How to Create One Million Jobs in Nigeria

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By Toyin Dawodu, MBA

Recently, President Jonathan appointed a committee to recommend how to create 1 million jobs in Nigeria.

After looking at all the appointees, I recognized a few of them, most notably, Mr. Aliko Dangote and Mr. Earnest Ndukwe.  These two Nigerians have proven themselves as job creators. Mr. Dangote has created thousands of jobs in various industries, including cement manufacturing, commodity sales and even oil and gas. We need 1000 Dangotes in our mist. Mr. Earnest Ndukwe led the revolutionary growth of our telecom industry from barely 500,000 subscribers ten years ago to over 70 million today and growing.

Even though I may not be familiar with the rest of the panel, I am sure the President is aware of their accomplishments in their various fields of endeavor. Most Nigerians dream of a stable and prosperous country. Therefore, we should all join together to support the President and all the members of the committee.

Job creation is affected by the following, political stability, rule of law, government incentives, private enterprise, manufacturing base, infrastructure, land reform, capital, labor, and above all, POWER.  “No electricity no jobs.”

As an entrepreneur, I have been directly or indirectly responsible for creating over 1,000 jobs in the U.S. in various fields ranging from mortgage banking, to insurance, Real Estate development, and even Internet and computer technology.

After 25 years of being in business and creating jobs in America, I came to the conclusion that Nigeria needs me.  This is what inspires my desire to build 4,000 megawatts of power within the next two years in Nigeria.  Over the last 10 years every time I think of doing something in Nigeria, the first thought that came to my mind was, "But there is no electricity in Nigeria.”  We can never hope to create any meaningful jobs without adequate electricity.

In my article on "creating capital for Nigeria, " I made a suggestion on how Nigeria can create close to one million jobs within the next six months by turning the dead assets most Nigerian home owners are sitting on into immediate capital which can quickly trickle down to create thousands of skilled and unskilled jobs like, carpenters, painters, plumbers, roofers, bricklayers, carpet installers and I recommended that the government should immediately create or revamp their mortgage industry and create a secondary market to trade mortgage securities. Most Nigerian homes are free and clear of any mortgages. This means the homes are assets that can be converted to cash or capital. If the government can help most Nigerian home owners to access the capital locked in their homes, the Nigeria government can create several trillion Naira in capital instantly. This new capital can filter through the economy and be recycled several times while creating between 500,000 to over 1 million jobs.

The government can give or guaranty a loan for each home owner to fix his home, as long as the home owner agrees to pay the loan back over the next 10-15 years in small affordable payments. This new money created will give the home owners the ability to create thousands jobs for Nigerians who can do the repair work, paint the houses, resulting in the purchase of millions of gallons of paint, cement, carpet and appliances. This loan guaranty scheme can also begin the process of creating credit within our informal economy and teaching Nigerians how to obtain and maintain credit. According to a report in 234next.com, Ismail Ridwan, a senior economist with the World Bank, said, “the amount of credit needed to take Nigeria into the top 20 economies by the year 2020 would have to be generated internally.” With only 3% of Nigerians having access to the banking system, any job creation will have to take into account how to include the informal economy that is almost 60-70% of Nigeria’s economy.

The U.S. needs 25 million barrels of oil daily, and pumps about 8 million of those barrels domestically. The U.S. oil and gas industry provides employment directly or indirectly to 9.6 million Americans.  By proportion, since Nigeria pumps 2.8 million barrels of oil daily, we should have 2.8 million Nigerians employed in our oil and gas industry. The question is how many Nigerians are employed in our oil and gas industry, and how can we increase the number?

Sometime ago, President Jonathan spoke about the deforestation of Nigeria's forests. Our solution to this problem can help develop our gas industry and create thousands of jobs in the process. Nigeria currently exports most of the gas we generate, and the rest that are not exported is burned off. Nigeria burns $2 billion worth of gas yearly. That is enough to build 2,000 mega watts of power that can light up two million homes.  Multiply that by ten or twenty years, and we have lost an opportunity to build 40,000 megawatts of power and create employment for millions of Nigerians.  Therefore, to reduce deforestation and create employment, we need to create a gas industry that is completely private. If 50-60 % of Nigerians cook their food with LPG or propane we can spurn an industry that changes our oil and gas economy from being an extractive industry into an industry that is domesticated and generating employment and commerce for our people. Imagine how many Nigerians will be employed in pumping, processing, filling and distributing 20-50 million cooking gas cylinders per month. So rather than just extract our oil and gas assets, we should take them through our own domestic commercial process. That is how you create jobs.

