Beyond Oil: Dual-Imperatives for Diversifying the Nigerian Economy

Abstract

Nigerian economy is mono-cultural, depending on a single commodity–oil. Other sectors of the economy have been relegated to the background, while the management of oil revenues has proven inefficacious in driving the economy to bring about the needed level of development. This scenario has serious negative implications on the nation’s development calculus, as after five decades of exploration activities, a good percentage of Nigerians live in abject poverty, unemployment is double-digit and productivity is at its lowest ebb. Given this scenario, the study seeks possible ways of diversifying the productive base of the Nigerian economy. Using descriptive method of analysis, it is revealed that considering Nigeria’s peculiar circumstances and the successes recorded before the advent of oil, for Nigeria to break loose from the problems inherent in a monotype-economy, especially one largely dominated by oil, which is subject to depletion, international price shocks and unfavourable quota arrangement, there is need for diversification. Two sectors–agricultural and tourism–are suggested as possible options for diversifying the Nigerian economy. Drawing from the implications of the study, certain recommendations, which include among others, improvement of hybrid species (both plant and animal), provision of complementary inputs, and direct involvement of government in the business of agriculture–for agriculture; and scaling up funds voted for tourism, relaxing the stiff conditionality associated with acquisition of tourism visa, and using state-of-the-art facilities at all tourism sites–for tourism, are put forth for policy.