Read full Keynote address by Uche Nworah on: Akuluouno Model and the Social, Cultural and Economic Development of Igboland

AKULUOUNO MODEL AND THE SOCIAL, CULTURAL AND ECONOMIC DEVELOPMENT OF IGBOLAND KEYNOTE LECTURE DELIVERED BY UCHE NWORAH, PH.D, FCIM, FRPA, AT THE SPECIAL MEETING OF UMUNNA LEKKI ASSOCIATION, LAGOS, HOSTED BY CHIEF CHIDI ANYAEGBU (CHAIRMAN, CHISCO GROUP),  ON SUNDAY, 5 JUNE, 2022.

Introduction Akuluouno in the true Igbo spirit is people helping their people to succeed. The philosophy means taking one’s wealth home where it is most needed, from the diaspora, and letting one’s kinsmen and larger community benefit from the wealth and resources that God has blessed one with. There is a proverb in Igboland that says, ‘Aku Luo Uno, Okwuo Onye Kpataluya’, it is when one’s wealth reaches home that the source of the wealth and the individual so blessed with the wealth manifests.

The concept of Akuluouno can be discussed from two different but related perspectives; (1) Remitting money home from the diaspora, or outside one’s ancestral homeland. For example, in the case of Ndigbo, from Lagos, Abuja, Kano, USA, UK, Australia etc.

Because Nigeria operates no social safety net, or social welfare system, the remittances whether through normal channels (banks, money transfer agencies etc), or informal channels (third parties, goods export and exchange, personal visitations to the homeland, or through friends and relatives travelling etc), take care of the immediate needs of family members and friends, categorised in a PwC report as, “providing a lifeline for poor families in many countries”.

 The report also says that, “Diaspora remittances play an important role in economies, with the primary benefits being an improvement in the general welfare of recipient households. It concluded that the remittances “help poorer recipients meet basic needs, fund cash and non-cash investments, finance education, foster new businesses, service debt and essentially drive economic growth”.  Ndigbo living in the Diaspora do this on a regular basis. Although there are some people who for different reasons have cut ties with not only family members living in Nigeria, but also with the country Nigeria. I recall a Diaspora respondent’s answer to my enquiry few years ago while researching a topic on Nigerian Diasporas. He clearly didn’t wish to be identified as a Nigerian anymore, saying he took that decision the moment he found himself in America. He said his decision was based on his very bitter experiences at the hands of his family members, and the absence of responsible leadership in Nigeria.

 The second, and perhaps more critical and contingent perspective is Foreign Direct Investments (FDIs) or Inward Direct Investment (IDIs) flows. This is a deliberate and strategic attempt to invest in the social and economically productive sectors in one’s homeland. Such investments could be by way of making social investments such as sponsoring community cultural, sports and educational festivals, competitions and awarding of scholarships. It includes tarring of community roads (we see evidences of this in Anambra towns such as Ojoto, Amichi and Neni. Also in Abia state towns such as Abiriba).

Building of school blocks and other projects in adopted schools like we saw Dr. Clem Nwogbo and his companies Awka Millennium City Development Co. Ltd, and MP Infrastructure Ltd, do in April 2022 when they commissioned some corporate social responsibility (CSR) projects at the two schools they adopted in Awka, Anambra state. Such social investments also include building of hospitals like Chief Emeka Okwuosa, Chairman of Oilserve Group did when he commissioned the Dame Irene Okwuosa Memorial Hospital at Oraifite in May 2022. Chief Dr. Ernest Obiejesi of Obi Jackson Group had also commissioned the Obijackson Children’s Hospital at Okija, Anambra state in 2016. These are but a few examples.

Kudos to all the Igbo sons and daughters who continue to make such social investments in their homeland, as obviously, governments at both the federal, states and local levels can no longer adequately provide such social services for the people.

Akuluouno Model and the Social, Cultural and Economic Development of Igboland the economic investments are usually made for a profit, and to extract the most return- on-investments. In this regard, we have seen Igbo Diasporas invest in hospitality and entertainment chains (Cubana Group, Ibiza Group, BON Hotel Group, etc).

Some have invested in factories especially along the Nnewi industrial corridor, Chicason Group, Innoson Group, Ibeto Group etc. In shopping malls (Roban stores, Everyday Supermarket, Zara Stores, Radopin etc). Cubana Group is also developing a mall at Ogbunike. There are also rising activities in real estate development championed by Igbo entrepreneurs in the diaspora.

