Thursday, August 20, 2015

Calling all Argonauts! The Death of Oil and The Dream of Nigeria’s Industrial Power.

In “The New Argonauts: Regional Advantage in a Global Economy”, Dean of School of Information at the University of California, Berkeley, AnnaLee Saxenian writes about a breed of “foreign born, technically skilled entrepreneurs who travel back and forth between Silicon Valley and their home countries” launching companies and creating new wealth and new markets using technology. For her, they are reminiscent of the argonauts who according to Greek Mythology, were led by the protagonist Jason on a perilous quest for the Golden Fleece which remains a symbol of desirable, lofty and difficult goals. The compelling narrative she delivers emphasises the value being delivered by these individuals who leverage their knowledge and experience for the benefit of the well established technology centers as well as the less technology advanced or developing countries where they originally hail from. The latter part of her book’s title i.e. “Regional advantage in a global economy” begs the question - What is Nigeria’s Regional Advantage in the Global Economy? 

Like the countries mentioned in the book, Nigeria is accustomed to the concept of the 'Brain Drain' but not so much that of 'Brain Circulation' judging by the lack of industries that are capable of surpassing local demand enough to be globally competitive. But we must focus on the problem only long enough to understand it enough to shift focus on the solution. The National Investment Promotion Council has done that and come up with a master plan called the National Industrial Revolution Plan (NIRP) which goes as far as aligning with well recognised initiatives like the Vision 2020 (Transformation Agenda). It was released in January 2014 and in my opinion is a truly laudable effort at inscribing the vision "so that those who read it will run with it".

The NIRP Release 1.0 includes a good SWOT analysis of Nigeria’s industrial landscape and outlines in quite clear terms steps to be taken to achieve industrial power. However,  it is skimpy and somewhat vague when discussing the area it refers to as ‘services’ which as contained in the document includes formal retail, haulage, call centers, shared service centres and engineering services. The wording exposes a timidity on the part of the author when it comes to addressing Nigeria’s lack of and urgent need for a enhanced technological abilities. Abilities that can only developed with training and experience and which are critical to any industrial success.

There are visionaries who believe and preach that Nigeria will be the most desirable nation on earth to live in by the stroke of midnight on Wednesday 31st December 2025 and that date is roughly 10 years from the time this article is being written. Considering the Nigerian antecedent with respect to nation building projects and the current state of affairs, that is not much time left to achieve that utopia of sorts and definitely does not leave room to dither about the issues that are to be addressed. At a time when the largest consumers of oil products are recording profound success with policies in favour of green energy, it is clear that oil will probably never fetch the price it once did. And that governments who have thrived majorly on the extraction of their natural resources like Nigeria will have to improve their methods.
Taken seriously, the vision is not laughable or unrealistic considering how naturally blessed the country is. Nigerians are some of the most talented people in the world but the management of such talents leaves much to be desired.

So we ask again - how can we create the land of our dreams in this ten (10) odd years that are left? To be more than a simple daydream, it must create positive daily actions that compound together over time to create the extraordinary and for the avoidance of doubt, will have more to do with the socioeconomic realities sustained by citizens than how good the weather is. Refusing to honour this possibility with the necessary constructive thought and attention it demands is a travesty of treasonable proportions directed not only at Nigeria but at the entire world which stands only to benefit from its realisation.

A list of prerequisite conditions for this envisioned improvement could include objectives like : 
  • Be a Financial hub and Economic Nerve Centre for the region.
  • Improved Agricultural yields and Increased Exports
  • Abundant Tourist Attractions and Robust Hospitality Industry. 
  • A Center of Technological and Scientific Innovation and Productivity.
  • Educational institutions who are actually engaged in productive thinking.
  • Policy, Market and Economic Structures and Frameworks that promote Entrepreneurship - Autonomy, Complexity and A Direct Variation of Reward with Effort.
  • The Protection of Intellectual Property Rights 
  • A Robust and Resilient Payments System
  • The Security and Safety of Lives and Property and the protection of Civil Liberties and Rights.
  • A Mature Judicial and Legislative Environment. 
Taken individually each of the outcomes expressed above is not trivial to achieve talk less of a combined realisation of most if not all of them which will be the result of a lot of good thinking and action. What is intended is to highlight the seriousness of the situation and the action it requires with particular focus on Technology in general and software development in particular.

We all must divest ourselves of any apathy towards the concept of a new, improved and united Nigeria and uncover our minds of the lethargy and inertia from years of disappointment and unanimously and conscientiously report at our different points of service on a daily basis.
The path of progress must be full of quick wins to bolster confidence and convert the recalcitrant. The end goal must be broken down into S.M.A.R.T objectives that can be pursued and attained with reasonable effort within reasonable constraints. The NIRP represents such a list of objectives but it also has to be brought to the fore of the Nation’s consciousness for every citizen to positively own their own piece of the action. One potential quick win lies in the nascent software development industry of Nigeria.

Steve Lohr writes in the New York Times about a Math major in the US who moved himself up from a $20,000 job waiting tables after graduation to one as a data scientist where his first salary was over five (5) times his previous at a web startup after taking just a three month course of computer programming and data analysis! Also mentioned is an English major who after a 24 week web programming class, now works as a software developer.

Both examples exemplify the opportunity, no the Imperative of Maximising Nigeria’s Creative bandwidth in Software Development. The combination of our current economic realities and envisioned future compel us to initiate urgent countermeasures to forestall a national emergency at worst or embarrassment at best.

