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Why we must develop Nigeria Beyond oil Emmanuel Uduaghah

Why we must develop Nigeria Beyond oil Emmanuel Uduaghah

SPEECH ENTITLED: “OIL, SOIL AND TOIL: THE ROLE OF EDITORS
> IN PROMOTING THE NIGERIA BEYOND OIL CAMPAIGN” DELIVERED BY
> HIS EXCELLENCY, DR. EMMANUEL EWETA UDUAGHAN, GOVERNOR, DELTA
> STATE, AT THE OPENING OF THE NIGERIAN GUILD OF EDITORS
> CONFERENCE, HOLDING AT THE CONFERENCE CENTRE, ASABA,
> 21ST-24TH AUGUST
> 2013
>
>
> Protocol:
>
> 1.
> This is one occasion where I do not have to toil hard on
> protocol. The reason is simple: This is a media event. Put
> together by top media chieftains and hosted by us. That
> means by merely recognizing you as Gentlemen of the Press
> (no ladies, I am informed) instead of Your Excellencies,
> Honourable members of this or that, Chief So-so, I have
> discharged my protocol
> obligations.
>
> 2.
> Now since it is obviously a simple task, I therefore say,
> welcome to you all Gentlemen of the Press to Asaba, our
> state capital!
>
> 3.
> But I will not stop here. You know I am informed of a story
> about what happened in The Guardian at its inception. The
> Guardian if you remember, had a policy of addressing
> everyone as simply Mr. Whether you’re a professor this or
> that, or Dr. this or that or Chief this or that; in The
> Guardian you were addressed simply as Mr. or Miss or Mrs. No
> long titles. Such simplicity! Well it did happen, as the
> story goes, that a particular Chief, an employee of The
> Guardian did not like that policy, but had to comply, but
> did not miss to inform his bosses that: “you can address
> me as Mr., no problem I will answer, but should you decide
> to seek my daughter’s hand or seek to marry any of my
> relative, I will exercise full authority to be addressed by
> my full title or I will invoke
> sanctions!”
>
> 4.
> With this in mind Gentlemen of the Press, you will have to
> permit me to recognize some invited guests here, who may be
> like The Guardian Chief and would like to be addressed by
> their full titles. Some of us are very conscious of our
> titles which, it has to be said came out of the toil and
> sweat of our endeavours and the recognition that has
> brought.
>
> 5.
> That done, I want to say that it gives me great pleasure to
> receive you, here, as you deliberate on what I consider one
> of the most central concerns of the moment:Nigeria Beyond
> Oil, The Role of the Editor. As they say compliment is
> the sincerest form of flattery. We in Delta state feel
> flattered that the Nigerian Guild of Editors is keying into
> this initiative of thinking of Nigeria beyond oil, an
> adaption of ‘Delta Beyond Oil’ vision we have championed
> since assuming office six years ago. It means our message
> and accomplishments are getting
> out.
>
> 6.
> Are we prepared for life without oil? Even before that,
> should there be a collapse in the price of oil in the
> international market, can the governments and people of
> Nigeria cope? I shudder to think of the
> consequences.
>
> 7.
> I am happy this conference is organized by editors for
> editors. I hold editors, and, indeed all journalists, in
> high esteem. I see editors as highly educated men (otherwise
> how do they hope to educate the rest of the society?). I see
> you as highly principled and courageous with many having
> paid the price by the loss of their liberties at different
> points in our history.
>
> 8.
> An editor is a leader; he is an administrator and an
> executive. He has to combine these qualities and virtues to
> make success of the trust handed him by the society. The
> media men are the only professionals who have the
> constitutionally recognized role of keeping the country safe
> and sane.
>
> 9.
> Most times, he weighs what to write—what must be published
> or broadcast in the national interest and what to keep from
> the public consciousness also in the national interest.
> Well, one hazard I must not forget is that in this noble
> cause, when it suits some leaders, an Editor is a patriot,
> but when the same leaders come under the tough searchlight
> of the Editor, there is a backlash, the Editor is branded a
> villain. I guess you might say head you win, tail you
> lose.
