Social Investment and Nigeria’s Economic Resuscitation
Crusoe Osagie highlights the importance of corporate social investment in revamping the lives of displaced persons and returning a depressed economy to growth
The nexus between philanthropy, social investment and the rebound of Nigeria’s economic growth is clearly not sufficiently emphasised, understood and appreciated.
However, to the extent that economic growth is basically an increase in the capacity of an economy to produce goods and services, compared from one period of time to another, which can be measured in terms of gross national product (GNP) or gross domestic product (GDP), good-willed efforts being made by organisations and individuals to empower over three million internally displaced Nigerians has direct impact on the emancipation of the nation’s economy from recession.
Nigeria’s recent descent into recession is not just the consequence of declining crude oil prices and prevailing policies that forced industrial capacity to drop below 20 per cent. It is also the result of about 6 million persons (human capital), most of whom are between the ages of 18 and 64 years, that are directly and indirectly incapacitated by the aftermath of the senseless insurgency and other ethnic crises that have ravaged the country for over six years.
Various pundits and regulators have stated different amounts as the economic cost of the crises in the country.
For example, the North-east Nigeria Recovery and Peace Building Assessment (RPBA) team hinted that the impact of the conflict in the region has a cost implication $9 billion.
Placing this figure side by side with only $8.1billion Foreign Direct Investment (FDI) attracted into the Nigerian economy in 2014 and 2015 provides insight into the enormity of the loss foisted on the country by the crisis.
The Senior Special Assistant to President Muhammadu Buhari on Internally Displaced Persons (IDPs), Dr. Mariam Masha, said Borno State was worst hit by the crisis with a loss of $6 billion. According to her, the region suffered damage worth $3 billion in housing alone while it suffered damage in terms of livestock which brought about the need to restore agriculture in the region.
That said, other experts have pointed out that the $9 billion figure is conservative in that it mostly computed the existing infrastructure and enterprises that were scorched by the crisis and not the prospect and potential of the economy which was also extinguished.
According to analysts, it is easier to work out the figures of what was consumed by the mayhem, but far more difficult to fathom what could have been that was never allowed to emerge. The growth in agriculture, tourism, solid mineral prospecting, micro enterprises, artisanal capacity enhancement, among others, which was not given an opportunity to happen due to the conflict.
How many children that carried special potential to be world-renowned economist, medical experts, technology giants, industrialists, farmers, etc had their lives violently snuffed out during the crises?
How many more potential world beaters survived the attacks but unfortunately have been left physically and psychologically damaged, rendered permanently incapable to ever live up to their original, God-given potential? How do experts quantify socio-economic loses such as these?This is the reason why special efforts being made by Africa’s richest man, Aliko Dangote, who is now pulling in international rock stars to drive efforts to revamp these crushed parts of the country are not just aimless philanthropy and social engagements, but direct effort and essential social investment that can help the nation’s economy rebound to healthy growth.
Dangote-Bono Partner for North-east
Last week, award-winning Paul David Hewson, (aka Bono) and Dangote, met with the Vice President, Prof. Yemi Osinbajo at the Presidential Villa to discuss the possibilities of a global partnership to address the humanitarian crisis in North-eastern part of the country through international advocacy.
At the meeting, Osinbajo who endorsed the effort stated that the federal government would welcome a global partnership that would ensure a concerted and focused international response to the humanitarian crisis in the North-eastern region.
Bono leads the ONE campaign group, an advocacy organisation with more than seven million people around the world taking action to end extreme poverty and preventable diseases especially in Africa.
It has on its board people like Mo Ibrahim, Bill Gates, Michael Bloomberg among others. It was founded in 2004.
Addressing members of the delegation that included former UK Development Secretary Douglas Alexander, Osinbajo said: “It is very important that you chose to come and offer some partnership. This is great and we are pleased…Partnership is certainly the way to go.”
He said no matter how prepared a country could be, handling the kind of crisis in the North-east with two million displaced people including children would prove a difficult task.
According to him, a global partnership to address the situation should be coordinated and more focused on what was required to be done, for instance, in addressing the issue of malnourished children and not attempting to do too much things at once.
The Irish-born artist, Bono, in his comments, said he had visited some of the IDPs, noting: “We want to be useful to you.”
Bono added that what he saw in the region was “deeply disturbing.” He also commended the social investment programmes of the President Muhammadu Buhari administration, saying: “We have heard of the incredible plans, the social investment funds,” adding also that the level of transparency already seen in the administration is both “very exciting and transforming.”
