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RICH NATION, POOR PEOPLE! GOVERNMENT-ACADEMIA-INDUSTRY SYNERGY AS PANACEA: METALLURGICAL SECTOR OF THE NIGERIAN ECONOMY, A PARADIGM. BY Engr. Prof. John.

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Presentation on theme: "RICH NATION, POOR PEOPLE! GOVERNMENT-ACADEMIA-INDUSTRY SYNERGY AS PANACEA: METALLURGICAL SECTOR OF THE NIGERIAN ECONOMY, A PARADIGM. BY Engr. Prof. John."— Presentation transcript:

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: johnadeajayi@yahoo.com; GSM: +234 (0) 803 409 9369 johnadeajayi@yahoo.com 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 PLENARY PAPER

2 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 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

4 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.

5 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.

6 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

7 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.

8 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.

9 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

10 CENTRE POINT FOR SUSTAINABLE NATIONAL TECHNOLOGICAL ADVANCEMENT, RAPID INDUSTRIALIZATION AND ECONOMIC DEVELOPMENT CANNOT HOLD AS THINGS FALL APART. INDUSTRY (INDUSTRIAL COMMATOSE) GOVERNMENT (TRANSACTIONAL LEADERSHIP) ACADEMIA (INTELLECTUAL AMNESIA) FIG. 1: GOVERNMENT-ACADEMIA-INDUSTRY DIVIDE. AS ROOT CAUSE OF CONTINOUS UNDERDEVELOPMENT IN NIGERIA

11 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 SECTOR- OF 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?”

12 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 20 TH 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.

13  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 19 TH CENTURY, THE USA BECAME WORLD LEADER IN THE TRAINING OF MINING AND METALLURGICAL ENGINEERS.

14  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

15 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.

16  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.

17 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.

18  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.

19  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.

20  EIGHT, TIME HAS COME TO TAKE THE DEVELOPMENT OF NON-FERROUS METALS LIKE ALUMINIUM, GOLD, LEAD, ZINC, TIN AND COLUMBITE MORE SERIOUSLY. NON- FERROUS 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.

21 GOVERNMENT (Transformational Leadership) Centre point for Sustainable National Technological Advancement, Rapid industrialization and Economic Development INDUSTRY (Industrial Development) ACADEMIA (Intellectual Revolution) FIG. 2:GOVERNMENT – ACADEMIA – INDUSTRY VALUE-DRIVEN SYNERGY AS PANACEA

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