PROPERTY TRANSACTION GUIDE

Afforestation as viable solution to economic meltdown

Guardian, Monday, 26th October 2009

IN the past few years the whole world has been concerned about global warming - a situation that has changed our climatic conditions brought about by the civilisation that man established in the cause of development. As modern development leads to the acquisition of more land we have witnessed the struggle of indigenous peoples for the sustenance of their environment, often leading to bloody clashes and causalities.

Today, we are faced with the task of making our nation greener in other to check the excesses of deforestation that resulted from our commercialisation of our forest reserves without the thought of replanting the trees that have been felled and indiscriminating too. The new consciousness in us that has engendered the crusade to plant trees is our response to the worldwide campaign to lesson the effects of global warming.

Nigeria is currently in the race to become one of the 20 developed nations by the year 2020.

It must be emphasised that developed nations are the industrialised nations that developed their landmass through cultivation to feed themselves and produce Agro-Allied raw materials for their industrial growth. Since land is Nigeria's greatest asset, the matter of land utilisation in Nigeria should be our greatest concern. Nigeria's economy is totally dependent on oil and gas that is coming from only about five per cent of our landmass. Other productive use of our landmass may not be more than 15 per cent the rest 80 are lands that are lying fallow. It is in respect of this land utilisation that this paper is focused.

Since the advent of global economic meltdown many commentators and experts have continued to give or adduce reasons for the global economic meltdown. In most of these comments, developing nations have been said to be the worst hit. Unfortunately, most governments of developing nations have no palliative measures or means to ameliorate the effect on their economic activities as a result of which the poor nations are becoming poorer. When we consider how highly dependent and marginal the economies of developing nations are to the global economy, we should then be worried why the developing nations should be the worst hit.

Recently, a World Bank report on the impact of the global financial crises on developing countries paints a scary picture.

This World Bank report must be of serious concern to Public and Private sector economic players and the economic operators of developing nations. The report further said, "Even though it is the least integrated with the global economy. Africa may be the worst hit region by the global economic crises. Each of the four channels through which the crisis is affecting Africa has a particularly nefarious impact. Private capital flows, which in 2007 had surged to $53 billion for the first time exceeding foreign aid to the continent-are declining. Since last year, African stock markets have fallen by an average of 40 per cent, with some, "such as Nigeria's falling by over 60 per cent. Ghana and Kenya have postponed foreign bond, offerings worth over $800 million, delaying the construction of toll-roads and gas pipelines." These assertions confirm the danger dependence on foreign aids, or foreign capital, bonds etc.

The great stock market crash in Africa especially in Nigeria is a great lesson for everyone on distorted and manipulated growth patterns.

A situation where 15 or more years of capital gains and/or stocks bought within three months in the stock market can crash by as much as 800 per cent disastrous. The loss of huge margin loans from banks invested on stocks in the capital market, that are now threatening the operations of many banks, and financial institutions.

The World Bank report under reference also said; "Finally, Sub-Saharan Africa, the region has been hit hard by reduced external demand, plunging export prices, weaker remittances and tourism revenues, and sharply lower capital inflows, notably FDI. Growth is expected to decelerate sharply this year to I per cent, down from 5.7 per cent on the average over the past three years. By 2010, growth is forecast to rise by 3.7 per cent."

The various Nigerian economic plans of the past 50 years of over dependency on developed nations of trial and error and fifty years of learning process that continue to give negative result must be jettisoned now. If we are going to grow as a developed nation, we must now close doors to all sorts of foreign dependency and look inwards to start development with home base human and material resources especially renewable resources that can only grow and not melt down again.

The continuing dependence on only about five per cent of Nigeria's landmass that produce oil and gas is sufficient to call attention to the need to cultivate the well over 80 per cent of land mass that is lying fallow.

Experiences show clearly that the economy of adding value to land is the economy that will grow and continue to grow national economy. It will not crash or meltdowns unlike oil and gas economy that will fluctuate up slightly for a short period and melt down drastically for a very long period. Afforestation is the key solution and the road to recovery; it is a win, win investment sector of immense proportion.

