LEVERAGING ON BILATERAL RELATIONS FOR SKILL ACQUISITION AND ENTREPRENEURSHIP DEVELOPMENT: A LOOK AT THE PEOPLE’S REPUBLIC OF CHINA BY CHIEF (DR.) MATHEW UWAEKWE, NATIONAL COORDINATOR/CEO NIGERIA – CHINA BUSINESS COUNCIL AT THE NATIONAL INDUSTRIAL SKILLS DEVELOPMENT STAKEHOLDERS FORUM, LADI KWALI HALL, ABUJA ON THE MAY 17, 2012

-         The Chairman of this August occasion, Dr. Olusegun Aganga, Honourable Minister of Trade and investment.

-         The Special Guest of Hounour, Chief (Dr.) Samuel Ortom, Honourable Minister of State, for Trade and Investment.

-         The Chief Host of this occasion,

1. the Director General, Industrial Training Fund.
2. , Director General/CEO Small and Medium Enterprises Development Agency of Nigeria.

-         Your Excellencies, Ambassadors, and Representatives of Diplomatic – Community and donor Agencies in Nigeria

-         Captains of industries and the organized private sector.

-         Members of the high-table

-         Gentlemen of the Press

-         Distinguished Guests

-         Ladies and Gentlemen

Nigeria –China Business Council feels delighted to be invited to this epoch-making event tailored to realistically confront the challenges of our times. The Challenges of:

-         Massive youth unemployment

-         Wasted talents and youth restiveness

-         High population growth rate and antecedent rural-uban migration

-         And the challenge of inadequate infrastructure and institutional support required for sustainable economic development

The theme of today’s forum “Turning our Quantity advantage to productive advantage” could not have come at a better time, that the concept of transformation is being unfolded to suggest that Nigerian policy makers need to be more realistic and practical in its policy directives, that Nigeria needs to look more inward to be able to properly harness its natural endowments and that Nigeria should now strive to benefit from the advantages offered by its foreign partners on reciprocal ground rather than have its doors wide open for market exploitation.

     This is why I am delighted to speak on the topic “Leveraging on Bilateral Relations for skill Acquisition and Entrepreneurial Development:   A Look at the People’s Republic of China”.

     The Nigeria – China Business Council was established in 2009 to follow with the dreams and aspirations enacted by Nigeria –China after the successful hosting of the First Nigeria -China Trade and Investment Forum co-hosted by the Chinese Business Community in Nigeria and the Federal Ministry of Trade and Investment through a national organizing Committee inaugurated by the then Honourable Minister of Trade and Investment, His Excellency, Chief Achike Udenwa.

     Since established, the Nigeria – China Business Council has strived to deepen the Trade relations between Nigeria and China. Following this, NCBC now has far-reaching working relationship with China through the Chinese Embassy in Nigeria and Chinese policy making institutions in China.

Nigeria – China Business Council has MOU with:

1. China Council for the Promotion of International Trade, (CCPIT)
2. The Chinese People’s Association for Friendship with Foreign Countries, (CPAFFC)
3. The Corps of Former Chinese Ambassadors to Nigeria in Beijing, China
4. Department of Foreign Trade and Economic Cooperation, Jiangsu Provincial Government
5. Guangdong Provincial Government
6. Qinghai Provincial Government, to name few.

Nigeria – China Business Council was represented by a very high powered Nigeria delegation during the 2011 40th Anniversary of Chinese Diplomatic Relations with Nigeria.

Nigeria –China Business Council participates in organizing series of trade missions to China, helps in settling trade disputes and recommends policy measures in bilateral trade promotion efforts.

Observers of economic events around the world, remembered that although the locomotive for transnational economic advances has been the highly industrialized countries (USA, England, Germany, France and Japan) the role of some emerging market economies especially the BRIC nations (Brazil, Russia, India and China) has now become a phenomena that desires to be emulated by a Country like Nigeria.

China especially has systematically metamorphosed into a huge market competing and overtaking the United States and its allies as an economic super power.

     Indeed the growing influence of China can be witnessed in the dependence of other super powers on its products and services which are all judged cheaper and relatively qualitative. The expansion of Chinese interest across the world has assumed some ferocity considering its presence in even the remotest parts of the world China’s economic imperialism is being approached through a campaign of deftness, tact and unbridled diplomacy. China’s agenda in Nigeria has been pursued through a policy of consistency, aggressiveness, followed with unyielding enthusiasm to be allowed to do more. From the importation of Chinese made electronics and consumer good, Nigeria is now comfortable with Chinese built roads and highways, hydroelectric dams, Independent Power projects, space satellite projects, rail ways projects and lately Chinese made heavy duty trucks, vehicles and motorcycles.