Enugu state has witnessed a lot of such investments (Enugu Centenary Golf Estate, Helios Estate etc), Owerri has witnessed a lot of real estate activities too (Orient Garden Estate by Homes and Homes etc). Homes and Homes is also developing the 5,000 shops Ukwa International Market, in Aba, Abia state. At the moment, available data suggests that such social and economic investments are still very low in Igbo land, compared to the inflows going towards the maintenance of family members. It is estimated to be in the ratio of 70:30 at the moment, although some analysts argue that 30% is a much high figure to be quoting.

The PwC report recommends, “channelling part of the general FDIS inflows into investment, SMEs, infrastructure, and job creation, as on the average, over 70 per cent of diaspora and Akuluouno funds are drained by consumption.”. The report concludes that, “Though this helps to address poverty, efforts should be made to raise the 30 per cent available for investment much higher”. This therefore means that much requires to be done, but are the conditions right for investment in the South East?

 In a widely circulated, and well received lecture, delivered on the occasion of the celebration of Anambra State’s 25th Anniversary on Monday, 3rd October, 2016, titled: “Think Nigeria, invest in Anambra – Aku Luo Uno”, the Obi of Onitsha, Igwe Nnaemeka Achebe, CFR, (Agbogidi), spoke on the importance of Ndigbo thinking home by adopting the Akuluouno model. He advised entrepreneurs of South-East extraction, to diversify their investments and assets into the region to develop the area. Igwe Achebe observed that no people can achieve greatness and respect in the comity of nations, based solely on their prowess in the diaspora and urged them to make the South-East region their economic power-base to underpin their business interests all over the world. In his words, “You have to be strong in your home base. Ndi-Igbo have a beautiful God-given homeland, let us develop it and be proud of it”. “We are not saying that you should pull out and come home, no, diversify back home and ultimately let us make Ala-Igbo the power house to support and underpin our interest all over the world. If you are strong in your home base, they cannot insult you in their land”. Igwe Achebe however advocated for equitable and egalitarian Nigeria to protect the interest of all Nigerians, despite their tribe and religion.

According to him, the long term interest of Ndi-Igbo would best be served in a Nigeria that is just and equitable and provides adequate safeguards and scope for individuals and ethnic nationalities to freely realise their aspirations, as well as contribute their quota to the overall development of the country. Igwe Achebe stated that such a situation, would best be achieved by restructuring the country into a true political and fiscal federation, based on the existing 6-geo-political zones and pre-1996 constitution, stressing that such arrangement, would afford the best platform for Ndi-Igbo to actualise their character as merchants.

“Ndi-Igbo should articulate this and canvass it accordingly and work in consent with other like-minded ethnic nationalities and leaders. “Even though yields on investments in short- term may be higher outside the South-East region, however this is unlikely to remain the same in the medium to longer term with the present and future political risks.

 Akuluouno Model And The Social, Cultural And Economic Development Of Igboland “Commercial prowess and economic strength can never eliminate environmental and political risks and the envy for being seen as a successful stranger in someone’s community, unless and until a more equitably negotiated country is achieved”, he observed. With regards to making diaspora remittances more appealing, the Central Bank of Nigeria (CBN) should help in achieving this by recalibrating some of its policies. To channel part of the remittances into investments, SMEs, infrastructure, and job creation.

 On the average, over 70 per cent of diaspora funds are drained by consumption. Though this helps to address poverty, efforts should be made to raise the 30 per cent available for investment much higher. CBN should reduce transfer costs, as remittance charges average 8.5 per cent in sub-Saharan Africa compared to the global average of 7.1 per cent.

In Nigeria, costs are higher at over 12 per cent and worsened by an unpredictable exchange rate mechanism that facilitates sharp practices and drives many to unofficial channels. In heeding the call for Akuluouno, Nigerian diaspora are influenced by three types of investment expectations – financial, social, and emotional. This is supported by a 2018 study, ‘Why Does the Nigeria Diaspora Invest in Their Country of Origin?’, done by Christopher Ayanruoh, and Anthony Di Benedetto of Temple University, USA, using the Nielsen & Riddle (2007) investment motivation framework. Their findings show that that most members of the Nigeria diaspora community do not invest in their homeland for financial reward. They invest for perceived emotional returns and this is positively moderated by the degree of their social embeddedness in their country of origin as well as in their country of residence. They also invest for perceived social rewards. This is also moderated by their social embeddedness. Understanding why the nascent Nigeria diaspora investor or entrepreneur invests in their homeland is an important first step to identifying ways that governments can attract diasporic investment and entrepreneurship through marketing and other promotional efforts.

Despite relative peace in the years leading up to 2020, the South-East region compared to other regions in Nigeria has not fared well, in investment attraction.

