January 21- February 5, 2008
Summary
To say that I can put my Nigerian experience into words would be telling a lie. How do I begin to describe the personal and professional interactions I have had? What I’ve witnessed is interconnected with the rich history and legacy of the Yoruba, the steadfast religious beliefs that serve not only as a foundation, but a source of inspiration, and the economic dilemmas that impact young, old, rich, and poor within the Nigerian community.
And so one must take the good with the bad in Nigeria...as it would be for any experience abroad. From the extremely close-knit relationships and bonds formed between friends and family, to celebratory practices that teach one to appreciate life even during sadness, to the never-ceasing love and respect for language and culture, and the recognition that self-knowledge and intellectualism is key, I pray that these ideals with be further imparted on me before I depart. From the power outages throughout the working day and into the night, to semi-poor road structures, to highly congestive markets, to emission-filled streets, the inability to utilize employment and natural resources to realize the FULL potential of Nigeria, and to the unpredictability of almost everything, I pray that I will positively touch the lives of a few and thus save the lives of many in West Africa.
As my brief introduction to the Nigerian economy concludes, the two weeks highlighted in this journal entry provide additional background information as to the historical perspective of Nigeria’s economy and the change from a public sector-led economy to a private sector-led economy, and the lack of social service and training provision, which has made these changes quite difficult for government employees and youth who previously planned for government employment positions. As my internship focus will be on youth enterprise development, this entry also includes background information on existing programming taking place in Nigeria, highlights from a rural training program attendance, notes from a microfinance institution (MFI) interview, and highlights from social programming.
Economic History of Nigeria and Current Trends of Government
Background Information provided by NISIR Staff Person
From Nigeria’s independence in 1960, a private sector economy was established. This included an inflow of foreign investment, where the expectations of the private sector were great. However, problems with inflow of investment ensued. Compounded with the emergence of oil, which contributed large sums to the government, the government changed from a private sector-led economy to public and begin investing in all sectors. At the federal level there were more than 120 enterprises for which the government was invested in. As the then Head of State perceived that money was not an issue, large sums were spent until resources were exhausted. In attempting to maintain historic spending levels elements of the “Dutch Disease” began. A previous agricultural economy was now driven by the oil economy. Most policies were regulated by the government (fiscal, exchange rate, interest rate, etc.). At this time the price of crude oil drastically decreased from an average of $47 per barrel to $9 (also known as “oil glut”). From these tragedies the Structural Adjustment (SAP) of 1986 was proposed and adopted. Money was borrowed and various SAP proposals adopted to reorient the economy, but this did not take place on many levels. Poverty rose to as high as 87% and many perceived SAP as an imposed international economic policy. SAP policies were implemented through 1990s before various alternatives were proposed and implemented. To date, poverty is now estimated to be about 60% and crude oil now costs $87 per barrel. But the question that remains is, “can this be related to economic growth?”
Some argue that Nigeria has not witnessed the structural transformation needed to uplift the economy. Primary activities include mining and the extraction of resources. These activities contribute to almost 70% of the GDP, whereas manufacturing contribute as low as 7% and the service industry about 23%. But the service and manufacturing sectors are plagued with non-productivity and the production of low value-added products. To date a civilian administration exists. With regard to poverty, some argue that poverty should not be measured by outputs, but by social indicators. The economy remains “assembly-like,” mainly importing items for packaging, unlike South Africa where assembly is not wide-spread (ex. fruit-drink beverages contain imported juice concentrates). Moreover, Nigeria does not engage in large scale productions, but consumes quite a bit.
Lessons Learned
There is great need for large-scale manufacturing, with effective linkages to the small and medium enterprise (SME) sectors, considering the wealth of resources in Nigeria. This would provide employment opportunities and promote resource-efficiency within the country. Impact assessment of economic and social initiatives should address specific issues and measure the alleviation or reduction observed.
