Olasunkanmi T. Adeoti holds B. Sc. Economics from the University of Ibadan and M.Sc. Finance at the University of Lagos. Adeoti is a Chartered Accountant. He is also an Associate member of the Chartered Institute of Taxation of Nigeria .He worked with Ernst & Young, an international firm of Chartered Accountants between 1990 and 2003; left as a Manager; Hygeia Nigeria Limited – 2003 to Oct. 2004 as the Group Financial Controller. He was engaged by the Department for International Development (DFID) to support a Minister in setting up an Agency of the Federal Government where he was appointed Accountant/ Administrator of the Agency. December 2004 to Oct. 2010. He was instrumental to setting up the admin / accounting structure as well as internal control processes. Adeoti joined World Bank as Financial Management Specialist in Oct.2010. His performance made the bank to recommend him to a Federal Project (GIFMIS) being funded by the Bank in 2012. The project has the mandate to develop a public financial management solution with all relevant controls built. The Chartered Accountant was instrumental to ensuring that adequate controls are put in place as well as complying with relevant accounting standards and policies. He is currently the Deputy Program Manager (System Development) on the Project.
Adeoti speaks to Green Savannah Diplomatic Cable on some factors militating against the development of Africa, and other related economic issues affecting the continent
Excerpts:
One of the greatest challenges of Africa is underdevelopment, particularly on the economic front. What do you think is responsible for this?
Underdevelopment is truly a major problem in Africa due to two factors. The first is pre-independence exploitation and while the second is post- independence leadership issue. Colonial masters did not have objective of developing Africa but to use African resources to develop their economies. Roads and railways were created for the purpose of transporting raw materials from interior Africa to the nearest seaports for export not for the purpose of creating economic activities to stimulate development; hence, there was no development during colonial era. On the second factor, the post- independence leaders did not see anything wrong in producing raw materials for export. Therefore, the mentality of producing raw materials for export continued. It took some time before the realization that there is need for value addition before export in order to create employment, create income, and stimulate economic activities. Africa needs visionary leaders to pilot it affairs to greatness.
The continent has a good population of vibrant youths, how can this be harnessed to bring about the desired change?
This may require multiple steps. As a continent, we need to restructure the school curriculum to be value and employment creation oriented instead of salary job seeking orientation that often compound unemployment. There is also the need to create enabling environment for investments to take advantage of surplus youth population. These include stable electricity to stimulate growth in manufacturing industry, creation and rehabilitation of access roads to agricultural based villages. Talking specifically about Nigeria, we need to address the challenge of insecurity. Many of the youths are willing to go back to farming, but the issue of kidnapping and insurgency has been a bottleneck.
How do you see Africa in the coming years?
What becomes of Africa in the next few years is a function of steps we are taking today. It starts from politics to economics and social. We need to streamline our politics to allow the best leaders emerge without god fathers. This will allow visionary leaders to emerge. A visionary leader will equally address our social issues because he will be well abreast of the implications. I can see some emerging economies in Africa if the momentum is sustained with sense of sincerity. Nigeria and South Africa may be two of them.
You are a Chartered Accountant who has worked with the World Bank and other reputable organizations, what strategies should government at the three tiers adopt to tackle poverty in Nigeria?
I have no authority to speak for the World Bank and also I did not work with World Bank a development economist. However, speaking for myself as an Accountant with background in economics, I can suggest a few things. One the present insecurity in the land has to be tackled. The level of insecurity has created so much unemployment as many farmers have left their farmlands. Many of them are currently doing nothing. The few who are employed are merely working without savings. In fact, the level of capital formation is far below tolerable level. Let there be assurance of security for farmers and the farmland to encourage some of our youths return to farming. Secondly, industrial layout should be created in every city with good infrastructure as incentive to invest. Cottage industries should be encouraged with special focus on forward integration by processing further our agricultural products. The third thing that can be done is finance support to interested parties with the requisite qualifications and experience. 80% of such support should be in form of necessary equipment to avoid diversion or misappropriation. Participants should also contribute counterpart fund to show commitment. This will create employment and subsequently, income. The multiplier effect of this income cannot be quantified but better imagined.
What should government do to reduce corruption in Nigeria?
This is a big question that has defied solution for years. Rather than reducing it is growing with scaring upcoming generation. We need to understand the extent before suggesting solution. Corruption has been institutionalised in government and it has gotten to the level we can better imagine. We have seen allegation of corruption at the leadership table which should have been regarded as sacrilege. If those who are to sanitize the society are involved then who can challenge it. Civil service is worst off. No politician can steal without involvement of a civil servant. Government should address the issue of corruption at leadership level. It appears every appointee of government today is committed to some individual, societies, ruling party, etc. Performance to these groups means filing returns. A true leader will change this and make parties to source funds elsewhere. Again, corruption offence by leaders should be made to attract severe punishment like life jail, if not capital punishment. There is need to review civil servant salary to meaningful level. In the current dispensation, staff receiving N40, 000 or N50,000 are trained to looked for a way to survive. The least accommodation (one room self-contain) is going for about N300, 000 (N25, 000 per month). In some locations it is about N500, 000. Yet the staff must eat, transport to the office and buy cloth in a while. Who will fill the gap? If the staff is married, he needs bigger accommodation. Obviously, the pay is not realistic. This should be addressed to allow for sanity and some level of moral display in the civil service. Currently, desperation to survive is pushing many against their desire. There is also the need for societal re-orientation to disabuse the mind of people from wrong expectations that new appointees must do something for them. Lastly, leadership and moral behaviour should be introduced in our secondary school curriculum.
Are there steps that Nigeria can take to improve on her foreign reserve?
Foreign reserve can be improved in three main ways, one; increase export while our importation remains. Two, reduce importation while our export remains. The third one is to increase export and at the same time reduce importation. Of Couse, it can also be a combination of any of the components or capital inflows from foreign investors or Nigerians in diaspora. One major step is to encourage local production of many of the items we import. This can be done through the strategies highlighted above. In addition, there is need to sensitize Nigerians to consume what is produced locally instead of using imported items to create baseless social class.
As a professional who has worked with development partners, what advice do you have for young entrepreneurs in Nigeria?
To survive in Nigeria as an entrepreneur requires that one understands Nigeria economy and use the knowledge to predict likely market reactions to government policies. Patience is another key word. It takes patience and endurance to penetrate the market. The focus should be on building a name with good quality and moderate price. Gains will definitely come when the product is known.
