UNIDO blames industrial failure on power problem in Nigeria


PCOUNTRY Representative of the United Nation Industrial Development Organisation (UNIDO) in Nigeria, Mr. Masayoshi Matsushita has identified the collapsed of the power sector in Nigeria as the bane of industrial development and threat to the realisation of the Vision 2020 of the Federal Government.

Matsushita, who was in Kaduna to address journalists on the efforts of UNIDO and other agencies under the United Nation (UN) to assist Nigeria in addressing problems of poverty and industrial development at a workshop that ended last weekend, pointed out that "because of the weakness of industrial competitiveness, as it relates to shortage of power, transportation problems and other pit-falls, all these make it expensive to bring products from one place to the other."

As such, Nigerian products lost its competitiveness against the foreign products. That was the reason why the textile industries in Nigeria collapsed. Many foreign investors are withdrawing while others are afraid of investing in Nigeria."

The UNIDO country representative, who spoke extensively while outlining the various reforms initiated by the international organisation in conjunction with the government to redress the ailing Nigeria industrial sector at the workshop organised for media representatives, argued that "presently about 80 billion naira is deposited in NEXIM Bank in order to use bring the textile industries to limelight once again," saying that "Nigerian government is presently discussing on how effective the money can be utilised in order to restore the textile sector."

He added, "we would like to make a very appropriate recommendation to the government before the money disappears, so that government can make the implementation possible."

Besides, Matsushita, who gave vivid examples of development trends o Japan and other countries in the Asia and far East, noted that Nigeria has wasted many years in identifying industrial development strategies, stressing that the problems of corruption and lack of adequate data base in all sectors are the evil that trailed the economy.

He particularly frowned at the discussions in some quarters in the country that banning imported fabrics was the solution to Nigeria`s declining Textile sector, pointing out that already UNIDO has initiated an investigation into why the nation`s Textile industries collapsed and the way forward.

Said he, "already 200,000 dollars is being spent to understudy the Textile industries in Nigeria, and in the next two months we would have the result of the study out."

Matsishita further criticised the government on the over-dependence on oil as a basis of promoting industrial growth, nothing that "before the discovery of oil in the 70s, Nigeria shown greater intent in developing industry."

The UNIDO boss stressed, "in 1980s, the manufacturing value added share to Gross Domestic Product (GDP) was about eight percent. But Since Nigeria started to have large income sales from the oil sector, industries were somehow neglected.

"Nigeria did not develop the competitiveness of the industrial sector. The sector gradually declined in manufacturing value added share to GDP to the present level of less than five per cent."

He continued, "this is a serious concern that we have to put more attention, because without industrial development, it's impossible for the country to develop. Nigeria cannot keep depending on oil income forever. If it happens, that oil depleted, what can Nigeria do?"

The Country Representative of UNIDO highlighted some of the areas of intervention that the agency in conjunction with Federal Government has decided to initiate enduring projects, which would promote growth.

"We are looking at how Nigerians can be involved in Agro-based industrial sector. As such, we looked at the area of Cassava, Palm oil processing, Leather industries, and Textile industries. Also, we looked at the fabrication of equipment, such as the Cassava flash drier and so on.

"For the energy sector, we are working on the biomart power plant, by utilising rice hask, which is done in Abakaliki. We try to use the rest of the material to generate electricity so that we can develop the rice cluster that would give quality output."

Meanwhile, officials of the UNICEF at the occasion also unfolded the recent agreement entered between Nigeria and the Major UN agencies to implement the United Nations Development Assistance Framework (UNDAF-II) expected to cover between 2009 and 2012.

Under the programme, "the UN will conform to the principle of national ownership and advance the Implementation of the Paris Declaration and this will be guided by Nigeria's development policies and plans, seek to build on past achievements to consolidate and strengthen its collaboration with Federal, state and local governments and focus on its value added with the framework of international Co-operation."

The officials argued that "overall, the UN expects to spend close to one billion U.S. dollars from all sources during 2009-12 or an annual spend of about 242 million U.S. dollars." The Minister of Planning and Deputy Chairman, National Planning Commission (NPC), Senator Sanusi Daggash was a signatory to the UN document.

Culled from http://www.guardiannewsngr.com