for inclusive growth. Rapid SME development has hence been the mainstay of successive governments since the reinstatement of civilian rule in 1999. Nigeria's ability to kick-start an enterprise revolution that will fundamentally alter its macroeconomic imbalances remains the quintessential challenge of its 2020 goal.
Infrastructure development is clearly going to be the first building block in this endeavour, and ground realities are pretty harsh as present conditions go. For Nigeria, the larger impact of infrastructure deficits is the high cost of doing business, for large corporations and small enterprises alike. Lawmakers need to draw up a comprehensive blueprint to reverse this trend in a time-bound manner. The following are two key aspects in this consideration:
o The whole of Western African receives very nominal foreign private investment in infrastructure due to a slew of reasons ranging from high foreign exchange risks to low creditworthiness. The region's subdued ability to raise debt and inclination towards infrastructure sectors with limited regulatory intervention are further obstacles. Nigeria needs to lead the way in enhancing access to equity debt as a means of attracting projects with viable private participation.
o The ability of local finance markets to fund infrastructure projects is very low across the continent. Local long-term local financing is almost non-existent except in South Africa, which has been successful in developing an indigenous capital market for consistent funding on convenient terms. The absence of similar capacity in the rest of Africa means most of it is dependent entirely on grants-in-aid and soft loans from international development agencies.
For developing African economies, increasing foreign investment on infrastructure while simultaneously developing avenues for credible local finance is a daunting task. The current Nigerian government under President UM Yar'Adua acknowledges the challenge by listing infrastructure development as a cornerstone component of the 7 Point Agenda for realisation of the 2020 goals as well as the Millennium Development targets. Some recent initiatives in this connection include the setting up of a federal mortgage bank, a housing authority and a national road maintenance agency.
That infrastructure will be the prime driver of all socio-economic development in Africa is given. What remain unclear are the ways and means that individual nations employ, and the ground effectiveness of such measures beyond official statistics and proclamations. Nigeria has the unique opportunity not only to reverse decades of economic stagnation but also to hold up an effective model for accelerated growth to the rest of the continent. The success of its long-term ambition gathers wider significance because it is bound to have a gradual spill-over effect on its immediate geography.
Article Source: http://www.articlesbase.com/economics-articles/nigerian-infrastructure-development-and-the-enterprise-revolution-an-african-perspective-3015339.html
About the Author

Peter Osalor is a multi-skilled director, chairman of trusts, proprietor and consultant. Peter Osalor has been a successful entrepreneur since 1992 when he formed Peter Osalor & Co and which has since grown to a very large client base with a turnover of millions. He is currently a fellow of the Association of Chartered Certified Accountants (ACCA) and the Institute of Chartered Accountants in Nigeria (ICAN). Peter is also a member of the Chartered Tax Advisors and the Chartered Institute of Taxation in Nigeria (CITN).


T2S:
This article was written sometime last year...however it's relevance to our present day society will remain timeless or 'dateless' as long as we continue to suffer from a complete lack of viable infrastructure.


"Growth potential is dependent on the quality of performance of infrastructure to a great extent - a fact the Chinese realised much earlier than us..." (http://www.chillibreeze.com/articles/Infrastructure-Development-and-Economic-Growth.asp)


We need to advocate for infrastructural development as a way towards truly making Nigeria one of the top 20 economies of the world by 2020. More to come...

A New Nigeria

Nigeria’s fortunes are my meditation

The future of her population

Endangered by deep corruption

By widespread moral pollution

Do we need a revolution?

Like the Egyptian Insurrection?

For our collective liberation

And comprehensive emancipation

For our leaders lack direction

Their lack of vision our oppression

Their political altercations

Only deepens our repression

In my earnest estimation

We need a cure for this infection

A new moral calibration

A rejuvenated constitution

We need fresh illumination

A new vision of a our nation

An end to this suppression

A new Nigerian expression

Prosperity for our population

Societal revitalization

A warranty of restoration

Hope for our generation

Shawn Asala ©  Jan 2011

NATIONALISM

Nationalism. Patriotism. What do these words mean to the average brother on the street? I can picture myself getting on the road with a microphone and camera operator and pestering an area boy with these questions:

“Young man, are you a patriot? What does nationalism mean to you?”

