Special to USAfrica magazine (Houston) and USAfricaonline.com, first Africa-owned, US-based newspaper published on the Internet.
Augustine. C. Mbah, PhD, is a contributing analyst to Houston-headquartered USAfrica magazine and usafricaonline.com
I read the USAfricaonline.com morning news spotlight of November 24, 2021 on the World Bank report on Nigeria cites threats, insufficient forex, insecurity
The World Bank highlighted obvious macro economic challenges to economic growth in Nigerian — such as insufficient foreign exchange, insecurity , unsustainable subsidy of premium motor spirit, burdensome trade restrictions, among others.
However, one would have expected The World Bank to acknowledge measures put in place by the Nigerian Government to minimize the impact of the COVID-19 pandemic and the #ENDSARS crisis induced economic recessions, including the recent achievement of 4.0% GDP growth, as at last quarter.
Nigeria is a mono economy export country dominated by crude oil export. Hence, it is not surprising that since 2014 when price of crude oil started to decline the adverse effects and impact on our foreign reserve, revenue accruals to government have been very significant.
Recently, crude oil prices increased marginally and our foreign reserves also increased marginally but not yet robust.
In view of the foregoing, forex supply definitely would be a challenge. Import restrictions of locally available items especially food crops such as rice and other items would be obvious.
It is easy for developed countries and their IMF/world Bank allies to preach free trade. The reality is that the developing countries are disadvantaged in those trade and transactions for obvious reasons.
The Federal government and State governments in Nigeria have tried to diversify our economy by encouraging investment in Agriculture and its value chains, telecommunication, electricity power generation/distribution, entertainment industry among others.
Gradual withdrawal of subsidy on premium motor spirit from first quarter next year (2022) when the Dangote Refinery and two others would commence production is another strategic move by the federal government led by President Muhammadu Buhari.
Insecurity have continued to be a big challenge in a multi ethnic and religious country like ours. Non-State actors’ agitation for self determination, banditry, kidnappings etc have distracted governments.
Also, the battle against insecurity in Nigeria continues to gulp huge resources that would have been channeled to other areas of need such as infrastructural projects, good health care, available clean water, education etc.
However, I am confident that Nigeria would overcome and achieve more GDP growth than sliding!
