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Nigerian economy: Growing non-oil sector non-negotiable for sustainability

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Performances of critical sectors of  Nigeria’s economy reflect much is needed to be done as oil still overshadows accruals as the mainstay of the economy. Overdependence on oil has not been healthy for the economy, a fact that recent realities have come to establish. The shortfalls from the inconsistencies of the oil market and the growing demands of the economy with rising realities of the Nigerian polity have pose constrains on the health of the economy, reflecting supply deficiencies   from one major source.

Oil still remains over 70 per cent, the large sum of  accruals from Nigeria’s export and major source of foreign exchange. Fall in oil prices saw the Country sliding into recession from 2016 when global oil prices crashed as low as $30 per barrel. Recovery from recession has been challenging as the Country is yet to recover from the strains of the shock. Although, recently oil prices surged up to an average of $100 per barrel, the yielding has not in any way enough to balance the deficits of outputs suffered by the economy. The fact that the recent surge in global oil prices above $100 couldn’t make up for inadequacies to refocus the economy from downward slope, is a reflection that oil in itself is insufficient as a base for the economy to solely rest upon and its proceeds apparently becoming inconsequential to the enormous demands of the Nigerian economy.

This fact, speaks to the need for deliberate attention and intervention to vitalise the workings of non-oil sectors of the economy, many of which the Country have potentials for export advantages. The profile of Nigeria’s non-oil sector export value still remain considerably unappealing and irreconcilably low in comparison to the level of output and accruals obtainable if the potentials and opportunities of most of these sectors, say agriculture, mining, manufacturing, steel, Information and Communication Technology, etc, are being fully optimised.

Recent records revealed Nigeria’s foreign trade fell quarter-on-quarter (QoQ) by N200 billion or 1.5 per cent to N12.8 trillion in the second quarter of the year (Q2’22) from N13 trillion in Q1’22. The National Bureau of Statistics (NBS) in it’s recent Foreign Trade in Goods Statistics report for Q2’22, revealed foreign trade in Q2’22 comprised of exports valued at N7.4 trillion and imports worth N5.4 trillion. The bureau stated that the value of crude oil exports, which accounted for 79.7 per cent of total exports in Q22  22, rose by 5.1 per cent to  5.9 trillion from  5.6 trillion in Q1’22.

The report read: “Nigeria’s total merchandise trade stood at  12.8 trillion in Q2’22, indicating a marginal decrease of 1.5 per cent over the value recorded in Q1’22 and 32 per cent higher when compared to the value recorded in Q2’21.The value of total export stood at  7.4 trillion in Q2’22, the value accounted for 57.7 per cent of total trade. The export value rose in Q2’22 by 4.3 per cent against the level recorded in Q1’22 and by 47.5 per cent when compared to Q2’21. Exports by section revealed that Nigeria exported mainly mineral products which amounted to 6.7 trillion, or 91.46 per cent of total export value; followed by ‘Products of the chemical and allied industries’, which were valued at 318.51billion (or 4.3 per cent of the value of total exports) and ‘Vegetable products’ worth  100.12billion (1.35 per cent of the value of total exports). The value of exports trade in Q2’22 was dominated by crude oil exports valued at 5.9 trillion which accounted for 79.7 per cent of total exports while non-crude oil exports value stood at  1.49 trillion or 20.2 per cent of total exports of which non-oil products contributed  675.08 billion representing 9.11 per cent of total exports.”

On imports the report revealed that: “During the second quarter of 2022, total imports were valued at 5.4 trillion accounting for 42.3 per cent of total trade. The import value fell by 7.9 per cent in Q2’22 compared to the value recorded in Q1’22 but increased by 15.8 per cent compared to the imports value in Q2’21.” It is apparent that the fall in foreign trade value, particularly export is non appreciable.

It is apparent that Nigeria’s economy cannot survive mainly on oil. The demands of the economy has inarguably outgrown what only oil can mainly satisfy. Significant contributions from other sectors have become pertinent and non negotiable if the economy will receive the strength of stability for significant growth on sustainable strength for virility.

Looking into the growth of other sectors is pertinent for future purposes as realities of the patterns of global attention is driving towards green economy, where the demands for fuel would become significantly low; thus losing its global value. This value, it is known, would continue to suffer erosion on gradual dimension as new technologies take evolving phases. For instance, the production of electric cars has grown significanlty and is spreading gradually around the world. In no too far distant future, its widespread would bring a paradigm shift in the demands for automobiles, thus reducing significantly the demands for fuel products. Developments of similar kinds are taking place with stronger drive with deep research for a shift towards green economy. The demands for oil in this light have been projected to fall as time goes by.