Adoption of Neo-Liberal Concepts
Nigeria has adopted neo-liberal ideologies. From the context of the government, activities and services have been and are being privatized and many civil servants are being retrenched in all line ministries. Government employees are at risk and many are unemployed, without additional skills trainings or employment support.
Lessons Learned/Potential Opportunities for Further Development
Skills training and employment networking programs must be designed and implemented to provide alternate opportunities for government staff to earn income and create wealth.
Interventions Examples
Rural Focus
Millennium Village Concept
Background Information
Millennium Village Concept (MVC) – concentration of development resources in 1 village, at a time, for a period of 5 years to allow for self-sustainability, research, and the development of best practices
Lessons Learned/Potential Opportunities for Further Development
Need to include integrated development approach in program proposal and design
Youth Enterprise Focus
FATE Foundation – FATE Foundation is a non-profit, private sector led organization. FATE's mission is to foster wealth creation by promoting Business and Entrepreneurial development among Nigerian Youths.
LEAP – Non-profit organization with the goal to inspire, empower and equip a new cadre of African leaders, following the recognition that the business community and youth in Africa had limited exposure to effective leadership skills, and majority had received minimal coaching.
National Youth Service Corps (NYSC) – Mandatory year of service following students’ completion of a bachelor’s degree. Community development service component posts corps members in a community to assist community members with development projects. However, the NYSC has been criticized for not providing recent university graduates with the necessary professional skills, supports, and networks to assist program participants in securing formal employment.
National Directorate of Employment (NDE) – Established by the Nigerian government to combat high unemployment, design and promote policy change to create employment programs, and to create an ongoing list on employment vacancies. Program includes a focus on rural development through a Rural Export Craft Scheme, which assists rural women in producing and exporting crafts. Additionally, an employment facility established a Start-Your-Own-Business Program for unemployed Nigerian graduates to receive business and export training in addition to financial support to promote exporting.
USAID Youth Skills Development Program - Focused on improving the quality of vocational training available to Nigeria's unemployed youth, and ensuring that vocational trainees receive critical instruction in conflict mitigation and HIV/AIDS awareness and prevention.
Small and Medium Development Agency of Nigeria (SMEDAN) - Includes a Corpers Entrepreneurship Program, which provides additional training to National Youth Service Crop member focused on the development of investment and entrepreneurial skills.
Lessons Learned/Potential Opportunities for Further Development
Potential to learn from challenges of above listed programs and utilize strengths to further develop youth enterprise programs focused on combating high youth unemployment.
Stakeholder Interviews/ Community Interactions/ and Guest Speakings:
Adeolu Adegbola Development Resource Centre – Igan, Okoto – CEDAR Rural Computer Training
Background Information
Computer training course, in memory of Adeole Adegbola, for children and youth ages 6-16 facilitated by CEDAR/ALT-I Information Technology staff person. Two day training focused on basics including defining a computer and what a computer is used for. Following the conclusion of the lesson, participants were allowed to take turns typing in a word document. Eleven children and youth participated in the Sunday training with 90% being young children ages 6-10 years old. The training facilitator located the challenges of the program being the low literacy rate and technical comprehension skills of course participants. Moreover, he noted differences in the increased abilities of private school student-participants compared to the public school participants. Upon observation and additional commentary by program attendees, the patience of program facilitator was noted.
Lessons Learned/Potential Opportunities for Further Development
Rural development programs should take into account the social and cultural dynamics as well as the capacities of program participants. Facilitators should be aware of the compounding factors that might restrict program implementation and attempt to address these.
Meeting with Farmers Development Union (FADU) Executive Director with regard to FADU Community Association (FCA) implementation, the state of MFIs, and organizational interactions with the Nigerian Government.
