Diversification: Senators Adeyemi, Sabi propose less focus on oil

By Fatima Saka

Since 1956 when oil was first discovered in Oloibiri, in Nigeria’s Bayelsa state, Nigeria has long dwelled in oil as her sources of revenue generation to the economy.

The oil sector provides 95% of Nigeria’s foreign exchange earnings and 80% of its budgetary revenues.

In that direction, 2020 was a tough year for Nigeria’s Economy because of recession, reversing three years of recovery as a result of fall in crude oil prices amid Covid-19.

According to the World Bank forecast as at January 2022, Nigeria’s economy is expected to grow by 2.5 per cent in 2022, up from an estimated 2.4 per cent growth in 2021.

Referring to Economic Diversification, it is a variation in the economic status or the use of a broad range of economic activities in a region or country, while Diversification is used as a strategy to encourage positive economic growth and development.

Since 2015, Nigeria has focused on Agriculture. Agriculture was overwhelmingly dominant on the eve of European colonial rule in Nigeria.

As at then, there were massive productions of food supply, and its major crops include beans, rice, sesame, cashew nuts, cassava, cocoa beans, groundnuts, gum arabic, kola nuts, maize (corn), melon, rubber, sorghum, soybeans, bananas and yam.

With all efforts to divert the economy, there are some major constraints which affect the agriculture sector to achieve its aims. For instance, non-implementation of polices (the root of all agricultural problem in the country), lack of modernization and mechanization (Nigerian farmers from rural areas, and majority of them still make use of crude equipment for farming) and lack of funds (not getting to them at the grass root.

In an exclusive interview with NatureNews, Senator Abdullahi Aliyu Sabi, a lawmaker representing Niger North Senatorial District, sees the need to pass a bill into law on economic diversification.
He said, when the bill is presented, acquisition of modern mining equipment by Nigerians to mine solid minerals for the benefit of the country will be implemented.
He said the lack of equipment has given room for foreigners to unlawfully collaborate with indigenes to exploit various solid minerals and ferry these resources out of the country without any payment to the Federal Government.

He also said, touching the maritime sector, is a huge investment, saying that Nigeria continuously loses foreign earnings to foreign shipping companies.

“The few indigenous Nigerian shipping companies are most times denied patronage for no good reason or cause shown,” he added.

On the part of Agriculture, he also emphasised on the importance of the agricultural sector in the Nigeria economy. He said it is the main source of food and raw materials, observing that the sector lack synergy between the agricultural sector and the others which is a critical sector of the economy.

Furthermore, speaking with NatureNews, Senator Smart Adeyemi, representing Kogi West Senatorial Districts, lamented over the abandoned Ajaokuta Steel Complex which has the potential of boosting Nigeria’s economy and providing gainful employment to over 50,000 Nigerians.

“It is saddening that a potential game changer for the Nation’s monolithic economy which started in 1980’s, is still at the stage of abandonment,” he said.

In addition, he urged the Federal Government to use the current gains being made from crude oil sales at the international market which is above $100 now, to fix the comatose refineries or build new one.