Transcript Slide 1

RICH NATION, POOR PEOPLE! GOVERNMENT-ACADEMIA-INDUSTRY
SYNERGY AS PANACEA: METALLURGICAL SECTOR OF THE
NIGERIAN ECONOMY, A PARADIGM.
BY
Engr. Prof. John Ade Ajayi, Dip. Mining (Jos); B.Sc. Met & mat . Eng (Ife);
M.Sc Mech. Eng. (Lagos); Ph.D Met. Eng (Zaria); fnse, fnms, mnmgs, mnsme
National President, Nigerian Metallurgical Society,
Department of Metallurgical & Materials Engineering,
Federal University of Technology Akure, Ondo State, Nigeria.
Email: [email protected]; GSM: +234 (0) 803 409 9369
PLENARY PAPER
Presented at the 30th Annual Conference & AGM of the Nigerian Metallurgical Society held at Raw
Materials Research and Development Council,Abuja between Wednesday 29th October and
Saturday 1st November, 2014
OUTLINE
1. INTRODUCTION
1.1. RICH NATION, POOR PEOPLE!
1.2. THE QUESTION IS SHOULD THIS DISCONCERTING
PARADOX CONTINUE IN NIGERIA?
2. WHAT IS RESPONSIBLE FOR NIGERIA’S
CONTINOUS UNDERDEVELOPMENT?
2.1. THE COLONIAL ERA.
2.2. AT THE ONSET OF INDEPENDENCE.
2.3. THE INCURSION OF THE MILITARY.
2.4. AT THE RETURN OF DEMOCRACY
2.4.1. POST 1999 DEMOCRATIC NIGERIA.
2.4.2. THE ADVENT OF MONOPOLY AGGRAVATED
“THE NEED FOR R&D POSTURE”
3. THE COMMATOSE METALLURGICAL & MINERAL
SECTOR OF THE NIGERIAN ECONOMY
3.1. DURING THE DARK AGES.
3.2. THE PERTINENT QUESTIONS IN RESPECT OF THE STEEL PROJECTS
3.3. WHAT BECOMES OF THE NON-FERROUS METALS?
4. LESSONS FROM DEVELOPED NATIONS
4.1. JAPAN
4.2. SINGAPORE
4.3. USA
4.4. BOTSWANA
5. THE WAY FORWARD
1.0. INTRODUCTION
1.1. RICH NATION, POOR PEOPLE!
 NIGERIA IS BLESSED WITH 34 ECONOMIC MINERALS APART FROM
OTHER NATURAL – AGRICULTURAL, WATER, PETROLEUM-AND
HUMAN RESOURCES.
 >70% OF NIGERIANS ARE REPORTED TO LIVE BELOW POVERTY LINE.
1.2. THE QUESTION IS, SHOULD THIS DISCONCERTING
PARADOX CONTINUE IN NIGERIA?
“IF YOU DON’T DO SOMETHING ABOUT
WHAT YOU KNOW TO BE WRONG,
THEN YOU ARE PART OF THE PROBLEM”
–Betty Williams, 1977 Noble Peace prize Winner.
2.0. WHAT IS RESPONSIBLE FOR CONTINUOUS
UNDERDEVELOPMENT IN NIGERIA?
“If you want to build high, you must dig deep.” – Stephen Ostwald.
2.1. THE COLONIAL MASTER ERA
THIS WAS AN ERA OF WHITE COLLAR JOB WHICH ENCOURAGED
CONSUMER – ORIENTED BUSINESS RATHER THAN PRODUCTION –
ORIENTED INITIATIVES.
“Let it be admitted at the onset that Europeans brains, capital and
energy have not and never will be expanded in developing the
resources of Africa from motives of pure philantropism” – Lord Luggard
(one time Colonial Governor-General of Nigeria)submission on his
mandate for Africa.
This is the spirit of World Bank, the International Monetary Fund and
World Trade Organization.
2.2. AT THE ONSET OF INDEPENDENCE
 AT THE ONSET OF INDEPENDENCE FROM COLONIAL POWERS,
INDUSTRIES WERE STREAMING INTO NIGERIA
 AGRICULTURE WAS MASSIVELY TAPPED INTO.
