Nigeria News take a look at the Nigeria’s economy in the face of the dwindling future of oil.
Nigeria has depended largely on oil for survival over the years and each time the price of oil falls in the global market, it creates big challenge on how the Federal Government runs its budget.
And whenever there is oil boom and rise in the price of oil, the political elites stash the excess funds in their private accounts, leaving the country with infrastructure deficit.
That was how the country was being run for decades until 2015 when the administration of President Muhammadu Buhari came on board.
The present government had a blueprint, which became obsolete as soon as it assumed power. The situation of the county was worse than what its blueprint could address.
About $20 billion oil money was never remitted to the Federating account. The immediate past administration of President Goodluck Jonathan allegedly diverted the money for presidential election campaign.
Almost every bigwig in the Peoples Democratic Party, PDP and their friends allegedly took a share of the oil money. Their ostentatious and corrupt life allegedly threw the country into recession. Nigeria was financially depleted and rather than growing the economy, the Buhari’s government had to fight corruption.
And it’s still fighting corruption. For over two years, Nigerians live in a recessed economy, with the price of naira to a dollar rising as high as N500. So pathetic.
Last week, the National Bureau of Statistics, an agency that declared Nigeria in a state of recession, changed the beat to say that the country is out of recession. The news was not celebrated because it came with a clause by the Federal Government that the economy is still fragile.
Of course, Nigeria is a fragile economy judging by the bleak future of its largest exporting products, crude oil. Aside the dwindling flow of oil in Niger Delta due to the intermittent attack on the oil facility and pipeline by militants, it appears that major importers of Nigeria’s oil will soon stop demanding for it.
The United States, the Nigeria major customer is making giant effort to grow electric cars. In the last one year about half a million electric cars enter the market. Develop world is searching and developing new source of energy.
Europe has given deadlines on when it will phase out hydrocarbon cars. Japan and some other Asian countries are making more of electric cars and creating more charge points than petrol stations.
Oil market is going to crash and as experts put it, what can sustain fuel car production is fuel efficiency. But it must be noted that the price of battery is falling by the day.
The place of Nigeria in this situation calls for concern. The Federal Government’s policy on economic diversification to agriculture needs to be handled with all seriousness. It must be a continuum even after the exit of the present government.
Vice President Yemi Osinbajo did not mince words when he told the gathering of the Niger Delta oil producing states in Akure Ondo State on Tuesday that it is time for all stakeholders to create a roadmap to develop new economy away from oil.
He urged the state governments at the region to collaborate with the Federal government to channel the resources being spent on security of pipelines and other oil facilities on new area of economy.