By
Sanusi Lamido Sanusi
(former Governor of Central Bank of Nigeria)
Introduction
When I received the invitation from His Excellency, Governor Siminalayi Fubara, to come and serve as a keynote speaker at the maiden Rivers State Economic and Investment Summit, my diary was already filled up with a series of usual engagements locally and internationally, which includes the global MTN Board Meeting in Johannesburg. My initial reaction was that I might not be able to come. Then, I thought of what a great honour it is for His Excellency, Governor Fubara, to have thought of me to serve in this special capacity. I also remembered my late bosom friend and brother, Herbert Wigwe, who was a proud son of Rivers.
But besides my congested schedule, I also had a bit of apprehension about coming to speak at public fora such as this one, because, sometimes it doesn’t matter what we say about the problems, or truthfulness in the solutions we try to proffer as ways to reconfigure the economy for the benefit of all. Sometimes, misinterpretation and sensationalism become the aftermath of the speech more than the substance. The misrepresentations make the discourse a subject matter of controversy rather than about the problems.
However, it is said that honour begets honour. Your Excellency, I regard your invitation as an absolute honour and that’s the reason why I am here. Also, because honouring the people of Rivers is another way of honouring one of the greatest people I ever know. So, in addition to honouring your Excellency’s call, this is another way of paying my respect to my friend Herbert — may he continue to rest in peace.
At this pivotal moment in our history, when the country is desperate to chart a new course in economic thinking, opting for a paradigm shift that seeks to harnesses our vast potential and propels us towards sustainable growth and prosperity, the decision to centre governance around economic development through investment promotion is a very thoughtful and brave decision by the Government of Rivers State. This is more so because to reform an economy, whether of a state or of the federation at large, requires difficult decisions. It involves policies that may be painful and unpopular, which don’t usually go well with politicians in their quest for re-election. But that is the only way to guarantee a better future for the same people that it might be hard on. It is the right thing to do.
As the second-largest economy in Nigeria, after Lagos, Rivers State has a unique opportunity to emerge as a beacon of progress in the face of hopelessness. It has the opportunity to operationalise the ideals of the concept of sub-nationalism in a federal context, by building a resilient, dynamic, modern and effective system that fosters economic development and prosperity.
With rich arable land, abundant oil and water resources, as well as the strategic location of the state, Rivers can be one of the best investors’ paradises, not just in Nigeria but in West Africa, if the right things can be done. The recent boom in mechanised agriculture, international trade, transportation, tourism, real estate, and ICT, that are being witnessed in this state are evidence that development is not too lofty a dream to achieve; they are a testament that Rivers is ripe for investment and growth.
But while organic factors may induce the emergence and unfolding of a certain level of growth in various sectors of an economy, sustainable development is a result of deep thinking, deliberate and strategic actions, as well as the political will to perform and achieve.
Rivers State is blessed with abundant oil resources, a gift that has significantly contributed to the economy of Nigeria as whole. However, sitting on oil, or any natural resource, is not enough for economic development. To achieve economic development, it is imperative that we recognize the need to take specific steps that transcend natural resources, to diversify and institutionalise foundational economic frameworks. To fully reap the blessings of oil itself, chiefly because it is not wholly controlled by the state, there is a need to consider its viability and risks.
To ensure a prosperous future, we must embrace innovation and reforms, to make the state attractive for investment and capable of realistic growth. In other words, it is the capacity of state institutions to ensure quality in thinking and skills of the population that are critical to the delivery of results.
Japan and Singapore do not have any minerals; neither do Germany, Switzerland, Austria and Rwanda, to give a few exmples. By no means, however, would anyone compare the standard of living, life expectancy or any other development benchmark between these countries and most of the countries with plentiful mineral resources, such as Nigeria. Again, despite having abundance of minerals, Russia, UAE, Norway, etcetera, have developed not only by those resources given to them by nature or providence, but by successful and deliberate vision to diversify, through the quality of their governance institutions and people. Human capital and good governance are why countries that are more complex in their characteristics, such as diversity, population, and so on, like India, Brazil, China and the United States have developed through innovation, intellectual property, education and strong public institutions.
If we are serious about development, we have to stop expecting oil to do everything for us. Everyone in Nigeria now talks about investment, infrastructure and development. But few actually consider that no investor would simply deploy a humongous amount of hard-earned resources to any place in the name of investment, unless they see that the environment is prepared to accommodate their business, make it prosper and protected. Capitalism does not flourish and create wealth for everyone by the number of bridges and office edifices a government builds, but by strong fiscal and trade institutions that create level playing ground and incentives for ease of business. Your roads and bridges will eventually decay and you will have to either borrow to build new ones, or become helpless. With an easy business environment and a skilled population, economies have transformed and grown to mega cities.
