Agriculture, if given the needed attention, is capable of creating about 70 per cent of jobs for the unemployed youths. Unemployment today is one of the greatest challenges of this country and for the Muhammadu Buhari-led change administration. Agriculture being a sector that requires a large labor force, can help create employment for the large number of unemployed able-bodied men and women in the country.
By Tony Abolo
The need for diversification of the nation’s economy has never been more urgent in Nigeria than now, especially with the dwindled oil prices in the international market and even if the price ever recovers.
The global oil down turn has revealed Nigeria’s vulnerability to external economic shocks. Largely dependent on the export of crude oil, the country’s economy is suffering setbacks in economic growth and in its efforts to meet the yearnings and aspirations of its citizens.
Unless urgent steps are taken to diversify the nation’s economy, there is a looming economic danger ahead of us.
Just about few months ago, many State Governors were unable to pay workers salaries and meet other re-current expenditures due to a sharp fall in statutory returns from oil revenue receipts.
A situation where States have had to borrow to pay salaries is the worst case scenario of how bad State economies are and reveals the poor strategic management capacities of State Executives. Worse still, it reveals the poor thinking abilities of Governors.
As a way of preventing the re- occurrence of this embarrassing situation, economic diversification holds great potential and key to increasing Nigeria’s resilience and would contribute to achieving and sustaining long term economic growth and development in the country.
There is no doubt that good governance is needed to creating an enabling environment for investment and trade in all economies of the world.
Good governance does translate to managing natural resources and to setting policies to developing strategic sectors.
It means that government at all levels should entrench a system that will drive growth in the non- oil sectors, especially in the agriculture and mining sectors of the economy.
Agriculture is one of the ways or means by which the government of any country that is serious about feeding its populace, diversifying into Agri-businesses and raking in foreign exchange can use to improve the living standard of its people as well as generating revenue for infra- structural development.
Nigeria can improve its economy by showing interest in agriculture through the formulation and implementation of good agricultural policies.
Agriculture, if given the needed attention, is capable of creating about 70 per cent of jobs for the unemployed youths. Unemployment today is one of the greatest challenges of this country and for the Muhammadu Buhari-led change administration.
Agriculture being a sector that requires a large labor force, can help create employment for the large number of unemployed able-bodied men and women in the country.
Government partnership with private investors in agriculture which stands at about N1.23 billion now, can grow four folds to N4.9 billion between this year and 2019, if President Muhammadu Buhari’s administration agricultural policies do not threaten the investments already in the sector.
Many foreign and local investors will invest more in this sector of the economy if the policies are right.
Entertainment is also a very viable sector for diversification of our mono-economy. The Nollywood, for instance, employs a large chunk of unemployed Nigerians and also generates significant revenue for the owners as well as for the government.
The music industry as a component of the entertainment industry is also not left out in this, as the industry players have portrayed the nation’s positive image in good light both within and outside the country.
Therefore, to fully utilize the potentials of this sector, there is need for government support through the creation of the necessary enabling environment for the industry and players in the industry to thrive.
The government must make and enforce more stringent laws to eradicate or reduce the high level of piracy in this sector. This will help maximize the benefits in this sector to the country vis-à-vis our Gross Domestic Product (GDP).
The manufacturing country stands the chance of benefitting from devaluation of currency despite the perennial arguments on the policy.
A devaluation does reduce the prices of goods in the exporting country. The manufacturing sector is another important sector that can rake in a lot of revenues for the government and provide jobs for the teeming unemployed youths in the country.
Instead of depending on oil whose price is determined at the international market, it will be better to look inward into the manufacturing sector to fully maximize the benefits of that sector of our economy.
There are, however, several challenges confronting this important sector of the economy ranging from multiple charges by government agencies to sourcing for foreign exchange from the parallel market.
This has made raw materials more expensive and in turn hiked production costs. Basically, this sector is heavily dependent on energy. Power supply has been so undersupplied and extremely erratic and gas is bought with foreign exchange and this makes the prices of locally made goods high.
Granting tax holidays and waivers to infant industries, but with no abuses this time and the provision of good road network, electricity and healthcare facilities will help boost this sector and grow the nation’s economy.
Last but not the least of the areas discussed above is the tourism sector. Focusing much attention in tourism development will generate a lot of foreign exchange for the country through the activities of foreigners coming into the country to visit tourist centers such as: Obudu Ranch, Calabar Marina Resort, Tinapa Business and Resort and Ikogosi Warm Springs Resort in the country.
According to the United Nations World Tourism Organization (UN- WTO), “tourism is one of the fastest growing economic sectors in the world.”
In 2013, International Tourism generated $1.4 trillion in export earnings. The total tourism receipt in Africa for the year is estimated at $34 billion.
A World Bank report shows that Africa’s tourism could create 3.8 million jobs. In 2012, tourism contributed 3 per cent to Nigeria’s GDP and 2.8 per cent of total employment.
Nigeria has what it takes to succeed and this is, if it makes intentional efforts with a plan to prepare the tourism sector to generate more earnings and create more jobs.
The tourism industry at present generates annual revenue of about N80 billion. The Nigerian Tourism Development Corporation (NTDC) needs to do more to develop the tourism sector.
Much needs to be done by the Federal Government in looking into the tourism sector as part of measures to fully diversify the economy to generate more revenue to the government and create jobs for our teeming unemployed youths.
The less we depend on oil, the better for us as a nation. A situation where about 90 per cent of the country’s revenue comes from the oil sector portends great danger for the economy.
We have sounded the alarm bells for diversification for too long. Now is the time to act decisively. The old habits and patterns must make way.
We must grow the economy to save our future generations. Diversification offers a way out. It is now an imperative.
Nosakhare Okunmwendia Eseimude liked this on Facebook.
Osarumwense Okunmwendia liked this on Facebook.