Communiqué Issued after the Roundtable Organized to Mark the Africa Industrialization Day 2012 with the Theme: Accelerating Industrialization for Boosting Intra-African Trade Organized by NLC, TUC Affiliates and FIWON with the Support of the Friedrich Ebert Stiftung (FES), November 19, 2012.

The Roundtable was organized by key industrial unions in Nigeria, the Textile. Garments and Tailoring Workers’ Union of Nigeria, the Construction, Woodwork and Civil Engineering Workers Union, the Food, Beverage and Tobacco Senior Staff Association, the Agriculture and Allied Workers Union, Steel and Engineering Workers as well as the

Federation of Informal Workers’ Organizations of Nigeria, FIWON with a view to draw
the attention of policy makers and relevant agencies and departments of Government at all levels in Nigeria to the extremely worrisome trend of persistent decline in the real sectors of the economy despite increased earnings from crude oil exports in the last ten years. Key industry actors in Nigeria including the Manufacturers Association of Nigeria, (MAN), key employers’ associations, state governments, federal government representatives, the trade unions, the Bank of Industry, the Central Bank of Nigeria, CBN as well as United Nations Industrial development Organization (UNIDO) participated in the Roundtable.
After extensive deliberations the roundtable made the following observations and recommendations:
Noted that despite recent improved growth performance of the Nigerian economy, key economic indicators revealed that industrial development in Nigeria is on the decline rather than improving. Crude oil export with little local value addition followed by agriculture and services have been the main drivers of growth with the result that economic growth in Nigeria has not promoted desired structural changes that would make manufacturing the engine of growth, thereby create employment, and promote technological innovations and development.
Observed also that composite employment data showed that the rate of unemployment surged to 19.7% at end-December 2009 from 14.6% in 2007 and by January 2010, the unemployment rate was 21.1%. Indeed, Nigeria’s Ministry of Youth Development puts the estimates of unemployed youths at an alarming 68 million. It is also noted that for those in employment, the overwhelming majority operate in the informal sectors of the economy. Nigeria’s spiralling youth unemployment and the dramatic rise in social unrest and crime including Niger Delta militancy, Boko Haram, and Jos Crisis among others signpost the urgent need to provide employment opportunities.

Worried, that notwithstanding an annual GDP average of 7.4 per cent in the last decade, growth has not been inclusive, broad-based and transformational.
Stressed, that the paradox of economic growth without development is best illustrated by the performance of key sectors of the economy especially the agricultural, oil and gas, textile, food and beverages, and the construction sectors. These key sectors have been adjudged to perform below their potentials.
Worried by, the declining performance of the manufacturing sector over the last decade, on the average, manufacturing contribution was a paltry 7% in the 1960s and 1970S before growing to its peak of 10.5% in 1985. Since then, total contribution of manufacturing has been on a steady decline. The lowest in the history of the country is in 2010 where the total contribution was as low as 2.2%. Between 2000 and 2010, more than 850 manufacturing companies either shut down or temporarily halted production. Capacity utilization in manufacturing was around 53% on average. Imports of manufactured goods dwarf sales of homegrown products – manufactured goods have constituted the biggest category of imports since the 1980s. Nigeria spends about $8 million dollars per day importing food.
Noted that the biggest problem facing rapid industrialization in the country over the past decade has been inadequate infrastructure in general and lack of power supply in particular. The country sets a target of generating 6,000 MW of electricity by the end of 2009, but estimated national demand is 25,000 MW. Manufacturers have mainly installed their own generators to compensate for spotty supply from the state – the manufacturing industry as a whole generates around 72% of its own energy needs. But operating these generators greatly increases the cost of manufacturing goods, and the increase in cost is passed on to the consumer, making it difficult for Nigerian goods to compete with cheaper imports. Other challenges include ineffective backward integration policies, lack of adequate and appropriate technology, trade barriers and massive smuggling, ineffective and inefficient privatizations, poor linkage between wage increases and productivity resulting in wage increase related job losses, lack of government patronage of locally manufactured goods and services especially personnel of the armed forces and related institutions, dumping of substandard goods, government waivers on restricted imported goods, counterfeiting, bootlegging and piracy, lack of access to long-term capital, lack of appropriate skilled manpower as well as incoherent and inconsistent policy frameworks. Concerns were also expressed about growing insecurity as a result of upsurge in terror campaigns by extremist religious and criminal gangs, jeopardizing needed peaceful environment for industrial growth and development.

Further noted that the problems dovetail into the informal economy with its peculiar need for participatory policy frameworks in the areas of access to decent workplaces, trainings in new technologies, affordable credits and inclusive city and municipal service provisioning especially in the areas of paved roads, water and sanitation facilities.

