How far is the minister able to proffering solution to problems facing sectors under his watch?
In this profile of activities of the sector and examines the situation in the life supporting machine giant sector and the task before the minister of industry, trade and investment.
The Industrial sectors of the economy which obviously holds the key to employment creation and ushered in economy diversification in the country remain perpetual ever worst neglect under present minister.
“Proffer lasting solution to Nigeria’s industrial sector problem is task that must be done by Minister of Industry, Trade and Investment.”
Every year passing by, Nigerian harvest stocks of lamentation of problematic and deplorable state of Nigeria’s manufacturing sector and the need to reposition the sector to induce growth both in the sector and the economy in general. Nevertheless it has remain a recurring challenge staring on the faces of past, Present like Adebayo and perhaps future Minister in the country, but without tangible solution.
You may either believe it or not that indeed, no regime in this country has been able to proffer lasting solution to Nigeria’s industrial sector problem.
The best successive administrations have done was to draw series of industrial policy maps orally but effective implementation of these policies has apparently not been practically achieved.
It is on records that some of the problems that have besieged the sector right from independence have been there while number of manufacturing firms in the country continues to shrink year in year out is ‘Harsh Operating Environment and Policy Implementations’.
For instance, the textile sub sector, which was the first sub sector to be hit by the development, cried to government in vain for several years over harsh operating environment but instead of government listening to their yearnings, being the sub sector that creates highest number of employment, government decided to ignore them.
A close look at the problem of this particular sector shows that over dependence and reliance on oil sector leading to total neglect of the sector by government was the major problem.
The result was that according to statistics from the National Union of Textile, Garment and Tailoring workers, over 60 textile manufacturers in Lagos employing a total of 66,250 workers closed shops as at 2016.
This excludes about 272 other manufacturing firms which according to a major stakeholder in Manufacturing sector closed shops within the same period as a result of government’s foreign exchange restriction policy.
Over the years, manufacturers have been complaining about getting credit facilities at special single digit interest rate, improved power supply, multiple taxation, patronage of made in Nigeria goods by everybody in Nigeria government being at the fore front of it all, making discriminating policies that will favor manufacturers, encouraging local manufacturers through policies that are against importation of goods manufactured in the country.
But instead of proffering solution to the above problems, government officials at the borders allowed influx of substandard textile materials especially Ankara from Nigerian neighbours where business operating environment are favorable thereby chasing away more quality Nigerian products from the market.
The textile manufacturers’ cries lasted up to 2001 to 2005 when one of the prominent Ankara manufacturers, the United Textile (UNTL), ceased crying out and closed shop while laying off its work force.
In the leather work sub sector, the same problem of gross neglect applies.
A university Don, Mr Olufemi Aluko of Faculty of Clinical Sciences, Obafemi Awolowo University, Ile Ife told the media that Nigeria, due to negligence of potentials in its hides and skin industry is losing out among countries competing for the $75 billion global leather industry because of negligence and consumption of Pomo.
He blamed the situation on negligence of potential of leather production and preference of oil.
Going back to history at the relationship between this all important manufacturing sector and government, one will obviously see that though it has never been toys for any sector but the manufacturing sector is always at the worst receiving end.
Findings on this shows that most of ministers appointed by the successive regimes often do not do their jobs well in terms of advising government on implementation of policies that will enable the sector thrive well. Some of the ministers were obviously not familiar with activities in the sector therefore did not understand their problems let alone proffering solution to them or advising government on what to do. Most of the ministers were appointed not because of their experience with the sector but for political reasons. The few that were appointed based on experience and familiarity with the sector obviously made their marks.
Indeed, the manufacturing sector only saw a glimpse of light in the days of Kola Jamodu, Charles Ugwu and Olusegun Olutoyin Aganga as ministers of industry, investments and trade.
Jamodu and Aganga, among other things advised government to set up bailout fund for textile manufacturers where the manufacturers could get loan at drastically reduced interest rate as well as advised government to empower Bank of industry and make it functional.
Charles Ugwu and Olusegun Olutoyin Aganga, saw to the setting up of Industrial parks which government based on recommendation of operators has been postponing but Ugwu, during his tenure made it a practicable thing and shoe manufacturers in Aba, Abia state were the first beneficiaries.
Looking at present, when President Muhammadu Buhari, after his election into second tenure in office appointed his ministers, hopes were very high among the industrialists.
The high hope was anchored on the assumption that in his second tenure, the administration would be stable enough to put on its thinking cap and come up with solution on what will revamp an important sector like the manufacturing sector which among others holds the master key to employment creation for the populace.
