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Reviving the Nigeria Economy

The Nation Nigeria over the last six decades has seen its structure move from an agricultural based society to an economy which is highly dependent and reliant on the oil and gas sector. The nation Nigeria before the discovery of the crude oil in Oloibiri Rivers State, Nigeria in the year 1958 agriculture was the mainstream of the nation’s economy which saw to the birth and stability of the nation’s economy, this was however altered with the discovery of Crude Oil which led to the paradigm shift from agriculture to Crude Oil which placed the nation on the forefront of emerging and growing World economies in the world as the nation became a member of the petroleum exporting countries of the world. A league which is heavily dominated by the Middle East countries.

However over the years since the discovery of oil in the nation Nigeria, the nation has failed to attain the much predicted greater heights by many world powers. It’s rather saddening to see the nation’s economy falter as the nation struggles to have a stabilized and strong economy base.

The non-oil sector of the Nigerian economy contributes as much as 91% to aggregate economic output while the Oil sector controls about 9 percent, however the latter accounts for over Sixty Percent of the nation’s fiscal revenue and over Eighty percent of total export proceeds.

The aforementioned shows the imbalance in the nation’s economic structure since it got it independence in the year 1960. The nation’s political sector has failed to out rightly engage the nation’s vast human and mineral resources to creating a firm economy base through the introduction of viable business re-forms and strategies; the sustenance of small and medium scale business enterprise among many other factors. The various economic policies of the nation and the inability of the federal government to put in place a economic reforms which can facilitate and improve the ease of doing business in the nation. The presence of moribund industries across the Nigerian Federating units has led to the closure of thousands of small and medium scale business outfits which defends heavily on these industries for the acquisition of goods and produces which they later sell.

It must be noted that the nation Nigeria has enjoyed decades of uninterrupted Democratic process in the nation which could have been gainfully harnesses to grow the nation’s economy.

However it will be noted as realized that within the Nigerian Democratic System, the codes of a pure and true Democratic process which are needed for the proper advancement of the nation’s growth and development are missing or in most cases not in full operations.

They are-

  1. Transparency and accountability in public financial management
  2. Rule of Law (Constitutionalism)

III.       Separation of powers and inherent checks and balances

  1. Autonomy (Freedom) of Democratic institution- Electoral Bodies, Law Enforcement Agencies, Judiciary.
  2. Practice of Federalism

 

For the Nigerian economy sector to be positively revived and placed on the path of viable growth and development, these aforementioned factors needs to be placed into consideration with a view of entrenching them within the confines of our Democratic system in Nigeria.

Also to reviving the ailing Nigeria economy, the following needs to be done as they are important areas of concern for investors to thrive and succeed in Nigeria.

  1. Power Situation- it’s a pathetic fact to come to the realization that 60 years of the nation’s independence has seen the nation without the capacity to adequately provide electricity in its various 36 states of the federation. It is no hidden fact that the presence of adequate power supply in any human society greatly facilitate the growth and emergence of a fast industrial society. The nation Nigeria saw many of the big industries which had made the nation it’s production base leave the country for other nations of the world over the inability of the Nigeria Federal Government to adequately provide a stable Electrification System. This is because the news to constantly fuel their industries in the long run is too costly which makes cost and process of production a high one. The basic objective of business men and women is to make profit and when this is threatened they resort it finding a better alternative for doing business. Also small and medium scale business enterprise which it’s owners has little funds to float usually go comatose within few years of start-up because of the incapability of the owners to constantly fuel these businesses for swift productivity.
  2. Security Situation- there is a need for the Nigerian government to ensure the protection of lives and properties within the Nigerian society. Taking for example the nation’s northern part where the activities of Boko Haram has made inhabitable for people and including business. Investors are now terrified with the thoughts of coming down to the nation to conduct or build business empires over the fear of terrorism, kidnappers bandits and every other social vices. The adequate security of the nation gives the people the peace of mind and the confidence to put their investment in the nation because they have no fear over the security of their business.
  3. Real Sector- the nation’s manufacturing and production sector has been rendered greatly redundant because of the inability of the government to facilitate the growth and sustenance of the sector. There are many moribund industries in Nigeria which can be rebuilt and put to good use which will in the long run to the creation of wealth. Nigeria must as a matter of fact invest more in its production sector; it must ensure that it creates an economy that produces more than it buys it import from other nations.

 

Way forward

It’s important for the Nigerian nation to move back to the drawing board even as it celebrates another 6 decades of independence. There’s a need for an all encompassing change within all its sectors to address the various root problems and challenges which are militating against the reviving of the nation’s economy

 

By Marcus Amudipe

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