Emmanuel OchayiAs Nigeria marks its 64th independence anniversary, its economy is at a crossroads. While 64 years in human terms signifies retirement, in the life of a nation, it can be seen as adolescence — a phase marked by growth, potential, and challenges. “At this stage, we should be asking ourselves, ‘Are we ready to step into the future, or are we still figuring out how to walk steadily?’” says a renowned economist in Lagos.
In these six decades, Nigeria’s economy has seen moments of growth, particularly in the 1970s during the oil boom, but it has also experienced stagnation, inflation, and a rising unemployment rate. Much like a teenager, the economy seems confused and unsure of its next steps, vacillating between the desire for self-reliance and the reality of dependence on external economies.
Join our WhatsApp ChannelThe Challenges Facing Nigeria’s Economy
“How does Nigeria start to fulfill its potential?” asks Adebayo, a business owner in Lagos State. This question is echoed by many Nigerians, who struggle with inflation, unemployment, and the high cost of living. The answers are elusive, but many believe that homegrown solutions could be the key to economic revival. The President recently expressed support for increasing local production and reducing exports of unprocessed materials. This plan aims to add value to raw products in Nigeria, potentially boosting profits and creating more jobs.
“If we process our raw materials here, we can export finished goods. That would strengthen the naira and improve our balance of payments,” Fatima Yusuf, an economist based in Lagos. The move to process and export finished goods could be a game changer. Yet, Nigerians remain cautious, having seen many well-intentioned policies falter in the past.
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The paradox that haunts Nigeria is why locally sourced and refined petrol should cost more than imported fuel. This contradiction exemplifies the inefficiencies that plague the economy, leaving many Nigerians to wonder how such issues can be addressed.
Nigeria’s Economic Milestones: A Mixed Bag
Despite the challenges, there are achievements worth celebrating. “We often criticise our country, but look at the success of Nigerians abroad,” remarks Nneka, a tech entrepreneur. “In academia, medicine, and even in the creative industries like Nollywood and Afrobeats, Nigerians are excelling.”
The global rise of Afrobeats is a testament to Nigeria’s creative potential. Nollywood, the second-largest film industry in the world, has also gained international recognition, contributing significantly to Nigeria’s economy. These industries have opened new economic frontiers, showcasing the untapped talent within the country. However, as Nneka points out, “It’s not enough for individuals to succeed; we need the economy to work for everyone.”
The Road to Economic Independence
A major part of Nigeria’s economic dilemma stems from its over-reliance on oil exports. Oil, once seen as a blessing, has become a double-edged sword. Fluctuating oil prices have led to economic instability, and the government’s dependence on oil revenues has stifled diversification efforts.
“At 64, we should be less dependent on oil,” says Dr. Sani, an economic historian. “The world is moving towards renewable energy, and we need to prepare for that future. If we don’t diversify our economy, we’ll be left behind.”
Dr. Sani’s concern is valid, as Nigeria has struggled to develop other sectors such as agriculture, manufacturing, and technology. Although the government has introduced policies to promote agriculture and boost local production, these efforts have been hampered by insecurity and corruption.
Insecurity: A Barrier to Economic Growth
Insecurity has been one of the most significant challenges to Nigeria’s economic progress. “Businesses are closing down in the North and struggling in the west here,” shares Ibrahim, a small business owner in Oshodi Market in Lagos “Without security, how can we have a thriving economy?”
The connection between insecurity and economic stagnation is clear. Investors, both local and foreign, are hesitant to commit resources to an environment where kidnappings, banditry, and terrorism are rampant. This insecurity has also led to rising food prices, as farmers in conflict zones are unable to cultivate their land.
Nigeria’s Path Forward: Adulthood or Continued Adolescence?
So, what does the future hold for Nigeria? Can the country transition from adolescence into economic adulthood, or will it remain stuck in a phase of growing pains? As Professor Oladipo aptly puts it, “At some point, we have to stop making excuses and start taking responsibility for our future.”
There are glimmers of hope. The ongoing push for democracy, despite its imperfections, is a step in the right direction. Nigeria has experienced 25 years of uninterrupted democratic governance, a significant achievement in a region where military coups are not uncommon. “We have the political framework to make economic progress,” asserts Dr. Sani. “Now, we just need the willpower to make the tough decisions.”
One of those tough decisions involves addressing the structural issues in the economy — from the bloated public sector to the need for greater transparency and accountability. “We need leaders who are not afraid to make unpopular decisions for the greater good,” says Adebayo. “We can’t keep doing the same things and expect different results.”
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