Nigeria's teledensity has grown from less that 10% to over 50%.  Today, over 70 million Nigerians have at least one phone, most have two, yet there is not a single phone manufacturer in Nigeria that makes the handsets used by Nigerians. There are no battery manufacturers that make batteries for those phones, and there are no Nigerian manufacturers that make cords for the hand sets. No Nigerian software industry is involved in writing software for the phones, and I don't even think any of the handsets are assembled in Nigeria. That is 2 million jobs we could have created by insisting that any company that wants to sell their handsets to Nigerians must open a manufacturing and an assembly plant in Nigeria.

The Lagos state government of Babatunde Fashola recently stated that they have established a poultry farm in Ikorodu that will produce 20,000 tons of poultry per years and provide jobs for 400 people.  While this is commendable, what is needed to be pointed out to our leaders is that the business of government is not business. The business of government is to empower its own people, by providing the right environment and infrastructure necessary for entrepreneurs to thrive. For example, what if the Lagos state government had empowered, facilitated the training and guaranteed the capital necessary for 400 citizens to each create a poultry farm that can produce 20,000 tons of poultry and employ 400 citizens each? Then Lagos state would have created 160,000 jobs in the poultry industry that can produce 8 million tons of poultry per year.

I have touched on a few real life examples that the presidential committee can take note of while they deliberate, and as suggested earlier in this article, they should also set up a process whereby other Nigerians with ideas and suggestions can send them to the committee. As a Nigerian, I stand ready to provide any assistance my country needs and I am sure every Nigerian feels the same way.

Toyin Dawodu is the Managing partner of Capital Investment Group, a California based Diversified Investment Company focused on Infrastructure development in Africa.    Email:  toyin@capvestgroup.com

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Another Real Life Example on How to Create Millions of Jobs

@ Bank Anthony OkoroFOR:

Thank you very much for your comment above. I appreciate it.

I am very glad to learn of what you and your professional group, Petroleum Technology Association of Nigeria (PETAN) are doing in Nigeria. Domestication of oil and gas technologies there should be fully achieved ASAP. Please also keep up creating jobs in the country.

I am ready to join hands with you and everyone else that means well for Nigeria to move the country forward quickly, including the committee. Especially to create jobs there. Manufacturing base is critical to our needs in Nigeria, along with the other three areas that you noted [(1) Power (2) Security (3) Rule of Law]. These are vital for the country regarding global competitiveness.

Thanks again.

Busty
obustyo@yahoo.com

Creating 1 million jobs in Nigeria

Busty,

Am impressed with your suggestions. I am an entrepreneur in Nigeria and has created lots of jobs. Am also the vice chairman of (PETAN) petroleum technology association of Nigeria. We are group of oil service company owners in Nigeria with objective to domesticate oil and gas technologies in Nigeria, create jobs for Nigerians and create more entrepreneurs.Members of our association employ more than 100,000 Nigerians.

Let all of us join hands to send good ideas and suggestions to the committee on how to create jobs in our motherland. Your ideas on the manufacturing base is critical that is why we are pushing the government to solve three critical areas. (1) Power (2) Security (3) Rule of Law... With power, security and rule of law, the cost of doing business will fall drastically and create more incentives to develop our manufacturing base that is lacking.

Creating 1 million jobs in Nigeria

Busty,

Am impressed with your suggestions. I am an entrepreneur in Nigeria and has created lots of jobs. Am also the vice chairman of (PETAN) petroleum technology association of Nigeria. We are group of oil service company owners in Nigeria with objective to domesticate oil and gas technologies in Nigeria, create jobs for Nigerians and create more entrepreneurs.Members of our association employ more than 100,000 Nigerians.

Let all of us join hands to send good ideas and suggestions to the committee on how to create jobs in our motherland. Your ideas on the manufacturing base is critical that is why we are pushing the government to solve three critical areas. (1) Power (2) Security (3) Rule of Law... With power, security and rule of law, the cost of doing business will fall drastically and create more incentives to develop our manufacturing base that is lacking.