Meanwhile, Dangote, Monday at the meeting, disclosed that a total sum of N4.5 billion had so far been spent by the Dangote Foundation in trying to provide succour to IDPs in Borno, Yobe and Adamawa States, which have been ravaged by the Boko Haram insurgency.
He added that the foundation would continue to reach out to the victims until the end of the current programme by government to restore normalcy to the people.
Bono, who is currently in the country to draw international support for victims of insurgency in the North-east said funding to the region needed to be scaled up in order to achieve maximum impact.
Bono further lamented that of the estimated $300million required as part of the reconstruction programme, only about $100million had so far been realised, stressing that going by the magnitude of destruction and deprivation in affected areas, there’s need to scale up resources to cope with the humanitarian crisis.
He said working with the Dangote Foundation, he would use his ONE Campaign NGO platform to garner global support towards addressing the plight.
According to both Dangote and Bono, the new partnership will focus on the most marginalised citizens, particularly girls and women, who face the brunt of poverty and help empower those most at risk from extreme poverty, extreme climate and extreme ideology.
Specifically, Dangote said: “I am in ONE and partners across Nigeria to strengthen civil society and help the government respond to our ongoing health needs and the urgent malnutrition crisis in North-east Nigeria. ONE’s extensive network of youth groups and its 2.3 million members will help bring international attention to and action on these issues. All of us can and must do more.”
On his part, Bono, an ambassador for the United Nations High Commission for Refugees (UNHCR) and the leader of the rock group, U2, said: ”I am proud to be standing alongside Dangote, whose foundation works for the future of Nigeria and Africa through its young people. The youth of Nigeria, Africa and indeed everywhere are like rocket fuel- there are no limits to how far they can go, they can transform the continent-or they can blow up in your face. Harnessing their energy requires investment in their education, employment and healthcare.”
Bono said he was particularly heartbroken at the condition of displaced persons-some children never knew their parents and some severely malnourished.
A particular account was painted by Dangote, where Bono asked a woman in Borno State why she had not breastfed her child – only for the woman to strip her chest bare, revealing her breasts and telling Bono she had no milk to give to the child – once again, depicting the horrible condition of the humanitarian crisis at hand.
However, the new partnership will help amplify the calls of million of Nigerian ONE members, who have been campaigning for years on issues including health, anti-corruption and agriculture.
This year’s Make Naija Stronger campaign calls for the government to deliver on its commute, net to invest more in healthcare.
ONE campaign is a powerful global advocacy group which was instrumental in Nigeria’s debt cancellation, which led to its exit from the Paris Club and it’s incursion into the country at the request of Dangote is expected to produce more concrete results in the rebuilding of the North-east.
Dangote Foundation’s Efforts
Chairman, Dangote Group, AlhajiAlikoDangote’s recent pledge to invest N2 billion to create jobs and end hunger for Borno State residents living in Internally Displaced Peoples camps (IDP), no doubt will ameliorate the pains of Boko Haram victims, as well as provide them a means of livelihood.
The Foundation, has since commenced the disbursement of N400million micro-grant to 40, 000 indigent women in all the local governments in Lagos State. The disbursement is a continuation of grassroots poverty alleviation strategy of the Foundation that Dangote set up in 1993. The programme will cost the Foundation N10billion. A total of six states have so far benefitted from the programme.
During his visit to the Dalori and Bakassi IDP camps in Borno State earlier in the year, Dangote promised to spend N2billion on the IDPs to enable the State government to provide social amenities to residents.
He said: “I am here to see the IDPs by myself. This is my first time to visit IDPs in Borno but I want to assure you that it will not be the last. We shall continue to work with the State government to make sure the IDP camps are hunger-free.”
Dangote, who assured that his foundation would shoulder the costs of food for the IDPs during the Holy month of Ramadan, added: “Our partnership with Borno State aims to create jobs for our people. Also I assure you that the entire food for IDPs during Ramadan will be given by the Dangote Foundation to assist the State government.”
Dangote said apart from the funds and food items that will be donated by his company through the Dangote Foundation, he would explore avenues to drive investments and production in the war-torn states to promote entrepreneurship and create opportunities for the people to work and earn a decent living in the course of time.
“This is not the first time I am coming here and it will not be the last. So far, we have