FORMER Minister of Industry, Trade and Investment, Olusegun Aganga, has said that Nigeria needs a much bigger economy that is diversified in terms of domestic revenue generation, production and export earnings.
Such an economy, he said, was better equipped to withstand internal and external shocks.
Aganga, who is also a former Nigerian Minister of Finance, spoke at the weekend, during a Zoom conference organised by EY Nigeria Alumni, titled, “Nigerian Sovereign Wealth Fund and the Urgency of Economic Diversification.”
“The lesson here is that being a resource rich country does not make you a rich nation but it is what you do with the resources that makes you rich, very rich or remain poor,” he declared.
He said despite the talk of economic diversification over the years, Nigeria had not been able to diversify its economy, owing to a combination of factors, including lack of continuity of good policies, poor implementation (long on plans but short on implementation); breakdown of national values system; and lack of adequate investment and development of Nigeria’s greatest asset – the people.
On the way out of these lingering problems, Aganga said, “We need an integrated national economic long and medium-term plan and an effective framework for delivery, monitoring and reporting. A plan that will be implemented overtime. The ERGP is a good start.
“We need to build a strong industrial and services sector, based on areas of competitive and comparative advantage. The plan to do this is already there. It is called the Nigeria Industrial Revolution Plan (NIRP), which was launched in 2013.
“History shows that no country has ever become rich by exporting raw materials without also having an industrial sector, and in modern terms, an advanced services sector. The more a country specialises in the production of raw materials only, the poorer it becomes… Industry multiplies National wealth.”
Aganga noted that Nigeria had all that was required to become “the China of Africa ‘Africa’s factory’ and even more.”
He said, “In 1980, China was the 7th largest economy with a GDP of only $305.45bn, less than Nigeria’s GDP, while the United States then was $2.86 trillion. China averaged 10 per cent annual growth for many years and now has the largest economy in the world with a GDP, in PPP terms, of $25.27 trillion.
“The NIRP is also designed to address constraints holding back the real sector. In today’s world, you can only be a great nation if you have a great economy. And you can only have a great economy, if you have a great industrial sector to diversify the economy and sources of revenue… and if you also have a vibrant MSME sector to create jobs and provide linkages.”
In terms of developing the Micro, Small and Medium Enterprises sector, the former minister said Nigeria already had a comprehensive plan called the National Enterprise Development Plan (NEDEP), which could be updated and implemented.
“It covers the entire ecosystem of the sector nationwide, working closely with Smedan, ITF, BOI, the State and local Governments and the private sector, under the supervision of the National MSME Council. There should also be state Councils,” he noted.
On critical enablers, he said, “The drivers of competitiveness, investment and business environment, infrastructure, standards are already addressed in the NIRP. But I want to talk about other critical enablers for economic diversification and national development, which are often not properly identified and linked to economic diversification and development.”
He identified the need to focus on the National Values System, saying, “History has shown that the most successful companies and countries in the world have strong core values, which have become part of their culture. It is the foundation on which their success is built. It is the People who make the laws, develop the diversification plan and policies; it is the people who enforce the law and implement the policies and plans.
“So if the values of integrity, hard work, patriotism, industry, spirituality, compassion, fight against creed, corruption and lust for power are not embedded in our culture and do not form the foundation on which our economic diversification program is built, we are bound to fail woefully, as a people and as a nation. We must seek unity, based on our shared values.
“They were part and parcel of our culture in the 60s, 70s, and early 80s, when we had a stronger economy and currency, mainly produced what we consumed and consumed what we produced.”