>
> 10. I
> salute you as great contributors to the building of this
> country. The history of the struggle for Nigerian
> independence cannot be written without a good mention of the
> roles played by the Nigerian media and the writers and
> editors.
>
> 11. How
> can anyone quickly forget how the doyen of Nigerian
> nationalism, the great Herbert Macaulay used the West
> African Record to torment the colonialists? How can anyone
> possibly write the story of that era without paying tribute
> to the fearless contribution of Ernest Ikoli and the deep
> insights of Abiodun Aloba (Ebenezer
> Williams).
>
> 12.
> First generation nationalists and leaders like the legendary
> Dr. Nnamdi Azikiwe and the great leader Chief Obafemi
> Awolowo were all products of your confraternity. Later, we
> had the likes of Chief Tony Enahoro, Chief Bisi Onabanjo of
> the Ayekooto fame, Alhaji Lateef Jakande, Alhaji Babatunde
> Jose and our own Aremo Olusegun Osoba, Sam Amuka (Sad Sam),
> Nduka Obaigbena, etc., who all did and are doing great
> exploits through their pens and
> publications.
>
> 13. Nigeria Beyond
> Oil
> The task and
> the challenge for your generation are to keep the flag
> flying. The themes of your discussions in the past eight
> conferences have been quite apt. This year’s, in my view,
> is the most appropriate. It is a call to duty. We are
> invited to pause and think, for a moment, about the future
> of our country without oil. Nigeria, as the World Bank
> Country Director, Ms. Marie Francoise Marie-Nelly,
> told Economic Confidential, in a recent
> interview about Nigeria echoes the theme of this
> conference.
>
> 14. Her
> point, which I shall quote, is that: “So far, the
> government survives mainly with oil revenue, which accounts
> for over 90 per cent of exports and well over 70 per cent of
> consolidated government revenues. As oil resources are not
> indefinite, it is important for Nigeria to plan now what it
> wants to be after tomorrow.”
>
> 15.
> Speaking further, she said: “The issue is how Nigeria can
> use the available oil resources to invest and prepare itself
> for the non-oil economy period. We think the agricultural
> sector is very important for Nigeria. Today, Nigeria is
> importing 2.5 million tonnes of milled rice
> annually.
>
> 16.
> “With the projected population growth, in 20 years,
> Nigeria will need 35 million tonnes of milled rice. So will
> the country afford importing all this rice? This is why
> Nigeria needs to invest in agriculture, so that Nigerians
> can feed themselves in 20 years.
>
> 17.
> “Even if you continue to have oil, you may not have all
> the resources to import what would be needed to feed the
> population. Nigeria needs to put in place not only the
> infrastructure, road, electricity, but Nigeria needs to
> invest in agriculture.”
>
> 18.
> This comment is not new but reminds me of the golden years
> and the sad decline that set in as oil export began to
> displace agriculture. At Independence non-export was the
> main stay of our economy—from oil palm, cotton, cocoa,
> groundnuts, rubber, etc., this country made good economic
> progress. In structural terms non-oil export accounted for
> 80% of total exports between 1960-1970. In GDP terms,
> non-oil contributed 98.4%, while oil accounted for 1.6% as
> balance.
>
> 19.
> Looking at the two sector economy of oil and agriculture,
> you can say that trouble began in 1970 when oil contribution
> went to 17.94% and agriculture declined to 34%! The slide in
> agriculture continued such that by 1995 oil exports
> represented 97.3% of our total exports. Till date, oil
> export constitutes over 90% of our export
> revenue.
>
> 20. My
> point in stating the above is to remind us of when we
> started to derail. We stopped industrializing and we stopped
> expanding our agriculture output. What then resulted was
> decline in food production; shortage of raw materials, rapid
> monetary expansion not matched by domestic productivity. In
> addition we had and continue to have soil, water and air
> pollution, from oil production especially in the Niger Delta
> zone.
