Value Creation and
National Economic
Development:
Lessons For Nigeria
Olugbemiro Jegede
Pleased to be Here
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Thank ANAN for the invitation as
Guest Speaker
Not sure am the right person for the
task
My involvement with the topic is
rudimentary and limited
Gave a Keynote to the 2nd Conference
of the African Accounting & Finance
Association on 5th Sept 2012
Paper is only to set the tone
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Ahmadu Bello University
University of Southern Queensland
University of Abuja
Collateral Learning
and the EcoCultural Paradigm
in Science and
Mathematics
Education in Africa
Olugbemiro Jegede
Curtin University of Technology, Australia
Open University of Hong Kong
Focus
Introduction
Values, Value Creation
Five Parts of Every Business
Economically Viable Skills and
Economic Values
Corporate Governance in Public
Sector
Value Creation and The Constitution
Way Forward
4
Values
 Different meanings to different people
 Simply put, values refer to the usefulness or
importance of an issue, idea, product or
situation.
 A very comprehensive definition sees values
as important and lasting beliefs or ideals
shared by the members of a culture about
what is good or bad and desirable or
undesirable. Values have major influence on a
person's behaviour, choice and attitude and
serve as broad guidelines and guide decisions
in all situations.
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Value Creation

Value creation is the performance of actions that
increase the worth of goods, services or even a
business. Many business operators now focus on value
creation both in the context of creating better value for
customers purchasing its products and services, as
well as for shareholders in the business who want to
see their stake appreciate in value.
 According to The Economist, ‘value creation is a
corporation's raison d'être, the ultimate measure by
which it is judged’.
 It is common knowledge that value creation is the
bedrock of any business.
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Process of Value Creation
 Value is created through an organization’s
business model, which takes inputs from
the capitals and transforms them through
business activities and interactions to
produce outputs and outcomes that, over
the short, medium and long term, create
or destroy value for the organization, its
stakeholders, society and the
environment’.
 ‘A successful business is either loved or
needed’ (Ted Leonsis, former Executive of AOL)
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5 Parts of Every Business
 Laying a foundation using Business Principles 101 for
later parts of our conversation
 As it is normally defined in management of business
textbooks, a business is a repeatable process that:
Creates and delivers something of value...
That other people want or need...
At a price they’re willing to pay...
In a way that satisfies the customer’s needs and
expectations...
So that the business brings in sufficient profit to make it
worthwhile for the owners to continue operation.
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Most businesses that succeed do so through
innovation.
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Value Creation Funnel
All valuecreating
innovation
regardless of
what type of
business or
service must
go through
three stages
of Value
Creation
Funnel
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Interdependent Processes of
an Excellent Business Plan
ValueCreation
 Discovering what people need, want, or
could be encouraged to want, then creating
it.
Marketing
 Attracting attention and building demand for what
you’ve created.
 Turning prospective customers into paying customers
by completing a transaction.
 Giving your customers what you’ve promised and
ensuring they’re satisfied with the transaction.
Sales
ValueDelivery
Finance
 Bringing in enough money to keep going and make
your effort worthwhile.
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No Business:Any One minus 5
 A venture that doesn’t create value for others
is a hobby.
 A venture that doesn’t attract attention is a
flop.
 A venture that doesn’t sell the value it creates
is a non-profit.
 A venture that doesn’t deliver what it promises
is a scam.
 A venture that doesn’t bring in enough money
to keep operating will inevitably close.
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Economically Viable Skills
 Economically Valuable Skills are skills that are
directly related to the 5 Parts of Every Business
briefly discussed above.
 Note that not every skill or area or knowledge is
economically valuable. Some skills are primarily
valuable for enjoyment or personal interest, but
won’t help you improve your business.
 In order to increase your value in the market,
focus on improving skills that are economically
valuable.
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Economic Values
9 common Economic Values that people consider when evaluating a
potential purchase. Whenever a customer wants to buy your product, s/he is
declaring that they value your product or service more than anything else
his/her money could buy at that time.
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Cost — how much do I have to give up to get this?
convenience
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Speed — how quickly does it work?
convenience
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Reliability — can I depend on it to do what I want?
convenience
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Ease of Use — how much effort does it require?
convenience
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Flexibility — how many things does it do?
convenience
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Status — how does this affect the way others perceive me?
fidelity
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Aesthetic Appeal — how attractive or otherwise aesthetically
pleasing is it?
fidelity
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Emotion — how does it make me feel?
fidelity
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Efficacy — how well does it work?
fidelity
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Corporate
Governance in
Public Sector
Corporate Governance in
Public Sector
 Until very recently, people have always argued that
the corporate world is quite different from the
public sector and hence they should not
intermingle.
