Establishing the South East Development Commission: A Path to Economic Revival

A rejoinder to my 2023 op-ed on Regional Corporation in the South East...

Last month, President Bola Ahmed Tinubu GCFR signed the bill to establish the South East Development Commission (SEDC) into law. This bill, first introduced in the National Assembly in June 2016, seeks to reconstruct and rehabilitate infrastructure damages suffered by the region during the Nigerian Civil War of 1967-1970. As expected, this move by the Federal Government has been met with jubilation, conflicting emotions, and now, analysts, stakeholders, and the public are all waiting with bated breath, asking, “What Next?”

A Vehicle for Rehabilitation & Future Transformation

Today, we have another development commission that should be focused on solving the issues addressed by the region. This vehicle can be the harbinger of regional integration and transformation that the Southeast desperately needs. It can be the tool to address the infrastructure deficit limiting the development potential of the region. In addition, it has the potential to soothe the wounds the region sustained, after the Nigerian Civil War. These are all great potentials, but for them to be harnessed into tangible results, we must consider various factors:

What are the issues facing Southeast Nigeria today?

Have these challenges been captured holistically within the SEDC establishment law of 2024?

Can the SEDC become the catalyst crucial for Southeast development?

How will the SEDC interact with existing stakeholders - State Governments, Federal MDAs, other development commissions, development partners, private sector, etc.?

What stops this commission from becoming just a “good-on-paper” idea?

Most importantly, can the financing encapsulated in the law be sufficient to fund the change the region yearns for?

Current Challenges

To start with, let us identify some of the challenges threatening the region that the SEDC can intervene in. First, recent data from the World Bank has shown that Nigeria needs to invest between $100 billion - $150 billion annually over the next 30 years to mitigate the infrastructure deficit of the country. For the South East, this figure is estimated at $10 billion annually.

We also have about 2,500 active erosion sites cutting across the five eastern states, which have displaced hundreds of thousands of persons and significantly impacted their means of livelihood. Data from the National Bureau of Statistics shows that the unemployment and underemployment rates stand at 28%, slightly higher than the national average.

Lastly, the region faces heightened insecurity from various factors, including secessionist agitation - a hangover from the War.

These issues cut across all five south east states. From the bill, we can infer that the SEDC has the authority to intervene in most of these identified challenges.

Harnessing Economic Potential

The South East region of Nigeria, with an aggregate GDP of approximately $33.2 billion and a population of about 21.9 million, implies a GDP per capita of around $1,515. This places the region in a similar economic classification as Ghana and Kenya in terms of GDP per capita, although the total GDP and population sizes differ. Comparatively, the region’s economic metrics are higher than those of smaller and less economically developed nations like Malawi and Burundi but still fall behind more diversified economies such as those of South Africa and Egypt.

This comparative analysis highlights the region’s significant economic potential, especially when viewed in the context of African nations with similar economic metrics. It emphasizes the need for focused development policies and investments to harness this potential fully.

Revisiting the RRR Policy: The Long-Awaited Fulfillment

The RRR (Reconciliation, Reconstruction, and Rehabilitation) policy was introduced by the General Gowon led government in the aftermath of the Civil War to address the destruction and suffering in the South East. The commitments included:

• Reconciliation: Healing the psychological and social wounds of the war and promoting national unity.
• Reconstruction: Rebuilding infrastructure like roads, schools, and hospitals.
• Rehabilitation: Providing support and resources to affected individuals and communities.

Despite these commitments, many promises were not fully realized due to limited resources, bureaucratic inefficiencies, and political complexities. The creation of SEDC by the President Tinubu administration, represents the presidency’s commitment to the development of the South East region and demonstrates his intent to fulfill these promises made 54 years ago. This strongly aligns with the Renewed Hope agenda, if implemented successfully.

But for the commission to be truly transformative, it must have a clearly defined strategy for short-term, medium-term, and long-term goals.

Short-Term Interventions

In the short term, the SEDC might consider the following areas for immediate intervention:

Vocational education that formalizes the Igbo apprenticeship system. Also known as "Igba-boi," this traditional business and entrepreneurial model has been practiced by the Igbo people of Nigeria for generations. This system is renowned for its structured and community-driven approach to mentorship, business training, and financial empowerment. Similar work is being done by the Anambra State House of Assembly, where a bill is being developed to formalize the program and protect the rights of youths enrolled. We must cultivate the entrepreneurial spirit we are known for and continue upskilling until our indigenous systems can groom the next generation to compete on the national and global stages.

