One exceptionally commendable fact about
the Bola Tinubu presidency is that it is not lacking in ambition and audacity.
Courage defines the leader and Tinubu has it in good measure. Think about this:
Tinubu wants to grow Nigeria’s net worth to a $1 trillion economy by 2030.
While this shows ambition, it is much more a demonstration of audacity in
leadership.
To achieve this, Tinubu says Nigeria must lean on and encourage local production. He believes that achieving food security is the sine qua non for advancing the nation’s economy through heavy investments in the agriculture value chain. He is pushing a Nigeria First, Buy-Nigeria policy. Some of his ministers and appointees are also singing the same local production hymn.
A quick fact-check shows that this is not
new, especially since the commencement of the 4th Republic. President
Olusegun Obasanjo, it has to be emphasised, laid a solid foundation to promote
indigenous production of goods and services. He did not chime Buy Nigeria, he
lived it, implemented it and the results were profound. The results of
Obasanjo’s Buy Nigeria policy manifested in diverse ways. Local patronage of
indigenous fruit drinks and ban on imported ones; local production of airtime
cards for GSM service providers; local patronage of locally assembled computers
that gave a huge boost to local production of the same, such that some
ministries, departments and agencies (MDAs) standardised their IT operations on
indigenous computer hardware and software.
Sadly, despite the traction gained by
indigenous products, the succeeding governments did not even sustain the
Buy-Nigeria momentum. Tinubu seems determined to do so. However, to achieve the
noble ambition of a $1 trillion economy, President Tinubu must listen to key
Nigerians who are not only employers of labour but are deeply committed to
indigenous production as the key to unlocking the huge potential of the
nation’s economy.
One of such Nigerians Tinubu must take heed
to his advice is Aliko Dangote, the President of Dangote Group whose refinery
is the biggest single infrastructure project in Africa. Dangote, a major
indigenous manufacturer, is not happy with the manner local companies are
treated in Nigeria.
Dangote recently advocated for policies
that protect indigenous industries and nurture them into mega corporations
capable of generating jobs and fostering prosperity. Addressing a gathering of
manufacturers and investors in Abuja recently while delivering a keynote on
‘Rethinking Manufacturing in Nigeria’ at the Nigeria Manufacturers’ Summit,
Dangote advocated a reversal of government policies that expose local players
to vulnerabilities including continued importation of goods and services that
are also produced in Nigeria. Such a lack of protection of indigenous players,
usually in the form of a lack of patronage from the government and Nigerians,
stunts the growth of these local players.
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He cited countries where governments had to
take drastic measures to protect their respective local markets. These include
the blocked sale of US steel to Nippon Steel of Japan, the blocked sale of six
US port management companies to Dubai Ports World, restrictions on Chinese
cranes at US ports, and the US imposition of tariffs such as 100% on Chinese
EVs (electric vehicles), 50% on semiconductors, medical products, and solar
panels.
There are other instances, including the
restriction of Russia gas supply to Europe, which led European countries to
increase coal usage despite opposition to fossil fuels; and the US government’s
distribution of $39 billion in subsidies to incentivise local microchip
production. The above cases clearly show how respective governments
deliberately protect their local players, not only to give them a head-start
over competition but also to help them scale up on the path to profitability.
Nigerian governments have been short on this.
Leo Stan Ekeh, Chairman of Zinox Group, an
African ICT unicorn, is yet another voice Tinubu should give ears to. Ekeh, much
like Dangote and others, has been a victim of serial blackmail and corporate
bullying despite his undeniable sacrifice to create a digital culture in the
Nigerian marketplace including education, media, banking, oil and gas,
agriculture and other aspects of the economy. His Computerise Nigeria project
became the cornerstone for the establishment of digital hubs in the nation’s
tertiary institutions.
Ekeh believes that achieving a $1 trillion
economy is possible but stressed that the current state of power delivery
nationwide (an average of 4 hours per day according to the latest NBS data)
cannot support the type of bullish industrialisation and local production that
will bolster the nation’s economic trajectory to the trillion-dollar mark. He
warned that a situation where genuine players in local production and service
delivery are bullied and blackmailed by unscrupulous private sector fringe
players and public sector operators does not bode well for economic growth. He
urges more protection from government for the progressive and proven indigenous
companies. He says the concept of Buy-Nigeria should be enforced, especially
among MDAs.
While expressing confidence in President
Tinubu’s ability to address the issue of blackmail, he suggested that Tinubu
should aggressively pursue a policy that promotes patronage of indigenous
manufacturers and service providers as a way of reflating the economy.
He said: “It is evident that the core of
the myriad challenges afflicting the nation today is our failure to develop
local capacities. We must embrace self-sufficiency by consuming what we produce
and supporting indigenous players across various sectors.”
He regretted that in spite of several local
content policies established by the Federal Government, such policies are
consistently disregarded by government employees and appointees, wondering why
“we send our children to the world's best institutions, where they excel, yet
we overlook the products they create.”
He gave the example of the government of
India, which effective November 1, 2023, placed restrictions on the importation
of laptops, tablets, all-in-one personal computers and ultra-small computers
and servers with immediate effect. This, according to him, was to boost local
productivity both by multinationals operating in India and indigenous Indian
companies to create more jobs, encourage proficiency, and discourage capital
flight.
“Mr. President, I humbly appeal to you to
be deliberate and decisive in encouraging indigenous producers and service
providers across all sectors. This way, we create a market for indigenous
products, build confidence in our economy and easily attract international
investors. The way we treat our local investors will determine how many foreign
investors we can attract,” he stated in an open letter to the President earlier
this year. The voices of Dangote and Ekeh echo the voices of other indigenous
players who have continued to deliver value amid vicious headwinds.
Speaking at the inaugural Domestic Investors Summit in Abuja recently, the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, reaffirmed Tinubu’s determination to achieve the trillion-dollar economy. She outlined targets for 2025, including $6 billion in foreign direct and portfolio investment, $6.5 billion in non-oil exports, a 20 per cent increase in trade value, and the creation of 200,000 export-led jobs. This is grand. But the major pulley that will drive this growth is the recommendation of Dangote, Ekeh, and other indigenous players, which is that the government should, as a priority, protect local investors and entrepreneurs through patronage, a policy shift that encourages growth, and categorising such investors' assets as national assets deserving of preservation.
*Contributed by Aliyu Gaya, a public policy analyst, writes from
Kano.
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