>
> 21. In
> all this, I am not saying that oil does not have its good
> side. It does. We have economic growth driven by oil export,
> infrastructure development from oil revenue, increase in
> national income, improved balance of payment,
> etc.
>
> 22.
> However, and this is the problem, it is clear that relying
> solely on oil export has narrowed our vision and
> opportunities to build a diversified and more prosperous
> country. Amidst oil export, Nigeria spends 1.3 trillion
> Naira on food imports every year, with our import bill
> rising by 11% annually. This is frightening. Oil
> dependency is quite clearly responsible for the high
> unemployment rate estimated at 23.9% amounting to about 40
> million Nigerian youths from available data that are without
> jobs.
>
> 23.
> Youth unemployment has given me grey hairs as so many
> leaders across the world. In the news and around us, tight job market has
> remained a troubling issue. We just have to slay this
> monster. Another issue of increasing concern is the high
> population growth, which the World Bank country director, I
> quoted earlier referred to. The fact is that with 2.8%
> population growth Nigeria is sitting on a ‘population
> bomb’.
>
> 24.
> What we do not often realize and this can be crosschecked by
> anyone, no developed nation as we know it today had the same
> population growth as we currently have. In actual fact,
> economic historians are skeptical that industrisalisation
> would have succeeded in the West, if they had similar
> population growth.
> 25. Many
> Development theorists are clear on this: high population
> growth leads to deeper poverty, and deeper poverty leads to
> high fertility. It is a vicious circle, which should have no
> place in our economy.
>
> 26. Yet
> to escape the poverty trap, we simply have to improve our
> food production to support rapid population growth. We know
> that rising food production per capita was central to the
> success of the Asian tigers. And so as a Low Middle Income
> country, Nigeria with a gross national income per capita of
> about 1,500 dollars stands a great risk of being caught in
> bigger poverty trap, if it does not diversify her economy.
> This is why the theme of this conference is so
> important.
>
> 27. Why
> this is so urgent is that time is running out. No one knows
> how long high oil prices will continue to drive our economic
> growth, before it nosedives. Having lived with high oil
> price for too long, without diversification, we might have
> an equivalent of an economic Armageddon sooner than we
> expect.
>
> 28. Our
> oil production is threatened in two fronts. First, illegal
> bunkering and there is no shortage of the havoc this is
> doing. The International Energy Agency recently sounded the
> alarm that Nigeria had been losing about $7 billion annually
> to vandalisation of pipelines, oil theft and illegal
> bunkering. The chairman of the Nigerian Extractive
> Industries Transparent Initiative, Mr. Ledum Mitee said
> recently while presenting the organisation’s Audit Report
> of the Oil and Gas sector that, between 2009 and 2011, the
> country lost about $11 billion to activities of oil thieves.
> The figures may differ but the sums are
> huge.
>
> 29.
> Nigeria crude oil production is also facing another
> challenge with the discovery of alternative in Shale gas.
> Right now that resource is evolving and it is believed that
> in future as the technology to explore it matures; it will
> become more commercially successful and a real competition
> to the crude oil in the international energy
> market.
>
> 30. For
> us in Delta state, at least this administration, we were
> very clear in our mindfrom the beginning that we must do
> whatever we can to initiate programmes to protect and
> diversify the economy of the state. This is in spite of the
> fact that Delta State accounts for 30 percent of national
> oil production and export with oil and gas accounting for
> 65 percent of our GDP and 85 percent of our revenue from
> federal allocation. From 2007 when we came into office, we
> articulated our programme with the intention of investing in
> critical infrastructure (social and economic) that can
> expand our economy beyond
> oil.
>
> 31.
> Distinguish listeners, though it was our focus to get this
> programme fully implemented, but one point has to be
> stressed here, diversification is both possible but not easy
> to achieve. It does not happen automatically but we know it
> can be done and we are determined to do our bit. My hope is
> that the next administration will see the wisdom to sustain
> and continuously invest in further expanding the
> infrastructure and human capital development that is
> abundant in the state.
>
> 32.
