DIVERSIFICATION; A PANACEA FOR SUSTAINED ECONOMIC RECOVERY AND DEVELOPMENT
BY;AFOLABI ABDULMALIK OMOGBOLAHAN
From a chronological perspective, it is quite irrefutable to state that Nigeria, the so-called "Giant of Africa," has become a full-fledged adult. This is evidenced by two epochs of Nigeria's evolutionary history: From the 1914 amalgamation of the Northern and Southern protectorates to 2016, Nigeria is one hundred and two (102) years old. On the other hand, from the independence era(1960) till date (2016) Nigeria is fifty six (56) years old.
Consequently, whoever has attained 102 years is certainly over-due for transition to the great beyond. Conversely,a fifty-five-year old Nigerian is deemed an elderly and experienced person.
The big question however is, in view of Nigeria's evolutionary history (1914 - 2016) and her complex ethnographic composition, can we regard Nigeria as an achiever? Or from 1960-2016, can we regard Nigeria as truly an independent country in all ramifications? The only answer to these questions is an emphatic “No!."
This is due largely to the incessant problems which have been militating against her growth and development in all facets of life.
Before the discovery of oil at Oloibiri in modern day Bayelsa state, Nigeria's economy was one of the strongest in the world. The economy was fundamentally agrarian with a healthy Gross Domestic Products (GDP), and a buoyant source of foreign exchange.
Alas! Reverse is now the case in that "black gold" (crude oil) is basically (and sadly so), the major source of revenue to the country much to the relegation of agriculture to the background.
It is against this background that this article seeks to recommend ways with which the Nigerian econony could be diversified in order to quicken its recovery and be repositioned toward its development.
Diversification in this context entails developing a wider range of the economy in terms of sectors, and the main sectors in which Nigeria generates her Gross National Product (GNP) which is the monetary value of all goods and services produced in a country. It is also the totality of income accruable to all factors of production employed in producing goods and services in a country, usually a year. Among these include: wages, salaries , rent, interest and profit in terms of agriculture, sports,petroleum to mention but a few.
It should be noted however, that there are basic differences between economic growth and economic development. Economic growth is the process by which the productive capacity of an economy increases over a given period, leading to a rise in the level of the national income. When there is economic growth,it shows in the form of: increase in income levels; expansion in the labour force; increase in the total capital stock of the country; and a higher volume of trade and consumption.
Economic development is the process by which there is a long period of sustained growth in the per capita real income of a country, accompanied by fundamental changes in the structure of the economy and an overall sustained improvement in the material well-being of the people.
By implication, it is evident that Nigeria concentrates more on a sector of the economy at the expense of others of which if the economy is diversified, there would be glaring positive changes in the nation.
It has become elementary knowledge that Nigeria's economy is driven by the petroleum. Notwithstanding the fact, a sector that keeps on yielding today might fall tomorrow. As such, other sectors must be revamped to achieve economic stability and development.
Most worrisome about this scenario is the ongoing recession of the Nigerian which is due largely to the drastic fall in the price of oil in the international market. As such, virtually every facet of life is grossly affected i.e. higher inflation rate, high increase in cost of commodities, increase in cost of housing and transportation et al - it is quite obvious that the "sleeping giant" is not awake yet.
It is never too late however to stem this ugly tide toward the recovery of the economy. Diversification therefore, is the way out of the woods.
Truth be told, the Nigerian economy has deteriorated to a large extent in recent years. As such, Nigerians should not expect a sudden change or relief within a twinkle of an eye. In taking the right step in the right direction, the following sectors of the economy should be resucsitated: mining,sports, agriculture,education, aviation, to mention et al.
The clamour for economic recovery invariably means the economy was once buoyant. If there is concentration on only one sector of the economy, it would definitely have an adverse effect on the economy at any point in time. This is simply because, some natural resources are not renewable - they get depleted over time due largely to over-reliance devoid of any principle of sustainable development.
If the sectors have been diversified, it is not possible for all the sectors to fall at the same time. If some fall,others will serve as shock absorbers and balance the scheme of things in the econony. In fact, it is not impossible for all the sectors to yield uniformly.
Diversification is definitely an undisputed solution for economic recovery in Nigeria. One of the parameters used in rating nations all over the world is undisputedly their national income i.e. the aggregate net product of, and the sole source of payment for all the agents of production. This is a good example of a country that is economically stable and developed.
In conclusion, all stakeholders must bear in mind that there is nothing an individual, a state, or country can do successively without functional education. It is a pity to realise that in the standard of education in Nigeria continues to fall on a daily basis owing to the undue emphasis on “paper qualification” rather than ”knowledge and skill acquisition” since independence.
In view of this therefore, To this, it behoves on those at the helm of affairs to diversify the Nigerian economy by revamping not only the petroleum secter but also other sectors such as agriculture, manufacturing, and above all, education. By so doing, Nigeria, will, in no distant time, cease to be a developing country and become one of the developed countries in the world.
