Economic Confidential, February 2008

BUSINESS

UTILISE EXCESS CRUDE FUND FOR INDUSTRIALIZATION- Senator Adedibu

By Segun Olomola

With the recent adoption of the Cluster Concept of Industrialization by The Federal Executive Council, the National Assembly is working towards formulating a National Industrial Development Plan, aimed at achieving accelerated industrial development of all parts of the country with intention of urging the all tiers of government to utilize excess crude proceeds to fund the vision.

The Chairman Senate Committee on Industry, Senator Kamorudeen Adekunle Adedibu disclosed to Economic Confidential that his committee may canvass that the excess crude fund from the crude should be channeled towards industrial development and growth of the Nigeria economy. He added that the major solution to problems bedeviling the nation is effective industrialization process which requires the executive arm and other stakeholders to join the national assembly in its effort to formulate the National Industrial Development plan to serve as a blueprint for industrial transformation.

He bemoaned the fact that to an average man on the street the economy is moving from bad to worst. According to him: “Eating 3-square meal is not possible for the majority of the population. Parent cannot afford to send their children to school. Good health care system is not affordable and there is no employment for the youth talk less of the old.”

He pointed out that it is high time that the Federal Government makes industrialization, the engine room for economic growth and development. He cited countries like USA, Japan, Germany, UK and Canada who attained their global reckoning and development by giving priority to industrialization as the enginme0room for self-reliance and economic power.

He said that some of the benefit to be derived through industrialization policy include reduction in unemployment by recruitments of workers to power the industries, reduction in crime rate as the youths would be actively engaged in economic activities for survival, while cost of maintaining security in the country would be channeled to development of infrastructures.

On the economic front, Senator Adedibu said internally generated revenue will increase with the money from taxes and other levies in the industries, foreign exchange would be earned from exportation of manufactured goods to other countries and the Nigeria economy would have been based on solid foundation which cannot be determine fluctuation of crude oil price at the international market.

He was of the strong belief that Nigeria is potentially great country owing to her sheer size, natural endowments and productive acumen of her people. To this reason, organized private sector must be encouraged as the highest employer of labour even in the developed economy. He promised to ensure that as the Chairman of the Senate Committee on Industry, small and medium-scale industries thrive and flourish as the basis for industrial regeneration.

Meanwhile in another development the Federal Executive Council has adopted the Cluster Conception of Industrialization. The cluster concept would require the establishment of Free Trade Zones, Industrial Parks, Industrial Clusters, Enterprise Zones and Incubators at different levels of the economy in all parts of the country.

The FEC adopted the strategy after a presentation by the Minister of Commerce and Industry, Mr. Charles Ugwuh. The Minister of Information and Communications, Mr. John Odey, who announced the adoption of the strategy, said that the Council directed that the plan would be presented to the National Economic Council, which comprises all the state governors. States, as well as the private sector, were expected to participate in the implementation of the strategy.

He also said that the development of small and medium enterprises was a major part of the strategy. The cluster concept is a major plank of the industrial policy for the growth of SMEs and its envisaged mode of operation across the country.