In this light, it is not negotiable for any proactive, sensitive and rational government where oil forms a significant base of its economic structure to begin developing alternative formations. Nigeria which economy categorically lies with overreliance on oil must take heed.

The government must not only awake to this reality, but must proactively drive machineries to the demands to develop critical sectors which would outlive oil. These sectors, with lasting sustainable strength, must be driven along growth path by deliberate measures to grow them to the height of virility where they can in no too far future distance stand in good stature competitively with oil in their accruals. This is essential not just for prevailing pressing demands of the economy, but also for future sustainability upon which the economy can rest conveniently for forward drive unto virility.

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Editorial

Articulated vehicles and the scourge of avoidable deaths

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Nigerians across the country continue to die utterly preventable deaths thanks to a lack of political will on the part of its leaders. It is an ugly fate thrust upon its citizens to live in a country whose economy is built upon the blood of the ordinary people, not out of sacrifice, but nonchalance. Articulated vehicles wipe out families, dreams, and human capital in one fell swoop. Press statements from the leaders are not enough. We need the May 2024 immediacy of the Tinubu administration in this sector too.

Last week, a falling container killed a woman in the Ogudu area of Lagos. The woman was inside a car when the fully loaded 40ft Mack articulated truck fell on it, leading to her instant death, according to the Lagos State Traffic Management Authority (LASTMA).

In October 2023, a businessman identified as Akuma Kalu, was crushed to death by a 40-feet container that fell on his car along the failed portion of Etche-Ngokpala road in Etche Local Government Area of Rivers state.

In September 2023, five women died in a fatal accident that occurred in the early hours of Friday at Odumodu Junction, Nteje, Oyi Local Government Area along Awka Road, Anambra State. As usual, the container of the truck fell upon the bus carrying these people, killing them. We could go on and on. The story remains the same: tragedy upon tragedy.

Every year, the Federal Road Safety Commission, FRSC, does sensitisation with little result to show for it because the arm of the law is too short to punish offenders at the root of the problem. The constant assault on the senses has led to a desensitisation on the part of the populace. Month after month, another story of a truck that erases a family, or multiple families because its brakes fail, or its container is overturned. The combination of the death of empathy on the part of leaders and the emotional exhaustion of the citizens will lead Nigeria down the path of a dystopia.

The governors of each state have a responsibility to institute laws to protect the indigenes. This, the Federal Government must also do nationwide. The FRSC has rules and regulations for trucks. The Government needs to only enforce these rules. Enough of blaming the trucks themselves because they are not the evil entities. The lack of accountability and a weak system perpetuates the dilemma.

The political class should not wait until Nigeria happens to one of their own before acting as is usually the case. Most cases bear the mark of immediate fatality. By the time a family member experiences it, it would have already been too late. We have hope that this administration will do what it takes to restore hope to the common man. Time to act is now.

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Editorial

Renewed Hope Initiative: Beating back inequality in all spheres

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Nigeria is full of inequalities that its leaders contend with administration after administration. With every President comes a partner who shares in the vision, and does her part to alleviate the pains of the citizens. Oluremi Tinubu has etched her name in the annals of history as one of such compassionate ones.

Recently, in Abeokuta she flagged off the Renewed Hope Initiative for women in agriculture and people living with disabilities nationwide in a bid to achieve this noble goal of equity in Nigeria.

“We are supporting 20 women farmers per state with the sum of N500,000 each. To this end, a draft of N10 million per state for the South West zone will be handed over to the first ladies of Ekiti, Lagos, Ogun, Ondo, Osun, and Oyo states who are the Renewed Hope Initiative (RHI) state coordinators for onward disbursement to all beneficiaries in their respective states,” she said.

“The Renewed Hope Initiative Social Investment Programme will be empowering 100 persons with disability, small business owners in Ogun State with a sum of N100,000 each to recapitalise their existing businesses.”

In Kebbi, represented by the Wife of the Speaker, House of Representatives, Fatima Tajuddeen Abbas, in Birnin Kebbi, she said, “Agriculture plays a pivotal role in achieving sustainable development and food security. Consequently, we are introducing ‘Every Home a Garden’ competition to encourage each Nigerian woman to cultivate a garden at home to feed the family and share with neighbours, we want to see food on every table.”

We commend the forward thinking and passion for national growth required for such a herculean task. If emulated in all quarters, it will stimulate the economy at the grassroots. It is well acknowledged that the government cannot do it alone. Private individuals who are capable must rise up to contribute to national growth.