 The only way some interaction is seen as valid is
when the public sector employee purchases for use
the products or services that are outputs of the
excellent processes and procedures of value
creation in the corporate world.
 A number of factors has worked together to force
the public sector to be interested in the use of
those activities and events which guarantee
efficiency, innovativeness and creativity
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Some of these factors include:
Interconnections between corporate activity, society and the
environment
Create an entrepreneurial venture
Globalisation.
Accountability within the public sector
Demand for transparency, placing everyone under scrutiny like
never before.
The boundaries of social responsibility are rapidly expanding
In light of the global financial crisis, much commentary in
corporate governance is being directed towards corporate
governance in the public sector organizations
Understanding choices of Government Ministries,
Departments and Agencies (MDA).
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Corporate Governance in
Public Sector Promotes
 Accountability – being answerable for decisions and
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having meaningful mechanisms in place to ensure
adherence to all applicable laws, regulations and
standards.
Transparency / openness – having clear roles,
responsibilities and procedures for making decisions
and exercising power, and act with integrity.
Stewardship – enhancing the value of entrusted public
assets.
Efficiency – applying the best use of resources to
further the aims of the organization.
Leadership – promoting an entity-wide commitment to
good governance starting from the top.
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Advantages of Using CG in PSG
 Allows the transfer of the established template
for transparency and accountability.
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Stewardship and accountability for the use of
funds and assets is particularly important in the
public sector.
 Growth is positively related not only to the size
of the investment but also to the efficiency and
transparency of its allocation.
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Ensures that directors and managers of public
enterprises carry out their duties within a
framework of accountability and transparency.
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Value Creation
and Economic
Development
Value Creation and The
Constitution1
 Section 15 which talks about the Political objectives
of Nigeria. It says that
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15 (1) The motto of the Federal Republic of Nigeria
shall be Unity and faith, Peace and Progress.
 (2) Accordingly, national integration shall be actively
encouraged, whilst discrimination on the grounds of
place of origin, sex, religion, status, ethnic or
linguistic association or ties shall be prohibited.
 (3) For the purpose of promoting national
integration, it shall be the duty of the State to –
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Value Creation and The
Constitution2
 (3) For the purpose of promoting national integration, it
shall be the duty of the State to –
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(a) provide adequate facilities for and encourage free
mobility of people, goods and services throughout the
Federation;
(b) secure full residence rights for every citizen in all
parts of the Federation;
(c) encourage inter-marriage among persons from
different places of origin, or of different religious,
ethnic or linguistic association or ties; and ……
(5) The State shall abolish all corrupt practices and
abuse of power.
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Value Creation and The
Constitution3
 Section 16 is concerned with the economic
objectives of Nigeria. It states that,
 (1) The State shall
Harness the resources of the nation and promote national
prosperity and an efficient, a dynamic and self-reliant
economy every citizen on the basis of social justice and
equality of status and opportunity;
 Control the national economy in such a manner as to
secure the maximum welfare, freedom and happiness of
every citizen on the basis of social justice and equality of
status and opportunity;……
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Value Creation and The
Constitution4
 (2) The State shall direct its policy towards ensuring –
 (a) the promotion of a planned and balanced economic
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development;
(b) that the material resources of the nation are harnessed
and distributed as best as possible to serve he common
good;
(c) that the economic system is not operated in such a
manner as to permit the concentration of wealth or the
means of production and exchange in the hands of few
individuals or a group; and
that suitable and adequate shelter, suitable and adequate
food, reasonable national minimum living wage, old age
care and pensions, and unemployment, sick benefits and
welfare of the disabled are provided for all citizens.’
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Constitution is Silent
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Nothing done to constitutionally declare that the nation would
from now on use the value creation strategies of the business
world to enhance national economic development.
No single line or paragraph of the Constitution or any related
document it can refer to, that attempts to relate value creation
with national economic development.
Yet our economy has been said to have over taken that of South
Africa and we are now number one in Africa. As if that is not
enough exposure to our self-deception, some have declared us
as the 20th best economy in the world.
Corporate governance within public sector firms has recently
begun to receive increased attention. This is particularly the
case when countries are attempting to curb widespread
corruption within the public sector, or when they are preparing
public enterprises for privatization
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Way forward
for Nigeria
Issues to Be Reviewed
For Nigeria to claim any iota of
success in integrating corporate
governance in its public sector with
especial attention to value creation a
number of issues must be reviewed as
a matter of urgency.
