• Friday, March 29, 2024
businessday logo

BusinessDay

Nigeria’s next biggest bet will be human capital, not oil- Soludo

Soludo

Nigeria is depending too much on oil, making its economy susceptible to developments in the sector thus putting much pressure on the finances of the government.

But its biggest bet is never in oil, but in a growing population which has been challenged by a high illiteracy rate 60 percent, due to a failing education system, according to Charles Soludo, a one-time Central Bank governor and member of the newly appointed economic advisory team for President Buhari.

Soludo, while speaking at a conference, themed ‘securing the nation’, said, the future of Nigeria will be driven by people, particularly the youths and technology.

He explained that the country’s next biggest earner will be its human capital however, the country is not going to start exporting illiterates.

“What is fundamentally wrong with Nigeria is that we have implemented all kinds of plans, all designed to diversify the economy. But we are still tied to the life-support of the oil sector, without plans for its booming population” Soludo said

“Is Nigeria preparing enough to welcome its 400 million population in the next 20 years or its 800 million citizens in 40 years’ time,” Soludo asked. “Hence, those who have something to offer, especially the youths, must stand up to be counted”.

Soludo who spoke alongside other renowned economist including, Bismark Rewane, CEO, Financial Derivative Company (FDC) and member of the Doyin Salami-led economic advisory team, noted that sates governments have to sit up in generating their revenues internally as the Federal government is cash-strapped and cannot even cater for its own finances.

“Let Zamfara keep their gold and pay taxes to the government. Let Kaduna and Kogi keep their solid minerals. Most states have their own resources. Concentrating power in Abuja won’t help us develop our resources,” Soludo noted

According to him, Abuja cannot pay its bills, and as it is today, it is already chocking hence, states have to get to work. “Abuja has sought to keep everybody in check but has succeeded in holding everybody down, “he said.

Soludo explained that institutions are major drivers of economic transformations of any country. Sadly, that of Nigeria are either obsolete or inappropriate hence, need “fundamental overhaul”.

“The institutions and systems that we have are for a bungalow. And the new economy that we want to build is a 100-storey building but the world is no waiting for Nigeria. While electric cars are fast replacing petrol cars yet Nigerians are still buying petrol stations,” Soludo said at the conference.

He however that Nigeria must have to invest in its judiciary system to enable a national brand by abiding to the rule of law.

He noted that sooner or later, something will give way and a new kind of politics will emerge to secure the future which will be beyond sloganeering.

“Politics is too serious to be left to those who call themselves ‘politicians’. It is our collective destiny. Unfortunately our politics is broken,” he said.

 

MICHAEL ANI