Asks FG to develop strategic framework for the promotion of the establishment, development of cottage industries in all the 774 LGAs
Urges States to set aside funds in their budgets for Cottage Industries
By Henry Umoru
THE Senate yesterday asked the Federal Government to as a matter of urgency, resuscitate all the moribund industries across the country in order to address the problem of unemployment, armed banditry, Kidnapping, other cases of insecurity, poverty, among others in Nigeria.
The Senate has also urged the Federal Government to through the Ministry of Special Duties and Inter-Governmental Affairs in conjunction with other relevant Ministries, Departments and Agencies develop strategic framework for the promotion of the establishment and development of cottage industries in all the 774 LGAs of
The Senate has also asked the thirty- Six states of the country, set aside certain amount of funds in their annual budgets for the setting up of Cottage Industries in at least two local government areas in their respective states.
Resolutions of the Senate yesterday were sequel to a motion titled “Urgent need to promote the establishment and sustainable development of Cottage Industries in the 774 LGAs of the country for the creation of job opportunities, reduction of poverty and rural-urban drift.”
It was sponsored by Senator Biobarakuma Degi-Eremienyo, All Progressives Congress, APC,
The Upper has also directed its Committee on Special duties to ensure aggressive oversight in the implementation of the Federal Government funded policies and programmes in this direction, just as it urged the National Assembly to carry out a holistic monitoring of all the allocations made to the MDAs for effective service delivery
In his presentation of the motion, Senator Biobarakuma Degi-Eremienyo said that “The Senate: Notes the critical role cottage industries play in the provision of large employment opportunities in which over 60% of the labour force in the country is engaged either in the formal or informal sectors;
“Further Notes with consternation the dearth of cottage industries in our rural communities;
“Aware that with the current global pandemic ravaging the world and its attendant negative impact on the economy, the need for cottage industries to help in stimulating the economy cannot be over-emphasized;
“Notes importantly that such smaIl-scale industries often operate out of home rather than purpose-built facilities and often focus on the production of labour-intensive goods;
“Worried that this dearth of cottage industries brings with it the attendant increase in the rate of migration from rural to urban areas in the quest for source of livelihood and greener pastures;
“Observes that this massive rural-urban drift has led to deplorable working/living conditions and pollution, child labour and acute food shortages.”
According to him, the Senate “further observes that the establishment and development of cottage industries will not only help in the reduction of ruxal-urban drift, but also serve as a veritable avenue for the creation of enormous job opportunities for our teeming youths, in line with the Presidential Poverty Reduction Initiative (PPRI) and Mr. President’s special works program which is aimed at cushioning the effects of economic downturn, especially caused by the corona virus pandemic;
“Notes again that many modern cottage industries serve as a market that seeks out original handcrafted products as Opposed to mass-produced, name branded products and can include anything from clothing items and crafts to decorative home furnishings; develop as feeders for raw materials or support services to the main industrial complexes and will harness multi-sector opportunities for empowerment and poverty alleviation within the economic corridors of the 774 LGAs of the country;
“Further notes that developing countries such as ours have a comparative advantage in the use of labour compared to the use of capital, allowing us to produce labour-intensive goods more cheaply than developed countries. As such, under suitable atmosphere, cottage industries can allow local residents to come together to produce crafts for sale in local markets or even for export to larger cities and other countries, thereby boosting our foreign exchange; and
“Recalls that in the President’s Democracy Day speech of June 12, 2020, the President did assert that he had directed the employment of 774,000 Nigerians who will be engaged in Special Public Works Programme aimed at cushioning the effects of economic downturn.
“There is no doubt that it is only when government is consciously and strategically involved in the equitable promotion of the establishment and sustainable development of cottage industries that can guarantee impactful fruition of government’s efforts in this regard. Indeed there is no gainsaying the fact that cottage industries remain the special purpose vehicle for the lifting of millions of N igerians out of poverty. ”