FACING THE CHALLENGE OF THE IGBO ECONOMY:

THE ROLE OF THE SOUTH EAST NIGERIA ECONOMIC

COMMISSION

(SENEC)

by

Professor Ukwu I Ukwu, OFR

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THE SOUTH EAST ZONE IN NIGERIA’S GEOPOLITICAL CONTEXT

• The adoption of the 6-zone geopolitical structure for Nigeria provides a strategic framework for cooperative and integrated regional action within the development within the larger context of national development.

• The South-East Zone, comprising the 5 States of Abia, Anambra, Ebonyi, Enugu and Imo, is part of Ala Igbo, which also extends over large parts of Delta and Rivers States in the South-South Zone.

• Ala Igbo is a compact but densely populated territory completely surrounded by other ethnic territories.

• Its development has been closely bound up not only with its internal dynamics but also with the structure and quality of its relationships with its neighbours.

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ALA IGBO

POPULATION BY 2006 CENSUS STATES & LOCAL GOVT AREA IN IGBOLAND

population percent

ABIA All LGAs 2833999 2.02 ANAMBRA All LGAs 4182032 2.99 DELTA Igbo LGAs 1229371 0.88 EBONYI All LGAs 2173501 1.55 ENUGU All LGAs 3257298 2.33 IMO All LGAs 3934899 2.81 RIVERS Igbo LGAs 3479087 2.48 IGBO TERRITORIES 21090187 15.06 NIGERIA 140003542 100.00

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INDICATORS OF ZONAL DEVELOPMENT

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NIGERIA 113 50.7 66.5 67.4 31.4 33.7 60.1

N C 93 46.5 66.4 70.1 30.3 34.8 58.8 4

N E 144 27.9 36.1 41.8 23.2 14.7 84.6 5

NW 225 23.2 32.5 33.4 26.3 16.6 80.9 6

S E 108 72.5 88.5 90.0 35.9 38.4 54.5 2

S S 60 77.3 92.5 90.5 30.6 35.3 52.5 3

SW 54 67.5 94.1 89.6 44.4 66.7 24.4 1

5

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THE DEVELOPMENT CHALLENGE

• IGBO DEVELOPMENT TRADITIONS:– Omenuko: making the best of scarce

resources– Igwebuike: the power of collective action– Uzo Ije: Sojourning as a way of life

• THE CHALLENGE OF COLLECTIVE SELF-RELIANCE

• THE NEED FOR OF INSTITUTION BUILDING

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TOWARDS AN APPROPRIATE INSTITUTIONAL FRAMEWORK FOR DEVELOPING THE IGBO ECONOMY: THE EVOLUTION OF THE

SOUTH EAST NIGERIA ECONOMIC COMMISSION• At a Stakeholders Forum on Industrial Clusters in South Eastern

Nigeria organized by the African Institute for Applied Economics (AIAE) in September 2006, it was resolved that in order to tackle the development problems of the South East geopolitical zone in a holistic and systematic manner there should be critical thinking on the formation of a zonal organization to promote and coordinate economic planning and development.

• A committee drawn from a wide spectrum of stakeholders including political office holders, public officers, professionals, academics, leaders of business and civil society was set up.

• The committee solicited, received and studied memoranda and suggestions from government, business and civil society agencies as well as concerned individuals at home and abroad

• A memorandum based on the intensive study was widely circulated and discussed at various for a, including the SE Governors’ Forum, Ohaneze, private sector organisations, and Diapora organisations

• Consensus was reached on the need for the establishment of a South East Nigeria Economic Commission.

• Since then steady progress has been made towards the realisation of the dream

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STRUCTURE OF SENEC: THE OPTIONS

In the memoranda and during the discussions, the many suggestions made focused on three main options:

• A GOVERNMENT AGENCY

• PRIVATE ENTERPRISE

• PUBLIC-PRIVATE PARTNERSHIP

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THE CASE FOR A GOVERNMENT AGENCY

An agency created and wholly owned by the subscribing governments (on the ECOWAS model, for example).

• This would have the highest degree of interface with existing state government structures, but would be very vulnerable to politics and bureaucracy

• Relationships with the Federal Government could be problematic

• The private sector would tend to see it as one more layer of Government interference

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THE CASE FOR A PRIVATE ENTERPRISE

A structured totally independent of government (or the governments), having a private sector or non-government outlook, more or less (the Nigeria Economic Summit Group (NESG) model).

• This model would shield SENEC from undue government interference

• But it would be very challenging to attempt to influence governments from the “outside” without any formal commitments on both sides

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THE CASE FOR PUBLIC-PRIVATE PARTNERSHIPPublic-Private Partnership offers a hybrid structure

combining the advantages of public and private sector institutions and mitigating the disadvantages.

• Well crafted, such partnership could ensure full consultation and cooperation in policy and programme decisions while allowing each partner the freedom to act autonomously in promotion of shared goals.

• There was a consensus in favour of the public-private partnership option.

• The preliminary recommendations of the committee are based on this consideration

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THE CHOICE• An economic development agency jointly

established, owned and operated by the governments, private enterprises and communities of the five states in the South East geopolitical zone, to be known as THE SOUTH EAST NIGERIA ECONOMIC COMMISSION.

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VISION• To become an effective engine for the

economic and social development of the South East geopolitical zone through sound development strategies and the initiation, promotion, coordination and support of critical investments

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MISSIONTo contribute significantly to the increased

prosperity and improved quality of life of the people of the zone through:

• Articulation and promotion of focused and effective development strategies

• Mobilizing resources from public, private and international sources for investment in critical areas

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OBJECTIVES

• To provide a common platform for fostering and championing the development interests of the SE zone

• To help harmonise the economic interests of the zone and encourage cooperation among all the stakeholders

• To advise the state governments of the zone on issues of common interest

• To provide a platform for negotiating and influencing policies and actions at national level in favour of the zone

• To facilitate public-private partnership on development

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STRATEGIES

• To continuously engage the government, private and community agencies in the exploration, choice and implementation of development activities

• To monitor and review the development plans, programmes and activities of key stakeholders and offer appropriate advise

• To maintain an up-to-date and comprehensive development databank and disseminate relevant information to all stakeholders

• To establish and manage a fund for systematic investment in critical areas of the economy.

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IDENTITY AND OWNERSHIP

• A public-private partnership based on a shared focus on the economic development of the zone

• The key members of the partnership include the state governments, the local governments, business and professional associations, key civil society organisations and community organisations.

• The corporate authority will be exercised through the Board of Trustees, on which the principal partners are represented.

• The partners will have specific and shared roles as determined by the articles of the association

• The Commission will be established by law legislated by the state assemblies of all the subscribing state governments The private

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KEY INSTITUTIONS• The SE Governors Forum

• The SE Economic Development Forum

• The Board of Trustees

• The Board of Directors

• The Departments

• The SE Nigeria Development Fund

• The Special Committees

WHERE WE AREFollowing on the consultations and discussions, specific steps have now been taken towards the formal establishment and operationalisation of SENEC• The SE Governors” Forum has publicly endorsed the proposal and nominated state representatives on the steering committee. The Governors are also reviewing the Memorandum of Understanding and the Legal Framework document with a view to instituting due process for legislation and executive action.•The relevant governing bodies of the major private sector organisations, including the Chambers of Commerce and branches of MAN are in the process of formally adopting and signing on to SENEC.•Special Committees are already working on critical areas of SENEC’s mandate

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WHAT NEXT?

The stage is now set for the formal “outing” of the South East Nigeria

Economic Commission at an Inaugural Summit at which all the

significant stakeholders will commit publicly to this exciting adventure

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WELCOME TO

SENEC