Background Information
Farmers Development Union is a rural NGO formed, owned, directed, governed, and financed by 500,000 rural Nigerians who are members. The main goal of FADU is to provide supports and serviced to low-resourced poor and vulnerable groups with basic economic and social services for rural income, nutrition, employment and living condition. Program activities focus on group development, aimed at rural peasants, for community participation and the enhancement of their managerial capacities to operate small-scale farming and non-farming enterprises (FADU, 2008). In 2006 FADU’s Strategic Planning Group opted for the decentralization of services to allow for customization of service provision based on member-management with the goals of: (1) reducing the rate of rural people migrating to urban areas for employment, (2) encouraging youths to stay-on in the village to earn stable incomes, (3) build human capital formations at the grassroots level to revive the rural economy and (4) facilitating modern physical and institutional infrastructure that promote the well-being of the rural local communities (FADU, 2008).
Key Points of Discussion
As formal banking institutions, within Nigeria, are now establishing themselves as Microfinance Banks (MFB) to accommodate the growing need among low, middle, and high income individuals, the question of whether or not MFIs would still be able to legally operate has arisen. The executive director spoke of the current disconnect between MFIs in rallying together to assure the continued state and service provision of MFIs as MFBs are suspected of not adequately serving populations in need. He also mentioned the need, from both agency and donor perspectives’, for MFIs to further establish systems for data collection, which can then be used for impact assessment of MFIs as these data collection systems are not currently in place for many MFIs. When further asked about solutions, which might engage the government, the executive director proposed lobbying and advocacy activities promoting policy change to secure the rights and continued legal operations of MFIs.
National Directorate of Employment (NDE) – Established by the Nigerian government to combat high unemployment, design and promote policy change to create employment programs, and to create an ongoing list on employment vacancies. Program includes a focus on rural development through a Rural Export Craft Scheme, which assists rural women in producing and exporting crafts. Additionally, an employment facility established a Start-Your-Own-Business Program for unemployed Nigerian graduates to receive business and export training in addition to financial support to promote exporting.
USAID Youth Skills Development Program - Focused on improving the quality of vocational training available to Nigeria's unemployed youth, and ensuring that vocational trainees receive critical instruction in conflict mitigation and HIV/AIDS awareness and prevention.
Small and Medium Development Agency of Nigeria (SMEDAN) - Includes a Corpers Entrepreneurship Program, which provides additional training to National Youth Service Crop member focused on the development of investment and entrepreneurial skills.
Lessons Learned/Potential Opportunities for Further Development
Potential to learn from challenges of above listed programs and utilize strengths to further develop youth enterprise programs focused on combating high youth unemployment.
Stakeholder Interviews/ Community Interactions/ and Guest Speakings:
Adeolu Adegbola Development Resource Centre – Igan, Okoto – CEDAR Rural Computer Training
Background Information
Computer training course, in memory of Adeole Adegbola, for children and youth ages 6-16 facilitated by CEDAR/ALT-I Information Technology staff person. Two day training focused on basics including defining a computer and what a computer is used for. Following the conclusion of the lesson, participants were allowed to take turns typing in a word document. Eleven children and youth participated in the Sunday training with 90% being young children ages 6-10 years old. The training facilitator located the challenges of the program being the low literacy rate and technical comprehension skills of course participants. Moreover, he noted differences in the increased abilities of private school student-participants compared to the public school participants. Upon observation and additional commentary by program attendees, the patience of program facilitator was noted.
Lessons Learned/Potential Opportunities for Further Development
Rural development programs should take into account the social and cultural dynamics as well as the capacities of program participants. Facilitators should be aware of the compounding factors that might restrict program implementation and attempt to address these.
Meeting with Farmers Development Union (FADU) Executive Director with regard to FADU Community Association (FCA) implementation, the state of MFIs, and organizational interactions with the Nigerian Government.
Background Information
Farmers Development Union is a rural NGO formed, owned, directed, governed, and financed by 500,000 rural Nigerians who are members. The main goal of FADU is to provide supports and serviced to low-resourced poor and vulnerable groups with basic economic and social services for rural income, nutrition, employment and living condition. Program activities focus on group development, aimed at rural peasants, for community participation and the enhancement of their managerial capacities to operate small-scale farming and non-farming enterprises (FADU, 2008). In 2006 FADU’s Strategic Planning Group opted for the decentralization of services to allow for customization of service provision based on member-management with the goals of: (1) reducing the rate of rural people migrating to urban areas for employment, (2) encouraging youths to stay-on in the village to earn stable incomes, (3) build human capital formations at the grassroots level to revive the rural economy and (4) facilitating modern physical and institutional infrastructure that promote the well-being of the rural local communities (FADU, 2008).