     Indeed, economic and political relations between Nigeria and China have grown to a level where mutual trust and confidence should now exist. Since 2003, Nigeria trade with China has experience liner growth. China now tops the scale of the sources of foreign trade, leading in the following orders;

• China 10.4% of total Nigeria import
• United States 7.3%
• United Kingdom 6.7%
• The Netherlands 6%
• France 5.9%
• Brazil 4.3%
• Germany 4.2%

Ladies and Gentlemen, the Nigeria – China Business

Council was established not only to deepen the trade relations between Nigeria and China but also to serve as a platform for the exchange of technological experiences and advancement between the two Countries. The role China could play in this process was aptly captured in 2009, by Her Excellency, Hajia Turai Yar’Adua   when she said “I urge you to provide training and capacity building for our teeming rural women for the acquisition of some modern skills to transform and improve their livelihood. The first Nigeria – China Trade and Investment Forum should also explore micro credit schemes specifically aimed to empowering our women entrepreneurs.   More Chinese factories should be built in Nigeria to create employment and training opportunities for Nigerian youths including those physically challenged”

Although, the Nigeria – China Business Council has focused on other areas of its mandate. It has lately seen the need for skill acquisition and entrepreneurship development as vital to meeting short and long term global competitiveness and market share. For example, the orders generated from China for the supply of cassava derivatives could not be met by Nigerian exporters to their inability to process imported items to required standards and specifications. Yet some of these orders were expected to hold for 20 years and above of steady supplies.

     Following similar experiences in various sectors, the Nigeria – China Business Council signed an MOU with Dongfeng Special Vehicle (Shiyan) Bus Co. Ltd. on skill acquisition and vocational training for Nigeria youths early in 2012.

NCBC is now collaborating with the Federal Ministry of Trade Investment the Industrial training Fund, the National Automotive Council as well as the Nigeria Entrepreneurs Forum with ITF as the focal Agency to provide skill Acquisition Training for Nigerian Youths in China in the fields of:

-    Autotronics

-    Auto transmission

-    Auto painting and body works

-    Auto electronics/computer diagnostics and repair

-    Automobile accessories production

     This programme is structured to provide requisite skills in the chosen field to 19,350 youths to be drawn from 774 Local Governments of the Federation.

On completion of the programme, beneficiaries of the skill acquisition training working in tandem with the Nigeria Entrepreneurs Forum and small Medium Scale Enterprises Development Agency of Nigeria shall be provided with Entrepreneurship training and availed them of financial assistance to turn their skills into enterprises.   These new ventures shall employ and train other unemployed youths.  

Those that may not be interested in settling up their enterprises shall be assisted to get employment with the myriad Chinese companies involved in automobile, agricultural equipment and production related industries across Nigeria. It is our estimation that those that set up their workshops shall be able to absolve 10 employees and trainees per local government in our turnaround time of 3 months, thereby creating a phenomenal volume of gainful economic activity of 580,500 youth’s employment per year.

     For those that will set up auto parts production facilities, the local demand for their products is expected to meet 20% of present local market need and generate a multiplier effect of over N160,000,000,000, per annum in sales. It will also lead to creation of employment and economic activities through distributorship, direct marketing, agency etc.   This process will be enhanced when the producers are taught how to export their finished auto parts to various foreign countries.   This also has added advantages for Nigeria to participate in the Global Automobile Industry by bringing to the international market, Nigeria made auto parts.

     We hope to pursue vigorously the adoption of Local content policies to the implementation of this programme in the oil & gas sector thereby forcing doors to open for the young entrepreneurs to attract local supplies and export opportunities to China and Europe with strategic eye on sub regional markets.  

While we see this as a pilot project its success shall enable Nigeria – China Business Council replicates the idea in many more sectors.

Conclusion

     Following the issues raised above, the Nigeria – China Business Council strongly recommends that the industrial Training Fund, the National Automobile Council. The Small and Medium Scale Enterprises Development Agency of Nigeria and Nigeria Entrepreneurs Forum as well as the Bank of Industry and National Economic Reconstruction Fund, (NERFUND) be properly Keyed into the national skill Development programme.

     With the established relations and the enthusiasm developed by China, we also suggest that Nigeria moves to quickly take advantage of the opportunities offered.

     Similarly, we suggest that with ITF serving as the focal Agency, a high level delegation be raised from the Federal Ministry of Trade and Investment, National Automotive Council, SMEDAN, etc to visit China to formalize the modalities for implementation process already embarked on by Nigeria – China Business Council.  

It is on this note that we hereby recommend strongly that the Honourable Minister sees the necessity to constitute a Ministerial Committee comprising of the above Agencies who under the ITF become the instrumentality through which the programme could be a success. This Ministerial Committee shall also look beyond China to other countries that may offer Nigeria similar bilateral assistance in other fields of endeavor such as telecommunications, agriculture and oil & gas to prepare Nigerian youths for the 21st century global economic opportunities.

Thank you.

NATIONAL COORDINATOR/CEO

Nigeria - China Business Council