Re-Bridging the Economic Divide: The Imperative for Southeast Human Capital Investment

By Simon Njoku

The above title authored by Bernard Odoh made an interesting read. He took time to highlight the huge disparity between the Southwest and the southeast in human capital investment, stressing that the Southeast is lagging behind. His studies showed that the Yoruba boasts of more professionally developed human capital than the Igbo and this could be seen in the high number of their human capital in strategic positions in blue chip firms as well as fintechs. In other words, they largely outnumber the Igbo in such organisations.

It is indeed not surprising that the Igbo are lagging behind in the critical areas of economic development either as investors/ employers or as key human capital in top notch organizations, multinational corporations or foreign governments compared to the Yoruba.

Various factors account for this. One of them is the prevailing policy and investment environment which does not promote investment in the domestic economy. As the author rightly pointed out, Southeasterners, the Igbo, are mostly traders. Many of them are importers. A few of them, the professionals, constitute part of the human capital in government establishments, companies and organisations with their Yoruba counterparts in larger number.

Due to policy instability on the part of government, many Southeast business men refrain from investing in the productive and financial sectors of the national economy. They rather channel their resources into real estate development and hotel/ tourism businesses. Those of them that ventured into banking and finance, stock brokerage, mortgage finance, manufacturing and agriculture had their fingers burnt due to policy summersaults of the federal government.
Investors like Cosmas Maduka (CosCharis), Leo Stan Eke (Zinox Technologies), Bath Nnaji ( Aba Electric ) among others who have persevered have tales to tell. So, with few Southeasterners involved in job creation, employment opportunities for Igbo professionals are limited, thereby hindering development of critical human capital in the various sectors.

Another major factor accounting for the disparity between Southwest and South East in human capital investment is lack of access to power at the highest level in the nation by the Igbo.The Igbo have not had real access to power at the highest level in this country. But the Yoruba have, at different times, directly or indirectly. During and after the Civil War, for instance, together with the North, they were in control of the commanding heights of the national economy — the financial, power, transport, oil & gas, industrial and technology sectors. The critical human capital in these sectors, up till perhaps the late ’90s, were either North or Southwest. Any Igbo man or woman that got employed as a high ranking officer in these establishments must have come with a letter of introduction from either a Northerner or Southwesterner. That gap exists till today.

The question is, why does the gap still exist despite bridging the gap between the Yoruba and the Igbo in the educational sector? The fact is that the Igbo school leaver or graduate still has to go to his Southwest brother for job, so he has to take what is left of the crumbs. The big companies and major employers of labour are in Lagos, Southwest. The venture capital firms that mid-wife startups especially the fintechs are mainly in Lagos.

Importantly, do not forget that the Indigenization Decree of 1972 ensured that all foreign companies in Nigeria including the multinationals, came under the control of the North and Southwest. Ipso facto, human capital, mainly from the Southwest, still dominate these organisations.

In Nigeria, access to power at the highest level, directly or indirectly confers on one a lot of privileges and opportunities. Among others, it gives one the opportunity to favour one’s family members, friends, associates and acquaintances by way of appointments into key positions of authority and influence, contracts, introduction to high net worth business men and investors as partners.
Take fintech companies, for instance. Many Southwest upcoming investors were exposed to this area of activity largely during the President Olusegun Obasanjo administration (1999 — 2007).

Businessmen that accompany presidents on state visits to other countries or as members of trade delegations understand what it means to get a presidential recommendation to a major multinational or foreign state-owned enterprise. A number of Fintech companies operating in Nigeria today came through some government officials and businessmen involved in state-visits or trade delegations to selected countries. Venture capitalists were not left out. How many Igbo businessmen and professionals have been part of such visits? How many opportunities have been created in this regard for them to tap? Many Yoruba critics never cease lambasting and vilifying Obasanjo, but one thing they cannot deny is the fact that Obasanjo created enormous opportunities for his people to tap, individually or collectively, to grow their businesses.Channels of funding locally and globally we’re opened to them. A number of venture capital firms sprang up to assist startups in the region.

Muhammad Buhari did same for his Fulani brothers during his administration (2015 — 2023). The difference between him and Obasanjo is while Obasanjo extended part of the opportunities to other folks Buhari focused mainly on his Fulani ethnic group. His successor, President Bola Ahmed Tinubu is doing exactly the same, favouring mainly the Yoruba in key appointments, thus accentuating the gap in human capital availability in key establishments between the Yoruba and the Igbo.

