Well educated workers are the building blocks of a modern, productive and diversified economy.
– Mckinsey and Company.
The experience of the 1980 falling oil prices showed necessity for us to diversify our productive base. This has been because the countries revenue has been tied to revenue from oil which is also dependent on the price of oil at the international market.
In April 2014, Nigerians woke up one morning to be told she has become the biggest economy in Africa with a rebased GDP of $510billion, which newly states that86 percent of GDP is outside the resources sector; of which the majority of GDP is in services, and agriculture is the single largest sector, contributing 22 percent of GDP.
The resources share of the economy has fallen by more than half, from 33 percent to 14 percent. Despite this, Nigeria currently is at the face of dwindling oil prices, with her currency devaluated, thereby creating a sharp fall in oil revenue and invariably affecting the current 2014 budget revenue and estimated 2015 revenue, solely because 75 percent of federal revenue comes from taxes on the oil and gas sector, and oil and gas make up more than 90 percent of exports, thereby providing the critical source of foreign exchange to support Nigeria’s consumption of imports. Far more, Nigeria is yet to derieve gains from diversification since 1980 and create revenue sources from other emerging and performing sectors.’
Here are a few reasons why:
The institutions from independence, were replicated to empower a few economically. Hence, even if the oil wealth was enough to go round for population less than 50million, a few had hijacked it.
Poor foresight and inadequate execution strategy for diversification.
A productive and sustainable diversification is what Nigeria needs if she must secure her future. Globalization has made the development race more tight-fisted and by default will knock out nations not ready to run and play to win. It has brought us to a point where, economic crises in Asia can lead to a recession in the United States; so also the discovery of Shale Gas could affect the production of oil, thereby leading to greater disability in the oil market.
Therefore, more than ever there is a dare need to diversify productively and sustainably, and to ensure that other productive bases increasingly add to budget revenue.
Here are some suggestions in making diversification productive and sustainable.
Nigeria must now or never, build and set working inclusive institutions, which will productively enlist a majority of her populace in to the diversification program, in a view to attain shared prosperity and ensure, coming growth adequately lifts many out of the poverty trap. Failure to do this will threaten whatsoever success recorded under current extractive institutions to our future economy and to sustainable development.
Nigeria must now take human capacity development seriously, this means;
In Education, first selflessly increase allocations to educational sectors,train the trainers to ensure timely and updated research,quality teaching methodology,and adequate coaching for those who will be key players in the diversification plan
Improve on health care, and basic sanitation of her populace.
Create a friendly macroeconomic environment, that allows business to thrive and succeed.
Create adequate infrastructure,in transportation,telecommunications, power and her environmental systems.
Lastly align her rising young population to her development plans.This is for the sake of long-term productivity and sustainability.
This and many more I believe will make diversification more productive,revenue yielding and sustainable. LETS SAVE OUR ECONOMY………LETS SAVE OUR FUTURE.