SHENANIGHANS

Bros, U dont understand the art of governance as examplified by our past leaders. U dont know that when Election is around the corner or in any election year, special projects must be executed to raise dough for some transactions. Special projects are earnmarked like the Presidential Jets and those other ones they needed to raise dough to fund some other projects. Election is around the corner and do you want the Government to be brazenly accused or starve of funds to execute some projects..Wake up and cool your temper, Until good governance and real Rule of Law is entrenched, they will always help themselves with the common wealth. All we need is tarry a little and believe that 2011 will usher in saner people at the top to cleanse the Augustean stable. God bless Nigeria

One million jobs?

Only good governance and stable economic policies can create jobs.

GLJ is just floating on crocodiles water.

How to create 1m jobs in Nigeria

Point of correction! Mr Ndukwe did not create ANY job in the telecom industry. ALL the jobs were created by the telecom companies. Thank you!

This is doable. If we all

This is doable. If we all condemn suggestions like this Nigeria will not progress. The main problem in Nigeria is the people. The leader of a country is the true reflection of its followers. Let us all join hands and move the country forward. I absolutely welcome Mr Dawodu's opinion. Lets give it a short, we might fail but we should keep pressing. God will not come down to help Nigeria, it is the people that will change their country's destiny.
I'm for a progressive Nigeria.
Member NLDF
Thanks

This is doable. If we all

This is doable. If we all condemn suggestions like this Nigeria will not progress. The main problem in Nigeria is the people. The leader of a country is the true reflection of its followers. Let us all join hands and move the country forward. I absolutely welcome Mr Dawodu's opinion. Lets give it a short, we might fail but we should keep pressing. God will not come down to help Nigeria, it is the people that will change their country's destiny.
I'm for a progressive Nigeria.

Thanks

Dangote

dangote is not a good example of a job creator, he needs to be investigated....

Good Luck

Nice article...(here go the the big fat, fat BUT),you can't create 10 jobs with corruption so rampant. Tackle corruption and and create 70% of the needed jobs in 30days.

The environment is not business friendly.

Good Write Up But You Need A Leader Like Buhari In Place For....

@Toyin
Only Buhari can create the sort of environment devoid of corruption in order for what you intend todo in Nigeria to succeed. As long as corruption is our middle name in Nigeria you will be frustrated with what you want to do. Nigeria is a place where like you have detailed it above, a chalatant would take your article to the president and present it as if he/ or she articulated this idea.

I know how to create jobs in Nigeria, but i am not willing to share any thing until we have a government that have a clue of where they want to take Nigerians to. While Jonathan is spear heading the Power Road map if this man is not clueless on leadership, that billions of dollars earmarked for 50 years jamboree 17 billion plus, That 21 billion plus set aside to purchase 3 presidential jets could have been set aside to be used to to train Nigerians on how to install Solar Energy roofs, all the government would do is to partner with either the chineese Government or better still partner with Sharp electronics who have 50 years in solar technology to train Nigerians but also build an assembling plant in Nigeria. This is what this clueless Government should have done since while they move on to the power projects they are talking about. The solar Energy industry should provide millions of Jobs for those willing to be trained so that homes in Nigeria will be powered with these solar roof panels thereby offering millions of jobs for certified solar installers and many more. These should chusion the effects of no light in Nigeria while the power projects are intensified.

I think Jonathan is simply not ready for this Job of leading this country

4,000 megawatts would turn things around..

Building 4,000 megawatts of power within the next two years in Nigeria would be a commendable feat even as it remains a promise for now if ten people including those you mentioned in your piece and those that stached away our money abroad can do the same then we'd be having 40,000 megawatts within two years but am sure they would not. Nigeria cannot generate 6,000 megawatts which is a shame, I can't figure out where is Nigeria heading.

Another Real Life Example on How to Create Millions of Jobs

@ Toyin:

You are right on the money! I absolutely agree with you on the ways to create millions of jobs. I personally have also fully helped in creating 100s of thousands of jobs in the U.S. and China.

