By Mujib Dada-Qadri, Esq

Post-2023, I am very hopeful that Nigeria’s power supply will optimally improve considering the latest activities of SIEMENS in the power sector. Very likely that the German Company will manage all value chains of our power sector(generation, transmission and distribution) considering the joint venture investments of over 1 billion dollars in the sector. I will be comfortable with a foreign company replacing our short-terrmist, fraudulent and incompetent local investors that have taken the Nigerian people for a ride conveniently. Happier to know that the contracts of the DISCOs will not be renewed, a contract that ought to have been legally and technically strangled by the Federal Government.

However, I long to see latest operational management model of SIEMENS in the nearest future. I will love to see the Federal Government still maintaining significant equity in the venture and not totally opening the sector to naked market forces blindly and to also allow local companies manage the retail aspect of the power sector and not the technical aspects except local companies with proven history of quality service in the sector and financial muscles.

Beyond sentiments, it is now obvious that indigenization policy which started in the 70s and our local content policy which was legally regularized during Former President Obasanjo’s administration are more of emotional than strategic business solutions. Despite my passion for domestic driven industrialization and black race economic advancement, I also see need for tactical investment policies learning from the oil rich gulf countries especially. Considering the performances of local companies in FMCGs and strategic industrial sectors with the exception of service sector, it is obvious we still have to apply “work and study” approach in our national investment policies. We need to stop deceiving ourselves with local content sentiments when we have shown that our technical/strategic industrial knowledge capacity is still crawling. We should rather learn from Gulf Countries developing at faster pace despite less indigenous technical capacity by delegating to experienced and efficient expatriates but still maintaining their economic sovereignty through local ownership or investment policy mandating that citizens of the country must be members of management boards. Nigeria has cheated itself and the citizens through sentimental local content policy instead of being tactical to speedily build it’s economy through foreign capacity while learning in the process and deliberately incubating it’s own local champions for future takeover. The energy sector is a good example of this innocent mistake. Asia has gained a lot from globalization by being tactical with it by admitting foreign managerial capacities in critical sectors and incubating local managerial capacities for future takeover especially through special attention to “inventive” science and technology. Though a controversial topic, we should encourage local growth and business adventures but we should be tactical enough to know how and when to apply our local content policies especially in sectors we have undeveloped managerial capacities.

Above all, our elephant should master the art of walking before dreaming of flying. I have reshaped my thoughts concerning our ambitious National industrial goals. It is true we can learn in the process and from our mistakes as Nigerian risk takers but the need to expand our industrial base and pace should be the biggest reason why we should not be naive in cheating ourselves indigenously leading sectors we are yet to master.

Mujib Dada-Qadri is a Lawyer and Policy Analyst based in Abuja.

Email: [email protected]