Every developing nation like Nigeria desires to industrialise in order diversify, empower the manufacturing sector and grow its economy. Industrialisation undoubtedly holds the key to transformation given its inherent potential for unlocking the wealth of a nation.
Indeed, it is the process in which a society or a country transforms itself from a primarily agricultural society, monolithic economy into one based on the manufacturing of goods and services using technological innovation to solve problems as opposed to superstition or dependency upon conditions outside human control such as the weather as well as more efficient division of labour.
The dynamism of the industrialisation process demands that its engine be constantly stroked with new ideas, engineering processes, and progressive policies. This is the premise on which the federal government’s national implementation plan under Nigeria’s Vision 20:20:20 is designed, focused on enabling competent investors and manufacturers to establish small and medium scale industries in the country.
Vice President Namadi Sambo, who also believes strongly in the capacity of this process to assist the federal government in achieving speedy transformation of the nation’s economy last week performed a ground breaking ceremony of a new national industrial park in Abuja, projected to attract not less than $1.8 billion (about N300 billion) worth of foreign direct investment, FDI into the country in the next four years.
Most Nigerians seem to think that developing the country ends at government’s provision of good roads, schools, hospitals, electricity, not being corrupt and creating infrastructure. But, it goes beyond that. Like Analysts insist, any serious government that wants to grow its economy must be seen to taking pragmatic steps at industrialisation either through public sector driven approach, private sector driven or a combination of both which is regarded as the public private partnership, PPP.
Painfully however, Nigeria has been asleep at the wheel for decades when it comes to developing a strategic composites technology policy that focuses on empowering the industrial base and deepening the opportunities for advanced technology transfer.
It is for this reason that the Federal Capital Territory Administration, FCTA, has allocated a land measuring 250 hectares to a Turkish firm, Zeberced for the establishment of a business cluster, this time fully private sector driven. The administration had in 2006 commenced a similar park in Idu area in Abuja where government was expected to provide full infrastructure before occupation by industrialists but the project appears to be in comatose.
What seems different this time is that within the federal government level of commitment in providing an enabling environment for a private sector led economy through provision of incentives that will attract more investors; such an expanded land space has been provided for the firm to handle all infrastructure development itself. Zeberced has estimated to spend over $200 million for this purpose.
Considering the incentives that have been promised by the federal government to encourage private sector growth, operators of the new national Abuja industrial park may also enjoy such incentives as three to five years tax moratorium, 100 per cent repatriation of profit, and 140 per cent capital allowance on research and development. “Twenty per cent capital allowance for five years on local raw materials utilisation and 30 per cent tax relief on expenditure in respect of public infrastructure.”
While these incentives may be enjoyed by the Turkish firm, nothing short of building 177 factories and 14 commercial areas as well as providing 24 km of road network, 10.4 km of clean water network, 8.6 km of electrical network, 9.6 km sewage network, 9.6 km of rain water drains and 29 km of telecommunication network is required of them.
Others facilities expected at the industrial park are training and research unit; cold storage and warehouses facilities, shopping mall, hotels, parking spaces and helipad as well as public and religious facilities including police station, customs area, bank hall, fire station, filling station and a well equipped clinic.
The business of attracting competent manufacturers and industrialists to the park when completed also remains that of the Turkish firm.
For Vice President Sambo, the establishment of an industrial park in Abuja will not only support federal government’s drive for job creation but would also serve as a testimony to the success in the implementation of transformation agenda of President Goodluck Jonathan.
Speaking at the ground breaking ceremony, he explained that “we are made to plan and ensure to boost the nation’s gross domestic product, GDP from the present level. The vice president noted that the Abuja national industrial park project was direct fallout of the state visit of President Goodluck Jonathan to the Republic of Turkey in 2011 in the course of his economic diplomacy tour of selected countries.
In fact, considering his strong believe in the project, the vice president has directed all relevant agencies including the Nigeria Investment Promotion Councils NIPC, Nigerian Export Promotion Council, NEPC and Nigerian free trade zone to provide necessary support for the investor engaged by FCTA to develop the Abuja Industrial Park.
Minister of the FCT, Senator Mohammed interestingly, has also explained that in conceptualising the project, there was proper focus on the primary policy objectives of the country’s manufacturing sector.
“This is with a view to significantly drive the economy for increase productivity, expansion of value addition, enhanced competitiveness of finished goods and production of surplus for export. We are hopeful that Abuja Industrial Park will assist in ensuring a shift from a low technology based production system to more modern production processes,” the minister stressed.
Like Albert Einstein, a German theoretical physicist in 1879 once said, “We cannot solve problems using the same kind of thinking that created them.” Nigeria’s quest to diversify the economy must take seriously the need for establishment of projects such as the new industrial park being championed by the FCTA.
It is only through such efforts that the country could make any meaningful progress in growing to economy and improving the living condition of the citizens.
Nigeria has two broad options to take, to industrialise and benefit as a prosperous nation- G8, and romance with world leaders or confine itself to the non-industrialised league of nations, doomed to the export of extractive commodities for a pittance to sustain a wobbly economy.