Rethinking Nigeria’s Economic Strategy: The Need to Diversify After Decades of Oil Dependence

Stakeholders from a variety of sectors are urging the Federal Government of Nigeria to consider a significant shift in economic strategy after 60 years of heavy reliance on oil resources. The emphasis is on diversifying the economy by paying more attention to untapped sectors such as tourism.

During the 2nd legacy summit of the Advocacy for Good Ethics and Accountability Development (AGEAD) in Abuja, Mr. Henry Thomas, the executive director, highlighted the abundant arable land, a large labour force, and a vibrant entrepreneurial spirit in Nigeria. These resources, if properly harnessed, could drive growth and create job opportunities.

Mr. Thomas expressed his concern over the country’s challenging economic conditions in 2023, stating that Nigeria, with its rich natural and human resources, should not be grappling with poverty. He pointed out that prior to the discovery of oil in 1956, Nigeria was a leading producer in sectors such as apparel, garment, arts and crafts, cosmetics, and agro-commodities, all of which made significant contributions to the country’s GDP.

According to Mr. Thomas, the overreliance on oil has been detrimental to the development of other productive sectors of the economy, and it is crucial for the country to reconsider its economic direction. He urged a return to sectors such as agriculture, mining, culture and tourism, and technical education and production.

Adding to the discussion, Mr. Sam Agbi, the Rector of Federal Polytechnic Auchi Edo state, and former Director of Performing Arts at the National Council for Arts and Culture, highlighted the need for Nigeria to tap into the wealth of the creative industry. He emphasized the importance of leveraging cultural tourism as the country’s comparative advantage.

Mr. Agbi pointed out that without a specific attraction, tourism does not thrive, and in Nigeria’s case, cultural tourism offers the most potential. He suggested that by developing this aspect of tourism, Nigeria could significantly increase foreign exchange earnings and tourist arrivals.

Furthermore, Mr. Agbi noted that the creative industry stimulates the rural economy, as many of its practitioners reside in rural areas. Therefore, developing this sector would not only boost the economy but also improve the livelihoods of people in those areas.

The calls from these stakeholders echo the growing sentiment among experts and policymakers in Nigeria for a shift in economic focus. With the dependence on oil showing more limitations than benefits, there is a widespread recognition of the need to explore and invest in alternative sectors to achieve sustainable economic growth and development.

In conclusion, the argument for diversifying Nigeria’s economy is gaining momentum, with stakeholders advocating for a re-evaluation of economic priorities and a return to sectors with untapped potential. As the country rethinks its economic strategy, the focus on sectors such as agriculture, tourism, and the creative industry could pave the way for a more sustainable and inclusive economic future.