From a chronological perspective, it is quite irrefutable to state that Nigeria, the so-called "Giant of Africa," has become a full-fledged adult. This is evidenced by two epochs of Nigeria's evolutionary history: From the 1914 amalgamation of the Northern and Southern protectorates to 2016, Nigeria is one hundred and two (102) years old. On the other hand, from the independence era(1960) till date (2016) Nigeria is fifty six (56) years old.
Consequently, whoever has attained 102 years is certainly over-due for transition to the great beyond. Conversely,a fifty-five-year old Nigerian is deemed an elderly and experienced person.
The big question however is, in view of Nigeria's evolutionary history (1914 - 2016) and her complex ethnographic composition, can we regard Nigeria as an achiever? Or from 1960-2016, can we regard Nigeria as truly an independent country in all ramifications? The only answer to these questions is an emphatic “No!."
This is due largely to the incessant problems which have been militating against her growth and development in all facets of life.
Before the discovery of oil at Oloibiri in modern day Bayelsa state, Nigeria's economy was one of the strongest in the world. The economy was fundamentally agrarian with a healthy Gross Domestic Products (GDP), and a buoyant source of foreign exchange.
Alas! Reverse is now the case in that "black gold" (crude oil) is basically (and sadly so), the major source of revenue to the country much to the relegation of agriculture to the background.
It is against this background that this article seeks to recommend ways with which the Nigerian econony could be diversified in order to quicken its recovery and be repositioned toward its development.
Diversification in this context entails developing a wider range of the economy in terms of sectors, and the main sectors in which Nigeria generates her Gross National Product (GNP) which is the monetary value of all goods and services produced in a country. It is also the totality of income accruable to all factors of production employed in producing goods and services in a country, usually a year. Among these include: wages, salaries , rent, interest and profit in terms of agriculture, sports,petroleum to mention but a few.
It should be noted however, that there are basic differences between economic growth and economic development. Economic growth is the process by which the productive capacity of an economy increases over a given period, leading to a rise in the level of the national income. When there is economic growth,it shows in the form of: increase in income levels; expansion in the labour force; increase in the total capital stock of the country; and a higher volume of trade and consumption.
Economic development is the process by which there is a long period of sustained growth in the per capita real income of a country, accompanied by fundamental changes in the structure of the economy and an overall sustained improvement in the material well-being of the people.
By implication, it is evident that Nigeria concentrates more on a sector of the economy at the expense of others of which if the economy is diversified, there would be glaring positive changes in the nation.
It has become elementary knowledge that Nigeria's economy is driven by the petroleum. Notwithstanding the fact, a sector that keeps on yielding today might fall tomorrow. As such, other sectors must be revamped to achieve economic stability and development.
Most worrisome about this scenario is the ongoing recession of the Nigerian which is due largely to the drastic fall in the price of oil in the international market. As such, virtually every facet of life is grossly affected i.e. higher inflation rate, high increase in cost of commodities, increase in cost of housing and transportation et al - it is quite obvious that the "sleeping giant" is not awake yet.
It is never too late however to stem this ugly tide toward the recovery of the economy. Diversification therefore, is the way out of the woods.
Truth be told, the Nigerian economy has deteriorated to a large extent in recent years. As such, Nigerians should not expect a sudden change or relief within a twinkle of an eye. In taking the right step in the right direction, the following sectors of the economy should be resucsitated: mining,sports, agriculture,education, aviation, to mention et al.
The clamour for economic recovery invariably means the economy was once buoyant. If there is concentration on only one sector of the economy, it would definitely have an adverse effect on the economy at any point in time. This is simply because, some natural resources are not renewable - they get depleted over time due largely to over-reliance devoid of any principle of sustainable development.
If the sectors have been diversified, it is not possible for all the sectors to fall at the same time. If some fall,others will serve as shock absorbers and balance the scheme of things in the econony. In fact, it is not impossible for all the sectors to yield uniformly.
Diversification is definitely an undisputed solution for economic recovery in Nigeria. One of the parameters used in rating nations all over the world is undisputedly their national income i.e. the aggregate net product of, and the sole source of payment for all the agents of production. This is a good example of a country that is economically stable and developed.
In conclusion, all stakeholders must bear in mind that there is nothing an individual, a state, or country can do successively without functional education. It is a pity to realise that in the standard of education in Nigeria continues to fall on a daily basis owing to the undue emphasis on “paper qualification” rather than ”knowledge and skill acquisition” since independence.
In view of this therefore, To this, it behoves on those at the helm of affairs to diversify the Nigerian economy by revamping not only the petroleum secter but also other sectors such as agriculture, manufacturing, and above all, education. By so doing, Nigeria, will, in no distant time, cease to be a developing country and become one of the developed countries in the world.
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