If you add value to one acre of rural land by planting 1000 trees at a cost of N2,000,000 spread over three years, it is an injection of capital for rural development for the cost of purchase of rural land, land preparation; purchase of seedlings, weeding, trimming or pruning etc without additional cost thereafter after three years. The 1000 trees in year 10 will have grown or matured into transmission pole sizes at about N10,000 per one. The investment will be worth about N10,000,000. If the one acre of 1000 trees is allowed to grow for 20 years when it attains Timber sizes either for local sawmills or for export, each tree will be worth N40, 000. This is the result of investing N2,000,000 to add value to one acre of rural land by planting 1000 trees on one acre piece of rural land, the land will grow the trees to the tune of about N40, 000,000.00 and it will never melt down at anytime. It will always grow. It will provide employment for the rural people.

In addition, after the first harvest the stumps will sprout out to continue a second stage of growth, for long lasting returns that will never melt down at any time. This is a positive way of rural development.

By this obvious example, therefore, every square metre of Nigeria landmass should be seen as goldmine waiting for cultivation into economic growth and not economic meltdown. If this tested example is accepted as a national project and at least each of the 700 rural local governments out of the 774 Local Government is tasked to employ a collaborative arrangement supported by both the Federal, state governments, the private sector, traditional rulers and/or a land development agency created to establish plantation forest on 2,000 acres either in one or four lots of 500 acres of rural land to plant at least 2,000,000 trees yearly for 10 years, Nigeria's lost forest will be restored. Nigeria will become a forest sustainable nation; and become part of global tree planters to tackle climate change, global warming and sustainable environment with a sustainable forest management policy put in place; Nigeria will qualify for Carbon Credit and International Timber Export Certification. Nigeria will become a Timber and Timber products exporting nation and she will earn appreciable foreign exchange. Large and medium plywood industries that have closed down will reopen and new ones will be established. More than 2,000,000 productive plantation and Agro allied industrial jobs will be created. This is a positive and productive way of poverty alleviation, and a road to economic recovery.

We should therefore note that landmass without added value is valueless and worthless; landmass lying fallow without added value is unproductive to the GDP; uncultivated landmass is jungle land of no use and benefit; acquired land and/or land speculation without added value is an economic drain, and national Production or productivity of land mass can only be measured by its cultivation.

Industrial nations are nations that cultivate their landmass to feed themselves and export and produce Agro allied raw materials for their industrial growth.

Lets add value to our landmass through cultivations such as: Arable farming of either small, medium, and large scale in such sectors as: Cotton, Groundnut, Cassava, Yam, Grains dc Tree crops such as rubber trees, fruits trees, oil palm, cocoa, kola nuts, medicinal plants structural trees (afforestation) etc.

As the economy of meltdown is staring us in .the face with its dastardly consequences as emphasised by the on going actions of the Governor of Central Bank of Nigeria, Sanusi Lamido Sanusi, on banks, we should now begin Agric revolution, leveraging on research and resources of our Universities and Research Institutes.

These institutions cannot be left out of the nation's industrial revolution. We should take a cue from the policy of the British Colonial Masters that established plantation forests in most of the Tertiary institutions they established in pre-independence Nigeria such as the Cocoa Research Institute of Nigeria, University of Ibadan, most of the Colleges of Arts and Technology that have translated to universities of today. This tertiary institutional plantation forest policy then, did in fact make Ahmadu Bello University (ABU) an oasis of a forest in Northern Nigeria. The same is the Obafemi Awolowo University (OAU) that resulted in the establishing of a sawmill to harvest the abundance of old timber stock in their enormous 'expanse of forestland. Unfortunately, the matured trees cut from these institutional plantation forests are not replanted. This is because Nigeria lacks and does not practice sustainable forest management policy that guarantees sustainable environment and industrial prosperity.

These viable examples are sufficient case study that should be emulated by all present day tertiary institutions, which is our industrial power house and the abode of our productive human resources. Nigerian Tertiary institutions presently hold the future of our industry and productive labour force.

The present practice where universities utilise their in-house management capacity and facilities to establish consultancies and business ventures should be exploited and expanded to cover the development of their research findings. (R&D) They should also establish plantation projects in the same manner of business ventures.

