Expert urges FG to rejig Research Institutes, Education, Vocational Training, others

The Federal Government has been called upon to undertake a comprehensive review of research education, vocational training institutes to determine how they have performed over the years, which ones should be closed, merged and which ones should be better funded.

The former minister of Trade and industry, Olusegun Aganga made the call in his address as the Guest Speaker at this 3rd Adeola Odutola Lecture/Presidential Luncheon as part of the 51st Annual General Meeting of the Manufacturers Association of Nigeria (MAN) on the theme “Setting the Agenda for Competitive Manufacturing under the AfCFTA: What Nigeria needs to do”.

Aganga said that emphasis should be laid on education and vocational training to ensure a skilled workforce that can adapt to emerging and evolving industries is a necessary prerequisite for competitiveness as a priority.

This, he said, will require the review of school curricula to ensure that they produce graduates and skilled workers that are relevant to the economy, link the Institutes to the relevant sectors in particular the industrial sector, set KPIs working with MAN for the industrial sector; strengthen governance and have a process for assessing and reporting performance regularly in place.

He pointed out that Germany, Brazil, Singapore and China have been more successful than most countries in producing a skilled workforce partly because of the comprehensive skills gap survey which they undertake regularly.

“Brazil most closely compares with Nigeria. Brazil has put in place systems and institutions that are dedicated to developing the youth and turning them into a highly skilled labour force for the economy. Brazil has about at least four relevant institutions, some of which are similar to those in Nigeria, through which various interventions are made. They include SENAI, SENAR, SEBRAE and SENAC which has about 24,000 teachers and has trained over 55m people since it was established. The Brazilian National Service for Industrial Training (SENAI) is the equivalent of our ITF. The significant differences between the two are the number of people trained yearly, the number of industrial training parks across the country, the quality of training, and the demand-driven approach to training, which almost guarantees that about 80% to 90% of those trained by SENAI secure employment within three months of completing the training. This inspired Nigeria’s Auto Park Production Centre in the Autoplan developed by NACC which was supposed to be located in Badagry, Kaduna and Nnewi. The Badagry Centre had two objectives: training Nigerians in the automotive sector with international accreditation and producing the components required to produce cars.”

He stated further that one of the reasons for the successful training of skilled workforce in many countries is the demand-driven approach which is based on a national skills gap survey undertaken annually or bi-annually.

According to him, “We started the process of producing the first national skills gap survey in 2014 working with the Industrial Training Fund (ITF), United Nations Industrial Development Organisation (UNIDO) and NBS. The survey was designed to provide details of the types of industrial skills and number of workers Nigeria will require over the next 5 to 10 years, based on investment trends and industrial activities in the country. This exercise was fundamental to our employment market and competitiveness, as it was meant to help our education and vocational training institutions better customize their curriculum, to the needs of the private sector. The survey was completed and the report was issued after I left the government in 2015. Again very limited use, if any, has been made of this survey. We can revive this initiative to boost our efforts for competitive manufacturing.

Aganga, while speaking on Innovation, Technology Transfer and Research, noted that innovation is a differentiation factor, while the triple helix model advocated in the NIRP links research in academia and research institutes with the industry.

According to the World Economic Forum: ‘Going forward, the traditional distinction between countries being “developed” or “developing” will become less relevant and we will instead differentiate countries based on whether they are “innovation rich” or “innovation poor.”

 It is vital, he said, that leaders from business, government, and civil society work collaboratively to create enabling environments to foster innovation and to create appropriate educational systems.

He added “Nigeria has numerous research institutes across various fields including agriculture, healthcare, technology, and more. However, these institutes which are funded by taxpayers’ money have had little or no impact on national development and in particular on our industrial development. Many of the research institutes are not managed by competent professionals, are underfunded and have strayed away from their mandates.

“China by contrast undertook applied research with about 90% of its Research and Development (R & D) being applied in 2002 according to the China Academy of Sciences. One innovation was the commercialisation of the research with all participants benefitting from the revenue.

“The corollary is that Nigeria needs to actively seek technology transfer through joint ventures and partnerships with foreign companies and investors. This was what China did to enable it to acquire advanced manufacturing and technological capabilities which are critical for competitive industrialisation and self-sufficiency. Examples abound – Geely in the auto industry, Foxconn which is the largest producer for the most popular products of Apple including the iPhone, SMIC the semi-conductor chip company.”

He canvassed that it is important that critical institutions that should be strengthened are staffed by competent professionals and that they deliver on their mandates.

“As I explained in the book, nations fail because institutions are weak or do not exist. Any industrial plan will fail if the relevant economic institutions are weak. Government agencies are economic institutions and the implementing arm of the Ministries and are therefore critical to any industrialisation plan. At a minimum, competent technocrats who have a reputation for delivering should be appointed to the boards and management of these agencies. KPIs should be set and a comprehensive review of their performance regularly undertaken before any reappointments. Full implementation of the NCCG in the public sector will have a dramatic and positive effect on our economic institutions.