I very recently co-led in the establishment of a green-field transplant operation from Detroit, Michigan, to manufacture the General Motors Buick Regal and Buick Century sedans in Shanghai, China. I will give only this one personal experience here. There are several others. When we started this US$2.145 BILLION ($1.52B manufacturing plant and $0.625B R&D Center) project back in 1996, China was then far from the top in vehicle manufacturing globally. So, you can estimate the number of jobs that the country had then in its automobile industry. We developed strategies in the U.S. and implemented them in China on this project. We (the American and Chinese Teams together) were, however, able to manufacture the Buick vehicles in China from Ground-Zero after approximately four years. In the process, we created thousands of jobs at the OEM plant, 100s of tier-1 and tier-2 suppliers factories, vehicle dealerships, repair shops, logistics and distribution centers, mass vehicle transportation, drivers’ groups, etc. Even car detailing and car wash employment jumped as more outlets were rapidly opened! Let us not also forget the spill-over effects this one singular investment had on the growth of businesses like banks, hotels, retail outlets, restaurants, entertainment centers, laundry shops, real estate development, mom & pop shops, barbing and hair dressing outfits, beauty shops, etc. in terms of jobs creation.

In summary, hundreds of thousands of jobs were created with this project through the establishment of a company, now called Shanghai General Motors (SGM) , in China. Some estimates put the GRAND TOTAL direct and indirect jobs created through this project at over 360,000. General Motors (along with its JV partners, Shanghai Automotive Industry [Group] Corporation (SAIC) and Wulin Motors) is now the number ONE vehicle manufacturer in China, producing over 1,000,000 units annually. Since 2009, China is the number ONE vehicle manufacturer globally. Last year (2009), all the manufacturers in the country made approximately 14,000,000 new vehicles, from less than one million units a little over a decade ago. Now talk about jobs creation! Millions and millions of jobs have been created in the Chinese auto industry since 1996. Advanced technologies were also heavily transferred to China during this time frame. The products (vehicles) manufacturing have been totally localized in China, while service parts exports to the West and the rest of the world are equally booming. All these jobs were mainly created within the ten years, between 1996 and 2006.

I was on the GM Operations (GM Technical - R&D - Center, GM Asia & Pacific Group, GM Powertrain, etc. in the U.S., and Shanghai General Motors, GM of China, SAIC-GM-Wulin, etc. Operations in China) for 11 years, from 1996 to 2007, for this experience. With relevant prior experience, I was charged with the main responsibility of co-leading the establishment, development and management of the GM supplier base in China to the world-class standards that it is today. My example given here, along with the real examples that you gave in your article above, are true ways to create millions of jobs within relatively short periods of time, cost competitively, and achieve world-class quality standards in all dimensions of performance measures. Once these measures are achieved, exporting the products and services are as easy as hot knife through butter.

Like you, I sincerely pray “that the presidential committee can take note of [these examples] while they deliberate, and … they should also set up a process whereby other Nigerians with ideas and suggestions can send them to the committee. As a Nigerian, I stand ready to provide any assistance my country needs and I am sure every Nigerian feels the same way” Because I personally have solidly competitive proposals on how to create millions of jobs in Nigeria, ensure technology transfer, products localization or domestication and exports. My proposals are on a 200 MW electric POWER generation plant, 100,000 vehicle units manufacturing plant, cell phone manufacturing, etc., complete with willing Technical Partners with the right technologies, expertise or know-how, etc. The proposals are based on, and partnered with, real and competitively existing industry-specific organizations that would only take relatively short time to execute in Nigeria with little modifications or customization.

Engr. Busty Okundaye; MSME, MBA (M.I.T. Sloan), is President, International Operations, UGC Technologies (U.S.A., China, etc.) He can be reached via: obustyo@yahoo.com

Another Real Life Eample on How to Create Millions of Jobs

@ Toyin:

You are right on the money! I absolutely agree with you on the ways to create millions of jobs. I personally have also fully helped in creating 100s of thousands of jobs in the U.S. and China.

