WITHOUT OIL, WHAT IS NIGERIA’S FUTURE?
WITHOUT
OIL, WHAT IS NIGERIA’S FUTURE?
On
numerous occasions, Nigeria’s depleting oil reserves have been extensively
discussed as the unrelenting reduction without replacement has become
worrisome.
Nigeria
is blessed with abundant natural resources but the fact is the huge deposits of
these resources do not corroborate with the level of development garnered since
independence.
This
shows that one does not need to be told that the monster called corruption is
responsible. It means that wealth without industrialisation, and without
probity will result in technological and economic under-development.
Yes, we
have iron ore, bitumen, granite, limestone, marble, coal, clay, zinc, among
others, but are we producing enough for local consumption and export? Are we
effectively using our coal to generate electricity and liquid fuel?
Nigeria
has a wide diversity of soil; the northern soil is good for the production of
groundnut, sorghum, cowpea and millet. The interior zone made up of sand and
clay soil is useful for the production of cotton. The southern zone is good for
the production of crops such as cocoa, oil palm and rubber. Alluvia zones found
along flooded plains of rivers, deltas and coastal regions can grow wheat,
rice, maize, soya bean, cotton and the like. Our soil is great for growing all
sorts of crops, so, what else do we need?
Being
endowed with a plethora of natural resources is not a prerequisite for economic
development. A case of Japan, a mountainous, volcanic island country that
exports automobiles to all nations of the world comes to mind – her power of
industrialisation, bears noting. Similarly, Singapore, with no or little
natural resources shows the world how a tiny island can become one of the
world’s most prosperous and advanced economies. Singapore had to import
everything it needs, including water from the neighbouring Malaysia. Can we
learn from it?
At the
moment, there is a rising attractiveness of producing electric cars. From
Europe to America to Asia. A majority of these advanced countries are
considering a ban on the sale of gasoline-powered cars. If this happens, what
is Nigerian’s fate on the sale of oil? The nominal Gross Domestic Product
contribution of oil to the Nigerian economy may be as high as 70 per cent, for
an import dependent economy like ours; the implication is grave. Oil companies
may lay off workers, reduction in the sale of oil, and the country’s debt
profile may increase. A huge sick government balance sheet looms.
Nigeria
is not short of options but she is bereft of true leadership. A leader
who can guarantee security and safety of investors and stakeholders; a leader
who can provide adequate power supply eluding us for decades, and a leader who
can eradicate multiple taxation, as well as ensure that business is conducted
in a transparent and ethical manner. Such a leader will also be expected to
provide an enabling fiscal and regulatory environment for small and medium
businesses to thrive, and ensure the country’s uncultivated soil is cultivated.
It
is high time Nigeria diversified her economic base beyond policy
pronouncements, to non-oil production and other untapped minerals.
Are
Nigerians having a robust and concrete vision targeted at living without oil?
The country’s paradigm shift, a diversification of her economy is fundamental
if we must avoid the doldrums of sword of Damocles swinging. Then, when push
comes to shove, Nigerians will be largely reaping the reward of her
preparation.
