Roman
Oseghale, an Architect, Business Analyst and CEO. of IntelServe Inc. a
Canadian Business Analytical Services company, has identified human
capital development as the key to developing sustainable economic growth
for Nigeria.
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| Click to watch IntelServe CEO, Roman Oseghale speaks |
Speaking
at The Platform recently, Mr. Oseghale argued that Africa which is one
of the 6 continents is the richest in Mineral Resources but the poorest
in per capita income. He noted that 1/3 (33.3%) of all earths mineral
resources is buried in Africa, 2/3 (66.6%) of all global mined diamond
comes from Africa, 1/10 (10%) of global oil reserve is in Africa, 75% of
all cocoa beans is from Africa, and Africa is home to some of the
rarest mineral resources.
Presenting
a research that cost him about 600 hours of work, demonstrated how
Investing in Human Capital Development has been the secret to how
progressive nations have developed a Sustainable Economy and growth over
the last 60 years. He stated that the Netherlands which does not grow
cocoa processes 13% of all cocoa beans worldwide and Europe and Russia
which equally don’t grow cocoa processes 38% of all cocoa beans, and the
tens of products manufactured from cocoa are shipped back to Nigeria
and Africa to be sold, and while the worldwide cocoa industry is
estimated to be over USD$100 billion, Africa’s share is just 2% percent
(USD$2 billion) despite producing 75% of the cocoa beans.
He
stated through his research that developing a Sustainable Economic
Growth ensures both economic and political stability in any country and
is the gateway to creating wealth, building confidence in any economy
and prevents the devastating and inefficient impact of corporate
premature failure and death. Using analysis from both Business Survey
and Business Intelligence and gathering both qualitative and
quantitative data, Mr. Oseghale took the country back 57 years to 1960
and matched these data along timelines to know where Nigeria deviated
from the progressive economic growth of the 60’s and 70’s. He also
matched the data with those of 80 other countries across the 6
continents for the 57 years to be sure of his hypothesis.
He
stated through his research the direct correlation between education
expenditure and per capita income of countries and that all progressive
countries were operating the Knowledge Economy, he stated that
progressive countries develop individuals and as they earn more or
create wealth, it ultimately increases the GDP of the country. He stated
that Nigeria and most African countries were still operating the
mineral resources economy and if the country was to make progress it
must switch over to the knowledge economy and treat education as an
investment rather than an expense stating that education is an economic
tool for growth and sustainability.
He
stated through his research that in the 60’s and 70’s, and early 80’s,
Nigeria invested in education pushing to reach the United Nations
stipulated mandate of 26% of budget or 5% of GDP on education Investment
both on Federal and State levels, and reached an all-time high of 4.9%
of GDP in 1981. He argued that for the UN to have stipulated that 26% be
invested in Education and 15% in Health, a combined investment of 41%
of the budget on investments which has to do with direct investments on
human capital only proves one thing…..that Human Capital was the
greatest assets and true wealth of a nation and not mineral resources as
Nigeria and most African countries seem to think.
The
highlight of his presentation was how the research showed how Nigeria
was ahead of countries like Egypt and a lot of the Asian countries in
Per Capita Income in the 70’s and early 80’s when Nigeria heavily
invested in Education and treated it as an investment while those
countries did not invest as much in education and treated education as
an expense. But the reverse was to start happening from 1982, these
other countries started investing heavily in education building a
knowledge economy having realised that the knowledge economy was the
future and the key to economic growth and sustainability while Nigeria
kept reducing its education expenditure and reaching an all-time low of
0.77% of GDP in 1991 and it has remained at 0.8% annually ever since.
While population was increasing, Nigeria’s education expenditure was
reducing over the years and the country did not increase education
expenditure in 30 years.
In
1981 at USD$3.038b representing 4.9% of GDP, Nigeria’s education
investment remained below USD$1b for 20 years, between 1986 and 2006,
and only climbed to USD$3.3b in 2011 after 30 years. His research also
shows that no nation amongst the 80 countries used for the survey and
research ever reduced education expenditure for more that 3 to 4 years
in a row but Nigeria did not increase hers in 30 years. He noted that
Nigeria was the only country that had the highest increase in population
between 1981 and 2014 (134.5%) but only increased education expenditure
by only 53.7%, while countries like Egypt increased in population by
101.5% and increased education expenditure by 1,709%, Thailand increased
in population by 40.1% with increase in education expenditure by
2,625%, and Indonesia increased in population by 68.5% but increased
education expenditure by 2,469% in 33 years from 1981 to 2014, and this
is the reason these countries are ahead of Nigeria today.
The
research also showed that the Federal Government has only invested
USD$48.8 billion in education in 44 years (1970 – 2014) despite having a
large and fastest growing population compared to countries like Brazil
that has invested USD$1.5 trillion, Chile USD$120.5 with just 10% of
Nigeria’s population, Mexico USD$882.6 billion, Canada USD$1.6 trillion,
United States USD$17.2 trillion, United Kingdom USD$2.7 trillion,
Germany USD$3.5 trillion, Egypt USD$148 billion, South Africa USD$354
billion, Thailand USD$218.9 billion, and Indonesia USD$222 billion. He
stated that these countries and the others used in the survey treat
education as an investment and economic tool of growth and
sustainability, and that is why they have a progressive economy.
The
research also highlighted the cost of our negligence, how Nigeria’s
public education sector and infrastructure is now decaying and the
country not able to meet up with the massive number of students seeking
university admission yearly. He also stated that most of the kids are
now seeking admission outside the country which is now costing the
economy billions of dollars yearly, and while we may think the country
is only paying school fees and upkeep, Nigeria is losing billions in
Intangible assets annually as the country is losing its best brains.
He
concluded that government must start treating education as an
investment rather than expenditure and must immediately return the
country back to the economic model of the 70’s when government invested
in Human Capital Development and provided the citizens with the right
skills noting that the knowledge economy was the future and no nation
has ever recorded progress in economic growth and sustainability with
the relegation of education.
He
also stated that government should develop skills acquisition centres,
stating that education does not just end with students graduating from
the universities but they must be armed with the right skills to succeed
and increase productivity, which ultimately benefits the country and
that government should provide incentives of low interest loans for
graduates of skills and acquisition centres who wish to go into
manufacturing, he stated that this is the model the Asian countries have
been practicing and that’s why they have been able to turn their
countries to the manufacturing hub of the world. You can watch the
complete presentation on https://www.youtube.com/watch?v=rDueuO4Wfac
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