I very recently co-led in the establishment of a green-field transplant operation from Detroit, Michigan, to manufacture the General Motors Buick Regal and Buick Century sedans in Shanghai, China. I will give only this one personal experience here. There are several others. When we started this US$2.145 BILLION ($1.52B manufacturing plant and $0.625B R&D Center) project back in 1996, China was then far from the top in vehicle manufacturing globally. So, you can estimate the number of jobs that the country had then in its automobile industry. We developed strategies in the U.S. and implemented them in China on this project. We (the American and Chinese Teams together) were, however, able to manufacture the Buick vehicles in China from Ground-Zero after approximately four years. In the process, we created thousands of jobs at the OEM plant, 100s of tier-1 and tier-2 suppliers factories, vehicle dealerships, repair shops, logistics and distribution centers, mass vehicle transportation, drivers’ groups, etc. Even car detailing and car wash employment jumped as more outlets were rapidly opened! Let us not also forget the spill-over effects this one singular investment had on the growth of businesses like banks, hotels, retail outlets, restaurants, entertainment centers, laundry shops, real estate development, mom & pop shops, barbing and hair dressing outfits, beauty shops, etc. in terms of jobs creation.

In summary, hundreds of thousands of jobs were created with this project through the establishment of a company, now called Shanghai General Motors (SGM) , in China. Some estimates put the GRAND TOTAL direct and indirect jobs created through this project at over 360,000. General Motors (along with its JV partners, Shanghai Automotive Industry [Group] Corporation (SAIC) and Wulin Motors) is now the number ONE vehicle manufacturer in China, producing over 1,000,000 units annually. Since 2009, China is the number ONE vehicle manufacturer globally. Last year (2009), all the manufacturers in the country made approximately 14,000,000 new vehicles, from less than one million units a little over a decade ago. Now talk about jobs creation! Millions and millions of jobs have been created in the Chinese auto industry since 1996. Advanced technologies were also heavily transferred to China during this time frame. The products (vehicles) manufacturing has been localized in China, while service parts exports to the West and the rest of the world are equally booming. All these jobs were mainly created within ten years, between 1996 and 2006.

I was on the GM Operations (GM Technical - R&D - Center, GM Asia & Pacific Group, GM Powertrain Group, etc. in the U.S., and Shanghai General Motors, GM of China, SAIC-GM-Wulin, etc. Operations in China) for 11 years, from 1996 to 2007, for this experience. With relevant prior experience, I was charged with the main responsibility of co-leading the establishment, development and management of the GM supplier base in China to the world-class standards that it is today. My example given here, along with the real examples that you gave in your article above, are true ways to create millions of jobs within relatively short periods of time, cost competitively, and achieve world-class quality standards in all dimensions of performance measures. Once these measures are achieved, exporting the products and services are as easy as hot knife through butter.

Like you, I sincerely pray “that the presidential committee can take note of [these examples] while they deliberate, and … they should also set up a process whereby other Nigerians with ideas and suggestions can send them to the committee. As a Nigerian, I stand ready to provide any assistance my country needs and I am sure every Nigerian feels the same way” Because I personally have solidly competitive proposals on how to create millions of jobs in Nigeria, ensure technology transfer, products localization or domestication and exports. My proposals are on a 200 MW electric POWER generation plant, 100,000 units annually vehicle manufacturing plant, 2,000,000 units annually cell phone manufacturing plant, etc., complete with willing Technical Partners with the right technologies, expertise or know-how, etc. The proposals are based on, develped and partnered with, real and competitively existing industry-specific large companies. So, the proposals would only take relatively short time to execute in Nigeria.

Engr. Busty Okundaye; MSME, MBA (M.I.T. Sloan), is President, International Operations, UGC Technologies (U.S.A., China, etc.) He can be reached directly via: obustyo@yahoo.com

Dangote is not clean

Very good ideas but Dangote is not clean. I do not know about the other chap but Dangote only used his brains to cllect what belongs to his uncle. That is no business. As for u Dawudo, i just pray u are able to attract Jona to your beautiful ideas.Dont give up yet. Government can create jobs from roads, street lights, parking lots, security, by hrirng more to assist the police at night-street patrols-re-organise the vigilante groups-that is the way the south africans started.The production of electricity should be zoned to the 6 geo political areas and monitored-it will be stupid for government not to get involved in building refineries.

4000 megawatts?good man.

they sound sensible to me though systemic issues may not allow it work to the fullest or even work at all(verifying property ownership will be a big task).
thank you for taking the power problem on.

dangote is not a good example of a job creator,he is just a recycler of wealth stolen (in a cosmic sort of way lol!) from other part of the economy and he is a big fan of the status quo