It isn’t alien to the Nigerian condition, after all. The country was able to survive the assaults of the COVID-19 pandemic thanks to the joint efforts of private individuals under the umbrella of Coalition Against COVID-19, CACOVID, a Private Sector task force in partnership with the Federal Government, the Nigeria Centre for Disease Control (NCDC). The Renewed Hope Initiative joins the tradition of programmes committed to national improvement. History will look upon it kindly.

 

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Editorial

Increasing access to community healthcare

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Recently the World Health Organisation (WHO) decried the increasing threat to the right to health of millions of people across the world. The WHO Council on the Economics of Health for All has stated that 140 countries recognise health as a human right. Unfortunately, these countries are not passing and putting into practice laws to ensure that their citizens are entitled to access health services. According to the global health agency, about 4.5 billion people, over half of the world’s population, were not fully covered by essential health services in 2021.

The WHO Regional Director for Africa, Dr. Matshidiso Moeti, in her message underscored the fact that health is not only a fundamental human right, but also central to peace and security. According to her, addressing health inequities requires intentional efforts. Considerations of vulnerable groups must be addressed. Their needs ought to be purposefully integrated into health programmes at all levels to accelerate progress toward Universal Health Coverage (UHC).

‘My health, my right,’ the global agency used the occasion to call for action to uphold the right to health amidst inaction, injustice and crises. The year’s theme, according to the organisers, was chosen to champion the right of everyone, everywhere to have access to quality health services, education, and information, as well as safe drinking water, clean air, good nutrition, quality housing, decent working and environmental conditions, and freedom from discrimination.

Moeti noted that many in the African region still need help with access to quality essential health services due largely to unfulfilled rights. She observed that this is further compounded by protracted and ongoing crises such as conflicts, climate change, food insecurity, disease outbreaks and epidemics.

Available figures show that the number of people aged 15 and over living with HIV is still high at an estimated 24.3 million in 2021 (3.4 percent of the total population) compared to 15.6 million in 2015. This underscores the continued transmission of HIV despite reductions in the incidence of people newly infected and the benefits of significantly expanded access to antiretrovirals. Moeti called on member states to uphold the progress towards fulfilling the right to health, agreed by all nations of the world in 1948 and enshrined in the WHO Constitution.

“The right to health is a universal right of all human beings, regardless of race, colour, sex, language, religion, political or other opinion, national or social origin, property, birth, or another status,” Moeti stated.

Nigeria, the Coordinating Minister of Health and Social Welfare, Prof. Muhammad Ali Pate, has reiterated the ministry’s commitment to ensure the health and wellbeing of all Nigerians. The minister is of the view that the right to health is not just the ideal, it is a fundamental human right enshrined in the Universal Declaration of Human Rights.

For millions of Nigerians, accessing quality healthcare is a challenge. However, the federal government has mapped out some initiatives to address the challenge. These include Basic Health Care Provision Fund (BHCPF) and the Nigeria Health Sector Renewal and Investment Initiative and strategic partnerships through which the health ministry is ensuring access to health of Nigerians in remote communities across the country.

Unfortunately, the right to health for all Nigerians has not been enshrined in our laws. Therefore, we call on the federal and state lawmakers to make laws that will ensure the right to health of all Nigerians. We need laws that will ensure Universal Health Coverage for all Nigerians.

Such laws will ensure that every Nigerian has access to quality health at all times. These include having access to potable water, clean air, quality nutrition and quality housing, decent working environment and freedom from discrimination.

While the laws that will enforce the right to health of all Nigerians are being awaited, the government must improve access to health by ensuring that quality healthcare services are provided at the Primary Healthcare Centres (PHCs) across the 774 local government areas.

If the primary healthcare centres are functional, the nation’s disease burden would have been reduced by over 70 per cent. The government should provide free health services at the PHC level. For Nigeria to increase access to quality health for millions of Nigerians and ensure UHC, the health funding must be significantly increased.

Pathetically, it has become an eyesore that millions of Nigerians living at the grassroots don’t have access to quality healthcare services. This is a wakeup call to the various state Governors and their Chairpersons to reinvest in the health sector, especially the community people.

Most of the health institutions and healthcare facilities are in a dilapidated stage at the rural communities and there is no motivation for health personnel in terms of incentives, knowledge acquisition such as training and retaining of staff, the equipment in various hospitals and clinics are outdated. The federal government in partnership with international donors should reenergise in the health system for the betterment of the masses.

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