Nigeria’s economy remains driven by the non-oil sector despite the challenges it faces. Nevertheless, harnessing its economic potential has become an imperative, writes JULIANA AGBO
The non-oil sector is the main driver of the Nigerian economy. Its economic potential is great and the resources remain largely untapped.
Nigeria’s abundant human and natural resources such as solid minerals, agriculture and manufacturing sectors are veritable areas of investment, which would guarantee development, since they would provide wealth, create jobs and alleviate poverty.
Various empirical pieces of evidence have shown that the non-oil sector has been the main driver of the economy than the oil sector even amid a recession.
However, the Federal Government, through the organised private sector, has shown great determination over the years to develop the non-oil sector of the economy by evolving rewarding policies and programmes.
The policies are meant to encourage the diversification of the economy.
Many government’s diversification efforts have focused on agriculture and raw material sectors. Interestingly, the sector is also benefiting from increasing patronage of private sector players, particularly manufacturing companies which have adopted backward integration models.
To this end, stakeholders have revealed that they would collaborate on a wide range of activities covering initiatives such as the development of Industrial parks, (light factories) and trade missions, among others for the real sector of the economy to accelerate development.
The collaboration is an initiative of the Nigerian Global Business Forum (NGBF), an umbrella organisation for Nigerian Business Forums in the United Kingdom (UK), the United States of America (USA), Ireland, Austria and the Caribbean in partnership with the National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), an umbrella body for all city, state, regional, bilateral and multilateral chambers of commerce.
The two bodies noted that the move had become necessary as global economy is experiencing downward trend due to the effects of the Coronavirus pandemic.
They added that countries are currently preoccupied with how to salvage their economies by supporting businesses that can drive massive industrial growth.
They stated other initiatives of the partnership to include instituting workshops, exhibitions, conferences, policy advocacy and much more.
President of NGBF, Mr. Afolabi Andu, said the objective is to ensure Nigeria’s economic growth and guarantee sustainability through the strategic involvement of both the NACCIMA membership network alongside the NGBF members.
While reiterating the need for paradigm shift rather than trading blames, Andu pointed out that most of the Asian and Far Eastern brands globally recognised these days, emerged through the vision of industrial parks where quality National brands were initially established which has now resulted in global brands.
He said: “No one can help to develop our economy. It is not done anywhere in the world as countries view it as a slight on a nation’s dignity and an evident security risk to the country’s well-being.
“This is in line with our strategy of systematically and deliberately working toward the development of formidable Nigerian brands through our strategic partnership.”
Corroborating this, Second Deputy President of NACCIMA, Otunba Dele Oye, said with oil price hovering around $30 per barrel and the country in another recession technically, there’s no better time than now for diversification into non-oil sectors of the economy for Gross Domestic Product (GDP) growth.
He emphasised that with the partnership, there is bound to be a healthy exchange of ideas and the commercial interface between the two organisations which will invariably be to the country’s overall benefit.
He said: “The strategic partnership between NACCIMA and NGBF is an actualisation of one of Hajiya Saratu Iya Aliyu’s principal objectives for her tenure as National President of Nigeria, which is to promote and develop all matters affecting a business through the provision of a network for national and international business.
“NACCIMA was established in 1960 to provide advocacy, trade promotion, business development, capacity building, research and mediation on trade and investment. Currently, the organisation has well over 5, 000 registered members across Nigeria.
Oye said with the initiative, Nigerian businessmen do not need to travel abroad to achieve what they want.
“All they need to do is to take advantage of a platform we are setting up for people to access what is the best option of whatever goods they want to import, at the best price and quality.
“By relating with them, they will make money off us, because if they are going to introduce things to us, they will get their own commission. We want to work with our people.”
He, nevertheless, encouraged the government to emulate what they are doing so as to strengthen the country’s economy.
“Most importantly, every year there is an inflow into Nigeria of over $20 billion as a home remittance. All that money goes into family and informal sector but now we are going to link home remittance with local investors.
“Instead of sending money to members of their families who boycott them, they can now deal with people who are also business-minded. That way, we encourage them to invest at home. This is another way of developing the economy by channelling their efforts to it.
“We are going to coordinate their activities here in Nigeria in order to support their own initiatives. If they need a residential apartment, we will create a space for them so that they can invest through people who will support whatever endeavour they may want to undertake,” he said.
While the sector needs greater attention, especially in the validation of the mining activities, Mr Peter Onwualu a Professor of Agricultural Engineering and former Director-General and Chief Executive Officer of the Raw Materials Research and Development Council (RMRDC), had said the government’s policies and incentives have crucial roles to play in enhancing the growth of the non-oil sector while technology and innovation are essential in ensuring that the sector remains globally competitive.
While advocating the review and the strengthening of existing policies and incentives to support the growth of the non-oil sector, Onwualu reiterated the need to improve the current state of infrastructure since the operation of Small and Medium Enterprises (SMEs) which constitute the bulk of the non-oil sector of the economy rely on constant and uninterrupted electricity supply.
Leave a Reply