 ACADEMIA WERE BEING CONSULTED FOR INDUSTRIAL
RESEARCH AND DRAW UP RESEARCH POLICIES AND PLANS
 JOBS WERE AVALIABLE IN THE CIVIL SERVICE, INDUSTRIES
AND SMALL SCALE BUSINESS OUTFITS.
 ELECTRICITY WAS DEVELOPED TO MEET UP WITH
INDUSTRIAL AND HOUSEHOLD NEEDS
2.3. THE INCURSION OF THE MILITARY INTO GOVERNANCE
THE JANUARY 15, 1966 COUP AND THE JULY 29, 1966 COUNTER
COUP THREW THE NATION INTO CONFUSION WHICH ADVERSELY
AFFECTED INDUSTRIALIZATION AND THE TAKE OFF OF
METALLURGICAL INDUSTRY.
2.3.1. THE DISCOVERY OF OIL PLUMETED PEOPLE’S PARTICIPATION
IN INDUSTRIALIZATION, MINING, AGRICULTURE AND
ENERGY DEVELOPMENT.
2.3.2. EUROPEAN COMPANIES LIKE SINGER SEWING MACHINE
LEFT BUT THE LEBANESE STAYED; THE INDIAN AND
NIGERIA MONOPOLIES CAME TO THE SCENE.
2.3.3. COCOA, GROUNDNUT PYRAMID AND PALM OIL
INDUSTRIES DISAPPEARED/PLUMETTED; ENERGY
SECTOR BECAME COMMATOSE.
2.3.4. FACTORS 2.3.1, 2.3.2 AND 2.3.3 LED TO “NO NEED FOR
RESEARCH AND DEVELOPMENT POSTURE”. WITH CHEAP
OIL MONEY AND LITTLE EUROPEAN PARTICIPATION,
GOVERNMENT- ACADEMIA-INDUSTRY DISCONNECT WIDENED .
2.4. AT THE RETURN OF DEMOCRACY
2.4.1. POST 1999 DEMOCRATIC NIGERIA WOKE UP
TO FIND MYRIAD OF PROBLEMS:
 ENERGY DEFICIT
 COMMATOSE EDUCATIONAL SYSTEM
 POVERTY STRICKEN MASSES
 INDUSTRIES OCCUPIED BY MONOPOLIES
 INFRASTRUCTURAL DERELICS
 INHERITED CORRUPTION
2.4.2. ADVENT OF MONOPOLIES AGGRAVATED “NO NEED
FOR RESEARCH AND DEVELOPMENT POSTURE”,



THUS THROWING OFF THE ACADEMIA AND WIDENED
THE MORE THE GOVERNMENT-ACADEMIC- INDUSTRY DIVIDE.
THE GOVERNMENT ALSO DO NOT MAKE THE RIGHT AND ADEQUATE USE
OF THE ACADEMIA
THE RESULT IS THAT MANY COMPANIES LIKE DUNLOP, MICHELIN,
PROCTAR AND GAMBLE (P&G) MOVE TO OTHER AFRICAN COUNTRIES
MAJORLY BECAUSE OF THE HIGH OVERHEADS ON ENERGY GENERATION.
WIDENED GOVERNMENT-ACADEMIA-INDUSTRY DISCONNECT IS ILLUSTRATED IN FIG. 1
GOVERNMENT
(TRANSACTIONAL
LEADERSHIP)
ACADEMIA
(INTELLECTUAL
AMNESIA)
INDUSTRY
(INDUSTRIAL
COMMATOSE)
CENTRE POINT FOR
SUSTAINABLE NATIONAL
TECHNOLOGICAL
ADVANCEMENT, RAPID
INDUSTRIALIZATION AND
ECONOMIC DEVELOPMENT
CANNOT HOLD AS THINGS
FALL APART.
FIG. 1: GOVERNMENT-ACADEMIA-INDUSTRY DIVIDE. AS ROOT CAUSE
OF CONTINOUS UNDERDEVELOPMENT IN NIGERIA
3. THE COMMATOSE METALLURGICAL/MINERAL SECTOR
OF THE NIGERIAN ECONOMY.
“We have raised the dust and we then complained we cannot see.”-George Beckley.