> What we know and which is why we are so determined in the
> direction we are pushing is that it is clear that economic
> development in Delta State is going to be shaped greatly by
> its location (as an emerging regional hub) with access to
> the sea through the Warri seaport, two airports, several
> dualised roads forming strategic network grid
> interconnecting the two growth poles of Warri and Asaba,
> with the many urban and riverine
> areas.
>
> 33. We
> were also clear in our mind that for economic growth to be
> impactful, it has to be inclusive. Deltans must feel they
> have a government that cares about them. Deltans must feel
> the impact of government wherever they reside. We were
> careful to avoid anything remotely suggesting lopsided
> development.
>
> 34. And
> so in building Delta beyond oil, it was obvious we must
> invest in some key infrastructure such as the 250 megawatts
> Oghareki power plant, which we hope to commission late 2014.
> We have major investments in generation and distributions
> companies that have just been privatized. We have invested
> in NIPP power plants that have also been privatized. We are
> attracting international partnership to pursue aggressively
> opportunities in renewable energy. We are developing both
> policy and regulatory framework to give comfort and attract
> investment into our renewable energy
> sector.
>
> 35. The
> heavy investment in power infrastructure is because it is
> economically profitable to do so and secondly, we know that
> it is just the right way to guarantee energy security we
> urgently need to give Deltans power and to support our
> industrial base.
>
> 36. Our
> Asaba airport project is now at a finishing point; this
> airport is easily the best in the country and hopefully in
> future can become one of the busiest and most profitable.
> Its location makes it an airport to watch in the future. I
> am certain that its completion is at the centre of the rapid
> growth and urbanization of Asaba capital
> city.
>
> 37. The
> Osubi airport improvement project is on course. We are
> spending considerable sums of money to build a 4km runway
> and upgrade the terminal building to become one of the best
> in the country. Osubi serves the Warri commercial hub and
> the oil industry sector located in that
> area.
>
> 38. So
> far I can say that our road infrastructure programme has
> been a resounding success. Since coming into office as an
> administration in 2007, we have constructed over 1,006
> kilometres of roads bringing the total length of roads in
> the state to 3,236 kilometres, well on course to meeting our
> vision 2020 target of a minimum of 5000 kilometres of new
> roads.
>
> 39. We
> have also made good progress in our educational programmes.
> So far we have either built or rehabilitated over 18,000
> classrooms, many of them built to international standard (a
> prototype of our model school is right across this
> conference centre). Education in Delta state is virtually
> free. Our first class scholarship scheme stands out as an
> outstanding success with 150 recipients studying at various
> schools abroad. We pay N 20,000 bursary awards to students
> of Delta state origin in every institution of higher
> learning across the country.
>
> 40. Our
> liberal programmes of support extend to the healthcare
> sector, where we affect lives in so many ways. We have free
> maternal healthcare, we have free under5 healthcare, we have
> free rural healthcare that offers treatment of patients with
> both medical and surgical
> conditions.
>
> 41.
> Even in the transport sector, we are funding the people, we
> have buses of various sizes that have 50%
> subsidy.
>
> 42.
> When I talked about inclusive development, it is through
> these programmes we seek to touch our people at the various
> points of their need. We use these programmes to
> redistribute income and to support many of our people who
> may have been left to suffer
> unduly.
>
> 43. Our
> micro credit schemes have been a great success, giving
> financial support to small and micro entrepreneurs, many of
> whom without micro credit would not have started their small
> businesses. Today, the micro credit scheme has over 100,000
> beneficiaries and from itssuccess, it is obvious the poor
> are not a credit risk, if properly organized. Indeed, some
> of the beneficiaries are migrating to small and medium scale
> enterprises, with some already exporting their products
> abroad.
>
> 44. Our
> agriculture programme is driven by a combination of our
> strategic partnership with big agro-based companies like
> Obasanjo Farms, by our big push strategy of setting up of
> agro-based processing facilities in fish meals and cassava
> pallets. These processing facilities are in collaboration
> with some private investors and the farmers’ association.
