Former President Olusegun Obasanjo, in his recent remarks on Sunday, reiterated the importance of Nigeria transitioning from its current mono-economy, which heavily relies on crude oil, to a diversified economic landscape. He highlighted the need to embrace non-oil exports, particularly agribusiness, as a solution to the forex crisis that has had a significant adverse impact on the nation’s economy.
Obasanjo referenced the perspective of certain commentators who have suggested that oil has become a hindrance to the nation’s progress, obstructing the development of other sectors.
These sentiments were expressed during the closing ceremony of a one-week training program organized for 200 entrepreneurs by the African Leadership Foundation in partnership with the Africa Export-Import Bank. The training, themed “Agribusiness Export Readiness Accelerator Training Programme,” took place at the Olusegun Obasanjo Presidential Library in Abeokuta, Ogun State.
Obasanjo emphasized, “Historically, Nigeria has been known for its nearly complete dependence on revenue from petroleum exports, and the nation’s economy has suffered severe setbacks due to various oil shocks, without any safety net to mitigate major declines.”
He continued by stating, “What was initially celebrated as a significant blessing has transformed into what economists now refer to as the ‘oil curse.’ The recent instability in the oil market and the worldwide push for alternative energy sources leave no doubt about the urgency of diversifying our economic foundation through the promotion of non-oil exports.”
Obasanjo emphasized the potential for economic diversification in Nigeria, given the country’s abundant resources. He expressed his belief that this diversification can be achieved in the shortest time if robust economic policies, supported by effective implementation mechanisms, are consistently maintained over an extended period.
“Nations like Indonesia and Malaysia were once mono-product economies like Nigeria, but are now well diversified and therefore less vulnerable to global economic shocks.”
The former President expressed sadness that Africa had continued to remain at the bottom of the global trade pyramid and global value chain accounting for only 1.9 per cent of global manufacturing because it has failed to add value to even its small export of primary commodities.
“In Nigeria, not only do we export our oil as crude, we turn around to import virtually all our petroleum products from other nations. The story is not remarkably different for our non-oil exports. Since international trade is a good barometer of the world economic growth and development, it then becomes quite easy to understand the poor economic performance of Africa in general, and Nigeria in particular,” he added.
He lauded Afreximbank for organising the agribusiness training, saying, “This is a game-changing development for Nigeria and the continent at large, and the strategic move aligns perfectly with the goal of fostering economic self-sufficiency and reducing our dependence on oil.”
The President of Afreximbank, Dr Benedict Oramah, represented by the Senior Manager, Export Development, Mr Ody Akhanoba, said there had recently been an increase in the demand for processed agricultural products from Africa, especially in the US, UK and France, urging participants to maximise this growing diaspora market to further improve on the fortunes of the continent.
The Executive Director of Africa Leadership Foundation, Dr Olumide Ajayi, described the training as an eye-opener for the participants.