But since when Chief Niyi Adebayo took up the position of Minister of Industry, Trade and Investment, on August 24, 2019, these hopes began to nose-diving.
It could be recalled that shortly after his appointment, when industry reporters approached a cross section of small scale manufacturers to set agenda for the new minister, they said they had little hope on his ability to perform the expected magic of revamping this obvious retrogressed sector given his background as a lawyer and politician.
According to a renown industrialist who seem to have lost faith in government through minister’s ability to revamp a sector like the textile sector where he operated in before the demise of his company, the problem of Nigeria’s industrial sector has gone beyond level at which appointment of persons to man the sector should still be based on political considerations.
The renowned industrialist further said that it has reached a stage where government should look for professionals, technocrats, in-house and experienced personnel in various areas to man important but problematic sectors like the power sector, the industrial sector, oil and gas and finance among others.
Insisting he has nothing against anybody whose fortune has seen him appointed to head any ministry, the industrialist noted that given Adebayo’s legal background, he did not think Adebayo is the best person to take the position of industry minister because he has no ability for inclusive industrial development policies.
He however concluded that the future shall tell. And here is the future, after a year of his appointment, stake holders are still looking forward to seeing the impact of his administration of the industrial sector.
By his position as the 40th minister of Industry, Trade and Investment, Adebayo has on his shoulders the responsibility of overseeing government’s goal of jobs creation and economic diversification to non-oil revenue earnings, he added.
He stressed further that as the number one investment driver of Nigeria’s trade and investment policies, Adebayo should be the driver of government’s van on promotion of federal policies especially that of Ease of Doing Business, job creation, poverty eradication and industrialisation.
The minister should practically spearhead government’s Inclusive Industrial Policies and programmes on standardisation of bilateral trade agreements, stimulating growth of domestic Micro, Small and Medium Enterprises, MSMEs and renewed roadmap to increase Nigeria’s Foreign Direct Investment, FDIs.
He should also through his advice to the president see to it those Industrial activities that have been at very low ebb over the years due to poor operating environment is brought to life.
But a closer look at what is on ground in Nigeria today especially with manufacturing sector shows that everything has remained as they were.
The good foundation laid by previous ministers of industry like Charles Ugwu, Kola Jamodu and Olusegun Olutoyin Aganga was not followed up by the immediate past minister, Okechukwu Elenama and the current minister Adebayo is following his pattern.
While he, Okechukwu Elenama may claim to concentrate efforts on investments which has to do with traveling from one country to another which of course Nigerian public sector workers derive pleasure in, the condition of the home based industries that supposed to create employment for the masses continues to deteriorate to the extent that the situation has become so unbearable that indigenous manufacturers now relocate to other countries where some of the facilities they have been yearning for exist.
The President of Dangote group, Alhaji Aliko Dangote, at the Annual General Meeting of African Export Import Bank (AFREXIM) and 25th anniversary recently, said to Nigeria manufacturers and the world over that he has to provide his own power .The case is the same with many companies and a host of others who have to provide power by themselves to manufacture in Nigeria, yet they face the burden of multiple taxation by government with supervening minister watch the movies.
According to reports in the past few years, some of the manufactures to mentions some but few like Michelin, Dunlop, PZ who could not cope with production cost in Nigeria have relocated to other neighbouring countries where the environment is favorable.
Dangote group has hinted of latest decision to follow suit, leaving everybody with the question on what the present industry, Trade and Investment minister is doing.
What he has to offer to manufacturing sector in particular.
What agenda has he presented to the president as his plans on how to revamp the Industrial sector?
Is he only interested in trade and investment and in traveling round Africa and Europe attending meetings on Africa Continental Free Trade Agreement?
What legacy will he leave behind for the Industrial sector that will make the operators remember him?
How many times has he made out time to sit at a meeting with the Industrial sector operators and other stake holders and rub minds together on the way forward for the sector?
Therefore, the stakeholders advice the minister that aside presentationof papers at forums where the industrialists invite him to speak, Adebayo should use his administrative inclination as a former governor and minister to call industrialists and other stakeholders together to chart a new way for the advancement of Nigeria’s industrial sectors before things get out of hand in this all important sector.
According to the Central Bank of Nigeria (CBN) Manufacturing Purchasing Managers’ Index (PMI) in the month of August 2020 stood at 48.5index points, indicating contraction in the manufacturing sector for the fourth consecutive months which lead to the employment level index for August2020 to stood at 44.6points, indicating contraction in employment level for the fifth consecutive months.
The Captioned Photo: The Minister of Industry, Trade and Investment, Chief Niyi Adebayo