Firstly, he will look nonplussed and suspicious, thinking to himself, “Is this guy trying to embarrass me?” That is because unfortunately, the average guy on the street may not be educated enough to understand the import of such words. Next, he will probably get exasperated.

“My guy, you dey talk patriotism. Wetin this country don do for me? Ehn? Abeg leave story for monkey jo. See me dey hustle for the past how many days now, still pepper neva enter pocket. Abi you wan supply? Ehn? Wetin you carry? Cooperate oh...”

At that stage, I’d have to jam my tail between my legs and bolt. In the course of the week of writing this piece, I spoke to a few friends:

“I’d like to ask you a question. What do you think of Nigeria generally?” I’m talking to a fresh graduate who has been actively job-hunting for the past five months.

“What do you mean? Can you be more specific?”

“Okay I mean is there a problem in this country from your own point of view?”

“Oh well I’d say there is a problem of course, but first I’d like to say that I believe in this country. In fact, I get into a lot of arguments with my friends over this Nigeria issue, because whenever I talk this way they wonder if I’m sick or something!”

“Why?” I ask.

“They don’t believe anything good can come out of this country. They don’t agree that any progress is being made. Yes, I concede that things could definitely be better because we are a country blessed with a lot of underutilized potential. However, the problem I have with many Nigerians is that we are so negative. The average Nigerian has nothing good to say about this country...”

We talked and talked. I was pleased to find someone who believes in a greater Nigeria. A patriot. There are quite a few of us out there you know? However, I admit, it’s rather hard keeping your eyes to the hills in a country like this; where one and one is not equal to two; where sh#t happens, and on a very regular basis for that matter. Nevertheless, we must ask ourselves some pertinent questions: Is Nigeria an accident? Is the entire mineral and oil deposits in this land some freak of nature? The potentials we have in both human and material resources, are they a mistake? Are you and I Nigerians only because we got rejected in some other land where the grass appears to be greener?

I believe that we are inhabitants of this great nation for some good reason. I believe citizens of the ‘land where the grass is greener’ don’t have two heads. I believe that in spite of the malfunctioning system of operation in this country, we do have what it takes to raise the standard of living and make Naija a mo’ better place for all of us. Do y’all agree with me or am I alone? I think not.

So where do we start from? How do I, with my tiny slingshot, take this giant Goliath down? I asked another friend this same question:

“Well ah, that’s a very nice question. I’ll start by saying there’s a positive solution and a negative one. I’ll begin with the negative.” (I wonder why)

He continued, “the negative solution is to stage a revolution. Let’s rout up the thieving bastards and burn them alive at the stakes. Though not before making sure they return all the loot they’ve stolen over the years. It worked in Russia abi?”

True or false, I was suddenly eager to hear about the second solution.

“Well the second is to educate the minds of the people; help them to understand their rights and potentials.”

Now that’s more like it.
Surely, it is an understatement to say that taking this nation to the status of maximized potential is a gargantuan task. Nevertheless, the popular cliché is still true: “Rome wasn’t built in a day”. I think it is the Chinese that have a proverb that goes, “the journey of a thousand miles begins with a step”. The issue at stake here is persistence in doing and believing in what is right. Are we willing to believe in a greater Nigeria? God gave this country to us. Are we willing to take responsibility for what is ours and do our best to utilize our assets maximally and positively? Are we willing to forget the past and be more mindful of what we can achieve if we set our minds to it?

Picture a NEPA that really works, giving us uninterrupted power supply. Who is to benefit from that? Of course, everyone. Including you. Imagine clean wide roads, reasonably priced utilities, absence of university strikes and availability of quality health care at costs affordable to the common man. Visualize a respectable and efficient police force and more employment opportunities for fresh graduates. Admit it, who will benefit from all of this were it to come true right now? Everyone including you. These seemingly lofty things are attainable, though not without a struggle. We do not lose anything by believing that it is possible to get there. It’s simply a choice: faith or pessimism.

