A nation of fantastic consumers

For several decades, Nigeria’s economy is driven by a consumer culture. There is no other way to categorize a nation that spends almost US$ 11.0 billion annually on food imports. Regrettably, most Nigerians don’t like locally produced rice. Available data shows that Nigeria equally spends N1.7 trillion importing rice in 10 years for consumption when arable lands are available to cultivate rice in most parts of the country. A nation whose citizens purchase assorted foreign cars, motorcycles, and electronic gadgets, not because of their functionality but due to their lust for imported products is bound to be poor.

Most Nigerians want to prove a point to neighbours, friends and family members with their consumption pattern so that their stupendous wealth will be noticed. Most times, the propelling force behind purchases of foreign goods by Nigerians is reinforced by the way they want others to see them. But for the drop in the price of crude oil in the international market by about 70 percent in the last 2 years, coupled with mismanagement of the nation’s economy, Nigerians would still be importing toothpicks, meat, tomatoes, incense, wood and pencils amongst others.

Nigerians have limitless appetite for foreign made goods. Most Nigerians do not love “made in Nigeria” goods. Since Nigeria has deliberately refused to join the league of producing nations, we have all manner of goods- genuine, fake and fairly used, in the market. Nigeria has now become a dumping ground for all kinds of products made in other countries. A nation that is fantastically a consuming nation will never be free from the shackles of poverty and will never be classified as a “powerful” nation

Nations classified as “powerful” are those that are technologically advanced. They are nations that are productive and have significant control over the means of production. Perhaps, that is why these nations possess high degree of industrialization and economic clout. The high degree of industrialization and economic clout are as a result of indigenous technological capability. It has equally been observed for decades that nations that command greater influence in global affairs have maintained a reasonable control of their economy. This means control of factors of production and industrialization which are the backbone of any meaningful industrial and economic development in a nation.

When there is technological backwardness coupled with poverty in an oil-rich nation, there is need for policy makers to put into focus underlying reasons why oil has not created wealth for a nation of about 200 million people. This is because there is no way Nigeria will exercise real power in this contemporary world if policy makers believe that the country will get technology as a gift from a developed nation.

Technology is not given freely from one country to another. Technology transfer occurs as a by-product of industrialization. The acquisition of technology by developing countries like Nigeria has generated so many controversies. These controversies arise because of issues relating to high cost, unsuitability, and ineffectiveness of the transfer. It is because of these issues that most developing countries like Nigeria prefer to buy sophisticated machinery where it exists abroad instead of producing an indigenously made brand. Buying machinery from abroad drains our foreign exchange reserve.

If Nigeria cannot manufacture a complete car engine, why can’t the nation manufacture crankshaft, oil and water pumps as well as other components to an internationally acceptable standard. In the 1980s when Anambra Motor Manufacturing Company (ANNAMCO), Enugu, was manufacturing buses, a research report on the company reveals that vehicles produced had more than 4000 components in them. But only about 70 components were manufactured in Nigeria at that time. With policy inconsistency of the federal government in the past, most of the local firms supporting ANNAMCO have closed down their factories. As the nation receives payments from sale of crude oil in dollars, developed countries collect colossal sums of foreign exchange for goods Nigerians want to consume but could not produce locally.

If there was a thriving industrial and technological base within the country, all our refineries will be operational. The federal government wouldn’t have thought of spending US$ 700 million on repairing refineries. The federal government should use oil revenue and a large chunk of the money to be borrowed in the third quarter of the year 2016 for the development of critical infrastructure that will help increase productive and reproductive capacity of the economy. This will be a cost-effective starting point for a nation in pursuit of economic development

Developed countries are by virtue of their technological development ruling the world economically. While developed nations are pioneering and perfecting their way through new frontiers of knowledge, it is a pity that Nigeria and other less developing nations seem frightened to take bold steps towards sustainable technological development. The Nigerian experience with transfer of technology has been very dismal because of political instability coupled with the fact that foreign donors do not want to transfer their hard-earned technology on a platter of gold.

Most times, it is the CBN Governor and Minister of Finance that are invited to the National Assembly (NASS) to brief lawmakers on the nation’s economy. Policies of the CBN and ministry of finance cannot take Nigeria to the promised land as far as economic development and poverty reduction are concerned. The ministries of industry, trade and investment, and science and technology are also important in poverty reduction and economic development efforts of the nation. This does not mean that other ministries are less important.

If Nigerians are to come out of poverty these ministries must work together and they must brief the nation regularly. They need to tell the nation quarterly what they are doing to industrialize the nation. All hands must be on deck to industrialize Nigeria so that we can stop being a fantastically consumer nation. Nigerians must be encouraged to consume” made in Nigeria” goods. For “made in Nigeria” goods to be competitive, the nation needs uninterrupted electricity supply.

MA Johnson