Former President of Nigeria, Dr Goodluck Jonathan, has called on leaders in Nigeria and across Africa to invest in the youth population as well as industrial capacity with a view to transforming resources into value.
Jonathan gave the advice while delivering a lecture to the graduating Course -34 participants of the National Defence College (NDC) on Monday in Abuja.
The lecture has as topic “Harnessing Industrial Capacity for Inclusive Growth and Regional Stability in Africa”.
Jonathan noted that building enduring economic prosperity and geopolitical influence depended not only on population size, but on capacity of nations to industrialise.
According to him, this is the strongest driver of productivity, growth and innovation.
He said that long term prosperity and stability were attained not only by the abundance of natural resources, but by the capacity to transform those resources into competitive industries, productive employment, and sustained economic growth.
”Africa accounted for nearly 19 per cent of the world’s population, possessed abundant natural resources and boasts of the world’s youngest labor force, but has somehow managed to remain the least industrialised region.
“Rather than transforming the vast natural wealth into finished products, much of the continent continues to export raw materials while importing finished goods.
“This reduces the domestic value addition, limits the technological advancements and destroys industrial competitiveness within the continent while ensuring that no new jobs are created for the youths,” he said.
According to the former president, the industrial deficit is not merely an economic concern, but also an increasing strategic security concern.
“With more than 60 per cent of the African population under 25, the continent receives millions of youth into the labour market, and low industrialisation means it can’t keep up with the demographic expansion.
“This resulting unemployment and economic exclusion creates a fertile ground for violent extremism, organised crime, piracy, irregular migration communal conflicts and unconstitutional changes in government.”
He however noted that in spite of the challenges, Nigeria in particular and Africa at large stood at a defining moment in its development journey.
He said studies projected Nigeria to be the third most populous nation by 2050, adding that such manpower if equipped with the right skills and vibrant industrial base support could become an advantage rather than a developmental challenge.
Jonathan also commended the policy foundations for industrailsation already making ground, identifying the African Continental Free Trade Area (AfCFTA), which if continuously implemented effectively, could increase Africa’s exports remarkably by 2035.
He further lauded the efforts of government towards diversifying the economy from being dependent on crude oil and minerals to pursuing agro- processing, manufacturing and regional value chains.
“Though manufacturing remains a minor and modest share of the Gross Domestic Product (GDP), recent policy reforms, private sector investments and gradual implementation of AfCFCTA have created new industrial expansion opportunities in Nigeria,” he said.
He urged the leadership not to only view industrailsation as an economic policy option, but as a strategic imperative for strengthening national resilience, expanding economic opportunities and securing Nigeria’s future and that of Africa at large.
He advised leaders to diversify the economy into several sectors like agriculture and agro -processing, textile and apparel, as well as to invest in digital and technology -driven industry.
“Countries with diversified industrial bases are generally better equipped to respond to economic disruptions, public health emergencies, natural disasters and geopolitical crisis without excessive dependence on external support,” he added.
He cautioned against over-dependence on foreign support for imported food, medicines, fuels, industrial inputs and critical technologies, as such exposed Nigeria to supply disruptions, price volatility and external pressure.
Addressing the security leaders, he said industrial capability was equally an important dimension of regional and national defence, with modern security increasingly depending on a nation’s capability to produce its own weapons and systems.
“Strengthening defence related industries not only enhances operational readiness but also encourages technical innovation, skills development and provides very important greater strategic autonomy,” he said.
Jonathan advised that to overcome financial constraints, governments should establish dedicated industrial funds to provide long-term, single digit finances for internal manufacturers to utilise instead of relying on commercial banks for loans with relatively high interest.
Highlighting the importance of human resources, he urged government to invest aggressively in human capital and technology by modernising technical and vocational education, expanding Science Technology Engineering and Mathematics (STEM) education.
He cited a situation in Rwanda where the private school system was crippled due to the heavy investment in government schools, raising its quality to surpass the one provided by private schools for little to no cost.
Jonathan added that most importantly, government should strengthen transparency and accountability in industrial policy implementation.
“Industrial incentives, tax concessions and public financing should be awarded through transparent, rule based systems with defined eligibility criteria and measurable performance targets.
“Independent monitoring mechanisms should be established to evaluate industrial projects, while procurement process should be digitised and subjected to regular external audits to minimise corruption and political interference,” he emphasised.(NAN)
