Aremu: Capital has gained more than workers

Comrade Issa Aremu is General Secretary, National Union of Textile and Garment Workers of Nigeria [NUTGTWN] and former Vice President of Nigeria Labour Congress [NLC. In this interview, he provides labour’s perspective to Nigeria’s industrialisation difficulties in the last 20 years.

What progress have we made in the manufacturing sector as a nation in the last twenty years?

Nigeria is among the top three economies in Africa. Indeed with $415.08 billion GDP Nigeria overtook South Africa with a GDP of $280.36 billion. But in terms of quality of life, that is GDP per capita, Nigeria in 2016 with 170 million people parades a miserable $2,929.525 compared to Egypt with $3,740.249, South Africa’s $4,768.235 and even Algeria’s $4,082.572!

With respect to the political economy of Nigeria, there has not been a dull moment in the past twenty years in terms of nation building. One strength of the last two decades is democratic consolidation. With five successful presidential transitions or elections and hundreds of state/local government elections and bye elections, Nigeria is truly a democracy destination.

At least in quantitative terms, we have thousands of elected and traditional leaders but sadly no genuine leadership. We just do not need governors but governance and better still good governance. Governance must translate to good quality of life for Nigerians.

What were the major issues impeded industrial progress within this period?

In the last 20 years, we have witnessed deindustrialization rather than industrialization. Unlike countries like South Africa and Egypt which are taking advantages of 3rd and 4th industrial revolutions with automation and digital production, Nigeria is stuck at first industrial revolution with collapsed textile and automobile mills among others. Companies are shrinking because of lack of electricity and mass smuggling. In the process, we have become importer as distinct from being a productive economy. Customs services need enough capacity to put an end to the smuggling economy. The National Economic Growth and Recovery Plan (NEGRP) promises to reduce fuel import by 70 per cent this year. But in the first quarter, no single refinery works. Fuel is imported 100 per cent with attendant pressures on the Naira exchange rate. Nigeria must add value to its abundant resources including crude oil, industrialize and create mass decent jobs for its millions of unemployed youths.

In what ways can nation come out of identified issues?

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There is only one way; good governance. Governance is in recession while good governance is a luxury. Leaders should visit refineries, almost completed Ajaokuta iron and steel and many other moribund projects. The country has been over-studied; what is missing is the political will to implement policies.

If you ask me, Nigeria needs a democratic revolution, which means the removal of the old and replacement with the new through popular elections based on popular programme of transformation.

Since 1999 efforts were geared by successive government to diversifying the economy, with manufacturing sector playing a lead. Did it succeed?

The sectoral buzz word “diversifying” will not deliver Nigeria. Don't replace crude oil with solid minerals. Don't replace export of cotton with export of raw yams. What Nigeria needs is development, which is only possible with industrialization and wholesale beneficiation. We also need a national vision and long term development agenda. What happened to vision 2020? Two years to go under the current government, we are far from being one of the 20 leading economies in Africa. We must be an ambitious nation like China, Brazil and India.

At what point within this period did we miss it?

Military intervention reverses our development right from that senseless coup of 1966. Later we had predatory military regimes, one of which the regime’s loot is still being recovered. Yet we can regain and we must regain the development process by removing little minded persons out of the public arena with our voters’ cards.

Has the Ministry of Trade, Industry and Investment lived up to expectation?

I think we must add Development to Ministry of Trade and Investment for the ministers to know that the fortune of Nigeria depends on their performance. But in fairness, the two ministers have been active in implementing the industrial revolution plan of 2014. However, it is not over until we see the promised industrial parks and indeed we see the factories open for operations.

What options are available for the economy?

Many options! Industrialization and real sector growth. But there should be electricity for production to take place. You can also not grow the economy without well paid, motivated workforce. So we must stop the existing slave labour, pay workers well and train them for enhanced productivity.

Has government done enough to support manufacturing sector?

Yes, but government must do more. A number of commendable initiatives in promoting wealth generation and reviving the industry, including Buy Made-inNigeria campaign. Vice President Yemi Osinbajo has signed three unprecedented Executive Orders mandating government agencies to spend more of their budgets on locally produced goods and services.

These orders would help in the recovery of many factories in Nigeria, if they are not undermined by pressures from smuggling and imports. There are also some commendable subnational initiatives such as the industrial parks of Ethiopia and Nigeria’s Edo State under Governor Godwin Obaseki.

Have labour unions lived up to the expectations of workers?

NLC just marked the 40th anniversary of its existence. With five national minimum wage increases in four decades, NLC has tried to improve workers’ lot but macro-economic instability caused by neoliberal economic policies of Naira devaluation and high inflation have eroded purchasing power of workers. So, it is not because of lack of efforts on the part of labour but in spite of their efforts, bad governance prevails.

How have workers in the manufacturing sector fared in the last two decades?

Capital and capitalists have benefited more in this political economy than labour and workers. You recall that former President Obasanjo at one time celebrated how he created some billionaires. But 1999 Constitution says the economy should be based on fairness and equity. The few rich are getting richer while the poor are getting poorer.

What needs to be done to improve workers’ welfare?

Enlightened economies know that there should be inclusive growth and development to promote public welfare, failing which there will be disasters as we are already facing in Nigeria with endless robberies, kidnappings and serial violence, some suicidal like in the case of Boko Haram.