In more developed countries, workers are moving to jobs in software development for greater financial benefit while here in Nigeria, the reverse is the case - people are actually avoiding coding all together to make money elsewhere in ICT via less rigorous but more rewarding pursuits. It has become easier to talk the talk and leave the work to some poor soul who has little choice by natural predisposition or unfortunate financial situation. Hence, the proliferation of firms with little actual value added but huge profits earned from exploiting the absence of a local knowledge industry. It’s easier to take the path of least resistance which offers temporary benefits at the expense of long term political and economic emancipation of the exploited. 

While it is okay for local ICT players to import technology for profit and local consumption it is unforgivable to refuse to pursue the development of local content and absolve the nation of the unrelenting burden on the nation's current account. Nigeria remains Africa’s largest telecoms market but does not have any mobile phone production plants. Selling software to the Nigerian government remains a game changer for many software vendors but none of the top 100 earning software companies of the world has a software development campus in the country.

Countries lead using technology - by placing a premium on creativity, innovation, entrepreneurship and productivity. It is laughable that Nigerian companies would consider outsourcing the development of custom software to foreign climes as a solution when these projects can be executed locally with less burdensome financial implications. I agree that in the context of individual commercial projects even outside the scope of ICT, it often makes better financial sense to outsource production, but never in this case in the long term. The government of the day must create and maintain the much needed socioeconomic infrastructure required for a conducive environment for takers to tackle the issue of creating the software needed to power the new knowledge economy. As eloquently expressed in the NIRP, "the Nigerian government must leverage its public sector spending to encourage local industry."

Recently, the president of Nigeria announced the commencement of an initiative for domestic weapons production. In his words - “We must evolve viable mechanisms for near-self-sufficiency in military equipment and logistics production complemented only by very advanced foreign technologies… The Ministry of Defence is being tasked to draw up clear and measurable outlines for development of a modest Military Industrial Complex for Nigeria”.

The announcement was made against the backdrop of the military's long drawn grapplings with insurgency but I eagerly await another similar announcement by the president to counter the currently unravelling spectacle of the nation's efforts at managing the depletion of the Nation’s foreign reserves. That is, an announcement for the development of a state of the art Software Development Industrial Complex for Nigeria which unlike a modest military complex, can be productive in far less time.

Any doubt to the verity of the foregoing sentence should be cast away as you recall the story of the waiter turned programmer and his consequent financial benefits. Consider the possibilities If Nigeria were to position its huge number of unemployed and underemployed to provide value to themselves and the nation in similar manner as the waiter did for himself. While software development is not a trivial enterprise, it can when architected properly, quickly yield benefits and minimised costs with phased rollouts of large systems. It provides ample benefits in terms of productivity by creating systems and tools that automate business functions and increase efficiency. It can be learned by anyone who can read and write just like playing a musical instrument.

The current devaluation of the Naira is a reflection of and on the true state of the economy and is not as a result of any interventions so to speak or the lack of it but the culmination of years of insufficient efforts at ramping up the ability of the nation to create actual value. Hence, at the instance of a severe loss of demand for Bonny Light in the international market and consequent diminished oil revenue, the fiscal and monetary authorities are not as eager to expend the now meagre trickle of petro-dollars  at the foreign exchange markets. 

In proportion to its productive population, Nigeria really doesn’t produce and the quicker we start to do so, the better. The propaganda trailing the re-basing exercise undertaken in 2013 is nothing but a facetious attempt at alleviating the dire urgency which the current Nigerian situation needs to command. It was particularly frustrating to be subjected to the narrative of Nigeria being the largest economy in Africa without the more instructive clause that it ranks 36th on the list of African countries by GDP per capita at Purchasing Power Parity. This means that the citizen of Nigeria - the regular person on the street - ranks 36th in the continent in terms of their ability to spend! This indeed is a far cry from the unforgivably deceptive prose of Nigeria’s economic superiority. Consider also, that the 36th position is averaged and where the lower placed elements on that distribution would lie.


Please consider also that Nigeria’s population which in 2013 was approximated at 173.6 million was more than three times that of South Africa’s 52.98 million which is ranked Africa's second largest economy.




The information presented here is clear. While Nigeria’s population is the highest of the countries shown, it’s productivity per person a.k.a GDP per capita is one of the lowest in the continent and not so much more than the smallest country of the continent - Somalia!

So, the question now is, how do we correct this and create a better place for everyone? The devil is in the details. But it can’t be done by avoiding the truth in the facts. Nigeria's argonauts will not launch into the deep to take advantage of whatever apparent advantage there is unless the climate for doing so is as risk free as possible. If the government were to float a bond to finance a technology  park - Nigeria's own silicon valley - what could be done to convince investors to buy? Governments role indeed is to start-up the the creation of an ecosystem that supports and encourages start-ups and tend and nurture them as they grow providing all that is required for healthy growth and weeding out unwanted elements that stifle progress. It's easier said than done but fortune favours the brave.

In closing, Mr. President’s stance against corruption is clear and present - the true nature of which continues to unravel in the world’s eyes. Fighting corruption is as important as it is urgent because no progress can be made until it is dealt with. However, nature abhors a vacuum and we must replace corruption with the progressive and unifying spirit of nation building so that we can learn the benefits of a noble existence working together for the common good. A failure to engage the court of  public opinion in activities that clearly show these benefits may give credence to the voices of those who suggest that the anti-graft campaign is nothing but political and personal vendetta and empower those who have made it their mission invert the minds of those who vicariously vacillate among views of endorsement or opposition. 


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