Expdonaloaded News; The need to diversify the economy

THE need for diversification of the nation’s economy has never been more imperative in this country than now, especially with the dwindling oil prices in the international market. Unless urgent steps are taken to diversify the nation’s economy, there is a great economic danger ahead of us.
Just about few months ago, many state governors were unable to pay workers salaries and meet other re- current expenditure due to a sharp fall in oil revenue.
A situation where States had to borrow to pay salaries is the worst case scenario of how bad an economy can be.
As a way of preventing the re- occurrence of this embarrassing situation, I propose the following ways through which the country’s economy can be diversified.
Agriculture is one of the ways or means by which the government of any country that is serious about feeding its populace and raking in foreign exchange can use to improve the living standard of its people as well as generate revenue for infra- structure. Nigeria can improve her economy by showing interest in agriculture through formulation and implementation of good agricultural policies.
Agriculture, if given the needed attention, is capable of creating about 70 per cent of jobs for the unemployed youth. Unemployment to- day is one of the greatest challenges of this country and the Muhammadu Buhari led-change administration.
Agriculture being a sector that re- quires a large labour force can help create employment for the large number of unemployed able-bodied men and women in the country.
Government partnership with private investors in agriculture which stands at about N1.23 billion now can grow four folds to N4.9 billion between this year and 2019 , if President Muhammadu Buhari’s administration agricultural policies do not threaten the investments already in the sector. Many foreign and lo- cal investors will invest more in this sector of the economy if the policies are right.
Entertainment is also a very viable sector for diversification of our mono-economy. The Nollywood, for instance, employs a large chunk of unemployed Nigerians and also generates significant revenue for the government. The music industry as a component of the entertainment in- dustry is also not left out in this, as the industry players had portrayed the nation’s positive image in good light both within and outside the country.
Therefore, to fully utilize the potentials of this sector, there is need for government support through creation of the necessary enabling environment for the industry and players in the industry to thrive. The government must make and enforce laws to eradicate or reduce high level of piracy in this sector. This will help maximize the benefits in this sector to the country vis-à-vis our Gross Domestic Product (GDP).
The manufacturing country stands the chance of benefitting from devaluation of currency as it reduces the prices of the exporting country but a situation where you don’t export your goods to other countries, can be very dangerous to the economy. Manufacturing sector is another important sector that can rake in a lot of revenue for the government and provide jobs for the teeming unemployed youths in the country.
Instead of depending on oil whose price is not determined at the international market, it will be better to look inward into the manufacturing sector to fully maximize the benefits of that sector of our economy. There are, however, several challenges confronting this important sector of the economy ranging from multiple charges by government agencies to sourcing for foreign exchange from the parallel market. This has made raw materials more expensive and in turn hike production cost. Basically, this sector is heavily dependent on energy. Power supply has been erratic and insufficient gas is bought with foreign exchange and this makes the prices of locally made goods high.
Granting tax holiday and waiver to infant industries and provision of good roads network, electricity and healthcare facilities will help boost this sector and grow the nation’s economy.Last but not the least of the areas discussed above is the tourism sector. Focusing much attention in tourism development will generate a lot of foreign exchange for the country through the activities of foreigners coming into the country to visit tourist centres such as: Obudu Ranch, Calabar Marina Resort, Tinapa Business and Resort and IKogosi Warm Springs Resort in the country.
According to the United Nations World Tourism Organization (UN- WTO), “tourism is one of the fast- est growing economic sectors in the world.” In 2013, International Tourism generated $1.4 trillion in export earnings. The total tour- ism receipt in Africa for the year is estimated at $34 billion. A World Bank report shows that Africa’s tourism could create 3.8 million jobs. In 2012, tourism contributed 3 per cent to Nigeria’s GDP and 2.8 per cent of total employment.
Nigeria has what it takes to succeed and this is, if it makes intentional efforts with a plan to prepare the tourism sector to generate more earnings and create more jobs. The tourism industry at present generates annual revenue of about N80 billion. The Nigerian Tourism Development Corporation (NTDC) needs to do more to develop the tourism sector. Much needs to be done by the Federal Government in looking into tourism sector as part of measures to fully diversify the economy to generate more revenue to the government and create jobs for our teeming unemployed youths.
The less we depend on oil, the better for us as a nation. A situation where about 90 per cent of the country’s revenue comes from the oil sector portends great danger for the economy. Therefore, the situation must not continue, hence diversification offers a way out.