Renowned economy and management expert, Pat Utomi has expressed an opinion that the inability of the government to diversity Nigeria’s economy can spell doom for the country.
Speaking in Abuja during the launch of the ‘Rebuild Nigeria Initiative’, Utomi lamented that in spite of the numerous promises by successive administrations that the country’s economy would be diversified, the dependence on crude oil continues.
His words: “The word ‘diversification’ if you do a content analysis, must be the most used word in budget broadcasts in Nigeria. For more than 30 years I have heard of promises to diversify our economy away from dependence on crude oil. I mean, I have heard it so many times that it is like playing in my head.
“Unfortunately, we’ve done very little in that direction and it has assumed a new urgency because the world is going through an energy transition. We have forgotten that crude oil is a finite resource. In 10 to 12 years from now, as close as that is, few cars will run on petrol. We’ve to put our hydrocarbons endowment to other kinds of uses.”
Referencing Botswana, Utomi advised President Muhammadu Buhari-led government to invest in youths to improve the economy.
According to the economic expert, Botswana became the fastest growing economy in the world between 1968 and 1980 because the country invested revenue realiSed from diamonds in its youths.
“This year, about $4 billion of investments are expected to come to Nigeria’s tech space which is dominated by youth.
“Imagine, If we had invested massively in their education and put other things in place for their things will work well. We’ve got to stop politicians from taking advantage of this easy money that comes into the treasury. We should do things like Botswana did. Botswana, from 1968 to 1980, was the fastest growing economy in the world, essentially from diamond exports.
“What did Botswana do, they saved most of that money and put it in a future fund because they realise that all Botswana’s born 200 years from now have as much as a share of it, as they will live today. And they continue to produce. So, we’ve not done that in Nigeria. What we have are very ambitious elites that are rushing to buy private jets,” he added.
Is Utomi right about economic diversification?
Given the global economic status in the aftermath of the lockdown that shut down major sectors, and the pressing need in Nigeria for the country to boost its revenue, it has become more crucial for the most populous African nation to outgrow her dependence on oil.
Amongst other things, economic diversification helps to mitigate volatility and provides a more sustainable path for equitable growth and development. BizWatch Nigeria understands that this may be what Utomi has in mind when he lamented the country’s dominance on oil.
