Going through the current happenings across the globe in the face of the pandemic, it’s practically obvious that most developed and underdeveloped countries are being faced with economic challenges as a result of the deadly viral disease, novel coronavirus. However, a country like Nigeria is not exempted from the fight against COVID-19; this has deepened and crippled the economic activities of our dear nation. Businesses have been affected by coronavirus all over the world, countries are still counting their losses and yet to recover from the havocs and damages caused by the viral disease.
The aftermath of the pandemic would definitely leave countries no options than to checkmate and tackle economic loopholes in their countries. Nigeria is one of the countries being affected by the virus and it has spread across the 36 states, staff are being laid off, companies, enterprises and businesses are trying to find their feet amidst the pandemic. “Hence, the need to diversify the economy is paramount”.
It’s a known fact that Nigeria is a monolithic and import dependent country, whose only major export is crude oil. The country had long discovered oil in 1965 and had been exploring and exporting oil to the international market. This has contributed significantly to the gross domestic product GDP and has also added monetary values to our international reserve account immensely. It’s rather unfortunate that Nigeria is now drifting toward economic recession according to the international monetary fund IMF, with less than < $2billion in its foreign reserve accounts. A tree cannot make a forest, “it would take varieties of tree to make a forest”.
Apparently, Nigeria needs to look beyond the revenue generated by this sector of the economy, and consider the need to diversify its economy through exportation of “agricultural products” for additional revenue. Before the advent of crude oil, the agricultural sector had contributed up to 60 percent to the total national GDP Ukeji (2003), through its major export of cocoa in 1960. The outbreak of COVID-19 has exposed the country’s inability to diversify its economy, this of course had led to the adjustment of the budget to more than two consecutive times vis the fuel price at $70 /barrel of oil in the market.
It’s a sure fact that food is the most essential to stay alive in such a time as this. The world hardly negotiates for oil products during the outbreak of the pandemic, which was why the Nigeria oil could not be sold in the international market or get a substantial buyer and this has resulted in adjusting the budget in line with price and demand for oil. According to the National Bureau of Statistics NBS, the effect of the corona virus would really be felt by the lower class people and those who are vulnerable to have access to good health care facilities during and after the pandemic- analysts.
In the 60s before the oil boom, “agriculture has been the major mainstay of Nigeria economic”. Agriculture was and still remains a source of employment opportunities, provides food security, eradicates poverty and contributes to the national growth of the economy for the teeming population. Why the shift in that aspect of our economy? A call to revive and resuscitate the economy through agricultural products and exportation, we hereby call on the national figures the legislatives, executives, federal ministry of agriculture, stakeholders and NGOs for paper review on modus operandi of Nigeria economy through agricultural sector. Let’s ensure that the agricultural sector contributes and as well adds to the GDP of our great country, Nigeria again.
At this critical time countries are hit with economic downturns, and a solution is inevitable to regain economic stability out of this economic dilemma amidst the pandemic. Great Nigerians, it’s time to let go of mono-cultural or monolithic economy, as a country specialises in only oil export. Let’s involve the agricultural sector with workable policies and schemes of operation for better sustainability of our dear country, Nigeria. Let there be a stable policy on loan disbursement with low return rate for farmers from the central bank of Nigeria CBN.
According to the prediction by the economists, that there would be a shortage in revenue from oil activities for four years or more, if that’s true how do we navigate from here? That’s why it’s necessary to diversify the economy’s activities for sustainability.
To be candid, there’s unemployment in the country presently, the federal and state governments cannot employ close to two hundred million of its populations, not even the half of its growing populations. That’s why we must diversify, in order to avail our able bodied youth the opportunities to be gainfully employed and also showcase their entrepreneurial skill, through training in agriculture with less resources available at their disposal. Great Nigerians, let’s hope and trust for strong economic growth and development through diversification. There’s light at the end tunnel.
Daniel is the founder and CEO of DanModern’s Farm Concept
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