Some people blame state governors. Yes, but the state governors do not enjoy the same latitude of power and authority to dispense favour and critical resources to foreign and local investors as the president of the nation.
However, governors like Charles Soludo of Anambra State and Alex Otti of Abia State are working hard to change this narrative

Having access to power at the highest level is crucial for the Igbo as it will facilitate deployment of critical infrastructure that will ensure delivery of key economic projects to the zone.
It will also help to create business opportunities globally that the Igbo can latch on. This is the fastest way of bridging the gap.

Moreover, it will enhance access to credit facilities locally and globally for Igbo entrepreneurs and professionals which is difficult under the prevailing circumstances.

Besides, access to power will create a conducive environment for Igbo professionals and others to network among foreign institutions for engagement.

Access to power at the highest level in the country does not necessarily connote that all privileges and opportunities would just be reserved exclusively for the Igbo. No! What this means is that while others are favoured, the Igbo would not be left out.

Again, exposure to opportunities that accrue from participation at international fora is vital.
In the course of my job, l had been privileged to witness top level business discussions at international and local fora between foreign investors and their local counterparts. At some of these fora, not less than 60 per cent of Nigerian participants were from the Southwest. Five to 10 per cent of them were fringe players from the South East. Those who attend World Bank/IMF, ADB/ADF Annual meetings, World Trade Organisation, WTO meetings, United Nations Development Organisation, UNiDO, United Nations Environmental Programme, UNEP, United Nations Development Program me, UNDP conferences, among others, can attest to the above.
Igbo professionals and businessmen should therefore increase their participation at the above fora. These are avenues for seeking serious business partners in various fields of endeavour.

Foreign investors are specially delighted when a prospective business partner enjoys the support of the home government, especially the federal. As a part of the Nigerian business delegation to Beirut, Lebanon, in 2008, for instance, l had the opportunity to speak to a number of investors. One of them said to me: ” You are an Igbo. I have been to Igbo land. We like to invest there. But we are not encouraged to do so. Why are investors not encouraged to invest in your area?”
I was taken aback by that question. As a patriotic Nigerian, l simply answered: “l don’t know sir.” But within me l grappled with confusion and sadness, realizing that there also exists a conspiracy against the Igbo in terms of foreign direct investment into the region. This gives credence to the recent claim by the political activist Sowore that there is a secret document in government circles warning that the Igbo should not be given any key position in government.

Nevertheless, the state governments can facilitate foreign investments by sponsoring their professionals to international conferences to network directly with target investors into selected areas of the regional economy.
Networking opportunities at such fora cannot be overlooked. Foreign Investments to a large extent boost employment of professionals in diverse fields.

The state governments should also create a friendly environment for investors to thrive. For instance, not long ago, some investors that showed interest in the agricultural sector in one of the South East states were discouraged by the bureaucratic bottleneck. The commissioner demanded to be settled before the investors could meet the governor. The Chief of Staff also made his own demand. The governor himself had his own demands. After settling them, the investors would also have to ‘see’ the traditional rulers, the owners of the land. Certainly, the investors were disgusted. Fearing that their investments might not be safe after the tenure of that governor they pulled out of the discussions.
Those that acted as facilitators were also embarrassed by the conditionalities of the government officials. Not a few business men and women have had similar experiences. The South East state governments should therefore do more to encourage prospective investors by improving on the ease of doing business in their respective domains.

Compared to the Southwest, the South East is really at a disadvantaged position in terms of spread of critical investments in the economy and the requisite human capital needed to drive them. This is because policies are skewed in favour of our Southwest brothers. Again, fortune and circumstances had favoured them. Nevertheless, the Igbo and their Yoruba brothers boast of healthy rivalry in the business arena, with each lending a helping hand to the other as occasion demands.
The Igbo cannot in any way blame their Southwest competitors for lagging behind in key investments in the economy. They should simply put their acts together, hold their leaders accountable by making them work for the good of the people, and create opportunities for them to tap and advance.

Being in charge of key ministries like finance, petroleum, internal affairs, transport and communication etc comes with a lot of privileges and opportunities to favour many with international businesses and professional development opportunities. How many Igbo professionals have enjoyed appointments into these positions and given free hands to operate? The marginal role assigned to the Igbo in the mainstream of Nigerian politics and economy is one of the cardinal reasons for the agitations for separation from the Nigerian nation. The imbalance in human capital distribution between the Southwest and South East will continue unless drastic measures are taken by both the federal and state governments to redress it.

Simon Njoku, March 2025.