There is ongoing narrative that Nigeria’s failure to evolve from being a resource-dependent economy to one driven by massive industrialization, manufacturing, services, and innovation has been at the root of dismal economic growth and development.
Despite the abundant natural mineral resources in Nigeria including the huge oil earnings for many decades, Nigeria’s economic trajectory has continued to experience challenges resulting to unimpressive growth and development.
The country’s apparent over-reliance on crude oil for over fifty years has left it vulnerable to boom and burst that characterized the oil industry.
This often swings its economy from rapid growth and expansion to a sharp decline due to oversupply making production less profitable.
It is regrettable that policy inconsistency and policy summersault did not accord top priority to the industrial and manufacturing sectors which left them underdeveloped.
Again, failure to place greater emphasis on strategic infrastructures including railway expansion and energy sector modernization which would have driven the industrial and manufacturing sectors have discouraged and undermined the needed influx of Foreign Direct Investments.
Sadly, many industrialists and manufacturers became utterly frustrated and migrated to neighbouring countries where these critical facilities are taken for granted.
The idealistic expectation was that the huge revenue earned from oil and gas could have been used to establish robust industrial and manufacturing hubs in areas where they could leverage on the availability of raw materials.
This, no doubt would have accelerated socioeconomic growth and raised Gross Domestic Product, GDP of the country as well as create massive employment opportunities.
Similarly, the resources from the oil sector could have also been used to mechanize agriculture and its value chains to increase the income of farmers , expand foreign capacity and transform the landscape of the hinterlands which will help to stem the tide of rural-urban migration by youths for white-collar jobs.
Again, prioritizing political patronage and fundamentally defective political structures over transformative socioeconomic changes for the overall welfare of the entire populace is seriously undermining strong economic growth.
These obvious anomalies no doubt spurred the endemic pervasive and intractable insecurity challenging the country.
To actualize transformative socioeconomic growth and development, there is need for realistic diversification of the economy which is integral to restructuring governance to reinvent true federal structure and fiscal federalism.
The states and local government councils are in a position to embark on effective exploration and exploitation of non-oil sectors and modernize agriculture for food security and exports, based on improved value chains.
Nigeria has the potential to chart a new course for a better future through proactive reforms for sustainable development.
POLYCARP ONWUBIKO
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