Lagos State Governor, Akinwunmi Ambode has said the massive fall in oil prices in the international market is a blessing in disguise for the country, saying the development is a tipping point for achieving inclusive growth and sustainable development.
Speaking at the 3rd Annual London School of Economics Africa Summit on the theme: “Nigeria – Rising Above Crude Realities,” , Governor Ambode said if honestly handled, the fall in oil prices had actually offered the country the opportunity to deliver real growth, as the high price of oil which the nation hitherto enjoyed created a distorted economic structure.
He went on to say that though the fall has sharply reduced Nigeria’s growth rate, export earnings, foreign direct investment, and government revenues, the nation stands to benefit a lot from the downturn.
”The high price of oil created a distorted economic structure, where it was more valuable to capture value from the oil stream than create value.
“The returns to oil went to a few, with a tiny trickle down the system to keep the social pace, but the reality is, we squandered the oil wealth and arrived to 2015 with poor infrastructure, a poor education system, and poor level of social development.
“The drop in oil prices has revealed that the one dimensional model of our political economy has outlived its shelf life. We are forced by the slump to change the architecture of our political economy. That is the challenge before us”
Ambode said he was hopeful that the low oil prices would serve as a tipping point for positive change.
He added that the downturn was an avenue for both the leaders and citizens of Nigeria to address the sources of vulnerability in order to achieve inclusive growth and sustainable development.
Ambode explained that President Muhammadu Buhari has set the tone to enhance governance with focus on transparency and accountability, adding that such was needed at this critical point in time in the nation’s history.
