The Federal Government is trying hard to diversify the economy; but the summary is that whatever it has done and is currently doing, has yet to materialise. I am sure the results will soon show.
For instance, I am aware of the recent policy regarding tariffs. The reduction in import duties on some items is aimed at encouraging local production and it is expected that this policy will take some time to materialise.
Government should pay more attention to how we can begin producing more of what we need locally, especially food items. That is where agriculture becomes a key factor in every effort to diversify our economy.
On agriculture, I think there should be access to funds with a single digit interest. We should also promote local production of essential raw materials, such as maize and soya, on a large scale.
Yes, the tariff reduction will have a great impact on the economy. There is zero per cent duty on agricultural implements, cement, hospitality, power, iron and steel, solid minerals, and textiles among others, which would help to beat down the prices of imported machines needed for local production.
If our crops are produced to meet international standards, it would boost export and we will generate more foreign exchange. However, the truth is that we can’t even meet up production for local use now, so our efforts should be on how to increase production.
The Federal Government should concentrate on specific crops for production. An example of this is rice. The collaboration between Lagos State and Kebbi State on rice production is highly commendable and this type of collaboration should be encouraged. •Mr. Olalekan Badmus (Managing Director, Tuns Foods and Agro-Allied Limited)
We are not doing enough to diversify the economy. If you want to diversify the economy, you need to have a plan. Where is the plan? You have to have a priority area, stating what you want to do and how you want to go about it. Has this been done?
Sadly for us in this country, we have had several missed opportunities with regards to diversifying the economy by developing agriculture. We have the advantage of arable lands and several river basin development authorities with this we can produce food and cash crops all year round; but we have not taken advantage of this.
We still rely on rainwater farming. If we add irrigation farming to this, a substantial part of our problems in this area will be solved. If we are able to develop our system of agriculture, we will not only have enough food for consumption and export, we can also develop power and provide jobs for our people, thus improving the earning capacity of our people for the good of society.
We could have used money generated from oil revenues to diversify the economy, but that is going to be difficult now that oil revenues are down. • Tanko Yakassai, (Elder statesman)
No, government is not doing enough to diversify the economy. The diversification of an economy means expansion of the economy. But what we have seen so far is contraction and the indices are there for everybody to see. If the level of productivity can be increased in this country, it will help.
Look at the power and agriculture sectors; they are not working. Without power, the manufacturing sector cannot work and this is why the naira to dollar rate is not friendly. There must be productivity. And if we are exporting, the naira will improve and our economy will also improve.
In the area of pharmaceuticals, we are also not doing well because we import virtually everything. Even in the agric sector, not much has been achieved. Only a few individuals are exporting pumpkin leaves and few other products. But as a federal policy, what are we doing? Nothing.
Because we have not been able to diversify, what we are seeing are high rate of unemployment, which breeds social intolerance, including communal clashes. It is also good to note that Nigeria has never been more divided than we see it now. The indices are there; from Southern Kaduna to Niger Delta. When we pay lip service to the diversification of the economy, the consequences will be there for everybody to see. • Mr. Miebaka Tamunomiebi (Niger Delta activist)
The Federal Government is trying, but not doing enough to diversify the economy. It is trying to use agriculture to shift us away from dependence on oil; but it needs to do more.
The FG is also working in the area of mineral resources development. To me, it is on the right path, but it is not doing enough yet.
My advice to the Federal Government is that in order to ensure the diversification of the economy, it should try as much as possible to ensure that most of its programmes are concretised.
For example, we need to talk to the youths to go into farming. We should not only talk, we also need to encourage them by providing the right incentives for them to participate in agriculture. Government can get tractors and attach each tractor to three or four youths for farming purposes.
They will be encouraged to farm. We need to get the right machines for farm products. We also need to get good markets for our farm produce.
Lack of a ready market and poor pricing of agricultural products are discouraging farmers. Farmers should be able to make profit for their investment in agriculture. Exports should also be encouraged. We need to put in place a conducive environment for the export of our produce.
For the mineral sector, the government needs to go to the hinterland. It is not enough to register people who will be involved in developing the sector; government officials also need to go there and ensure that it is done in the right way.
For the business community, most of them are sourcing for raw materials abroad. Those who have been importing raw materials, some of them have been looking inwards to see whether the raw materials can be sourced locally.
That alone will boost the economy, which will also create avenues for employment.
Reduction in tariff can also help those business people to see what they can do in that aspect.
The fact that we are having challenges with foreign exchange is also making people look inwards to see what they can do. • Mr. Olalekan Ayodimeji (Deputy President, Kwara State Chamber of Commerce, Industry, Mines and Agriculture)
Economic diversification is not a new word. It existed in the language of several governments before this one. The Federal Government is trying to diversify the economy, but the real issue is that what area are they focusing on more, and what percentage are they giving to the non-oil sector?
Any nation that puts too much focus on an old model economy will still be struggling in the comity of nations.
When you invest in agriculture to increase production and the roads are bad, how will the impact of your investment be felt in such an economy?
If you invest in the agricultural sector and you have a very cumbersome process in exporting your goods, then how can you generate foreign exchange?
If you invest in machine and tools and the people lack the expertise, how can you get good returns on your investment?
The country’s over-dependence on oil revenue has been a problem to the economy and if government is to bridge this gap, it would take some time.
There are potentials for growth in non-oil export in most states and virtually all the states have one form of economic competitive advantage or the other.
The states do not have to grow at same pace, but hard work will make all the difference. For example, the whole of Zamfara State is sitting on gold and diamond, largely untapped, with little going to illegal miners.
The current economic reality is a good opportunity for all the states to wake up and diversify their income.
But current tax laws need to be amended to ensure more percentage of the resources are controlled by the states. • Mr. Remi Dairo (President, Institute of Productivity and Business Innovation Management)
END
Be the first to comment