According to Wilson Erumebor, a senior economist at NESG, "the kind of diversification that Nigeria needs is one that increases the actual value of both the oil and the non-oil sectors, but where that of the non-oil sector rises rapidly & faster than that of the oil sector"

In an article titled "Economic Diversification In Nigeria. Why Context Matters" he wrote:

"Many Nigerians have been sold a narrative that the economy is where it is today because of crude oil. Some economists and analysts have argued in support of the resource curse hypothesis. But the fact is this – the problem with the Nigerian economy is not the commodity, because there are countries, whose realities, negate the resource curse argument. The UAE’s creation of Dubai as a major tourism and trade hub is just one example of how oil revenues can spur development in the non-oil sector, provided there is sound economic and institutional management."

"Particularly for Nigeria, we have (1) failed to significantly grow crude oil revenues even when oil prices are high (2) failed to save for the rainy day and (3) failed to use available crude oil revenue to develop critical areas of the economy, as some oil producing countries did or are doing. At the moment, Nigeria is failing to get enough revenue from oil and gas. Crude oil is no longer as important as it used to be for Nigeria and Nigeria keeps losing its relevance in the global oil market. This is not something that we should celebrate, especially because our non-oil sector is not growing fast enough to cover the budget and trade shortfalls, due to a large informal sector and lower productivity, occasioned by a challenging business environment."

https://www.wilsonrume.com/2023/02/16/economic-diversification-in-nigeria-why-context-matters/

So we need to first maximize our oil (& gas) production & then reinvest the revenue from that into other sectors of the economy that can grow quickly & generate high returns. Yes, we all want non-oil revenues to grow, but oil (& gas) revenues must also continue to grow.

Seun:
According to Wilson Erumebor, a senior economist at NESG, "the kind of diversification that Nigeria needs is one that increases the actual value of both the oil and the non-oil sectors, but where that of the non-oil sector rises rapidly & faster than that of the oil sector"

In an article titled "Economic Diversification In Nigeria. Why Context Matters" he wrote:


https://www.wilsonrume.com/2023/02/16/economic-diversification-in-nigeria-why-context-matters/

So we need to first maximize our oil (& gas) production & then reinvest the revenue from that into other sectors of the economy that can grow quickly & generate high returns. Yes, we all want non-oil revenues to grow, but oil (& gas) revenues must also continue to grow.

That is being narrow minded. There too many sectors that the Country can explore outside Gas and Oil without waiting until we maximize our oil and gas production.

I hereby second this and in the spirit of fairness to the new govt, whose performance we cannot tell how efficient will be, call on all militants and oil activity derailers to cease operation for a six month window.
This six month vawulance sabbatical will enable the govt funds its activity to the fullest when crude revenues are highest, thereby giving us a yardstick to gauge the seriousness of uncle Yekini and his team of homorables.

bunch off jokers

T

Reading....

Seun, the solutions are simple:

- tourist visa on arrival.
This will boost return of nigerian descendants, boost arrival of new tourists. Possibility of leveraging the music industry for concerts here.

- Customs mandate should ease of shipping not revenue
This will boost exports and ease imports. Let no container ship leave empty. This will immediately cut shipping costs to nigeria in half.

- no tariffs on food.
The biggest issue in nigeria is that the cost of living is high. We need to get the cost of feeding down immediately.

The above will have immediate positive impacts on the economy.

Seun:
According to Wilson Erumebor, a senior economist at NESG, "the kind of diversification that Nigeria needs is one that increases the actual value of both the oil and the non-oil sectors, but where that of the non-oil sector rises rapidly & faster than that of the oil sector"

In an article titled "Economic Diversification In Nigeria. Why Context Matters" he wrote:


https://www.wilsonrume.com/2023/02/16/economic-diversification-in-nigeria-why-context-matters/

So we need to first maximize our oil (& gas) production & then reinvest the revenue from that into other sectors of the economy that can grow quickly & generate high returns. Yes, we all want non-oil revenues to grow, but oil (& gas) revenues must also continue to grow.

Seun:
According to Wilson Erumebor, a senior economist at NESG, "the kind of diversification that Nigeria needs is one that increases the actual value of both the oil and the non-oil sectors, but where that of the non-oil sector rises rapidly & faster than that of the oil sector"

In an article titled "Economic Diversification In Nigeria. Why Context Matters" he wrote:


https://www.wilsonrume.com/2023/02/16/economic-diversification-in-nigeria-why-context-matters/

So we need to first maximize our oil (& gas) production & then reinvest the revenue from that into other sectors of the economy that can grow quickly & generate high returns. Yes, we all want non-oil revenues to grow, but oil (& gas) revenues must also continue to grow.

Wey true

This is only possible when you concentrate oil and gas exploration in the Niger Delta, Eastern Nigeria and do not politicize our revenue generation by looking for drums of oil from the Sahel region as Buhari was busy doing throughout his 8 years regime.