3.1. DURING THE DARK AGES OF THE NATION, THE METALLURGICAL
SECTOR-THE IRON & STEEL & NON-FERROUS METAL-SUB SECTOROF THE ECONOMY BECAME COMMATOSE.
3.2. THE QUESTION STARING AT OUR FACES IS: “HOW DO WE ENSURE
THAT LIQUID STEEL IS TIMELY AND SUSTAINABLY PRODUCED-NOT BY
TRANSACTIONALLY TAKING SHUT-CUT-AFTER 60 YEARS
OF MEANDERING, POLICY DISCOUNTINUITY AND SUMMERSAULT?”
ANOTHER QUESTION IS: “WHAT BECOMES OF THE NON-FERROUS
METALS SUB-SECTOR OF THE INDUSTRY-ALUMINIUM, ZINC,
LEAD, TIN , GOLD AND NOW COPPER AMONG OTHERS WHOSE MINERALS ARE
CRYING FOR DEVELOPMENT?”
“HOW DO WE ADDRESS NEAR-COLLAPSE R&D & MANPOWER
DEVELOPMENT IN THE NIGERIAN METALLURGIAL INDUSTRY?”
4. LESSONS FROM DEVELOPED NATIONS.
“Only the resource of man can bring the resources of earth to life.”-Paul Baily
4.1. JAPAN
 THERE WAS INTELLECTUAL REVOLUTION IN JAPAN IN THE 70’S
WHEN JAPANESE BOASTED THAT AT THE TURN OF 20TH CENTURY,
THEY WOULD BE “INCHIBHAM” (THE BEST) IN GLOBAL TECHNOLOGY
AND ELECTRONICS
 THE VISION BECAME A REALITY BECAUSE OF VISIONARY LEADERSHIP
THAT DROVE THE INTELLECTUAL REVOLUTION.
4.2. SINGAPORE
 ACCORDING TO LEE KUAN YEW, THE SECRET OF SINGAPORIAN
SUCCESS IS“HEARTWORK”
 THIS NATION GOT INDEPENDENCEAROUND THE SAME TIME WITH
NIGERIA AND CATAPULTED HERSELF FROM THE THIRD WORLD
NATION TO THE FIRST WORLD NATION
 A UNITED AND DETERMINED GROUP OF LEADERS, BACKED
BY A PRACTICAL AND HARDWORKING PEOPLE WHO TRUSTED
THEM, MAKE THE SINGAPOREAN SUCCESS STORY.
 THERE WAS SCIENTIFIC AND TECHNOLOGICAL ADVANCEMENT,
ESPECIALLY BREAKTHROUGHS IN TRANSPORTATION,
TELECOMMUNICATIONS AND PRODUCTION METHODS.
 THE SYNERGY AMONG THE GOVERNMENT, ACADEMIA AND
INDUSTRY BRINGS ABOUT THE ECONOMIC
PROSPERITY OF SINGAPORE.
4.3. UNITED STATE OF AMERICA.
4.3.1. HUMAN RESOURCES DEVELOPMENT
 WHAT MATTER MOST FOR RESOURCE-BASED DEVELOPMENT
ARE NOT THE RESOURCES PER SEE
 THE IMPORTANT ISSUE IS WHAT IS DONE IN THE PROCESS OF
SEEKING TO ACHIEVE THEIR ECONOMIC POTENTIALS.
 PROBABLY, THE MOST IMPORTANT FACTOR FOR THE SUCCESS
OF THE USA AS THE LEADING WORLD ECONOMY IS EDUCATION.
 BY THE END OF THE 19TH CENTURY, THE USA BECAME WORLD LEADER IN THE TRAINING
 THE COLUMBIA SCHOOL OF MINE OPENED IN 1864, BECAME
THE CLEAR LEADER IN MINING AND METALLURGICAL ENGINEERING.
4.3.2. BAYH-DOLE’S CYCLE ILLUSTRATES HOW UNIVERSITIES
RESEARCH ENHANCES ECONOMIC DEVELOPMENT
 IN 1980, BAYH-DOLE’S ACT WAS ENACTED BY THE USA CONGRESS
AND THIS LEADS TO BAYH-DOLE’S CYCLE.