Given the time at our disposal, let me
mention just four of them.
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Sustainability Culture
 Developing a culture of sustainability
underlines the importance of balancing
economic efficiency, social equity, and
environmental accountability.
 The concepts of democracy and sustainability
are ‘both absolutely indispensable, and further
that one cannot be realized without the other’.
 To make excellent progress in our race to
institutionalise corporate governance in our
public sector matters, we must examine the
way to incorporate sustainable value.
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Sustainable Value Creation
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Emergence of SDG
 The emergence of the Sustainable
Development Goals (SDGs) agreed upon by
member states at the United Nations
Conference on Sustainable Development,
which held from 20-22 June, 2012 in Rio de
Janeiro, Brazil (popularly known as Rio+20)
replaces MDGs
 It was decided in the Rio+20 document, The
Future We Want, to establish an "inclusive
and transparent intergovernmental process
open to all stakeholders, with a view to
developing global sustainable development
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goals to be agreed by the General Assembly".
Common Africa Position
(CAP)
 The Common African Position has as its pillars
the follow:
 Structural economic transformation and
inclusive growth
 Science, technology and innovation
 People-centred development
 Environmental sustainability, natural resources
management and disaster risk management
 Peace and security
 Finance and partnerships
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Education
and Value
Creation
What Vision?
“Where there is no vision, the people
perish..” Prov 29:18
Hence we are in trouble with
Governance and education
Must do something drastic to avoid
disaster
….and so we are off to the optometrist
for a quick fix ….
Goals of the
st
C21
sustainable development
highly educated, mobile and
adaptable workforce
multi-skilled and multi-tasked
a knowledge and a learning
society
use of ecological and geographical
conditions to a nation’s advantage
In the
Beginning…
Things Fell Apart
 Govts, especially the military detested academic
freedom, university autonomy, demonstrations.
 Brutal clamp down on campus riots. Military
raped and killed students in Zaire (1992), Burkina
Faso (1987) Niger (1989) Cote D’Ivoire (1992)
Kenya (1992), Nigeria (1973).
 Damaging effects of the 1988 World Bank report
on the Education in Sub-Saharan Africa.
 Jomtien WCE for All (1990) and Dakar WEF (2000)
on Basic education.
 Civil wars – Liberia, Ethiopia, Somalia, Eriteria,
Rwanda, Burundi, Namibia, South Africa and
Nigeria
Effects on Higher Education
Establishment of universities stopped
abruptly.
Sharp diminishing financial resources.
Physical, managerial and intellectual
dilapidation.
No more production of human
resources to develop Africa.
Flight of the best brains to safe and
greener pastures.
Effects on Higher Education2
 Dwindling provision of funds to HE
 Uncontrolled proliferation of for-profit
universities
 Huge unmet demand in HE
 Obsolete curricula
 Inability to meet the skills demanded by the
private sector
 Inability to address balance between
enrolment and quality of education
 Uncertainty
about what HE means to Africa
in the 21st C
State of Education in
Africa
 The continent is heavily threatened by economic
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strangulation; political instability; conflicts and
terrorism; fragility of some of our nations; endemic
corruption; geopolitical imbalances and hatred; huge
capacity development needs; extreme poverty; a
preponderance of unemployed, underemployed and
unemployable youths.
The data available indicate that as at January 2015:
over 10 million seek employment annually and that 60
per cent of the unemployed are youths.
at least half of the 1 billion people are still illiterate.
Africa has the world’s highest illiteracy rates.
Sub-Saharan Africa is home to at least 30 per cent of
the world’s poorest people.
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Surviving the
st
21
Century
 Sub- Saharan Africa must engage in:
 Building of very strong economic foundation;
 Economic integration regionally and continently;
 Massive job creation;
 Embarking on effective food security measures;
 Health and environmental provisions;
 Innovations and creativity buoyed by education;
 Energy reforms and directing attention to combating
climate change; and

Massive investment in education, especially tertiary
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education.
The Africa We Want 2063
 There should be
 ‘created an Africa of our dreams that is
prosperous, healthy, vigorous, creative and
exciting’ (Versi, 2015).
 To achieve this, as has been done in other
parts of the world, Africa must re-focus on
using education as the fundamental and virile
instrument for continental, regional and
national development.
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Value Creation and Human
Capital Development
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One Too Many!
Bastardisation
of education,
especially
higher
education
Entrenching
Corruption as
a fixed
member of
the Board
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Addressing the Mismatch
 Capitalised on knowledge economy as
power of the future
 Abolished tenure system: no permanent
seat or office for life
 Encouraged job change for personal
development and to broaden career
choices and being futuristic
 Work force becoming multi-skilled and
multi-tasked
 Became a learning society as response to
change from Industrial to post-industrial
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Challenges of African
Academics
 To strive to raise
our game in and out
of the lecture hall to assist HE in Africa
achieve excellence again.
