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.