The region has remained largely unattractive to investors, but for some hotels which have berthed in major capital cities such as Awka, Owerri and Enugu etc, and a few shopping centres/malls, not much could be counted by way of either FDIs or IDIs. Why is this so? Many point to frustrations experienced by investors through administrative bottlenecks while trying to set up a business. How easy is it to reach decision makers? Are there one- stop shops in the South-East states to handle investments? How efficient and effective are agencies such as Anambra State Investment Promotion and Protection Agency (ANSIPPA) etc? Can a genuine investor reach a state governor on the phone easily to discuss investments? Many I am sure have had not-so-pleasant experiences. During my time as the Managing Director and Chief Executive Officer of Anambra Broadcasting Service (ABS), I convinced an investor, Kene Mkparu, then of Filmhouse to bring home his cinema project to Awka.

The project was frustrated by public servants who alleged that they were not cut in on the deal, alleging that I alone, had settled myself in the transaction. Kene Mkparu meanwhile has this to say on Diasporas and investments in Igbo land. “Lots of folks, including Ndigbo, living outside of Igbo land do not believe in the economic viability, disposable income size and spending power within Alaigbo (outside of market trading). There should be intentional market insights and reports published by those that have set up successful corporate, hospitality and modern businesses, so the world will get performance data and information on the viability of business in Alaigbo.

PwC, KPMG and similar firms should actually try and cross the Niger bridge sometime, spend a couple of  Akuluouno Model And The Social, Cultural And Economic Development Of Igboland months in Anambra State or in the South-East, and do a real study on the spending behaviour of residents (not Christmas ‘visitors’), and produce a report on revenue generated from non-market trading businesses each month. Start with the main superstore there, ROBAN STORES in Awka and Nnewi (ROBAN also has 1 store in Asaba, 3 in Enugu and 1 in Abakaliki).

 I remember hearing that Igbo people don’t go to shops, they go to markets, yet here we are with different brands of superstores opening each year. When the world knows how much is being generated by non-market businesses in Alaigbo, mindsets would change. There needs to be articulated market insights report done yearly”. Other reasons that have been advanced include unfriendly tax regimes, security concerns, skill deficiency, energy issues, poor quality of infrastructure and low return on investments. There is a general feeling that political leaders in the region have not paid attention to the economic frontiers of the region with a view to making it an industrial hub, as was the case in Southwest states of Lagos and Ogun. Implications And Reasons To Invest At Home -Emotional investment against rational investment (Think with your head but listen to your heart) -Migration as our people will go in search of employment in other zones, local and abroad. -Try and visit home off-season, not during Christmas or any other festive season and you will understand how real this unwanted scenario is already-desolation.

Out of a total Nigeria’s $93,284,945,10559 billion foreign direct investments (FDI) between 2013 and first quarter of 2020, the Southeast got the least, amounting to a paltry $203,898,690 million, representing just less than one percent (0.22%) of the total investments. A breakdown of Southeast figures from the National Bureau of Statistics (NBS) within a seven-year threshold showed: -Abia State as having a total of $9,710,000 million in foreign direct investments between 2013 and 2014; -Anambra State had $38,091,000 million within the same period. -Ebonyi had none of such investments at all. -Enugu state had the most with $151,490,000 (2014). -Imo State had a total foreign direct investments of $3,500,000 between 2015 and 2019.

Although foreign investments in other zones (Southwest, South-South, North Central, Northeast and Northwest), remain normal, southwest has the largest chunk of the FDI. Some states in some of the zones have also managed to have industrial and mini-industrial hubs that are attractive to investors. Comparative figures, as gleaned from NBS estimates, indicate that within the same period (2013 – 2020), other zones of the country received the following capital importation: Southwest $81,808,183,342.05 (87.70%;); South-South, $470,688,204.67 (0.50%); North Central, $10,732,800,098.87 (11.51%); North east, $ 39,414,980.00 (0.04%); and Northwest, $29,959,790 (0.03%).

Reacting to the observation that regions in the northern part of the country also had low investments during the period, Development Expert, Dr Chiwuike Uba, insisted that figures on Southeast investments was abysmally low, especially as most donors and multilateral agency programme interventions were focused on the northern region, which made up for low investments in the area. He also stated that low investment in South-east states was a reflection of unpreparedness, lack of commitment to industrialisation, and poor business environment prevalent in the region.

Akuluouno Model And the Social, Cultural and Economic Development of Igboland On what the southeast region should do to change the ugly trend, Uba advised that the region needed to improve the business environment.

“Currently, the region is not ranked well on the World Bank’s Subnational Ease of Doing Business and on the AfriHeritage’s Business Environment and Competitiveness across Nigerian States (BECANS),” he said. “No real investor will invest in an environment or economy that does not support or grow his investment.