> We are also giving support to our famers in terms of inputs,
> subsidies and by deliberately building infrastructure like
> roads to farming communities, to ease access to markets and
> movement of their produce.
>
> 45. Our
> industrial programme is anchored on setting up special
> economic zones and construction of industrial parks. In
> partnership with the Federal Government through the NNPC,
> Delta State is the host to the multi-billion dollar Gas
> Based Industrial programme. The GBI aims to host a Central
> Processing Facility (CPF), fertilizer and petrochemical
> plants as a strategy to convert gas into economic
> assets.
>
> 46. The
> Warri Industrial Business Park (WIBP) conceived by the state
> as a plug and play model is to enable companies and
> investors to share common services and to establish their
> plants with minimal hassles. That project in partnership
> with the private sector is on course and has elicited huge
> interest from the business community. When it takes off, the
> WIBP promises to be a commercial
> success.
>
> 47. We
> are also through our Economic Advisory Team headed by Mr.
> Bismarck Rewane in the process of reviving moribund
> industries.
>
> 48. We
> are also building the Asaba ICT Park, which the Federal
> Government through the Nigeria Communication Commission
> (NCC) has shown interest and is already constructing a major
> facility there. Around the state, there are so many
> investors that have shown interest, some are already setting
> up plants while some have advanced in their plans to do so
> in the near future.
>
> 49. As
> I round up, I want to make the point that the ultimate
> success of Delta State Beyond Oil, can only be assured if
> the economy of the state is linked to international trade
> and this is why it so important to have the full activation
> of Warri port.
> 50. I want to
> note that though activities at the Warri port have picked up
> but the challenge of access has to be fully addressed.
> We appeal to the federal authorities to direct the NPA to
> speed up work in the dredging of the channel to the
> port.
>
> 51.
> Before going back to my seat, I want to place on record that
> our administration fully endorse and support the
> transformation agenda of President Goodluck Jonathan’s
> Administration. Some of the issues and challenges I earlier
> highlighted are clearly being tackled by his administration
> and I am satisfied he is making good progress to end Nigeria
> over reliance on oil.
>
> What Role For The
> Editor?
> 52. The
> Delta State administration and the Federal administration
> share a common desire and will to build an economy beyond
> oil. As your theme suggests, it is my view that the ultimate
> success of Nigeria Beyond oil initiative, rest in the joint
> partnership of government and the Nigerian people with the
> Nigerian Editors mediating through constant education of the
> people about the importance and the sacrifices that have to
> be made if we are to succeed in our
> quest.
>
> 53. I
> must confess that carrying the media along in our
> determination to develop our “Delta Beyond Oil Economic
> Model” has not been easy. I am aware that Chief Executives
> at various levels of governance are assessed by projects.
> Whether the projects has relevance to any economic activity
> or not does not matter. For us in Delta however, all our
> activities are programmes rather than mere projects. For
> instance, we had to take on the dualisation of the 149km
> Federal Road between Asaba and Ughelli because it is the
> shortest connection between Warri Port and Onitsha market,
> two economically active centres in Nigeria. We do hope that
> when it is completed, importers in Onitsha market will use
> the Warri Port more and ports that are farther, less. It is
> therefore imperative, that in assessing the progress of any
> administration the Editor has to look at the programmes,
> rather than just projects, and then educate our people
> appropriately.
>
> 54.
> Again, though there are low hanging fruits in actualising
> the ‘Beyond Oil Economy’, the Editor should understand
> that some of the infrastructure required to attract
> investors to other areas of the economy are expensive and
> take quite some time to actualise. Power plants for instance
> are not cheap and take time to establish. Therefore, the
> Editor and by extension the media should help to educate the
> people and guide them to be
> patient.
> 55. Gentlemen
> of the Fourth Estate of the Realm, it is on this note that I
> want to once again welcome you to Asaba and wish you
> fruitful deliberations.
>
>
> Office of the
> Governor
> Government
> House
> Asaba, Delta
> State.editoreditors

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