‘Government should create policies, institutions that provide opportunities for the people’

Vrajlal Sapovadia is an assistant dean in the School of Business & Entrepreneurship, American University of Nigeria (AUN), Yola, Adamawa State. He is an academician in business and management. As a researcher and consultant, he has worked for policy advocacy in entrepreneurship, medium, small and family business, cooperatives, micro finance, self-help groups and poverty alleviation. His experience is over continents and more in India. Sapovadia was a keynote speaker at the International Cooperative Summit in Quebec, Canada, as well as in several conferences hosted by the World Bank. He has also been a member of AUN’s online faculty, teaching undergraduate and MBA courses in the School of Business and Entrepreneurship. ZEBULON AGOMUO, deputy editor, BD SUNDAY, had an encounter with him during a recent visit to the university. Excerpts:

In your brief stay in Yola, what are the specific business opportunities that you have identified?
I have not carried out much research on the subject, but I see huge opportunities in agro-processing, cold storage, dairy farming, small engineering and auto workshops, vocational training centres, and trading in goods. In agriculture, credit and dairy sectors and small cooperatives may succeed, but small and family business can flourish. Within agriculture also its fertile land and climate are suitable for mango and other fruits and vegetables, cotton, groundnuts, spices like cumin, coriander, sesame seeds, and isabgul Psyllium seeds, if worked scientifically and organically, may attract good export business in the Middle East, Africa, and Europe. Several value-added products can be made out of these agro products with small investment and low technology. Processing of waste materials and plastic can be considered as viable business.

Adamawa State is not in the mainstream of Nigeria’s economic development. Is that an advantage or a disadvantage?
There is advantage for the entrepreneurs to fill the gap and bring Adamawa State into the mainstream. The entrepreneurs have first-mover advantage. It’s near monopoly for the beginners. This is a big advantage. Adamawa State is not in mainstream of Nigeria’s economic development, so market infrastructure and environment is lacking, and this is slightly a disadvantage. It may become difficult to hire skilled labour force. But the government and entrepreneurs can work in tandem to overcome shortfalls and create a favourable environment.

If there are advantages, please mention them?
If government or public-private big industries are founded in the area of agro-processing or dairy farming, there is a huge potential to tap immediate market and act as feeder to other small industries. A big plant can support 100 small businesses. Big industries’ purchase of goods and service requirement create huge market. Imagine if there is one big industry in each town or district. Being a petrol-rich region, petrochemical, textile & chemical industries have huge scope. The industry should choose appropriate organisational structure like cooperatives, corporate, and PPP business models. Over a period, small and family businesses will automatically flourish. In agriculture and agro processing, farmers’ cooperative (maybe with government support) can really bring change.

Discuss the economic and development potential of such advantages. Are there skills or endowments you believe will enhance the socio-economic development of Adamawa State?
No one size fits all. After careful research of the resources available in Adamawa State and market potential within and outside the state (domestic and export), investment technology required, appropriate business models should be developed. Untapped opportunity is the situation that exists in Adamawa; first movers can sail if entrepreneurs have strategic plans and are ready to work in the long run. If purchasing power is increased, education and training enhanced, entrepreneurship will develop as a result. If education and employment opportunities are improved, socio-economic development is the bye product. This will lead to more responsive governance system and the rest is cyclical and have cascading effect.

How can the government key into such advantages and develop the economy of the state in particular and the Northeast region in general?
If the government, with encouraging laws and procedures, can create local and private institutions so as to make them work in development activities, things will change. Macro-level policy should address education and training needs at first layer. Second layer, the government should provide necessary infrastructure guidance and support to create employment in all spheres, agriculture, manufacturing and the service sectors. Third layer, government should monitor closely the development review policies to ensure that they deliver time-bound results. Policy, institutional building, providing Infrastructure and human resource development are the key to overall sustainability. The government that manages, rather than controls, will deliver better results.

What is fundamentally wrong with government’s approach to business in Africa?
Various governments have not made sufficient research and investment in education, scientific farming and institutional building. Africa has abundant natural resources. Agriculture, industry, and service sectors are the base of any society. The people are intelligent, hardworking, and honest. If the population gets opportunity to demonstrate abilities, they can deliver like the rest of the world. The need is to develop skill, build confidence within them and in the system. The government should make polices and create institutions that provide opportunities for the people. Economic growth with equity will create political stability. Majority population in the agriculture sector lives in rural areas. If their productivity is increased every year by two percent, the growth will be phenomenal. The rural populace have inbuilt entrepreneurship, they must be motivated and shaped in scientific temper and objective mindset as farmers, technicians, and so forth to correct the African economy.

Your home country, India, is transiting to a global economic power. How has it grappled with its huge population, poverty, and security challenges? What lessons can Nigeria learn from India’s socio-economic policies?
India faced huge pre- and post-independence challenges in its history. After a strong independence movement for 90 years, India gained freedom in 1947. Amid limited resources, extreme poverty, food shortage, high illiteracy, lack of entrepreneurship, the country adopted, wisely, the socialistic pattern. With strong democratic foundation laid down by national leaders like Gandhi-Nehru-Patel, India progressed slowly but steadily. Being a plural society with religious and cultural diversity, India has adopted multiple welfare schemes to overcome those challenges of the time it faced political, social, and economic crisis. It rose above all due to strong national and local leadership. India invested heavily in state-owned industry, as there was no large entrepreneur base. Public-sector industry provided feeder to small and family businesses. Meanwhile, government invested in primary, higher, and technical education as well as promoted scientific agriculture policy. The multi-prong developmental policies have generated large entrepreneurship, skilled manpower and huge resources to start creating value in agriculture, industry, service sectors. Indians spread across developed countries for study, business and sojourn. In the first green revolution, it became food self-sufficient.

The country embarked upon globalization and liberalization in 1991 through market-driven policy reforms. This phase focused on infrastructure, services, public health, agriculture, and human resource development. The growth peaked up to 9 percent and in spite global economic crisis, India was insulated from collapse due to its strong institutional foundation, Indian diaspora, near monopoly in IT sector, and second agricultural revolution. It became food-surplus, having already attained food sufficiency. Indian literacy rate has gone up to 75 percent. To overcome poverty, government has launched minimum employment schemes in rural areas, and to develop agricultural infrastructure.

The foundation of development can be built upon education. Education should be primary and focused on developing skills which are basic to make human life better. Nigeria can develop small and family businesses in the area of basic necessities like mechanical engineering, electrical and electronics, computer, information technology, textile, food processing, value-added agro products, dairy farming (milk, egg, fishing and so forth), vocational training centers, and professional courses. Investment in education, agriculture, and entrepreneurship may absorb the problems that the country is facing.

India has not yet addressed the issue of growing population, but attempted to make the population productive, educating children, training them and imparting skills to make them employable. Government made primary education a fundamental right. The country has government schools in each village and ward in cities which are literally free. On the other hand, education is open for private sector to attract investment and innovations. India considers this is an asset. It is the country with largest number of youths, in contrast to aging population in many developed economy.