Lack of Research Slows Down Small Scale Agric, Says Farmer
DR. LANRE TALABI is the chief executive of Talon Nigeria Limited, an agricultural research and development company. He spoke about his company since inception, the recognition it has garnered and how government policy has affected the private sector in the Nigeria, particularly the upstarts and the small scale industries in this interview with OLUKAYODE OYELEYE.
On industry award won recently in South Africa
It was completely unsolicited. We were nominated by an American who had written some books on Africa's socio-economic development and dedicated one of his books to the downtrodden in Africa. He drew attention to Talon in Nigeria. He drew attention to our media comments on the need to grow export intermediaries as agents of reaching overseas markets.
We have always been selected for some of the competitive awards, but this is the first time we were selected for finals and we got first. Each of the five companies in the final showcased their achievements and was assessed by a team of panellists. They never asked us for money for the award
This is our second attempt. The first attempt was in Uganda last year, when we were nominated for another award. We reached the final.
Motive of the award givers
The African Growth Initiative gave the award. The motive is to stimulate corporate bodies in Africa, especially the young ones, to emulate some of the best examples in private sector who have excelled over a long time (in the categories of Talon), or those which are younger, (we are almost 25 years now) and have things to show as achievement and have long term plan.
What Talon does
We are in agriculture, food and environment. Our ambition is to remain the best Research and Development group in agriculture. My ultimate plan is to relate with research and training institutions that will promote PhD programme in agriculture and fisheries, and training in practical inputs. We want to produce people at the level of intellectual development who will be very narrow and broad in knowledge, and optimally useful in the society.
How Talon started, how it operates
The situation in our time was far more positive and proactive than now. Having started in 1985, the period looked so short. We started Talon with N1,350.00. It was registered in 1984. We have a network of consultants, a huge database which we cannot translate into naira and kobo. Our library has more than 5,000 volumes. We have international respect and recognition, both intellectually and in the industry. We have Talon R & D Farm to show for it.
There is no revenue accruing to Talon outside agriculture, fisheries and environment. I have never sold diesel or petrol, or buying and selling solid minerals, or got into land prospecting. A lot of money in the banks now is toxic money, from public officers, bank officials or politicians.
We now have an MOU with Federal Institute of Industrial Research, Oshodi (FIIRO). We are responsible for commercialisation of research results. It is a five year programme, extensible to 10 years, whereby funding from research in FIIRO will be commercialised. The scope covers crops, food canning. We are extending it to electroplating of agricultural equipment. That is the type of relationship that we can forge between research institutes and private sector.
Relationship of small scale industries in private sector to technologies and research
The technology available in a country is related to the R & D in that country. The basket of options is bigger when there is R & D. But, in Nigeria, the basket is smaller. The difference is based on technology matrix which is narrow in Nigeria and the options are limited. Every young investor runs in the same direction and the whole narrowness is quickly congested.
Specific relevance of Raw Materials Research and Development Council (RMRDC)
I was one of those who wrote its memorandum. Today, I am very sad to note, as one of the founding fathers of RMRDC... I can still speak for late Dr. Kehinde Ladipo, a partner in putting together RMRDC's structure. In all cases, they have failed because they are trying to do what the private sector should do. They are trying to do what can only be done where you have broad and deep knowledge of the dynamics of private sector investment.
If you know oxidation kinetics, have you used it in food industry to minimise rancidity? What of in chemical engineering? What of in textile industry, to put forward knowledge in production of pigments?
RMRDC is supposed to develop raw materials for the private sector. The public sector environment cannot be said to be favourable now for raw material development. Why don't you hand over RMDC to Manufacturers' Association of Nigeria? Let government have only 20 per cent stake in it.
Policies and effects on small scale and private sector investment
Small scale business includes those young people you meet on the way who regularly rescue our tokunbo cars - the welders, panel beaters, vulcanisers, or the artisans such as bricklayers - all self-employed. I call them the movers and shakers of the informal sector.
The politicians want a closer relationship between public and private sectors, but I have not seen the willingness of public officers to make things work. I see a lot of jealousy and empire building in them. They will retire before realising that the power and glory are transient. The public sector people need to know of the need to work with private sector in public interest.
Even the private sector people have their faults. We are running a public sector inherited from the British. Government has made policy pronouncement, and is good, but they need to go beyond that. Private sector must avail itself of the dynamics of public services, the functions, limitations, etc, of civil service. They are coming from a colonial tradition. Even in the UK, they have their own problems of integrating the public and private sectors.
Survival of small scale industries
Mortality rates of small scale industries are high, and the same applies to medium and large scale industries, traceable to the power situation in the country.
Role of banks in small scale industries
The banks are a special problem for the country. The president has very good intention by giving the current chief executive of apex bank free hand to commence sanitation of the banking system. But if Central Bank does not even have enough powers, the national assembly must give it more power to get into the banks. There is too much corruption in the banks. The banks are servicing an economy they do not understand.
Recommendations
There is need for energy security, and the arrangement must not be limited to the federal government alone. It must involve states and local governments. These will be able to generate data on energy supply. Banks should be allowed to be taken over by foreign investors to enable them run more efficiently.
