Nigeria’s economy has come to a stage where the only way forward for the nation and its people is to build a new strength outside of crude oil.
This is a clear message from the violent downward swing in the oil market but whether this message is yet understood and to what extent appropriate responses will follow is another issue altogether.
To some government officials at federal and state levels, the lost revenues will come back with time and the nation can hope for the sunny side of the oil market cycle.
To a few others, the current fiscal crisis is a sufficient signal that all is never going to be the same again and the effort towards diversifying the economy should be pursued with greater vigour by both federal and state governments.
This is the message the governor of Enugu State, Rt. Hon. Ifeanyi Ugwuanyi and the Minister of Labour and Employment, Dr. Chris Ngige have for the nation. They have called for a coordinated effort at all levels of government directed at diversifying the nation’s economy from its present mono-economy status. The weight of their message is underscored by the fact that both of them are presently in a position to do exactly what they say.
From all I can see so far, Enugu State appears to be taking the diversification effort more seriously than so many others. By the time that the fruits of the present effort begin to ripe, the state would have reduced the share of crude oil revenue in its total earnings.
A state like Lagos that generates huge internal revenue is able to do so because of comparatively large economic capacity. The capacity in Lagos can be replicated in every other state if they can look inwards.
I see Enugu State taking commendable steps towards building a new economic capacity and if sustained, the state is sure to emerge as a new front for economic opportunities.
The 2016 Enugu International Trade Fair focused on exploring other sources of revenue. Both Ugwuanyi and the visiting Ngige agreed that the focus of the trade fair could not be more apt than now when the falling oil prices have placed Nigeria’s economy into a precarious situation.
Moving further in the direction of diversification of the economy, Enugu State is hosting an international investment summit between 12th and 21st April this year.
The aim of the investment summit, according to the state governor, is to showcase the rich potentials of the state to investors around the world. The economic summit that dramatically changed the economy of Israel was a one-day event. The people decided to change the fortunes of their economy and today, Israel is a world leading nation in the area of hi-tech.
Somebody like Ugwuanyi, who believes in the rich potentials of his state and is decisively taking steps towards building a bigger internal economic capacity, is clearly one step ahead of where Nigeria ought to be headed. This man needs to be encouraged, supported and copied by all. The easterners generally have the potential for entrepreneurship.
Perhaps this is the opportunity for their state governments to launch them into the type of economic breakout that Israel has experienced. Today, Israel has the second largest number of companies listed on the NASDAC. I recommend that all south east governors be present at the Enugu Economic Summit, borrow a leaf from Ugwuanyi and take action to shift their economies away from oil dependence.
Diversification of the economy is a subject the federal government has been reciting as a catechism – ‘thou shall not depend on oil alone’ without practicing what it has been saying for about four decades. Now states have no reason to continue to wait on the federal government to do what it has failed to do for so long.
Every state can forget about the federal government layback attitude on diversification and move on to actualize it on its own. This is what I see the governor of Enugu State doing and I am convinced that this will be the way for the whole nation.
By the time all the states of the federation have succeeded in diversifying their respective economies, then Nigeria’s economy generally would have become diversified.
When Ngige went visiting, Ugwuanyi prayed him a prayer – “that the Honourable Minister will be willing to help us secure necessary support from Federal Government to ensure that these noble efforts to attract investors and boost economic activities in the state and region, yield the desired dividends”.
I join my voice to that prayer and hope that the minister does not forget the moment he returned to Abuja. I mark the words of the minister when he agreed with the governor that the diversification of the nation’s economy would reduce her over dependence on oil sector for survival, especially now that oil price has crashed by two thirds of what it was a year ago.
He agreed that economic diversification has become necessary as it would bring a permanent end to the uncertainties associated with oil as the major income earner for the country. So, minister, please match your words with action: this is the era we are in now!
I pray further that the President will be willing to answer the minister when he seeks this important support. President Buhari himself has been preaching the message of economic diversification to state governments.
Now that Enugu State is on the forefront of his message, it is a test case of whether he matches his words with action by way of the support that Enugu State government has asked for.
When a government has a clear purpose ahead of it, the support of all and sundry becomes compelling; in fact, a responsibility. Ugwuanyi has a clearly defined purpose for Enugu state government – “to seek other sources of income that would create wealth and harness other potentials free from oil money that had blinded other sectors in the past”.
Even if the federal government cannot move firmly in the same direction, let it give every support needed by state governments desirous to move ahead.
I also appreciate what the minister said concerning his ministry’s collaboration with the Federal Ministry of Agriculture and Natural Resources in training and empowering Nigerians, particularly the youth in various skills acquisition. Ngige is no doubt presiding over a ministry in which the nation’s labour force – its key resource is wasted.
I again press as hardly as I can that Ngige makes good his words. Between the two ministers, Nigeria’s economic transformation can decisively begin.
When I hear government officials talk big, I hardly get impressed anymore because from experience they do not what they say. But I picked interest when the labour minister said he has an action plan to rehabilitate all skills acquisition centres in the country with a view to assist Nigerians reshape their mind-set on white collar jobs.
I expect that the action plan will be unveiled soon and not remain a pipe dream. I encourage Ngige, who was highly impressed by what he called human-oriented projects in Enugu State, to distinguish himself just as Ugwuanyi of Enugu State has done so far. Nigeria presently needs all the able people it can muster at this moment.
Nweze, a public affairs commentator writes from Enugu
Follow Us