 Participate in the war against illiteracy
on the continent
 Enlist in the fight against corruption in
our continent especially in the
universities
 Strive to be multi-tasked and multiskilled - be a great academic and an
excellent Accountants
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Education Bastardised
 Education is the best legacy to bequeath to
younger generations.
 We play politics with education
 No concerted effort to completely redraft from
scratch our national policies on education
 Using 19th century tools to solve 21st century
issues and concerns in nation building.
 youth driven into the hands of ‘militancy’ and
‘Boko Haramism’ – two perfect examples of a
rudderless nation ridden with bad governance,
lack of incisive accountability and breading
illiteracy and lawlessness faster than the rate
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maggots reproduce.
Africa’s Answer to HE
Reform
 Effective implementation of the 2nd Decade of
Education in Africa (2006-2015)
 Encourage greater mobility of academic
researchers, staff and students
 Establish an African HE and Research Space:
quality Assurance, harmonisation of academic
programmes and recognition of qualifications
 Use ICT effectively and appropriately to
develop, produce, acquire and distribute
knowledge, skills and competencies
 Collaboration and partnership on equal and
mutually beneficial platforms
 Creating centres of excellence
Eradicating
Corruption
Transparency International
 That Nigeria is one of the most corrupt countries in the
world is no more news. But that we seem to think that
it has become part of our national and individual
dressing code is what is most disturbing. The latest
global corruption index from Transparency
International says that for 2014, Nigeria is up eight
places to 136 out of 175 countries ranked by the index.
 As reported by Olaniyan, author of ‘Corruption and
Human Rights Law in Africa’, and who is Legal Adviser,
International Secretariat of Amnesty International,
London, Nigeria shares 136th position with well-known
corrupt countries like Cameroon, Kyrgyzstan, Iran, and
Lebanon.
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All Have Sinned
 No country is entirely free of corruption. But
if corruption is deep enough it can hinder
economic growth and good governance, and
decay the fabric of society. Corruption is an
obstacle to sustainable development, with
the potential to enlarge economic gaps and
breed organized crime. Unchecked
corruption leaves little room for democracy
to flourish; little room for freedom to
expand; little room for justice to prevail.”
Adamu on Corruption
“But in reality, corruption is so pervasive in
Nigeria today that there is nothing and no area
that has remained unaffected by it. To short
change the nation, soldiers have colluded with
technocrats; and civilians have colluded with
bureaucrats; and businessmen have colluded
with all of them. But the real tragedy of Nigeria
is that everything is just so awfully wrong with
every single issue in every place about
everything without exception all over the
country. It is as if corruption is the norm,
accepted, encouraged and institutionalised.
Daily Trust, Sept 10, 2010
Score card for Nigeria
What Africa needs is not more
strong men, it needs more strong
democratic institutions that will
stand the test of time.
Without good governance, no
amount of oil or no amount of aid,
no amount of effort can guarantee
Nigeria’s success. But with good
governance, nothing can stop
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Reviewing the
Constitution
Obsolete Constitution
 I have in a section
‘Corporate Governance, Value
Creation and The Constitution of the Federal Republic
of Nigeria’ discussed how our Constitution does not
match the need of an emerging nation willing to use the
corporate governance model of value generation to run
its public sector.
 What the examination of the Constitution tells me is
that our Constitution is obsolete and does not really fit
in with current needs of the nation let alone being
reflective of developments in the global scene.

Alignthe Constitution with the dictates of value
creation in corporate governance. It is only by doing
this that we would align the nation with what the 21st
century national economic development requires. 54
Conclusion
Needed: Accounting manuals
for
Road Side
Trading
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Needed in Africa
 A progressive accounting education that
lives on knowledge economy
 Accountants who enforce national and
continental regulatory frameworks including
professional ethics
 Accountants who frown at and expose fraud
and corruptive tendencies in universities
 Multi-skilled and multi-tasked accountants
who subscribe to advancing their careers
through research and other studies
Knowledge is the Word!
 Social thinkers from Confucius
through Buddha, Plato, Castro and Castells
all allocate a special place in their theories
of development to knowledge.
 Manual Castells: “knowledge and networks”
 Africa cannot leave out the contributions of
accounting education in HE
Our rescue will be knowledge-intensive
development directed at capacity building with
cutting edge training and skills acquisition.
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