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Thursday, February 11, 2010

Power – A panacea to our economic problems or almost.

An Italian visitor to our dear country told a friend of mine that we (Nigerians) are hard working but not productive. That was a hard truth so I took a journey into our systems to find the reasons for our unproductivity.
First I went to a government parastatal hoping to find a reason or at least a pointer. On entering I was faced with people doing a lot of paper work, carrying files, filling forms and also looking for documents under piles of files and papers. They were doing everything but intelligent work or what I would call “productive” work. I was so happy when I saw a computer but alas the computer was only used to print more paper for filing and sorting. No wonder most graduates loath working for the government. I thought to myself, at this time and age shouldn’t there be information systems that will simplify communication, use emails instead of memos, analyze data and give the staff an opportunity to work as intelligent workers, using their skills in analyzing information and proffering solutions. The only thing that stood in the way of this grand 21st century ideas is this; to run such elaborate systems one needs computers and network infrastructure but where is the power(electric) to run such systems. Imagine Mr A complaining that there was no power so he couldn’t read the mail sent by his boss. So really paper bottle-necked processes are still the best but sorriest bet. Hence the reason for backwardness and unproductivity isn’t really our mind set but the lack of power to put our minds to work.
I was shocked to discover how many manufacturing companies had left Nigeria and was even more shocked to discover that the few that stayed or came in where the few that had an unfair advantage of monopoly and price control.
I then paid a visit to a private establishment or what I call an “organized” private establishment with the hope of finding a solution since I felt the private sector was naturally more productive. I met a manager not the top-dog though. The following ensued.
Me: How’s business faring?
Manager: Bad
Me: Why?
Manager: you know I don’t use public power to ensure business runs at least 80% of the time?
Me: yes
Manager: do you know how much it costs to buy generators for our national network, maintain them and the worst part fuel them.
Me: Millions?
Manager: in dollars yes, but in naira its billions per year.
Me: wow
Manager: yes, wow. That’s like 500% more than what my counterpart in that West African country next door pays because over there public power is cheaper and more efficient.
Me: True
Manager: and who bears this overhead loss?
Me: Who? I don’t know.
Manager: YOU, yes you. Wonder how?
Me: How?
Manager: I either charge you more or steal out rightly from you and you know I can do that because you don’t read my terms and conditions before using my services.
Me: That’s unfair.
Manager: don’t take it personal, its just business. Then I have to slash salaries, fire more people than I hire and in generally “use” our staff and customers to remain in business.
Me: That’s worse.
Manager: Then I have to increase my salary and do some sharp “runz” too and my boss gets way more because we run generators at home and that cost at least 60,000 Naira monthly to run 12 hours a day.
Me: That’s ridiculous.
Manager: Well you see why we aren’t really after productivity and more profit oriented. And again its just business.
Me: Hmmmm. Thanks.
I stormed out and headed for the place of last resort or so I taught. The bureau for empowering small and medium scale enterprises. I talked to the management and the following ensued.
Me: I feel you (the agency) should be the ones powering the next generation of entrepreneurs and those that will change the economy and lives of citizens of our dear country. Even if the government or the “organised” private sector fails, Graduates and the productive youth should be able to take their destiny in their own hands and forge a way for themselves.
Agency: Yes, true talk and that’s what we are doing exactly.
Me: ok but what’s the problem.
Agency: well we provide them with information, give lectures and support them with little fund. But the ones that actually have ideas that will yield productivity need affordable and constant power supply and those two words don’t come in the same sentence here. Its either “affordable and not constant” or “unaffordable and constant” and the only ones that survive offer services like selling stuff and distribution and that isn’t gonna suffice”. Only the “organized” private sector can do much and you know better on that issue.
I look at myself and wonder how productive I am. I need at least 18 hours of power to work on my business, develop myself and do stuff that will add value to myself. I get barely half of that even on generated power which means for a part of the day I’m almost unproductive.
I asked myself, what does this country rely on for its survival, Oil was the answer. Believe me an economy that depends on a finite resource (Oil) in an infinite system (except the world comes to an end) is heading for a collapse. For the sake of posterity I believe we need a change and change we must else we will invariably suffer the fate of the cockroach.

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