 UNDER THE BAYH-DOLE’S ACT:
i. UNIVERSITIES AND SMALL COMPANIES ARE ALLOWED TO OWN
INVENTIONS THEY MAKE WITH FEDERAL FUNDING.
ii. UNIVERSITIES ARE ENCOURAGED TO PARTNER WITH INDUSTRIES
TO TRANSLATE RESEARCH RESULTS INTO PRODUCTS THAT WILL
BENEFIT THE PUBLIC.
iii. RESULTING UNIVERSITIES LICENSING INCOME IS INVESTED
IN MORE RESEARCH, REWARDING UNIVERSITY SCIENTISTS /RESEARCHERS
AND SUPPORTING THE CYCLE OF INVENTION
iv. OPERATING UNDER THE ACT KEEPS THE INVENTORS ACTIVELY
ENGAGED IN THE TECHNOLOGY TRANSFER PROCESS .
v. UNIVERSITY RESEARCH HELPED CREATE WHOLE NEW COMPANIES,
SUCH AS BIOTECHNOLOGY, WHERE THE UNITED STATES
UPHOLDS A LEADING ROLE.
vi. SINCE ENACTMENT, MORE THAN 4000 NEW COMPANIES ARE
FORMED AROUND UNIVERSITY RESULTS – THE MAJORITY LOCATED
IN CLOSE PROXIMITY TO THE UNIVERSITY.
vii. NEW COMPANIES MEAN MORE TAX FOR GOVERNMENT FROM
WHICH MORE FUNDS ARE TRANSFERED TO THE UNIVERSITIES FOR
RESEARCH.
 THE UNITED STATES IS THE GLOBAL LEADER IN BASIC AND APPLIED
RESEARCH AND LEADS IN APPLYING THE RESEARCH AND
INNOVATION TO IMPROVE ECONOMIC PERFORMANCE.
 IN 2012 ALONE, 591 NEW PRODUCTS ORIGINATING FROM THE
UNIVERSITY RESEARCH WERE INTRODUCED TO THE
MARKET PLACE BY COMPANIES.
 DEVELOPED NATIONS LIKE USA GIVE UP TO 7.8% OF THEIR GDP
TO FUND RESEARCH WHEREAS DEVELOPING NATIONS
(EUPHEMINISTICALLY PUT) LIKE NIGERIA
CONTRIBUTE LESS THAN 0.039% OF THEIR GDP TO RESEARCH.
AGAIN, THE SECRET OF THE DEVELOPMENT OF USA IS THE
GOVERNMENT-ACADEMIA-INDUSTRY SYNERGY.
4.4. BOTSWANA
 SOMEBODY MAY ARGUE THAT BOTSWANA, A NATION LOCATED
IN THE DESERT AND NOT AMONG DEVELOPED ECONOMY,
SHOULD NOT BE A MODEL FOR NIGERIA.
 THE FACT IS THAT BOTSWANA, A STEADILY DEVELOPING
NATION, IS A NATION TO WATCH.
 THE GOVERNMENT HAS MANAGED THE WEALTH FROM
MINERALS – DIAMOND, COPPER/NICKEL AND SODA ASH IN
SUCH A WAY AS TO GUARANTEE SUSTAINABLE DEVELOPMENT.
 THE EARNINGS FROM MINERALS ARE USED TO BUILD HUMAN
CAPITAL ASSETS, MANUFACTURING ASSETS AND FOREIGN
FINANCIAL ASSETS.
THE COUNTRY HAS EMERGED AS ONE OF THE SUCCESS STORIES IN
AFRICA THROUGH GOVERNMENT – ACADEMIA – INDUSTRY SYNERGY.
5.0. THE WAY FORWARD
”Lamenting the times without doing anything to make them better is a cheap show
of wisdom. These are your times and righting what is wrong in them is part of your
battle” – George Bernard Shaw
HAVING DEFINED THE PROBLEMS RESPONSIBLE FOR CONTINUOS
UNDERDEVELOPMENT, WE NOW GO AHEAD TO PROFFER APPROPRIATE SOLUTION .
 THE STARTING POINT FOR GOVERNMENT – ACADEMIA – INDUSTRY VALUE
DRIVEN SYNERGY THAT CAN DRIVE THE NATION TOWARDS TECHNOLOGICAL
ADVANCEMENT, RAPID INDUSTRIALIZATION AND ECONOMIC DEVELOPMENT IS
SINCERE, VISIONARY, STRATEGIC AND TRANSFORMATION LEADERSHIP;
THEN, TECHNOLOGICAL INVENTION, INNOVATION AND
ENTREPRENEURSHIP WILL ENGENDER TECHNOLOGICAL ADVANCEMENT.
