THE ROLE OF PRIVATE SECTOR IN THE DEVELOPMENT OF TRADE AND COMMERCE IN NIGERIA

Introduction
            In economics, the private sector is that part of economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit and is not controlled by the state. By contrast, enterprises that are part of the state are part of the public sector; private, non-profit organizations are regarded as part of the voluntary sector.
            Simply put, private sectors are the part of the national economy that is not under direct government control.

Nigeria Country Programme
UNIDO has a long standing relationship with Nigeria and has been involved in the country since 1966. the current Nigerian country programme (CP) entitled Economic Development through Poverty Alleviation: promoting competitiveness and sustainable export of value added products, covers the period of 2009-2012 and also includes projects carried over from the previous country programme modality, the country service framework II. It builds on a long UNIDO presence in and collaboration with Nigeria, and attempts to consolidate the previously implemented country service framework (Phase I and II).
The overall objectives of the CP is to support Nigeria’s industrialization efforts and the main counterpart agency is the Federal Ministry of Trade and Investment (FMTI). The CP is implemented under three themes, namely poverty reduction through productive activities, trade capacity building and energy and environment. In all, the CP incorporates around 40 projects covering areas of industrial governance, private sector development (PSD), trade facilitation, agro-industry development, energy and environmental sustainability. The country programme follows the UNIDO thematic priorities and includes the following themes and corresponding components.


Theme A: Poverty reduction through productive activities includes three components:
Component A1: Governance, Research and capacity development.
Component A2: Agro-industries, value addition and one village one product (OVOP).
Component A3: Private sector development.
Theme B: Trade capacity building includes two components:
a)         Component B1: Trade capacity building.
b)        Component B2: Investment and technology promotion.
Theme C: Energy and Environment includes two components.
a)         Component C1: Renewable Energy.
b)        Component C2: Environment
Poverty Reduction Through Productive Activities
            Agro-industries and value addition: Agriculture and agro-industry remain vital in Nigeria’s drive towards its slated development goals as outlined in the vision 2020. Agriculture contributed approximately 30% to GDP in 2010 and was one of the driving forces behind the economic growth experienced by the country. More recently, the sector contributed 43.6% to GDP in the third quarter of 2011. In addition, the importance of agriculture to the Nigerian economy can be seen by the fact that it employs approximately 70% of the population. This is mostly related to the processing of raw products and thus presents a good potential for value addition and the growth of agro-industries.
            Given the competence and experience of UNIDO in the area of agro-industry and agribusiness development, specifically in the development of value chains, UNIDO is well placed to support the government of Nigeria (GON) in growing and expanding the sector. Agro industry is currently addressed as a through productive activities them in the UNIDO country programme (CP) for Nigeria. the component covers agro industries, value addition and one village one product (OVOP) interventions.
            The agro industry and value addition components of UNIDO Nigeria’s CP are consistent with and supportive of the needs and priorities of the country and key government policies and specifically the vision 2020 and the more recent transformation agenda which incorporates agro-industry, agro-processing and agribusiness in their strategies to achieve development goals.
            The overall objective of the components is to promote industrialization, rural development and economic empowerment in Nigeria by adding value to the country’s agro resources. Descriptions of selected projects under the agro-industry and value addition projects are provided below:
The Common Facility Centre Project
            The common facility centre (CFC) in Aba, Abia State has evolved form multiple projects addressing the leather and the garment /Textile sectors in the region. The CFC is a shared facility for the improved production and knowledge of the leather and garment cluster also location in Aba.
Clusters of various sectors are numerous and well-established in the majority of states in Nigeria and cluster development is promoted by the government of Nigeria (GON). Located in close proximity to the clusters, the CFC provides training aimed at improving the skills of the entrepreneurs in the clusters and thus contributes to improving the production quality. There are large numbers of entrepreneurs working in the leather and garment clusters in Aba and the CFC has demonstrated potentials of reaching a wide cross section of target beneficiaries. The assignment and payment of staff of the CFC is under the responsibility of the Abia State Government.
            There are two key work streams or project components of the CFC leather and garment. The leather projects under the CFC have been completed and the garment component will end by December, 2012. The common facility centre (CFC) has been constructed and is in use and an assessment of equipment supplied for the CFC. The building is well designed and built and appropriate for the functions of the CFC.
            The overall goal of this project is to contribute to poverty reduction and improved livelihoods through enhanced capacity of micro and small scale operators in selected sectors to access market with products of adequate quality. The overarching objectives of the project is to establish a CFC adequately equipped and furnished to provide training and in house demonstration of enhanced production technologies for the large numbers of foot wears, leather goods and garments manufacturers located primarily in Aba and assist them to increase their contribution in further development of the relevant industrial sectors in Nigeria.
            The project aims to improve performance (product range, quality and productivity) of foot wear and other leather products manufactured by small-scale entrepreneurs of the Aba leather industry sector of Nigeria.
Other Specific Objectives of Project Component Include
a)         Creation of a coordination and implementation of framework to steer and implement the project.
b)        Establishment of institutional mechanisms for training of the CFC staff and the installation of equipment.
c)         Training the staff/trainers and upgrading existing entrepreneurs technical and management skills in ready made garment sector.
d)        Improving the capacity of support institutions and providing services in entrepreneurial, technical and management training.
Implementation Status of the Garment Component of the CFC
            Three of the seven activities associated with this output have been completed. These include the allocation and equipment of offices for CFC. In addition, the project employed a garment production expert for 15 months in 2010.
            The other four activities are ongoing and have not yet been completed. The steering committee is yet to be organized and officials have not been appointed to assist with the coordination of the CFC. Some training has taken place, including the training of 42 garment entrepreneurs has been completed and a comprehensive training plan and curriculum is being developed. The CFC is also in negotiation with organizations and schools to determine the feasibility of identifying training partners.