“As I said, MAN has made a lot of progress but we still want a MAN with a bigger presence and voice. It is important to always speak with one voice. Our prosperity as a nation depends largely on you and your members. You have the muscle and power not only to speak but to speak AND be heard. In some countries, no economic or industrial policy can be introduced by the Government without the support of the Industrial Association. I hope you still remember the role you played in changing the name of the ministry to MITI and how we started a quarterly meeting between customs and MAN to address your issues because you demanded it,” he stated.

Accordingly, the former minister recommended the following: “Revitalise the competitiveness council. It is the best forum to ensure issues affecting competitiveness are identified and addressed. Also encourage the government to reconstitute the national MSME council in accordance with SMEDAN’s act.

“Policy Advocacy: MAN already engages with the government to advocate for policies and reforms but it now needs to broaden the scope of engagement to cover areas that have an impact on competitiveness, economic growth and investment.

“Become Co-development partners with Govt: be part of the solution, co-implement NIRP after all you played a major role in its development. You should be interested in the quality infrastructure programme that was started about 9 years ago and funded by the EU, provide regular feedback on the State of the Nation, economy and industry, status of the implementation of the WTO Trade Facilitation Agreement, noncompliance with local patronage policies etc.

“Assess and provide feedback to the Government on relevant institutions/agencies.These include DFIs, Research Institutions, ITF, SON, The Raw Materials Research and Development Council (RMRDC), Customs etc. Most of these are set up to SERVE you.The Government needs to know whether they are delivering or what they could do differently or better.

“Work with the relevant agency e.g., ITF on initiatives related to skill development and education to address the talent needs of industries and enhance the employability of the workforce. Facilitate skills gap surveys and the linkage of research/innovation centres to industry.

“ Conduct research and publish reports on various aspects of the Nigerian economy, including industry-specific studies and competitiveness assessments. This research helps businesses and policymakers make informed decisions. The doing business surveys by the DFIs etc. are good but they need to cover the real micro issues that affect productivity and competitiveness. You are in a better position to identify, rank and bring these issues to the attention of the Government.

“Business Networking and Global Engagement: continue to provide a platform for businesses to network and collaborate both domestically and internationally. Promote Nigeria’s economic interests globally, facilitating trade and investment opportunities, and representing Nigeria’s industry at international fora. Accompanying the President, Vice President and Minister of Industry, Trade and Investment on trade missions and state visits would help. Your former President, Chief Kola Jamodu did a lot of that with me when I was in Government.

“I would like to make a special appeal to the President. This is the time to be bold, a time to act. Declare the Industrial sector a national priority sector and back it with plans, policies and money! Why? History has shown that Industry Multiplies National Wealth, creates jobs, is critical for exchange rate and balance of payment management and would make the Naira stronger. What is the wisdom in spending billions defending the Naira when it continues to fall instead of investing in genuine manufacturers and exporters of high-value products that would earn Nigeria foreign income and more?

“After all, we know that the Naira will continue to be weak if Nigeria remains an import-dependent country and does not produce for local consumption and more importantly for export. Unlike the trillions spent on subsidies, bailouts, the Agric Anchor Borrowers program, the refineries, I can assure you that every Naira, no matter how large, that is well spent on strategic industrial sectors can be easily recovered and will deliver tremendous benefits to the economy and the nation. Every successful nation has had to do this on their journey to prosperity.

“In conclusion, embracing competitive manufacturing under the AfCFTA is crucial for Nigeria’s economic growth and integration into the global marketplace. Nigeria may not be able to compete with China now, but by investing in infrastructure, innovation and skilled labour, while addressing trade barriers, the business environment and promoting market access, Nigeria can certainly position itself as the manufacturing hub in Africa. Let us work together to seize this historic opportunity and create a prosperous and vibrant manufacturing sector that will benefit all Nigerians and contribute to the economic development of the African continent as a whole. On my part, I will continue to support and assist you because I want the Jewel of Africa to be reclaimed,

“I want Nigeria to become one of the most prosperous nations in the world and it can only achieve that by becoming Africa’s Manufacturing hub. We must continuously monitor and evaluate our progress, making necessary adjustments along the way. The road to competitive manufacturing under the AfCFTA may be challenging, but with dedication, determination, and adaptability, we can pave the way for a thriving Nigerian manufacturing sector.

“Your Excellency the President, distinguished ladies and gentlemen please allow me to end with this quote from Reclaiming The Jewel of Africa: ‘History shows that no country has ever become rich by exporting raw materials without also having a competitive industrial sector, and in modern terms an advanced services sector. The more a country specializes in the production of raw materials only, and becomes import dependent, the poorer it becomes… Industry Multiplies National wealth!’

“To become a prosperous nation with a strong Naira and reclaim it’s position as the Jewel of Africa, Nigeria must industrialise. It has not choice. It is now or later, but there is no better time than now,” Aganga counseled.