SECOND, NIGERIA NEEDS INTELLECTUAL REVOLUTION TO BE BROUGHT ABOUT BY
REINVIGORATED ACADEMIA WHO SHOULD BE INVOLVED IN POLICY FORMULATION.
THIRD, THE MULTINATIONALS SHOULD HAVE RESEARCH AND DEVELOPMENT
DEPARTMENTS IN NIGERIA WHICH SHOULD SYNERGETICALLY NETWORK WITH
NIGERIA UNIVERSITIES AND/OR RESEARCH INSTITUTES.
FOURTH, ECONOMIC DEVELOPMENT AND NATIONAL SECURITY GO HAND IN
HAND. THE UNIVERSITY AND MILITARY SHOULD COLLABORATE IN RESEARCH AND
DEVELOPMENT IN DEFENCE AND SECURITY RELATED MATTERS. THE USE OF UAV,
UGV AND UUV TECHNOLOGIES ARE THE VISION FOR TOMORROW DEFENCE
TECHNOLOGY.
FIFTH, GOVERNMENT SHOULD CAREFULLY DECENTRALIZE ELECTRICITY
GENERATION AND NOT JUST DISTRIBUTION AND ENCOURAGE ENTREPRENEURSHIP
IN THIS AREA WITHIN THE STATES FOR ADEQUATE POWER FOR INDUSTRIAL AND
HOUSEHOLD USE.
SIXTH, THE GOVERNMENT SHOULD SEE TO THE DYSFUNCTIONAL
TECHNICAL/TECHNOLOGICAL EDUCATION IN NIGERIA ESPECIALLY
MINING/MINERALS/METALLURGICAL/MATERIALS/MANUFACTURING
ENGINEERING (THE 5 GREAT “Ms”) EDUCATION .
SEVENTH, IRON AND STEEL PROJECTS ARE TOO STRATEGIC TO REMAIN IN THE
BUREACRATIC MINISTRY WHERE “THE STEEL APPENDATE” HAS BEEN TREATED
LIKE LEAF OF THE PLANT POPULARLY KNOWN AS “TOUCH ME NOT”(MIMOSA
PUDICA).
THEY SHOULD BE RETURNED TO THE PRESIDENCY WHERE THEY WERE ORIGINALLY
UNDER A CAREFULLY CONSTITUTED NATIONAL IRON & STEEL
COMMISSION/COUNCIL LIKE NNPC AND NCC.
EIGHT, TIME HAS COME TO TAKE THE DEVELOPMENT OF NON-FERROUS METALS
LIKE ALUMINIUM, GOLD, LEAD, ZINC, TIN AND COLUMBITE MORE SERIOUSLY. NONFERROUS METALS RESEARCH INSTITUTE SHOULD BE ESTABLISHED AS IT IS DONE IN
NATIONS WHERE THINGS WORK.
NINTH, NATIONAL RESEARCH FOUNDATION FOR FUNDING RESEARCH AND
DEVELOPMENT IN THE STRATEGIC AREAS OF NATIONAL ECONOMY SHOULD BE
ESTABLISHED/REINVIRGORATED AS THE CASE MAY BE PARTICULARLY FOR POWER,
MINERAL PROCESSING TECHNOLOGY AND EXTRACTING METALLURGY,
ENGINEERING MATERIALS, DEFENCE INDUSTRY, COMMUNICATION AND
TRANSPORTATION.
ALL THESE SHOULD LEAD TO SUSTAINABLE NATIONAL DEVELOPMENT AS DEPICTED
IN FIGURE 2.
GOVERNMENT
(Transformational
Leadership)
Centre point for
Sustainable National
Technological
Advancement, Rapid
industrialization and
Economic
Development
ACADEMIA
(Intellectual Revolution)
INDUSTRY
(Industrial Development)
FIG. 2:GOVERNMENT – ACADEMIA – INDUSTRY VALUE-DRIVEN SYNERGY AS PANACEA