RICE PROCESSING PROJECT
            This project is still in an early stage. The project, supporting integrated and comprehensive approaches to climate change adaptation in Africa-promoting and Integrated approach to adaptation in Nigeria through building the governance system, empowering children as change agents and demonstrating adaptation benefits in the agricultural sector, is a regional project being led up by the UNDP and jointly implemented with the UNICEF and UNIDO. The UNIDO portion of the project in Nigeria-Rice Processing will address adaptation to climate change through the introduction of small hydro power (SHP) which will be used to support agro-industry in the community. Agricultural engineering and mechanization to increase sustainable production and improve post harvest storage and processing is included in the project and represents the agricultural engineering subcomponent of the UNIDO led portion of the project.
            The project is funded by the government of Japan. Land for the building of the rice mill be provided by the ALGA located in the obagagi village and the civil works for the project will be provided by the cooperative and ALGA. The main beneficiary is the Ehowodo farmers cooperative which has approximately 300 members which could potentially be direct beneficiaries. It is envisaged that the electricity harnessed from the SHP as part of project will eventually be used to power the rice mill being installed. Until the SHP is available, the rice mill will use a stead-by diesel generator.
The Women’s Salt Project in Ebonyi State
The project goal is to enhance productivity for wealth creation, as well as development of women in Uburu communities of Ebonyi State. The project aims to increase the quantity and improve on the quality of salt production in the target community.
The salt processing project, under the present CP, began in March 2009 and was completed in March 2012. It was primarily funded by the Japanese Government through their grant assistance to grassroots human security project (GGP) programme.
Conclusion
The private sector enhances, to a very large extent, the development of the economic situation in Nigeria because their activities from time to time, contribute to the GDP of the economy, as well as creation of employment opportunities to the citizenry.
Share on Google Plus

Declaimer - MARTINS LIBRARY

The publications and/or documents on this website are provided for general information purposes only. Your use of any of these sample documents is subjected to your own decision NB: Join our Social Media Network on Google Plus | Facebook | Twitter | Linkedin

READ RECENT UPDATES HERE