By Tribune Online

Copyright tribuneonlineng

By Odun Akerele

OUR economy has always been in a doldrums whether past or present. We continue to mismanage our economy whether knowingly or unknowingly. You cannot give what you don’t have, unfortunately, most of our leaders don’t have what it takes. Leadership in Nigeria is about whose fist is stronger and not ideas. The leaders that are in the know govern people according to their expectation. Having destroyed the educational system and weaponised poverty, some of our people don’t know any better. They praise politicians for the crumbs that are served to them. Their predicament makes them susceptible to the manipulation of the ruiners class (majority of our current leaders/politicians). The resilience of Nigerians is immense, so people remain docile and plod on. Our issues are obvious and not that difficult to solve but there is no will to tackle them. Nigeria, the so-called “Giant of Africa,” is rich in natural and human resources. However, despite its potential, the country continues to face significant economic challenges. These problems have persisted over the years and have hindered sustainable development and poverty reduction. The major causes of our economic woes range from structural weaknesses and governance issues to external shocks and insecurity. Let’s break it down.

1. Overdependence on Oil: One of the most significant economic issues in Nigeria is its heavy reliance on crude oil exports. Oil accounts for over 90% of the country’s export earnings and a large portion of government revenue. This dependence makes the economy highly vulnerable to fluctuations in global oil prices. When oil prices fall, government income drops, leading to budget deficits, inflation, and economic instability. This “mono-economy” structure has stifled diversification efforts in other critical sectors such as agriculture, manufacturing, and technology. In addition, the oil is being stolen. Bunkering remain rife and crude exploration is devastating to our environment, with local biodiversity loss. It is on the record that we don’t know the amount of oil that is pumped out of our fields. Whereas country like Saudi Arabia can account for every drop of oil they produce through technology; every inch of the pipeline is monitored remotely from a sophisticated control centre.

2. Poor governance and corruption: Corruption remains a deep-rooted issue in Nigeria. Mismanagement of public funds and widespread corruption at all levels of government reduce the effectiveness of economic policies and discourage foreign investment. Funds that should be allocated for infrastructure, education, healthcare, and economic development are often embezzled or misused. As a result, the country’s economic progress is slowed, and public trust in government institutions is weakened. 3. Inadequate infrastructure: Nigeria suffers from serious infrastructure deficits, including unreliable electricity, poor road networks, limited railway systems, and inefficient ports. These challenges increase the cost of doing business, reduce productivity, and discourage both local and international investment. Power outages, in particular, force many businesses to rely on expensive generators, reducing their profit margins and limiting economic growth. The current administration is investing heavily in road projects, but at the end of it all, half of the money will be siphoned into individuals’ pocket, the project will be shoddily carried out and incomplete. The roads will have no adequate drainage, landscaping and signage.

4. Insecurity: Insecurity has become a major threat to economic activities in Nigeria. Armed conflicts, terrorism (such as the Boko Haram insurgency), kidnapping, banditry, and ethnic clashes disrupt agriculture, trade, and industry. Farmers are often forced to abandon their land, leading to lower food production and increased food prices. Insecure regions also experience reduced investment and tourism, further weakening the economy. Can you imagine we have ramshackle armed bandits in charge of certain parts of Nigeria? It was well publicised recently that they were holding press conferences and parading their captives. That is in a country with the rule of law. What a shambles! 5. High unemployment and underemployment: Unemployment, especially among youth, is a critical issue in Nigeria. Millions of young Nigerians graduate from schools and universities every year, but few jobs are available. Many are underemployed or forced into low-paying informal jobs. This situation increases poverty and crime and reduces national productivity. The resources of the country has been cornered by few people, they are living large at the expense of the rest of us, hence the productivity is low. They missed the civic class and lack moral values. They are in government to enrich themselves and not to serve.

6. Inflation and currency instability: Nigeria has been plagued by high inflation and exchange rate instability. Inflation erodes the purchasing power of citizens, leading to a decline in living standards. Frequent devaluation of the Naira, currency scarcity, and multiple exchange rates confuse investors and make economic planning difficult. A self-inflicted woe. The current administration attempts to address this pales insignificant to what is required. The reforms need to be radical and swift. 7. Weak industrial and agricultural base: Despite its agricultural potential, Nigeria imports a large portion of its food and manufactured goods.

Poor support for local farmers and industries has led to low productivity. Many factories operate below capacity or have shut down due to high production costs and poor infrastructure. Multinational manufacturing companies have left our shores and locations converted to churches where Nigerians go to pray for jobs. What a mess, Nigerians are tempting God. Unless we have a reset, we will continue to wallow in the multidimensional poverty that is rife in the country.

8. Debt Burden and Poor Fiscal Management – Nigeria’s rising debt profile is another source of concern. A large percentage of government revenue is spent on debt servicing, leaving little for investment in critical sectors. Furthermore, poor tax collection systems mean that the government relies heavily on borrowing rather than generating sustainable income. We continue to borrow for consumption. The cost of government is high with bloated executive and legislature.

9. Rapid Population Growth – Nigeria’s population is growing rapidly, putting pressure on non-existent or woefully existing infrastructure, education, healthcare, housing, and the labor market. Unfortunately, economic growth has not kept pace with population growth, resulting in widespread poverty and urban congestion. Our best asset remains our people but we failed to make adequate investments in human capital.

10. Poor Education and Health Systems – Education and healthcare are essential for developing a productive workforce, but these sectors are underfunded and poorly managed in Nigeria. Many children lack access to quality education, and healthcare facilities are often inadequate. This limits human capital development and reduces the nation’s capacity for innovation and growth.

There is no denying that Nigeria’s economic problems are complex and interconnected. Addressing them requires bold and sustained efforts by government, private sector, and civil society. Diversifying the economy, fighting corruption, investing in infrastructure and education, and improving security are critical steps towards achieving economic stability and long-term prosperity. With the right policies and commitment, Nigeria can overcome these challenges and unlock its full economic potential.

•Dr Akerele writes in from the UK.

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