The Education Tax Fund in its wisdom has recently decided to establish Research funding for the universities, which is commendable. They should however take a further step forward to encourage Research and Development (R&D).

Time has come for our universities and research institutes to accept the challenges to champion the long needed agric revolution in Nigeria. Now is the time to backup the various Research results with Development and/or Production (R&D). Let every university and resear.ch institute begin to set aside annually N25,000,000 to create R&D, plantation forest, Palm oil plantation, Rubber tree plantation etc. At maturity, these plantation projects can be leased for processing or harvesting to investors. This will in no small way, expand and enhance their contribution to the Nigerian economy. It is on record that some Multi-National Companies are closing down their manufacturing plants in preference to acquiring old rubber plantations in some states in Nigeria as a better option for business in Nigeria.

Since I started this crusade some Universities and Polytechnics most specially the University of Ilorin, Abia State University, and Federal Polytechnic Ilaro, have taken giant and commendable actions of adding value to their landmass through plantation forests. It is easier and profitable to lease or sell any type of plantation be it plantation forest, palm oil, plantation, rubber plantation etc for investors rather than planting. This method will provide good returns for those who plant and those who lease or buy to process or harvest plantations and the nation will be better off socially and economically. The present method of Agric loans will not or may not achieve the desired result as most of the loan beneficiaries normally divert such loans to short time investments for quick returns: Agric loan without Agric subsidy on incidences of Natural hazards is a disincentive to Nigerian farmers.

Now is the time to expand university business ventures and or make them an integral part of all tertiary institutions and research institutes to make research and development (R&D) as the starting point of Nigeria's Industrial Revolution. No other nationals will do it for us; foreign investors are not charity organisations or builders of another nation other than their own. We have to do it ourselves to become a developed or industrial nation. We should start where, there is enlightened human resources and capacity that are concentrated' in our Tertiary Institutions. And this is what is happening here today.

Learning from the failed Pre, Post Independence and failed Republican Industrialisation efforts; which should inform us that the present day industrialisation efforts can also fail if we did not lay a solid industrial base of productive human and local material resources for our industrial plans and efforts. It will be recalled that in the 1950s Nigeria had a stronger economy among other developing nations, when it was based on Agricultural output, that was why Malaysia came to collect our palm kernel seeds.

If we look back and learn from this related past examples and change our National direction to adding value to our landmass through cultivation of plantations, we can still lay a solid base for industrial revolution. Our road to recovery from global economic meltdown depends on the national will to add value to our landmass, through cultivation of plantations of forest trees, rubber trees, palm kernel, cotton, groundnut etc. It is better late than never.

Nigeria should now learn her lessons from the prevailing global financial crises and or recession to invest and or reinvest to develop other neglected natural resources that abound in the country, particularly forestry, the renewable resource of immense wealth creation and abundant environmental benefits. This is the sector of the economy that will resuscitate the middle class that has almost been eliminated. Forestry is the only sector that does not require foreign technology or expertise. All the technology and expertise required are available locally, from the Forest Research Institute of Nigeria (FRlN), Federal College of Forestry, Federal Departments of Forestry, and three specialised universities of Agriculture. Most universities in Nigeria have Departments of Forestry. And there is of course The Nigerian Tree Planters, championing the private sector intervention. Forestry is the greatest productive employer of rural labour from land cultivation, to planting, to nurture, to harvesting. It provides raw materials, either for local use or for export. It is the sector that will sustainably expand the external trade, internal trade, industry and eradicate poverty, put money into the pockets of the majority of the grassroots people. The world's demand for wood products, paper products, including Round logs, Pulp, Particleboard, Fibreboard's, Plywood etc especially from the industrial nation is unimaginable. The United States of America and Europe alone imported furniture worth over one Trillion US Dollars from the nations that have certification for sustainable forest management practice and policies. Nigeria has the potential with her rich landmass to benefit from the wealth of a sustainable forest nation.

In conclusion, adding value to our landmass through land cultivation is capable of creating more than 1600 productive plantation jobs in each rural Local government for the nations unemployed and under-employed youth. The multiply effects of adding value to land through land cultivation can be unimaginable from rural development to poverty alleviation or eradication. The impact on the nations development will equally be unimaginable. Nigeria will stand tall as a developed nation.