Each time I go to our nation’s capital, I feel like I’m in a heaven of sorts. The wide roads and relatively smooth traffic; beautiful sights, operational traffic lights, exotic cars and pretty faces. Ahh. Imagine if every part of the motherland was like this. Fantasy! I hear you say. Most definitely. Because when I get to places like Oja Oba in Ilorin, Kwara state, I’m brutally brought back to reality. This is Nigeria in the raw, the uncut version. Here kids less than two years of age eat cuts of sugar cane for breakfast and crawl on the filthy floor with goats and dogs. Here pot-bellied policemen stand blocking the flow of traffic and causing a hold-up as they extort bus drivers for their ‘take-home pay’. A place so crowded, there is no difference between human and automobile traffic. Whenever I find myself in such places, the thought that comes to mind is this: “Mr. President, there’s still so much work to be done. We haven’t started yet.”

Nonetheless, we must realize that the task ahead is not for the government alone. It starts with the individual Nigerian: you and I. If every Nigerian can summon up the courage to believe in a greater Nigeria and work towards the ideal by doing their best, not just for themselves but for their fellow citizens as well, then there is hope. Thankfully, we are all beginning to see now that the economic change we desperately need lies just as much in the hand of the private sector as it does in the hands of the government. That is tantamount to saying that “think not of what your country can do for you, but what you can do for your country”.

I’ll end this piece with a quote from a man who, through personal sacrifice, persistence and unflinching faith, helped bring fulfillment to the dreams of his people: 

"There is no easy walk to freedom anywhere, and many of us will have to pass through the valley of the shadow of death again and again before we reach the mountaintop of our desires."

Nelson Mandela 

No easy walk to freedom…Nigerians! We must do what it takes to take this country to greater heights!

Thanks for dropping by.

INNOVATION in NIGERIA

‘Innovation’ is a difficult term to pin down. Taken literally, it can include almost any new development.

Generally we can describe innovation as ‘the successful exploitation of ideas’. Two key words stand out in that definition: Ideas. Exploitation.

An idea is:
1. Something, such as a thought or conception, that potentially or actually exists in the mind as a product of mental activity.
2. An opinion, conviction, or principle:

To exploit means:
To utilize; to make available; to get the value or usefulness out of; as, to exploit a mine or agricultural lands; to exploit public opinion

Put all together we can say that to innovate means to successfully get the value or usefulness out of an idea. Innovating for problem solving therefore requires that we first of all generate ideas on various ways to tackle a problem, then make great endeavors to fully and efficiently exploit that idea for successful outcomes, the end point being of course to put an end to the problem.
In todays Nigeria we are surrounded by problems and challenges that call on us to exercise our creativity, innovate, explore and exploit ideas that can bring about lasting solutions and improve the quality of life of the average Nigerian.

I would like to state, using real estate terminology, that the greatest and the largest room you will find anywhere in Nigeria is the room for improvement! In every sphere of life in todays' society, we are operating way below our potential.

Take power supply for instance. Generators are supposed to be temporary innovations used as back ups in the event of sudden power failure. However in many parts of the country, generators are the stable source of power. They have become our way of life. But the real tragedy is that all ideas generated to solve this lingering and malevolent problem are not being fully or successfully exploited! Therefore we can say that there has been no innovation in the power sector in Nigeria (remember the definition of innovation we adopted at the beginning of this article?)

This scenario applies to so many other facets of our daily existence. Transportation, education, law and order, etctera. It is as if the creative engines of our people have knocked! Over the past few years, the only really successful innovation has been the introduction and widespread use of mobile gsm communications/data services, which in itself is not a new innovation at all. (Only delayed in Nigerias case)

I see a serious vacuum in our development as a nation. It is a vacuum caused by a severe lack of successful innovations. I am aware that among our people, ideas exist and abound, but these are stifled by plagues of corruption and government irresponsibility. However, the situation calls for more determination to see that great ideas overcome the current state of things and eventually rule for ultimate progress and development.

We could start by coming up with innovative ideas on how to tackle the corruption that holds us bound. Ideas and innovations come from research and constructive meditation. We need to study how other people have done it, meditate and come up with adapted versions and even never-before-seen ways of bringing down this giant.

At this point, let us take some time out to reflect on all that has been stated, and brainstorm ideas that can help to cure the cancer of corruption that rots our system.


That is a good place to start.

(source: www.sparkmaginnovate.blogspot.com)