 |
| Rotimi |
Currently,
Nigeria’s economy is faced with venomous challenges- 27 of the 36 states in
Nigeria are unable to pay workers’ salaries, the existing infrastructures are
swiftly becoming poor while new ones are not in place, power generation
has degenerated significantly, the financial system is crumbling, foreign
investors are shunning Nigeria’s bonds and stocks, companies are laying off
workers in hundreds due to inability to pay salaries, a surge has hit the
prices of commodities and the cost of living has doubled, regional security
challenges and incessant protests from- Niger Delta Avengers, kidnappers,
religious extremists, Biafran Movement, Fulani herdsmen among others threaten
Nigeria’s economy.
The
economic woes befalling Nigeria has been attributed to the crashing oil price
in the global market, over the years, Nigeria’s oil revenue keep experiencing
significant setback on monthly basis. In December 2014, gross oil revenue recorded
was N480bn, in January 2015- N460bn, in February 2015- N401bn, in March 2015-
N315bn while in April 2015- N282bn. According to the Central Bank of Nigeria’s
Statistical Bulletin for 2015 quarters, at N1.859 trillion, Nigeria’s crude oil
revenue for the 2015 fiscal year dipped by 37.47% from N2.973trillion recorded
in 2014. In 2016, the fall continued to the lowest level in more than five
years.
Nigeria’s
economy has been degenerating over the years- despite bogus revenue recorded
from crude oil by Africa’s largest oil producer, infrastructural and human
development in Nigeria have been thoroughly poor over the years, and
major roads have remained in bad condition, power supply
unstable, unemployment escalated annually. Nigeria’s failure over the years
cannot be disconnected from massive corruption, mismanagement, tax evasion, oil
theft, contract breach e.t.c. among the political and economic elites.
Nigeria
is running a very expensive political system, 58% of the nation’s allocation is
spent at federal level, while 32% goes to the 36 states and 10% for the 774
Local Government Areas; a larger percentage of this revenue goes to governance
and jumbo pay for politicians such high estacode, N9bn as legislators’ annual
ward-robe allowance, N500m security vote monthly to state governors, pension
for life for governors/deputy governors after serving four or eight years among
others. It’s also on record that Nigeria loses at least 400,000 barrel of crude
oil to oil theft daily.
With
Nigeria’s current economic plight, it is evident that the Federal Government
can no longer continue to bailout states, and capital intensive projects are
not feasible. Due to incessant attacks on oil facilities and workers in
Niger-Delta, many oil companies are shutting down operations, if this persists,
it implies Nigeria’s source of revenue might be blocked. One of the most
important things in Nigeria today is for unpaid workers to be paid, create jobs
for the people so that they can afford shelter, feeding and schooling for their
households. Nigeria’s economy has to return on track for this to happen.
Reducing
poverty has been a major challenge to Nigeria- even though mismanagement has
been prevalent in Nigeria for many years, there’s equally an urgent need for
economic diversification in Nigeria. It has become more apparent that Nigeria’s
economy can no longer be sustained by the crashing oil revenue. Like other
African nations, 70 to 80 percent of the population lives in rural areas and
earn a living through agriculture, increasing their capacities through
agricultural development is major commitment the Nigerian Government has to
make to reinvent the nation’s economy.
Agriculture
as a means of sustaining the economy is not alien to Nigeria. Prior to the
discovery of oil, Nigeria’s economy flourished through agriculture. During the
pre-crude oil era when Nigeria’s economy totally depended on agriculture; the
sector offered vast opportunities and employed over seventy percent (70%) of
the Nigerian labour force. Agricultural sector provided food requirements for
the country and raw materials for local industries, as well revenue from
exportation of cash crops. Agriculture can not only be a major source of
revenue for Nigeria’s economy, it is also the bedrock of Africa’s economy as a
continent.
Agriculture
has proven itself to be potent, if deliberate and meticulous investments are
made into agricultural infrastructures such as irrigation facilities, rural
roads, farm security, and storage facilities to improve production and value-chain,
Nigerian local farmers in their millions will be moved from subsistence farming
to commercial agriculture. This will not only help Nigeria to feed her
population, but huge revenue will be generated from exportation of commodities.
Agriculture can be a big business for Nigeria if made efficient, policies that
allow credit channel to the system must be encouraged. There will be a boost in
Agriculture if more viable market is created. Cameroon, Ivory Coast among other
African countries are strengthening agriculture in their country with
significant results; Ivory Coast emerged the largest cashew nut exporter,
taking over from India.
Agriculture
provides a way out of the on-going economic challenges confronting Nigeria.
Agriculture is life, with vast land and resources, favourable weather and good
soil minerals, Nigeria as a nation should diversify her economy into
agriculture to transform the nation at the shortest delay.
Olawale
Rotimi Opeyemi is a writer/journalist. He can be reached via olawalerotty@gmail.com or
+2348105508224
Tags
Opinion