Key Points of Discussion
As formal banking institutions, within Nigeria, are now establishing themselves as Microfinance Banks (MFB) to accommodate the growing need among low, middle, and high income individuals, the question of whether or not MFIs would still be able to legally operate has arisen. The executive director spoke of the current disconnect between MFIs in rallying together to assure the continued state and service provision of MFIs as MFBs are suspected of not adequately serving populations in need. He also mentioned the need, from both agency and donor perspectives’, for MFIs to further establish systems for data collection, which can then be used for impact assessment of MFIs as these data collection systems are not currently in place for many MFIs. When further asked about solutions, which might engage the government, the executive director proposed lobbying and advocacy activities promoting policy change to secure the rights and continued legal operations of MFIs.
Lessons Learned/Potential Opportunities for Further Development
The need for MFIs to establish data collections systems, that will provide more detailed information in the establishment of an agency tracking system to further document the impact of MFIs on their client’s, their client’s enterprises, the community, and the Nigerian Economy.
Cultural/Social Activities
Visit to Igan Village –Yoruba church service, memorial service, and fellowship lunch following.
Lessons Learned/Potential Opportunities for Further Development
Area previously home to numerous agriculture activities that still have potential (gari, coco, etc.) Oil recently discovered near surrounding areas and Asian company soon to begin cassava flour processing. Both Christian public and private primary/secondary school available along with private Muslim primary/secondary school. The Agriculture Faculty of State University is about 30 minutes away, and is a new development, which provides a good opportunity for extending education in rural settings.
Observations
Main roads leading to village in good condition with electricity available throughout part of evening and the next day. Most off-roads made of clay. Glo and MTN cell phone service available. Both formal housing structures and mud housing structures present with some aspects of modernity and traditional practices present. It was observed during church service the covering of women’s hair, the wearing of dresses and the separation of males and females in the church. Church service was lively with singing, dancing, and various interaction with church members in complete Yoruba.
Recommended Readings
USAID Microenterprise Results Reporting Annual Report to Congress, Fiscal Year 2006
Special Unit for Microfinance United National Capital Development FundMicro Finance Policy Regulatory and Supervisory Framework for Nigeria
The need for MFIs to establish data collections systems, that will provide more detailed information in the establishment of an agency tracking system to further document the impact of MFIs on their client’s, their client’s enterprises, the community, and the Nigerian Economy.
Cultural/Social Activities
Visit to Igan Village –Yoruba church service, memorial service, and fellowship lunch following.
Lessons Learned/Potential Opportunities for Further Development
Area previously home to numerous agriculture activities that still have potential (gari, coco, etc.) Oil recently discovered near surrounding areas and Asian company soon to begin cassava flour processing. Both Christian public and private primary/secondary school available along with private Muslim primary/secondary school. The Agriculture Faculty of State University is about 30 minutes away, and is a new development, which provides a good opportunity for extending education in rural settings.
Observations
Main roads leading to village in good condition with electricity available throughout part of evening and the next day. Most off-roads made of clay. Glo and MTN cell phone service available. Both formal housing structures and mud housing structures present with some aspects of modernity and traditional practices present. It was observed during church service the covering of women’s hair, the wearing of dresses and the separation of males and females in the church. Church service was lively with singing, dancing, and various interaction with church members in complete Yoruba.
Recommended Readings
USAID Microenterprise Results Reporting Annual Report to Congress, Fiscal Year 2006
Special Unit for Microfinance United National Capital Development FundMicro Finance Policy Regulatory and Supervisory Framework for Nigeria
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