Time to stop overdependence on crude oil

Nigeria’s overdependence on crude oil as the major source of revenue has consistently crippled its economic activities. The country’s failure to revive its untapped resources has hindered its ability to generate revenue, leading to economic instability. It is imperative that Nigeria diversifies its economy by tapping into the abundant natural resources scattered across the 36 states and the Federal Capital Territory (FCT).

The Federal Government’s failure to boost agricultural practice by providing necessary aid to local farmers has hindered the growth of the agricultural sector. Providing farm tools and fertilizers at affordable prices to subsistent and commercial farmers would encourage investment in farming and increase agricultural production. This, in turn, would contribute significantly to the country’s revenue and reduce its dependence on crude oil.

The time for Nigeria to diversify its economy is now. The crude oil revenue, which accounts for the country’s major cash cow, has depreciated in the global market. State governments have been over-dependent on the Federal Government for allocations to handle projects, without exploring the abundant natural resources available in their respective states. This has led to a situation where many states cannot afford to pay the N18,000 minimum wage bill approved for workers, not to mention the recent implemented bill of N30,000 minimum wage.

Nigeria is blessed with over 56 untapped natural resources, capable of attracting foreign investors to the country. However, the country’s failure to exploit these resources has led to a loss of about N50 trillion annually. The solid mineral sector alone is estimated to be losing about N8 trillion annually from untapped gold. These estimates represent monies that should have accrued to the federation account from royalties, taxes, charges, and other fees from companies and individuals operating in the solid mineral sector.

The Federal Government must take immediate action to address this issue. This includes providing incentives for investors, developing infrastructure, and creating an enabling environment for businesses to thrive. State governments must also look inwards and explore the abundant natural resources available in their respective states.

In conclusion, Nigeria’s economic stability depends on its ability to diversify its economy and exploit its abundant natural resources. The Federal Government, state governments, and local governments must work together to create an enabling environment for businesses to thrive and for investors to take advantage of the country’s vast resources. Only then can Nigeria achieve economic stability and prosperity.

Aisha Tijjani Bura, Department of Mass Communication, Borno State University.