In the midst of what analysts describe as the worst economic downturn in decades, Nigerians have not relented in expressing their discomfort and disappointment at the present economic realities. The mistake of over-reliance on crude oil as the major source of revenue generation cannot be overemphasized. As a result of this, when the price of crude oil fell from more than $100 a barrel to about $40, the country was one of the hardest-hit economies. This has led to the naira losing over a third of its value and counting.
According to projections, the signs are clear that the price of oil will remain low, not only because of oversupply in the market but also as a result of several other indices. For example, green technology is catching up both in cost and efficiency, manufacturing, ICT, agriculture and other viable alternatives to oil are been embraced around the world. This is part of the efforts to create a stable economy in order to withstand global uncertainty.
Currently, Nigeria, which is largely a consumer based economy, is definitely paying a costly price of being unable to feed itself. This has resulted in undesirable negative economic growth, dwindling foreign reserves, stress in the balance of payment and a constant mounting pressure on local currency exchange rate relative to major currencies. Commendably, in the last few years, discussions on diversification have been held at virtually all the economic and business sessions, with many conclusions on the need to consciously adopt the change in Nigeria.
What are experts saying?
It is evident that reviving the economy is the major agenda for almost all economic discussions in the country. Several economic experts have also said that embracing or promoting made in Nigerian goods is the way out of the economic crisis.
According to Professor Gafar Ijaiya of the Department of Economics, University of Ilorin, the Made in Nigeria initiative is long overdue, Nigeria has enjoyed a rich and vibrant economy during the early days of deliberate localization.
“In the decades following Nigeria’s independence in 1960, before we fell into the trap of overdependence on oil, we had very vibrant industries that were producing for our local consumption. The manufacturing sector helped to stabilize the nation’s economic development in terms of employment, export and agriculture, which served as a source of foreign exchange earnings. However, when the oil boom came, we abandoned all that worked for us and gave undue concentration to oil which contributed to the present economic realities,” said Ijaiya
He called on delegates at the forthcoming NESG 2016 summit to provide valuable recommendations that will lead the country in the right way out of the present economic recession, Ijaiya maintained that local production and consumption is a must for any economy facing recession.
“Any economy that wants to survive a recession must learn the strict culture of self-sufficiency, particularly as it concerns moribund industries, strengthening the agricultural sector and even empowering ICT. We must go back to the drawing board and embrace the spirit of growing, producing and buying our own if we are to experience success from the change agenda of the present administration,” said Ijaiya.
Interestingly, at the 22nd Nigerian Economic Summit themed, “Made in Nigeria,” experts are looking forward to leading discussions that will inform the structural and fiscal changes required to strengthen the Nigerian Economy.
However, according to a foremost business consultant, financial analyst and columnist Opeyemi Agbaje, CEO, RTC Advisory Services Limited, the country still needs to work on getting its policies right.
“For me, we still have to get our policies right, for example, there should be discussions about attracting investors, which I would love to see addressed at the summit, secondly the foreign exchange conundrum needs to be fine-tuned.”
The organizers of the event, the National Economic Summit Group said that as the nation awaits recommendations from the 22nd Nigerian Economic Summit, in the coming weeks, the made in Nigeria agenda will guide discussions and the overall direction of the summit especially at this time of pronounced economic recession.