NAN-H-25
Diversification
By Akeem Abas
Ibadan, Dec. 11, 2016 (NAN) A don, Prof. Olawale Ogunkola, has advocated the diversification of the Nigerian economy as a way of tackling the current economic challenges facing the country.
He spoke on Saturday evening in Ibadan at the Ibadan Bankers’ Committee End of the Year Party.
The News Agency of Nigeria (NAN) reports that Ogunkola had delivered a lecture entitled “Effects of Economic Recession on Financial System: Toward a Robust Coping Strategy.”
Ogunkola, a former Dean of the Faculty of Social Sciences, University of Ibadan, said that it was dangerous for any country’s economy to depend on only one source of earnings.
“When you have 95 percent of foreign exchange earnings from oil, the economy has been unnecessarily exposed to external factors.
“The economy will be better if we have five to 10 percent from oil and there are other manufactured goods on ground. I think the first thing for us is to diversify.
“We have to ensure that we are not exporting only raw materials like crude oil, cocoa to mention few but processed goods ,” he said.
The don stated that it was time to teach the people how to process raw materials and export, compete effectively as a short term solution, adding that they would cope well in the short term by learning from experience.
He said that a country in recession would have to look into the causes of the problem with strong readiness to address them holistically.
“The present recession is caused by commodity shock. It is an international crisis of commodity which involves all commodities, including crude oil.
“This is a crisis which has its effect dependent more on the structure on the ground,” he said.
Ogunkola noted that the government was on track in tackling the economic challenges with a long term solution, calling for the sustenance of such efforts.
He said that the desired result may not be achieved in four years, urging the people to bear with the government.
The don also stressed the need for government to put in place good infrastructure, saying this would reduce the cost of doing business.
“For example, if government fixes rural roads, post-harvest losses which is about 45 percent of production will be reduced, allowing the doubling of production technically,” he said.
Ogunkola added that if politics was more at play at the expense of sound decision taking, the economy might not succeed in such situation.
“There is no decision without politics. But when the coefficient of politics overrides common sense, the economy cannot succeed,” he said.
Gov. Abiola Ajimobi of Oyo State, in his remarks, said that the Central Bank of Nigeria(CBN) had been a very supportive partner to the state.
Ajimobi, who was represented by Mr Abimbola Adekanmbi, the State Commissioner for Budget and Finance, urged bankers to be more proactive in their responsibilities.
He stated that their expertise was more needed now to help the nation out of the current economic challenges.
Alhaji Folorunso Olatinwo, the Branch Controller of the CBN in Ibadan, said that the branch had consistently delivered better services to the people with the support of deposit money banks in the state.
NAN reports that the event featured full presentation of the CBN’s Anchor Borrower Programme(ABP), an agricultural initiative recently launched by President Muhammadu Buhari.
NAN also reports that the United Bank for Africa(UBA) Plc emerged the best bank of the year 2016 in Oyo State, while Mr Dominic Oko of WEMA Bank Plc emerged the best bank representative in the state.
The event was attended by representatives of financial institutions and deposit money banks.(NAN)
TAA/OJO
=======
(Edited by Mufutau Ojo)