“South East does not have a functioning and operational industrial cluster. Unfortunately, most of the industrial layouts have been converted to estates. While the DAWN Commission in the South West has done so well for the region in promoting investments, our own South East Governors’ Forum Secretariat, which ultimately should serve as the think-tank, seems to be more political than it should be.

 “Clearly, the region lacks strategic direction for industrialization and mobilization of investments. There is urgent need to create the right incentives to attract the right investments. We must rethink our strategy, model, and policies.”

 He added, however, that, while the Southeast battles with the internally induced constraints inhibiting investments, it was important to observe some of the external factors, including nearness to seaport and dry ports, among other advantages enjoyed by the South West that were not in the Southeast.

An Estate Management Expert, Obichukwu Umeh, stated that governments of the zone had not given enough encouragement to Igbo Investors to deepen investment in the zone. An Investor, Henry Chibuzo, observed that lack of political will, security threats, lack of coordination among governors of the zone and poor infrastructure had continued to discourage investment in the southeast region.

He stated that ease of doing business in the zone had remained cumbersome, stressing that, even when an investor decided to live with it, low patronage from governments could cause an exit. He added that security threats had threatened investment in agriculture, especially since the rise in farmer/herder issues in the zone, stressing that certain investors that came into the zone and invested in agriculture in the Uzouwani area of Enugu State had their crops destroyed.

Opportunities to Increase Investments In The Homeland Every year, during the Christmas season, hundreds of thousands, if not millions of Ndigbo journey to the motherland from different parts of the world where they reside, work, or trade. This homecoming mindset sometimes has some spiritual connotations. For many, it is a time to share, commune, and recharge for the coming year, and to give thanks to God for his blessings. For others, the annual homecoming is an opportunity to re-connect with friends and family, and contribute to community development projects.

During the annual homecoming in many parts of Igboland, many activities take place. For example, it is a time for many to join their age – grade. The age – grade system is another culturally relevant social system in Igboland which appears to be waning. The age-grade system helps in cultural propagation, maintenance of law and order, and community development. Some age – grades take on solely certain development projects in their communities.

Ndigbo should use the opportunities of their annual homecoming to champion community developments through the age grade system. Also during the annual homecoming, in addition to the feasts in families, Masquerade displays, house warming ceremonies, Ofala and Igu Aro festivals by traditional rulers, Chieftaincy, Nze, Iyom, Ozo title taking and other ceremonies, there is also a very important activity that takes place in most Igbo communities; Development appeal funds for community projects. It is through such self-funded community development projects that Ndigbo were able to quickly bounce back, and re-develop Ala Igbo after the destructions suffered during the Nigeria/Biafra war. The projects range from building community town halls and civic centres, to constructing rural roads, markets, skill acquisition centres etc.

In some communities, scholarships are awarded to indigent students, widows, youths and the unemployed are empowered with start-up funds and materials. It is important to keep this tradition going. Ndigbo should participate in the various community development projects going on in their communities. ‘Nnukwu azu kpata nnukwu nku, obele azu kpata obele nku’. Each one should give according to his or her ability.

For example in my town, Enugwu-Ukwu, 5 Akuluouno Model And The Social, Cultural And Economic Development Of Igboland we have embarked on a One hundred million Naira ICT centre development fundraising drive for a secondary school. Already contributions have started pouring in through our town’s Whatsapp platform. With technology and social media, our brothers and sisters living in the diaspora who are not able to come back home are not left out, and can partake in the development projects going on in the community.

Those coming home, men in particular should endeavour to attend their Umunna or kindred meetings. This is usually the nucleus of development activities in Igboland. It is where information are shared, and decisions taken on projects to embark on. It is important for an Igbo man to register with his Umunna, and also become an active financial member. Any person that does not do this in Igboland is regarded as an ‘efulefu’ or layabout. As my late father, Nze Edwin Okonkwo Nwora (Nkaonadi) used to say, ‘Denye afa gi na akwukwo, ka iza afa’.

 His philosophy was that one must always ensure that he is part of community affairs, and make contributions no matter how little. ‘Umunna’ social construct in Igboland is important in sustaining Igbo culture and tradition. Umunna meetings hold on appointed days, in the kindred’s ancestral Obu, or any other location, this could be the home of the eldest person in those kindred. Sometimes during such meetings, a member of the kindred so blessed, could donate a cow to promote conviviality. Both old and young, rich and poor, share the cow in equal measure according to age. The elders take their shares first. The women do not partake as the men bring home the family’s share. This is done over drinks, nkwuenu etc. Sometimes food is provided. Kola nuts are broken by the elders, libation poured, prayers said and stories of successes, failures and challenges shared. This is the unity that binds, a sense of community, love and ‘Igwebuike’.

