Despite all the statistics that the economy is improving, Nigeria’s growth remains paper growth. The truth is nothing has changed about the structure of the Nigerian economy in the past five decades.
We remain a consumer economy. We import everything including those we have competitive and comparative advantages, including fuels and cooking gas. Nigeria imports near 100% of its wheat and 50 -80% of all its foods including cooking oils. NIGERIA is Africa’s biggest importer of sugar and wheat.
Germany is a net exporter of goods. In 2016, it exported goods worth $1.33 trn. They consist mainly, motor vehicles, machinery, chemicals, computer and electronic equipments, pharmaceuticals, foodstuffs, textile and plastic products.
With the production activities associated with the products, Germany was able to keep unemployment figure at mere 5%.
In comparison, Nigeria produces nothing except crude oil extracted by foreigners with the proceeds shared with joint venture partners. The few factories that are able to produce goods could not export them because of low quality.
Yet, they also could not sell to domestic market because majority of Nigerians are poor. Most factories have to close shop because of this factor. About 90% of Nigerians are unemployed.
Absence of electricity generation ensures that Nigeria could not provide employment to more than 10% of its population. There is no way a population of 180 million could be gainfully engaged in any kind of economic activity with meagre electricity generation of 4000mw, something that is barely enough for China’s Steel plants.
Nigerian government had long recognized the importance of electricity. Electricity is world’s most important scientific discovery, but all the past leaders lacked the political will to break the cycle of corruption in the power sector that could allow the power plants to be built and the electricity be delivered to homes and factories.
Success of any government starts and ends with electricity generation. Jonathan met 4500mw and left 3500mw. Buhari met 3500mw and is still on 4500mw that can drop to 3500 anytime during the dry season. Where is the growth?
By Aliyu Nuhu