Home Economy COVID-19 pandemic a chance for Nigeria economic diversification

COVID-19 pandemic a chance for Nigeria economic diversification

by Business News Report

A webinar hosted by Africa Initiative for Governance (AIG), a not-for-profit founded to inspire the transformation of Africa’s public sector in collaboration with the Blavatnik School of Government, University of Oxford said that COVID-19 has brought about many changes to the fabric of every society, restricting business activities and causing loss of lives across the world. In Nigeria it said  the country is faced with a double-edged crisis comprising COVID-19 on the one hand and the instability in oil prices on the other. The latter has been costly because the 2020 budget was based on forecasted oil prices of $57/bl. The decline in the price of Brent benchmark crude has forced the government to revise this to $20/bl while maintaining proposed production volume at 2.18mn bl/d.

Prominent Nigerians who participated in the webinar included Aigboje Aig-Imoukhuede, Founder and Chairman of Africa Initiative for Governance (AIG), Former President of Nigeria – Olusegun Obasanjo; Former Emir of Kano State, Sanusi Lamido Sanusi; Speaker, House of Representatives – Femi Gbajabiamila; and  Folasade Yemi-Esan, Head of the Civil Service of the Federation. Many of the speakers agreed that this was indeed an important moment for Nigeria. Aigboje AigImoukhuede in his opening address mentioned that while governments have so far committed $15.6 trillion in response to COVID-19, an average of $2,042.00 per person, Nigeria’s $6.5 billion in commitments amount to a paltry $32.50 per person. According to him, “COVID-19 has brought an opportunity for Nigeria to rethink and reinvent the way we lead our people so that we can spend smartly, generate more revenue and also get them to act in a manner that will deal with this pandemic and other health issues”.

Professor Paul Collier stated that the impact on Nigeria would be an economic one, with a fall in government revenues and people’s capacity to spend. He opined that the government should focus on encouraging growth in the informal sector to boost the economy. House Speaker, Femi Gbajabiamila while noting that this was indeed a tough time for the country, challenged the notion of Nigeria as a developing country, noting “If we harness our resources well, Nigeria should be a developed country, not a developing country.” In line with this, Olusegun Obasanjo highlighted the falling oil prices as an opportunity for Nigeria to advance the diversification of her economy finally. 

The discussion featured specific policies the government could take to manage these tough times. Aigboje Aig-Imoukhuede recommended that the private sector should collaborate more with the government. Considering a historic route, Sanusi Lamido urged Nigerians to take a hard look at the structure of the country to understand that decisions made decades ago have implications for our core governance framework. Dr Ceyla Pazarbasiogu recommended the implementation of policies to boost the economy and improve governance. In response to a question asked, Dr Folasade Yemi-Esan, highlighted her plans to digitize the Nigerian public sector and reduce waste so it can serve its purpose as the engine room of government.  The event ended with closing remarks from Aigboje Aig-Imoukhuede and Prof. Ngaire Woods, reiterating the need for the government to take actions and implement policies to improve the country’s situation at this time.

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