It is unarguably, the fact, that the current downturn in the price of oil has led to an economic meltdown in oil dependent nations across the world, of which Nigeria as a member of oil exporting nations has has its fair share of the meltdown. It is also worthy to note, that the fall in oil pricean coupled with incessant attacks on oil facilities in the Niger Delta region by a major militant group nick-named Niger Delta Avengers(NDA), and the flamboyant spending lifestyle of the government, particularly, in the last six years, has led the country to its present economic cul de sac. According to Nigeria Bureau of Statistics, the nation's Gross Domestic Product(GDP), in the first quarter, declined by 0.4%, while in the second quarter, it fell by 2.06%. This shows that the country's economy is in recession, which has resulted in hyper-inflation, and if urgent and reasonable steps are not taken, it may lead to a state of economic depression, which of course, would spell doom for the nation. Truly speaking, the current economic quagmire, which Nigeria finds itself today, is less of the present, but more of over the years both mismanagement and negligence. It is simply the way we handled it. And our attitudes towards the economy. Though, recession in economy is problem, but, positive steps can still be taken to take it out, and ameliorate the hardship it comes with. One interesting thing about this current recession, is that it provides us with a very golden opportunity to have a rethink of what possibly we can do, to diversify our economy, to move away from the mono-economy we are practicing now. For any nation to achieve a tangible growth level, the economy must be diversified, and this is what Nigeria failed to do over the years. The petroleum sector, has actually contributed immensely to the development and sustenance of the country, since its discovery in large quantity, but, there is need to diversify the economy, and turn attention to other non-oil sector.
According to Central Bank of Nigeria, other non-oil products in Nigeria include, which are majorly agricultural products, and are exportable are: cocoa, coffee, cotton groundnut, groundnut oil, palm kernel, Soya, beans, ginger, rubber, Benin-seed and chili pepper (CBN, 2003). Apart from the ones just mentioned, other products are demanded in the world are: cashew nut, cassava, plantain, banana, pumpkin leaf(uku), corn,etc, which Nigeria can produce in large quantity for domestic consumption, and also for export to earn foreign exchange. It was these agricultural products, that the colonial masters saw, and made a foray into Nigeria, to exploit and export to their countries, which also earned foreign exchange for Nigeria. Obadan (2000), observe that the production and export of cocoa, groundnut, rubber, palm kernels and palm oil accounted for 96.4% of total exports earnings, while non-oil export product accounted for 97.3% of total export then. He observed further that from the 1970's The Nigeria economy became mono-cultural, having been transformed from one dependent on fairly diversified portfolio of agricultural products to an economy heavily dependent on crude oil for growth and sustenance. Simili modo, Ojo (1994) observed that the advent of crude petroleum production and related activities especially in the early 1970's, changed radically the structure of Nigerian economy. The huge foreign exchange earnings from crude oil export encouraged importation of finished foods to the detriment of domestic manufactured ones, while the agricultural sector was rendered less competitive over time through over-valued currency, inappropriate pricing policies and scarcity of farm labour caused mainly by the migration of youth to urban arrears in search of wage employment. Because of the huge revenue from oil, the agricultural sector was treated with disdain, and other non-oil sectors, such as manufacturing sector. According to A.A. Awe and S.O. Ajayi, the manufacturing sub-sector of our economy consist of large scale manufacturing enterprises(including the basic core industrial projects, promoted by government), the intermediate goods produced by firms sponsored by transnational corporations, the small and medium scale manufacturing units financed by foreign and indigenous entrepreneurs and the cottage industries located in urban and rural areas. The large-scale manufacturing enterprises and core industrial projects include iron and steel, fertilizers, pulp, paper, machine tools cement vehicles assembly, petrol chemical plants and petroleum refineries. The above, shows that Nigeria can earn more foreign exchange from other non-crude sector of the economy. It is quite unfortunate, that the managers of our nation's wealth, over the years have been thinking "within the box", and bluntly refused to rid themselves of the "ihe mkpuchi anya" in Ibo, or "nkim enyin" in Ibibio(a thing that blurs vision), so much so that, they could only think of oil, allowing such mult-billion naira companies like Ajaokuta Steel Rolling Mill, Aluminium Smelting Company of Nigeria Ltd, ALSCON, which majored in steel and aluminium production rrespectively, to liquidate.
On the other hand, among intermediate and consumer goods industries are
chemicals, paints, tyres, etc., while food, beverages textiles, plastics, soaps detergents and furniture belonging to small and medium scale manufacturing units. The solid minerals sub-sector consists of a wide range of minerals which include limestone, columbite, marble cassiterite, coal, bitumen, granite, gravel, and the list continue.
One of the major challenges facing the manufacturing sector, has been the over-dumping of fairly used goods in Nigeria, and also low demand for local goods, as well as the over-zealous attitude of local goods manufacturers in selling off the little produced, to earn foreign exchange.
From the above, it could be discerned, that apart from the oil sector, there abound, other opportunities, and avenues, through which Nigeria can revive the economy, and take out of recession. The government of the day should in its 2017 Appropriation Bill, make infrastructural development a top priority, and focus more on building cottage industries, reviving of Ajaokuta Steel Rolling Mill, ALSCON, in Ikot Abasi, and other multi-million naira manufacturing companies of such, either through partnership, or sole proprietorship. The government should also, give loans to farmers, with low interest rate, to boost local food production, and to also provide raw materials for other industrial uses. Another emerging trend, which can add to the nation's GDP, is ICT. The rate at which the world is moving, technology wise, demands that any nation thinking of development, tap into "phone applications" which are majorly downloaded from google play stay. The government should revamp the already existing technology incubation centers, and build more, if not enough. For the purpose of man-power, for the said cottage industries, government should, and even the operators of private sector economy, should execute skills acquisition programmes, to train people, mostly, the youth on the skills required for the production of the goods already mentioned, and also, for entrepreneurship purpose. Advance economies, including non-oil producing countries, are beginning to move away from oil, to more advance technology such as solar-powered cars, which means, in time to come, oil may no longer be in much demand. Adolf Hitler, in one of his books 'Hitler's Secret Book' once said "at all times, the surest foundation for the existence of a Folk has been its own soil"
Comr. Edu Etukakpan
Media and Investment Consultant/Public Affairs Analyst
(eduetukakpan@yahoo.com)
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