I welcome you all to another epistle from your Savings and Investment Tutor. I have been away for a while now, for good reasons. However, recent happenings mean that I come out to share some few thoughts.
My financial lens is on the great African country, Nigeria, today!
Nigeria’s economy controls over 18 percent of Africa’s total gross domestic product and is, in fact, the seventh highest exporter of crude oil in the world. Nigeria, the most populous country in Africa, has however experienced economic challenges in recent years due to various factors, such as dwindling oil revenues, corruption and insecurity. The country’s economy needs a significant boost to recover from these challenges, and the next government can take specific steps to achieve this.
This article will discuss six economic recovery steps that the next government can consider to revive Nigeria’s economy after the election.
- Tackle the oil revenue inefficiencies and break the monopoly of the ‘unseen’ cabal
Nigeria is heavily dependent on oil revenue, which accounts for about 90 percent of its total exports. However, the country has not fully optimised its oil revenue potential due to corruption, mismanagement, and the activities of an ‘unseen cabal’. The next government must take bold steps to tackle these inefficiencies and break the monopoly of the cabal. This can be achieved by improving transparency in the oil industry, introducing measures to combat corruption, and encouraging private sector participation in the industry.
2. Ensuring the enforcement of existing financial administration acts and laws
The next government must ensure the enforcement of existing financial administration acts and laws to curb corruption and promote transparency. The government can achieve this by strengthening institutions, such as the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC). These institutions should be empowered to investigate and prosecute cases of financial impropriety, regardless of the status of the individual involved.
3. Improve the government and citizen communication channels
The government should improve communication channels with citizens to enhance trust and accountability. This can be achieved using technology, such as social media and mobile apps, to enable citizens to interact with government officials, report incidents of corruption, and offer suggestions. Effective communication channels will also enable the government to disseminate information to citizens about its policies, initiatives and plans.
4. Establish an instant policy to employ the youth as a way of offering hope and affinity to the state
Nigeria has a large youth population, which presents a significant opportunity for economic growth if harnessed properly. The next government should prioritise youth employment by creating policies that encourage entrepreneurship, vocational training, and job creation. This can be achieved through partnerships with the private sector and international organisations to provide training and funding for young entrepreneurs. The government can also establish programmes that offer incentives for companies that employ a significant number of young people.
- Invest much attention and resources into internal security to reduce the spate of crime
Insecurity is a significant challenge in Nigeria, and it has a negative impact on the economy. The next government must prioritise internal security to attract foreign investment and promote economic growth. This can be achieved by investing in the security infrastructure, increasing the capacity of security agencies, and improving intelligence gathering. The government should also collaborate with international organisations to tackle cross-border crime, terrorism, and other security challenges.
- Tilt the over-reliance on oil revenue toward creative revenue-generating vehicles
The next government must explore alternative revenue sources to reduce the country’s dependence on oil revenue. This can be achieved by promoting non-oil sectors, such as agriculture, tourism, and manufacturing. The government can create policies that encourage investment in these sectors, provide tax incentives, and offer subsidies. The government can also promote the development of micro, small and medium-sized enterprises (MSMEs) to create jobs and promote economic growth.
In conclusion, Nigeria’s economy can rebound after the election if the next government implements these economic recovery steps. These steps include tackling oil revenue inefficiencies, enforcing financial administration acts and laws, improving communication channels, prioritising youth employment, investing in internal security, and exploring alternative revenue sources. The government must be committed to implementing these and other good steps to achieve economic growth and development in Nigeria.
Nigeria owes it to herself not to disappoint the continent as the biggest economy.
>>>the writer is a Chartered Banker and a Chartered Global Investment Analyst with over 8 years’ experience in mainstream banking, having worked in various capacities. He is the Head of Member Experience, Regulations, and Business Development at the Chartered Institute of Bankers, Ghana. He has been a qualified member of the Chartered Institute of Bankers, Ghana with a good membership standing since the year 2013.
He also holds an EMBA and a BA from the Kwame Nkrumah University of Science and Technology and the University of Ghana, respectively. Patrick is a Financial Discipline and Personal Financial Management Expert. Patrick has also been teaching on the topics of savings, investment, and financial independence for over 7 years; and is a research fellow for ILAPI Ghana.
He runs a popular financial channel on YouTube by the name ‘Patrick TV GH’ and has appeared regularly on various traditional media platforms. Patrick is into youth facilitation and career counselling. Follow Patrick on the various platforms for more education: Facebook: www.facebook.com/PatrickTVGh/ Instagram: @PatrickTVGH