What am I saying? It is not enough for your Excellency to want to bring investors or achieve economic development in Rivers State. You have to lay some foundation for the economy to stand on. What kind of state do you want to leave after your four or eight years as Governor? A FAAC allocation and 13 percent derivative state? Or a commercial and industrial hub in which all citizens live a decent life? If that’s what you want, what is your state manpower policy upon which you will design education syllabus and pedagogy for human capital development, that will ensure international oil companies ( IOCs) don’t have to bring expatriates to work on their off-shore and on-shore sites? How does the state education system create a skilled population that is fit for the labour requirements of any investor, to safeguard employment for your citizens? What is the standard of your public service that will implement investor friendly policies, attract and regulate such investments? How is your judiciary, in the context of the entire legal system? What is the standard of your laws upon which investors may be able to have confidence that their investment is protected? How streamlined is the Rivers State tax regime, because no investor will come to a multiple taxed and cumbersome levy environment. This does not mean the state should not pay attention to taxes but rather a caution that in doing that, it does not create room for extortion of businesses. How is the state’s land administration? No investor will deploy resources to an environment where it will take years to get certificates and building approvals; where their documents of title mean nothing, because of racketeering.
So, to prepare the ground for investment, here are some clues:
Human Capital Development and State’s Manpower Policy:
The primary key to economic development is human capital. Investing in the people is paramount. Rivers State needs robust education and skills training programmess that essentially aim to prepare its youth to be the future workforce. First, it needs to design a comprehensive manpower policy based on the states’ vision for development. Reform your primary and secondary schools, colleges, polytechnics and universities to become real incubation centres that produce the engineers, technicians, and artisans you need that will provide an efficient workforce for the numerous IOC’s in Rivers State. You need to produce ad retain medical doctors to provide world class healthcare for residents in Rivers, so that no one has to travel to London for treatment.
You need innovators and entrepreneurs that will supply services across all value chains and industries. It is important to raise the quality of the schools by investing in teachers’ capacity, learning tools and pedagogy that will nurture a culture of creativity and problem-solving youth that focus on skills development.
It critically important to invest in vocational training and apprenticeships to close the education gap, aligning with the needs of our economy.
2. Institutional Reforms
Rivers state must foster a business-friendly environment. Alongside equipping the population with skill through education, the state must also streamline government processes and reduce red tape by instituting transparent and accountable governance structures that are crucial for building confidence and ensuring effective service delivery. In this digital age, leveraging technology is essential. Implementing e-government services and digital payment systems can streamline operations and enhance transparency. Building a robust IT infrastructure will support businesses and spur innovation, making Rivers State a hub for technological advancement in regulatory and fiscal responsibility.3
Legal and Judicial System:
An efficient judicial system is vital for economic growth. Enhancing the legal system’s efficiency and effectiveness can be achieved through ADR and multi-door houses, expeditious and equitable dispensation of justice, and law reforms, a productive criminal justice scheme that promotes obedience of law and order, will make Rivers a stable business environment.
River state should commit to building and strengthening institutions that will promote prosperity. It should set up agencies for geographic information services, promoting residency rights and investment opportunities, quality assurance in the management of data and statistics to monitor performance
management in such critical areas as urban and rural development ad delivery of essential services.
These will automatically boost the Rivers States’ reputation and engender public trust and attract and facilitate investment. These are the incentives and support for investors that will make Rivers State a preferred destination for business ventures.
4. Strategic Infrastructure
It has almost become a cliché that infrastructure is the backbone of economic development. But what type of infrastructure? As much as roads and bridges are important for ease of movement of goods and services, they must not be made in isolation from other imperatives. Investing in renewable energy and more power generation, for instance, ensures sustainable and reliable energy sources, driving industrial growth, especially with the current Electricity Act that empowers states to generate and distribute electricity. Economic zones and industrial estates are the new best practices for competitive development. But of utmost importance it is, as well, for states like Rivers, due to their natural geography, to concern themselves with environmental protection infrastructure for clean water, waste disposal and pollution control due to issues of oil spillage, industrial pollution and other climate hazards. Rivers must invest in strategic transportation systems that include metro rail lines, water transportation, ports, and cargo airports, which will facilitate trade and mobility.
Conclusion
In conclusion, the path to prosperity for Rivers State lies in collective effort and collaboration. The State must embrace innovation and reform, diversifying the economy, and strengthening its institutions. Doing this will unlock the full potential of Rivers State, ensuring sustainable growth and a prosperous future for all.
The state should seize this moment with determination and vision, driving forward the innovative pathways that will secure a place as a thriving, dynamic state.
Before I end this note, it is important to emphasize the need for River state to stretch a hand of fellowship to other states in the South South geopolitical zone, with whom it shares opportunities in oil resources but also in ecological challenges linked to the opportunities. This requires concerted efforts to support NDDC to fulfil its mandate of accelerating development in the Niger Delta region. Only meaningful development that creates opportunities for young people to earn decent living can guarantee peace in the volatile environment
Thank you.