Recommendations

The Roundtable noted that in order to realize the potentials of agriculture and manufacturing sectors, especially agro-allied based industries including the high employment generation textiles as well as the food, beverage and tobacco sectors, which are capable of generating huge positive externalities especially in the area of the diffusion of technology, the creation of high value added, greater linkages with the economy, a wider employment base, and rising incomes there is the need for a holistic and comprehensive approach to development of the economy with emphasis on resolving the problem of electricity power generation, transmission and distribution. Nigeria is naturally endowed with dams that can provide hydro-electric power (HEP). A more effective way of generating and distributing electricity power can go a long way in resuscitating the manufacturing sector. Apart from power generation from HEP, Nigeria is a country that has one of the largest deposits of gas in the world. When properly harnessed, the problem of power will be a thing of the past.
Emphasized, the need to transform agricultural production from the present high subsistence mode of production that characterize agricultural activities through mechanization, capitalization and provision of basic infrastructures in the rural areas. A more developed agricultural sector will support the food, •beverage as well as textiles sectors significantly.
Called on the government to intensify efforts towards more. efficient, better managed and transparent Public Private Partnerships, PPPs. In the face of today’s increasing globalization, PPPs are becoming increasingly popular in delivering physical and social infrastructure to the people. Despite the need for more aggressive public-participation in the delivery of basic infrastructure in Nigeria, it should be acknowledged that there has been a rise in the number of PPP-driven infrastructural projects.
Urged, the National Assembly to expedite action on the early passage of the Petroleum Industry Bill (PIB) as this will enhance backward integration, local value addition and invariably boost the employment generation capacity and contribution to the GDP of the oil and gas sector.
Commended the critical interventionist role of the 100 billion Naira Cotton Textile and Garment which has helped to stabilize the decline in the sector and called for the

recapitalization of the Bank of Industry (BOI) for the provision of relatively affordable capital for local manufacturers especially the small and medium scale producers which have enormous growth and employment generation potentials.
Called also for policy interventions, to address the needs for specialized technical skills upgrading and entrepreneurial development for informal workers. It also urged the Government to address the need of informal workers for workplaces and social protection, as part of overall strategy for increased productivity, poverty reduction and general well being of the greater majority of Nigerian working people towards inclusive and sustainable industrialization.
Stressed that the growth and development of the real sectors of the economy is more critical for job creation for the youth rather than such elitist programmes as You Win and therefore applauded CBN’s development oriented interventions and called for more such effort by the apex bank.
Urged the Federal Government to develop and follow an industrial policy that is supportive of local production through deliberate strategies of promoting competitive production through aggressive infrastructural support and a mix of well thought out macroeconomic framework that reward value addition and employment generation. The need to address the unrelenting spectre of violence of extremist religious and criminal . gangs especially in the Northern parts of the country was also highlighted. Important also that Government at all levels take the lead in patronage of made in Nigeria products, firm up regulatory controls on smuggling and dumping of sub standard goods, revisit failed privatizations especially in the iron and steel sub sectors, stop indiscriminate granting of import waivers, ensure that the Free Trade Zones really promote industrial development and fair labour practices as well as demonstrate strong leadership through proactive enforcement of laws and policies that support local production and industrialization.

Appreciation
We expressed sincere appreciation to all our Guests who participated at the roundtable. We acknowledge the distinguished presence of His Excellency, the Executive Governor of Kaduna State, Mr Patrick Yakowa represented by Special Adviser on Trade and Investment Alhaji Mohammed Yusuf Lere, the Country representative of UNIDO, Dr Patrick Yakowa, Honourable Farook Lawan, the President Manufacturers Association of Nigeria, Chief Kola Jamodu represented by Mr Segun Ajayi Kadir, the Governor of Central Bank, Mallam Sanusi Lamido Sanusi represented by Mr Akintunde Sowunmi, the Director General, National Productivity Center Dr Paul Bdliya represented by Dr S.T.A. Okolie. The Managing Director of Bank of Industry Ms Evelyn• Oputu represented by Mr. Christopher Omondiagbe, Mallam Ibrahim Igomu, Chairman, the Textile Employers Association, Senator Walid Jibrin and Mr Leo Pong of United Nigeria Textile, the Director of Human Resources, Nigeria Bottling Company represented by Mallam Aminu Mohammed. We specially thank the Resident Representative of Friedrich Ebert Stiftung, Mr Thomas Maettig for his support and contribution.
However, we expressed deep concern about the conspicuous absence of the Ministries of Trade and Investment, Finance and indeed the Ministry of Labour. Such absence at critical platforms of critical stakeholders as we had at the roundtable sends the wrong signals that the goals of sustainable re-industrialization and job creation in Nigeria is not very high on the agenda of Government.

SIGNED
ISSA AREMU (NUTGTWN)

ADE OLA-JOSEPH (FOBTOB)

BABATUNDE LIADI (NUCECFWW)

GBENGA KOMOLAFE (FIWON)

ISAAC ABERARE (NUPENG)

K. KADIRI (SEWUN)

S. E AITO (AAEUN)