It is therefore important for the Igbo diaspora to continue to maintain strong bonds, and cultural connection with the homeland. Studies have shown that diasporas with a strong emotional tie to their country of origin stimulate “nostalgic trade” – the importation of ethnic foods and other effects into their places of residence – in order to maintain a cultural connection to their roots (Ionescu, 2006; Lowell & Gerova, 2004). Immigrants take with them cultural values and norms inculcated in the homeland to the country-of residence. Also, shared cultural similarity with the homeland may lead to diaspora communitylevel norms and values that promote the social desirability of homeland economic involvement (Nielsen & Riddle, 2007). On the other hand, large diaspora-homeland cultural distance may result to lower motivation to invest among the diaspora as a group due to feelings of alienation and less knowledge about market and operational realities in the homeland. Entrepreneurial diasporas often combine their skills and savings accumulated abroad with their cultural and language knowledge of the source country to start successful businesses back home (McCormik & Wahba, 2000; Riddle, 2008).

Nielsen and Riddle (2007) contend that diaspora members’ motivation to invest can be explained by the expected financial, social, and emotional returns. Furthermore, they aver that these investment interest motivations are driven by key factors at the individual-level of analysis, including diaspora members’ (1) degree of social embeddedness, (2) intensity of community affect, and (3) their perceived level of ethnic advantage. To this end, the direct causality assumption of Nigerian born diaspora investment interest is examined with Nielsen & Riddle (2007) investment motivation framework.

“Ethnic advantage,” a belief that diaspora members possess relative knowledge and social capital advantages compared to non-diaspora investors that impact their financial return expectations. Also, “social embeddedness”— the density and strength of a diaspora member’s social network ties within their local diaspora community and their homeland. Socially embedded individuals could be subjected to social pressure to invest in their country of origin as well as have easy access to mechanisms for giving and investing in the homeland. The intensity of a diaspora member’s “community affect,” or his/her emotional identificational attachment to the diaspora community in the country-of-residence and the homeland, might impact their social and emotional return expectations.

Akuluouno Model And The Social, Cultural And Economic Development Of Igboland Diasporas should participate in the political process, directly and indirectly, and seek to influence the best possible outcomes through supporting credible candidates, and influencing their families, associates and friends back home to register to vote, and to vote for the best candidates. 2023 presents a good opportunity to influence change. Conclusion And Recommendations Leaders of the South -East appear not to be talking to each other. One doesn’t get the impression of a United front, or of a common development agenda just like we are seeing with the Development Agenda for Western Nigeria (DAWN), and BRACED Commission (Bayelsa, Rivers, Akwa Ibom, Cross River, Edo and Delta States).

 I can’t remember the last time Governors of the South East had a meeting, even when they do meet, the meeting does not attract the seriousness it deserves. Some governors don’t bother attending; they send either their Deputy Governors or Secretary to the State Government, who are not usually empowered to make any binding commitments. Efforts at South-East regional economic integration and development have been mostly led by professionals from the region, and there is no evidence of meaningful support of such endeavours by South-East governments, for example the South East Nigeria Economic Commission (SENEC), Alaigbo Development Foundation (ADF) etc.

There was an attempt by League of Anambra Professionals (LAP) to float an investment and development fund years ago but the idea ran into troubled waters. Leaders of the South-East should tone down their divisive rhetoric, and narratives and forge a common and united front. Diasporas should engage homeland government constructively. Platforms such as the Umunna Lekki Association, and others should be used. Ideas and funding support for developmental projects will also help. For example support for the Anambra Security Trust Fund being Chaired by Chief Chidi Anyaegbu (Okeiyi Amichi) Discussions around Akuluouno should also include bringing home human capital and professional skills, not just wealth. There should be genuine efforts at reverse migration.

 The South-East region requires ‘booths on the ground’ in critical areas. Investments in the South-East by Ndigbo tend to go only to the states-of-origin of the investors. There should be more cross-border investments if we truly believe that the South-East are one people. We are already beginning to see signs of this, with the massive project at Ukwa International Market, Aba, Abia state by Homes and Homes, a company owned by an Anambra indigene.

We encourage business and professional linkages between diasporas and those living in the homeland. This will lead to exchange of ideas, mentorships and partnerships that will help to sustain businesses operating in the homeland, and professionals working in the homeland. The idea is to discourage more people from migrating from the South-East. Many will stay if they are encouraged and supported to stay back. ‘Ndi no na ezi nolu ndi no na uno, ndi no na uno nolu ndi no na ezi’.