Revenue sources: Time to focus on agriculture, gas

The Nigerian terrain is not just blessed with abundant human resources; it is also bless with abundant natural, Land and mineral resources. For the past 52 years Nigeria has tapped from the abundance of crude oil to fund a federation of 37 states and over 170 million people.

It has managed to provide massive infrastructural development in some part of the country with the sales of crude oil. Nigeria could be classified as a potentially rich nation as a result of its resources. Being the largest economy in Africa it has become a destination for foreign investors.
No doubt, crude oil has been the major sustenance of the Nigerian economy but just recently the economy of Nigeria is been threatened by the global fall of crude oil price which has reduced the amount generated in the country.

The fall in the price of crude has made the nation rely on both foreign and domestic debt to pay workers salary and to also run the affairs of Nigeria. The current revenue shortage in the country should be blamed on the failure to diversify the nation’s economy. As a country with known for its tenacity and hard work it is paradoxical that those in authority have solely relied major on crude oil to run the affairs of the nation.
It is good that President Muhammad Buhari, in his inauguration speech rightly acknowledged the contributions of our founding fathers towards nation building.

Our Founding fathers made use of Agriculture to develop the country. Buhari himself also acknowledged agriculture and Mining as the alternative revenue source to focus in his administration. I see this as a good path to repositioning the economy of Nigeria. The current administration should immediately tap from the potentials of Agriculture and Gas production to cover up for shortages in crude oil revenue.
Agriculture currently provides 26.8% of GDP growth in Nigeria and has provided two-third of employment in Nigeria, the sector can contribute almost 80% of the total revenue we generate from oil if given the needed attention.

Previous researchers have written on the need to embark on modernize farming in Nigeria. There is need to move away from subsistence farming to large scale commercial farming. This will require the introduction of technology into farming activities, and construction of modern agricultural storage facilities across the country.

The demand for technology in agriculture has been proven to be cheaper than that utilized for the oil sector. Also the amount of skill needed for large scale farm production cannot be compared to that of crude oil production. Unskilled labor can be used for agricultural activities which is not capital intensive unlike that of the oil and gas sector.  A country with a population of 60milion un-employed Nigerians could become gainfully employed if the Buhari administration keeps to its word by focusing on agriculture.

There are immense financial benefits that can be derived from agricultural value chain are. This value chain spans from the exportation of dairy products, livestock’s, fruits, root crops, fiber, textile, vegetables, rubber, wheat etc.  This can be distributed and exported to generate both domestic and international income.  It would also go a long way to reduce hunger and food shortage in Nigeria which has been an excuse for crime and corruption.

Muhammad Ajah,
Abuja