Nigeria only just began to tap into it's huge gas reserve

Diversification?? Still on oil ?

Seun:
According to Wilson Erumebor, a senior economist at NESG, "the kind of diversification that Nigeria needs is one that increases the actual value of both the oil and the non-oil sectors, but where that of the non-oil sector rises rapidly & faster than that of the oil sector"

In an article titled "Economic Diversification In Nigeria. Why Context Matters" he wrote:


https://www.wilsonrume.com/2023/02/16/economic-diversification-in-nigeria-why-context-matters/

So we need to first maximize our oil (& gas) production & then reinvest the revenue from that into other sectors of the economy that can grow quickly & generate high returns. Yes, we all want non-oil revenues to grow, but oil (& gas) revenues must also continue to grow.

Even if we increase oil production, what major difference would it make?

The best bet for Nigeria now is too look for areas we have global comparative advantage

1) fruit juices 2) leather works 3) clothes manufacturing 4) ethanol n cassava production 5) glucose

If we have a serious government this sectors alone can get us 50 billion dollars per year in foreign exchange and at least 2 billion dollars in federal revenue

Hope you are still counting you losses about groove sha. Only Grv made it to NL live interaction section

Our brother Seun should tell us what he actually believed on

This wan wey oga seun open this kain topic so 🤔🤔🤔🤔

Wilson oruma the economist, bread is fvcking expensive but nigeria wants to buy fuel and drive cars

Lol

U shouldn't ask this question!!
Do.u know the drop in production from 2.2 to 1. 1m barrels from 2015 to now is singularly responsible for the exchange rate we have now?!!

Yes, export proceeds from 2m barrels/day oil alone is not enough to feed 200M+ Nigerians comfortably, so we add import substitution and increased exports but definitely not discountenance increased oil production!!

mrvitalis:

Even if we increase oil production, what major difference would it make?

The best bet for Nigeria now is too look for areas we have global comparative advantage

1) fruit juices 2) leather works 3) clothes manufacturing 4) ethanol n cassava production 5) glucose

If we have a serious government this sectors alone can get us 50 billion dollars per year in foreign exchange and at least 2 billion dollars in federal revenue

Seun:
According to Wilson Erumebor, a senior economist at NESG, "the kind of diversification that Nigeria needs is one that increases the actual value of both the oil and the non-oil sectors, but where that of the non-oil sector rises rapidly & faster than that of the oil sector"

In an article titled "Economic Diversification In Nigeria. Why Context Matters" he wrote:


https://www.wilsonrume.com/2023/02/16/economic-diversification-in-nigeria-why-context-matters/

So we need to first maximize our oil (& gas) production & then reinvest the revenue from that into other sectors of the economy that can grow quickly & generate high returns. Yes, we all want non-oil revenues to grow, but oil (& gas) revenues must also continue to grow.

Oil and gas production is the primary industry sector of the economy and it still contributes about 90% of our foreign exchange earnings as well as remaining the principal driver of our economy after more than 60 years of independence.

This should be alarming

UAE, Saudi Arabia and Qatar should not be a role model for us. Those economies are not deep or robust enough . Look at the actual developed nations , e.g USA , Canada , Norway, even though their primary industry (oil, mining , forestry etc) are very strong and well established ( Infact the USA produces more oil than Nigeria) but this sector contributes less than 10% to their GDP. The tertiary (services) sectors contributes about 70%.

The focus in Nigerian should IMMEDIATELY shift to deepening the economy. It’s not so much about diversifying but actually DEEPENING . If we talk about diversifying and we invest in solid minerals extraction for example , that doesn’t help as it’s still in the primary sector . Same shit , different pile. But if we deepen the economy, then we can proceed from the primary to the secondary to the tertiary . And it could be in the same industry actually

For instance we extract oil (primary), we should have at least 20 working refineries (secondary, we should be to locally source ALL professional services for this sector (tertiary) without the need for expatriates . We should have petroleum research laboratories that should that come with ways to BEST utilize every byproduct of oil extraction and refining , how to improve efficiency and to protect the environment . If we do this , you’ll find that the services sector of the oil and gas will contribute more than 10 times what the actual extraction and refining (primary and secondary sectors) contributes to the economy .

Then we repeat the same for agriculture, for power , for construction , for transport , for sports etc .

Thus it’s not less about diversifying but more about deepening the economy .

Has anyone asked about increasing the value of Nairaland yet?

Selling shares so it's vision is not led by a single individual might do it and even Nigeria some good.

cooooooks:

- no tariffs on food.
The biggest issue in nigeria is that the cost of living is high. We need to get the cost of feeding down immediately.

The above will have immediate positive impacts on the economy.

I can't possibly agree with this, though my responding is because I do agree with your other points.

Removal of tariff on imported food will make it even less profitable to grow at home and thereby kill off farmers and increase unemployment.

You might enjoy cheap food to start with, but you'd eventually pay more when our currency depreciates due to the loss of food exports.

I am biased of course. I am a farmer.