IntelServe CEO outlines
strategies for Sustainable Economic Growth in NigeriaTHIS MAN IS PASSIONATE ABOUT NIGERIA'S ECONOMY
Roman Oseghale, an Architect, Business Analyst and
CEO. of IntelServe Inc. a Canadian Business Analytical
Services company, has identified human capital development as the key to
developing sustainable economic growth for Nigeria.
Speaking at The Platform recently, Mr. Oseghale
argued that Africa which is one of the 6 continents is the richest in Mineral
Resources but the poorest in per capita income. He noted that 1/3 (33.3%) of
all earths mineral resources is buried in Africa, 2/3 (66.6%) of all global
mined diamond comes from Africa, 1/10 (10%) of global oil reserve is in Africa,
75% of all cocoa beans is from Africa, and Africa is home to some of the rarest
mineral resources.
Presenting a research that cost him about 600 hours
of work, demonstrated how Investing in Human Capital Development has been the
secret to how progressive nations have developed a Sustainable Economy and
growth over the last 60 years. He stated that the Netherlands which does not
grow cocoa processes 13% of all cocoa beans worldwide and Europe and Russia
which equally don’t grow cocoa processes 38% of all cocoa beans, and the tens
of products manufactured from cocoa are shipped back to Nigeria and Africa to
be sold, and while the worldwide cocoa industry is estimated to be over USD$100
billion, Africa’s share is just 2% percent (USD$2 billion) despite producing
75% of the cocoa beans.
He stated through his research that developing a
Sustainable Economic Growth ensures both economic and political stability in
any country and is the gateway to creating wealth, building confidence in any
economy and prevents the devastating and inefficient impact of corporate
premature failure and death. Using analysis from both Business Survey and
Business Intelligence and gathering both qualitative and quantitative data, Mr.
Oseghale took the country back 57 years to 1960 and matched these data along
timelines to know where Nigeria deviated from the progressive economic growth
of the 60’s and 70’s. He also matched the data with those of 80 other countries
across the 6 continents for the 57 years to be sure of his hypothesis.
He stated through his research the direct
correlation between education expenditure and per capita income of countries
and that all progressive countries were operating the Knowledge Economy, he
stated that progressive countries develop individuals and as they earn more or
create wealth, it ultimately increases the GDP of the country. He stated that
Nigeria and most African countries were still operating the mineral resources
economy and if the country was to make progress it must switch over to the
knowledge economy and treat education as an investment rather than an expense
stating that education is an economic tool for growth and sustainability.
He stated through his research that in the 60’s and
70’s, and early 80’s, Nigeria invested in education pushing to reach the United
Nations stipulated mandate of 26% of budget or 5% of GDP on education
Investment both on Federal and State levels, and reached an all-time high of
4.9% of GDP in 1981. He argued that for the UN to have stipulated that 26% be
invested in Education and 15% in Health, a combined investment of 41% of the
budget on investments which has to do with direct investments on human capital
only proves one thing…..that Human Capital was the greatest assets and true
wealth of a nation and not mineral resources as Nigeria and most African
countries seem to think.
The highlight of his presentation was how the
research showed how Nigeria was ahead of countries like Egypt and a lot of the
Asian countries in Per Capita Income in the 70’s and early 80’s when Nigeria
heavily invested in Education and treated it as an investment while those
countries did not invest as much in education and treated education as an
expense. But the reverse was to start happening from 1982, these other
countries started investing heavily in education building a knowledge economy
having realised that the knowledge economy was the future and the key to
economic growth and sustainability while Nigeria kept reducing its education
expenditure and reaching an all-time low of 0.77% of GDP in 1991 and it has
remained at 0.8% annually ever since. While population was increasing,
Nigeria’s education expenditure was reducing over the years and the country did
not increase education expenditure in 30 years.
In 1981 at USD$3.038b representing 4.9% of GDP,
Nigeria’s education investment remained below USD$1b for 20 years, between 1986
and 2006, and only climbed to USD$3.3b in 2011 after 30 years. His research
also shows that no nation amongst the 80 countries used for the survey and
research ever reduced education expenditure for more that 3 to 4 years in a row
but Nigeria did not increase hers in 30 years. He noted that Nigeria was the
only country that had the highest increase in population between 1981 and 2014
(134.5%) but only increased education expenditure by only 53.7%, while
countries like Egypt increased in population by 101.5% and increased education
expenditure by 1,709%, Thailand increased in population by 40.1% with increase
in education expenditure by 2,625%, and Indonesia increased in population by
68.5% but increased education expenditure by 2,469% in 33 years from 1981 to
2014, and this is the reason these countries are ahead of Nigeria today.
The research also showed that the Federal
Government has only invested USD$48.8 billion in education in 44 years (1970 –
2014) despite having a large and fastest growing population compared to
countries like Brazil that has invested USD$1.5 trillion, Chile USD$120.5 with
just 10% of Nigeria’s population, Mexico USD$882.6 billion, Canada USD$1.6
trillion, United States USD$17.2 trillion, United Kingdom USD$2.7 trillion,
Germany USD$3.5 trillion, Egypt USD$148 billion, South Africa USD$354 billion,
Thailand USD$218.9 billion, and Indonesia USD$222 billion. He stated that these
countries and the others used in the survey treat education as an investment
and economic tool of growth and sustainability, and that is why they have a
progressive economy.
The research also highlighted the cost of our
negligence, how Nigeria’s public education sector and infrastructure is now
decaying and the country not able to meet up with the massive number of
students seeking university admission yearly. He also stated that most of the
kids are now seeking admission outside the country which is now costing the
economy billions of dollars yearly, and while we may think the country is only
paying school fees and upkeep, Nigeria is losing billions in Intangible assets
annually as the country is losing its best brains.
He concluded that government must start treating
education as an investment rather than expenditure and must immediately return
the country back to the economic model of the 70’s when government invested in
Human Capital Development and provided the citizens with the right skills
noting that the knowledge economy was the future and no nation has ever
recorded progress in economic growth and sustainability with the relegation of
education.
He also stated that government should develop
skills acquisition centres, stating that education does not just end with
students graduating from the universities but they must be armed with the right
skills to succeed and increase productivity, which ultimately benefits the country
and that government should provide incentives of low interest loans for
graduates of skills and acquisition centres who wish to go into manufacturing,
he stated that this is the model the Asian countries have been practicing and
that’s why they have been able to turn their countries to the manufacturing hub
of the world. You can watch the complete presentation on https://www.youtube.com/watch?v=rDueuO4Wfac
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