Victor Eburajolo: Mega employer who fought Nigeria’s deliberate de-industrialization, by Owei Lakemfa

Victor Ogebyiwa Eburajolo, a prominent figure in Nigeria's industrial landscape, once stood at the helm of one of the country's most influential organizations, the Nigeria Textile Employers Association. On July 24, 1986, when Eburajolo turned 40, he was already recognized as a leading expert in industrial strategy, labor relations, and legal affairs. At that time, Nigeria's textile industry was thriving, employing over 750,000 people directly and many more indirectly through related sectors such as cotton production. However, Eburajolo sensed impending challenges as the Babangida administration introduced the Structural Adjustment Program (SAP) imposed by the International Monetary Fund (IMF) and the World Bank later that year. The SAP brought with it a set of conditionalities that significantly altered Nigeria’s economic structure. Among the most damaging changes were the dismantling of commodity boards responsible for regulating the quality and pricing of key agricultural exports like cotton, groundnuts, palm products, rubber, grains, and cocoa. These boards had previously protected local producers from exploitation and ensured stable market conditions. Eburajolo warned that allowing unrestricted market forces to operate without safeguards would expose the nation to deindustrialization. His concerns deepened further when Nigeria joined the World Trade Organization (WTO) on January 1, 1995. This move, orchestrated by military leaders, placed Nigeria under the dominance of industrialized nations within the WTO framework. Eburajolo argued that the WTO's rules disproportionately disadvantaged developing countries like Nigeria, enabling developed economies to flood markets with goods while erecting barriers against imports from poorer nations. Eburajolo worked closely with stakeholders in the textile industry, including labor unions, to highlight these risks. He engaged with junior finance minister Alhaji Abu Gidado, who had previously served as CEO of Arewa Textiles in Kaduna. Together, they approached then-finance minister Anthony Ani, urging him to utilize the four-year grace period granted to new WTO members to prepare adequately for the transition. Despite these efforts, Ani refused to consider delaying the implementation of WTO regulations, insisting on immediate compliance. The consequences of this decision were dire. As Eburajolo had foreseen, the Nigerian textile industry suffered a catastrophic collapse. Employment numbers plummeted from over 750,000 to approximately 24,000. Similar declines affected other sectors, notably the tire industry, which also faced insurmountable competition from foreign manufacturers. Eburajolo likened the situation to trying to run a retail store adjacent to a farm and sourcing products directly from the farmer, inevitably, the retailer would struggle to compete with the direct supplier. Eburajolo's insights extended beyond Nigeria's borders. He observed how industrialized nations often used environmental and regulatory justifications to block imports from developing countries. For example, he recalled visiting Kenyan flower exporters who met all European import requirements, only to find their goods rejected due to claims about increased air pollution from transporting fresh-cut flowers. With over five decades of corporate experience, Eburajolo has served on the boards of numerous companies spanning manufacturing, consulting, insurance, and energy sectors. His tenure at the Nigerian Social Insurance Trust Fund (NSITF) proved particularly challenging, revealing the complexities and vulnerabilities inherent in Nigeria's social safety net systems. Eburajolo's legacy is one of foresight and resistance against policies perceived as detrimental to national industries. His warnings about the impact of globalization on developing economies remain relevant today, underscoring the need for strategic planning and protective measures to safeguard domestic industries from external pressures.