We must also explore our creative economy by investing in the technology ecosystem, digital economy, and more. Given the current size and nature of the regional market; a GDP of over $33.2 billion, a population of 21.9 million, and trade, commerce, manufacturing, and financial services accounting for over 80% of the economy, the region has immense opportunities for young innovators and software developers.

Our sports ecosystem can also be identified as a rallying point for youths. Through proper planning, the SEDC can initiate programs and infrastructure projects that revitalize the sports ecosystem, aligning with President Tinubu’s agenda to reintroduce school and grassroots sports as a cornerstone of development policy.

We must develop and implement structured and supportive policies and programs to catalyze these sectors, which will in turn attract foreign direct investment, improve competitiveness, and boost job creation.

Medium-Term Plans

While these are quick-win initiatives to build trust and credibility, the mid-term plan must be that bridge that lays the foundation for sustainable solutions. Currently, there is little to no firsthand data to quantify the actual damage suffered by the region nor is there any South East regional development plan.

As established earlier, the SEDC presents the first time since the end of the Civil War, that the region has been given the opportunity to drive its own development with the full support of the Federal Government. To maximize this opportunity, the SEDC must build a database that can guide the development of a comprehensive long-term plan to guide the reconstruction and rehabilitation of the region.

The results from this exercise will inform the SEDC's interventions across multiple problem areas such as combating the environmental degradation ravaging the region, re-building farms, markets and housing in communities destroyed during the war.

The mid-term plan should also consider commissioning feasibility studies and master plans for gas pipelines projects, interstate multi-modal transportation systems, mechanized farming projects and other critical infrastructure that will catalyze the industrialization agenda of the region. These plans must be bankable to enable the SEDC attract external and alternative sources of financing to co-develop such projects.

Long-Term Vision

The long-term plan will look at materializing the master plan, building out the critical physical infrastructure to drive inclusive, sustainable growth, and economic prosperity for the region. The infrastructure to be considered should include, but not be limited to, gas pipelines, interstate railways, a functional river port connected to larger ports in the South West and South-South regions, and new industrial parks and SME clusters.

Leadership: Need for Competence and Strong Partnerships

President Tinubu has graciously assented to the bill, and the Commission has been established with a clear mandate and provisions for financing its interventions. The next step is the creation of the leadership to execute this bold initiative. Individuals entrusted with this responsibility should have a proven track record in development planning and public policy formulation and should be trusted names with the right strategic partnerships at state, regional, national, and international levels.

The success of the SEDC will hinge on robust partnerships with federal government agencies, state governments, and the private sector. Collaborative efforts will ensure the alignment of goals and the efficient use of resources. The leadership of the state governments within the region will be pivotal in driving local initiatives that complement the SEDC's projects.

Furthermore, the SEDC must engage with development partners and financial institutions to secure additional funding and technical support. Innovative financing mechanisms, such as a possible South-East Development Fund, could attract investments from the capital markets, diaspora and other investors. This fund, with an initial contribution from the federation account allocations, can finance bankable infrastructure projects that will yield substantial returns in the long run.

Learning from Existing Regional Commissions

The SEDC can draw valuable lessons from the experiences of other regional development commissions, such as the Niger Delta Development Commission (NDDC) and the North-East Development Commission (NEDC). Studying their successes and challenges will provide insights into best practices and potential pitfalls to avoid.

For example, the SEDC must institute transparent and accountable project selection, design, execution, and monitoring processes to prevent issues such as abandoned or substandard projects.

Conclusion

President Bola Ahmed Tinubu's administration has set forth a Renewed Hope Agenda, emphasizing economic recovery, national security, and social cohesion. The SEDC aligns seamlessly with this agenda, as it seeks to bring economic prosperity and stability to the South-East region. By breaking the jinx of a 54-year wait since this policy was first proposed, President Tinubu has demonstrated his commitment to inclusive development and national unity. This historic achievement deserves great commendation, as it lays the groundwork for a more equitable and prosperous Nigeria.

The South-East Development Commission holds the promise of a brighter future for the South-East region. By addressing the infrastructure deficits, promoting industrialization, and tackling unemployment and insecurity, the SEDC can unlock the region's vast socioeconomic potential and drive transformative change that will benefit generations to come.

The SEDC is an olive branch and a beacon of hope. Let’s take it.