Veritable private sector key to national development, says Daniel
THE panacea to the country’s dwindling national development is encapsulated in the empowerment of the private sector to perform better, former Ogun State Governor, Otunba Gbenga Daniel said yesterday.
Daniel in a speech said, “Until governmental policies and plans are focused on ensuring that private businesses are empowered to succeed, the much-needed economic development will remain a mirage”.
The former Governor, who is the Chairman of Kresta Laurel Limited spoke in a keynote address titled “Creative Employment of Private Sector Capabilities for Economic Development” at the 2015 Annual Directors’ Dinner, organised by the Institute of Directors, Nigeria held at Eko Hotel and Suites.
He hinged his submission on his experience from both the private and the public sectors as a two-term governor and a businessman.
His words, “The notion that government has no business with business may be true to some extent, but it is not totally correct as there is a particular level of synergy required between government and the organized private sector to ensure positive economic development”.
According to him, “ there can be no business without government, and there can be no government without business
“As most private businesses are committed to excellent service and product delivery at an optimal cost and the highest possible return on investment, many public corporations, on the other hand and beyond the issue of bureaucracy, contend with bloated and oversized workforce, unwieldy expenditure profiles and such leakages that translate into inefficiency of cost in relation to output”.
This, he said, was the reason why several public corporations rely on subventions from government despite being actively engaged in revenue-generating activities while the private business that is concerned about the return on assets employed, return on investment, minimal cost of production of goods and services, minimal cost of sales, minimal downtimes, efficient production processes, compliance with corporate governance, health, safety, security and environment among others.
This is the more reason, he submitted, the “government must provide that enabling environment for private businesses to operate efficiently and productively”, adding that in the absence of government’s engagement, the dream for economic development will remain unrealizable.
Daniel also stressed that the key to the development of Nigeria’s economy is in the construction industry based on its capacity for immense contribution to our economic emancipation and growth.
The construction industry, he stressed, employs and engages various competencies across a broad spectrum of professionalism and abilities from the human resources – consultants, engineers, technologists, technicians, artisans and supporting staff.
“There is a need for a paradigm shift in allocation of resources to finance projects. Let us consider investing 50% of our resources in the construction industry, 30% in agriculture and 20% in the oil, gas and the solid mineral industry. I predict that we will experience the kind of boom that is beyond our collective imagination. Imagine what will happen if we decide to fill the housing deficit of 14 million houses using indigenous labour”.
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