SEVEN THINGS NIGERIA CAN DO TO REVERSE THE ECONOMIC SITUATION IN THE COUNTRY.

By clement ndiok

Nigeria has been a major economic force in Africa since its independence. Being known as the “Giant of Africa” for years due to the economic and social contributions it has made in its history from the sector of oil, entertainment, sports, religion and other viable sectors. This term however has been in question in the last decade due to the consistent declining economic situation it has faced as a country. Even with the adjustment of several policies by recent government to counter the declining economic situation, there has been no strong effective measure to stall or reverse the problem that has resulted in the high rate of inflation, unemployment, insecurity, inability to attract foreign investors and many other negative effects. The measures that have been put in place to manage the problem so far can be deemed as short-term measures, which can only be sustainable for a little period of time. However, there are measures that can be used to tackle the economic problems permanently on a long term. Here are some vital steps Nigeria can take to reverse the economic situation of the country for good.

1. Improved regulation in oil and gas industry
Nigeria’s oil and gas industry is booming. With more than 8.5 million
barrels of oil produced daily, Nigeria has been leading all African
countries when it comes to finding an economically viable alternative to
traditional fuels. However, recent events have caused many to question
whether or not proper regulation is in place for both oil companies, as well
as citizens living on top of these resources. For example On October 1st,
a Chevron pipeline ruptured spilling thousands of gallons of crude into a
major river and killing over 100 people. The incident occurred after locals
had repeatedly complained about oil company negligence; however, no
action was taken until tragedy struck. This highlights a need for better
regulation in order to protect citizens from unsafe work environments
while also ensuring that oil companies are held accountable for their
actions.


2. Diversifying the Economy.
Since the discovery of oil in 1956, Nigeria has strongly relied heavily on oil exports to sustain its economy, while giving less attention to other industries in the country. The economy can be diversified to the Agricultural and hospitality industry. The agricultural industry accounts for most of Nigeria’s exports after oil and can still be explored. Nigeria is rich in several agricultural products such as cocoa, oil palm, rice, yam, vegetables, tomatoes, groundnut and many more. The government could invest heavily in agriculture to improve our level of output for the benefit of all. Youths and other citizens could be encouraged to go into agriculture by the government through creating incentives like granting interest free loans or loans with little interest. This could boost the economy and create domestic expansion of our local agricultural companies and businesses. However, for this to be successfully executed these loans need to be given in groups and an independent regulatory body established to ensure proper monitoring of the group which benefits from these loans. Similarly, the economy can also be diversified to the hospitality industry if properly explored. A verbatim of what the government of U.A.E did in Dubai several years ago to improve the general economy of United Arab Emirates, to ensure an even development. They invested in the hospitality industry to accommodate countless hotels, tourist attraction sites, and even establish man made islands, made beaches that made Dubai the first tourist destination in the middle east for many. This can also be applicable to reversing the Nigerian situation. Nigeria being blessed with several natural potential tourist sites such as beaches, waterfalls, islands and natural vegetation. Establishing similar concepts like the Obudu mountain resort, Lekki conservation center, and Tinapa round the country, can equally make Nigeria a recognized tourist attraction location in Africa.

3. Encouraging Exportation.
Recent statistics suggest that Nigeria suffers from balance of trade deficit, an economic situation where imports outweigh exports which definitely has a negative impact on the economy. In 2020 Imports accounted for 65 percent and exports accounted for 35 percent of total trade. This could be corrected if exports are highly encouraged, policies like adding heavy tariffs on some certain imported products that could be produced locally, to encourage patronage of local products as well as encouraging duty-free exports of local products, can correct the economic situation to a balance of trade surplus, an economic situation where a country has more exports than imports. Here there is a demand for the local currency Nigerian naira, the naira in turn gains massive value over time because of its huge demand.

4. Stabilizing Electricity.
The instability of power supply in the country is one of the significant reasons why foreign investors leave Nigeria and potential investors choosing an exemption when considering to investing in Nigeria. Even with the privatization of the formerly National Electricity Power Authority (NEPA) to Power Holding Company of Nigeria by the previous administration of president Goodluck Johnathan to the hands of private individuals, this still has not solved the mystery of inconsistent power supply. An alternative means of power generation can be looked into to ensure we have variable source of power supply to allow an adequate sustainability of power and solve the long-term power problem.

5.Tackling insecurity.
Aside the instability of power supply, another major factor that needs to be addressed is insecurity. Since 2009 when the terrorist group boko haram claimed attacks in Borno state, there has been a general increase in crime and insecurity in the country. Prior before then in the southern part of Nigeria, specifically the Niger Delta region, there was another group of militants who attacked oil pipelines for quite a while, this was properly tackled by late president Umaru Musa Yaradua’s administration when the amnesty program was established to curb insecurity in the south. This only resulted in a reduction and not a complete eradication. Aside this, there has been several cases of kidnapping, arm robbery, pick pockets etc... this has made the country generally unsafe. The outcome of the high level of insecurity has amounted to investors leaving the country, foreign investors unwilling to invest in Nigeria, a massive increase in the high rate of unemployment and many more negative effects. Bringing out new measures to tackle insecurities will not only bring a favorable outcome in retaining investors, but will equally attract new foreign investors again to massively grow the economy.

6. Reforming the Dormant Seaports.
Sea transport being our main means of importation and exportation entails having multiple means of entry and exit but that is not the case in the country currently. According to the Nigerian Ports Authority (NPA), the country has six seaports: Apapa and Tin Can in Lagos, the Onne and Port-Harcourt ports in Rivers State, the Warri Port, and the Calabar Port. But, by many accounts, only the Lagos ports are operating anywhere near full capacity. A trip to Apapa seaport, Lagos will convince you that Nigeria needs an overhaul of their dormant seaports, the traffic congestion of tankers and trucks carrying containers waiting to load and offload goods will give you the idea of the horrors importers and exporters of goods go through to get in and out of the congested seaport. This situation can be easily resolved by reforming the other seaports in the country to ease the flow of traffic of goods and services.

7. Early Education on Practical Skills.
With the high rate of unemployment in the country today, emphasis can be made on practical skills from an early age to ensure the next generation are well equipped to be massive problem solvers and equally fund for themselves to ensure productivity. skills take a while to master and if these skills are learnt from an early age the next generation will have a lot of well-equipped talented problem solvers. Similarly, programs encouraging practical skills could be added to school’s curriculum and exercised during school hours, after school hours or even during holidays to ensure early talents identified can easily be developed to a maximum capacity. This could can have some constraint, but if it is made compulsory for all schools or communities as the case maybe by the government then we will surely grow the economy in the future and have a long-term solution to the current existing economic problems for the next generation.

One problem with people like Op is that you live in an abstract world. Put buhari into these things you said and see how it melts away

after4:
One problem with people like Op is that you live in an abstract world. Put buhari into these things you said and see how it melts away

I love this reply, yes a change in government can mean change in everything i agree.