Business
Diversify Economy By Focusing On Untapped Sectors- Stakeholders Urge FG
Stakeholders from various sectors have called on the Federal Government, FG, to diversify the nation’s economy by focusing on all untapped sectors such as tourismoand also make a significant U-turn from over reliance on petroleum resources.
The call was made by the executive director, Advocacy for Good Ethics and Accountability Development, AGEAD, Mr. Henry Thomas at its 2nd legacy summit, held, during the week, in Abuja.
They emphasized that Nigeria possesses vast arable land, a large labour force, and a vibrant entrepreneurial spirit, which could be harnessed to drive growth and create employment opportunities.
Thomas addressing newsmen, said: “The year 2023 has been a very challenging and difficult year for almost everyone in the country. Nigeria, as a country, has no business with poverty. The country has rich natural and human resources.
“Nigeria was a leading producer of many sectors such as the apparel, garment, arts and crafts, cosmetics, and the beauty industry and agro-commodities contributed immensely to the growth of our nation’s Gross Domestic Product (GDP).
“However, the discovery of oil in 1956 marked a major setback to other important productive sectors of the country’s economy. Oil has been almost like a national anthem ever since my existence, but it is quite unfortunate that leaders have come and gone without a solution. It is on this note that it is imperative to think and proffer solutions because the only way is to know the problem and the solution finds its way.
“The message I’m trying to pass is that our adventure and expedition into oil for the past 60 years hasn’t led us anywhere and it is time for us to make a U-turn back to where we are coming from, let’s go back to Agriculture, let’s go back to mining, let’s go back to culture and tourism, let’s go back to technical education and production.”
Speaking on the need for the country to tap into the wealth of the creative industry, the Rector Federal Polytechnic Auchi Edo state, and former Director of Performing Arts, National Council for Arts and Culture, Mr. Sam Agbi said: “Tourism goes for a reason, there must be an attraction. Without attraction, there is no tourism.
“You leave your house for a purpose. You don’t just travel just like that, there must be a reason and so you marry tourism and culture. But, in the case of Nigeria, it is only cultural tourism that we have a comparative advantage.
“Nigeria has no comparative advantage when you say you want to develop beach tourism. Which mountain do you have that you can compare with others in the world? Is it wildlife? Is it conferences, I don’t know for now. So, the only tourism we can market is cultural tourism and if we develop that aspect of cultural tourism, Nigeria has to have a huge amount of money in terms of foreign exchange and arrivals.
“One of the qualities of this creative industry for instance is that some of them are a royal economy, they stimulate the royal economy because they are residing with the people. Whenever I tell my children that I want to travel home, they will say ok because there is a policy of you have to follow me to know your home.
“So, what I am saying is that the incentives at home are not favorable. Nobody would want to stay in the village and not have facilities but those with wealth, those with creative industries, most of them are in the village, they reside with the people. If you don’t develop it, you’re not developing the rural economy. If a government really wants to develop that aspect of the economy, it is helping to generate income for the people that dwell in that environment.”
The Central Bank of Nigeria (CBN) has reaffirmed the need for strong, stable, and resilient banks to achieve President Bola Tinubu’s target of a $1 trillion economy by 2030.
Speaking at the 36th CBN Seminar for Finance Correspondents and Business Editors held in Abuja, Deputy Governor of Corporate Services, Ms. Emem Usoro, emphasised that ongoing efforts to recapitalise banks are a vital step in realising this goal. Represented by Acting Director of Corporate Communications, Mrs. Hakama Sidi-Ali, Usoro said bank recapitalisation will empower financial institutions to fund large-scale projects and compete globally.
“As we work towards building a one-trillion-dollar economy, we must consider the recapitalisation of our banks to finance and power the economy,” she said. “Banks must be strong enough to support development projects and effectively carry out financial intermediation.”
She added that Nigeria’s current GDP stands at around $250 billion, indicating a significant gap that would require strategic planning, consistent policy direction, and the full engagement of economic stakeholders.
The global financial architecture, she noted, has evolved, particularly since the Trump administration in the U.S., making it crucial for Nigerian banks to align with global opportunities and risks through responsive policies.
In his presentation, Director of Banking Supervision at the CBN, Dr. Olubukola Akinwumi, explained that the recapitalisation strategy now focuses on helping banks meet their Cash Reserve Requirement (CRR) obligations and participate in infrastructure financing.
He said, “A well-capitalised bank can support large transactions and benefit from government initiatives such as infrastructure concessions. Stronger banks can lend more, especially to priority sectors like agriculture, manufacturing, and SMEs, which are engines of growth.”
Akinwumi stressed that these sectors remain central to the government’s development plans, as reflected in the 2025 national budget, which prioritises education, health, agriculture, and infrastructure.
Adding an industry voice, UBA Managing Director, Mr. Oliver Alawuba, urged greater trust in Nigerian banks, suggesting that part of the country’s external reserves be managed locally to build confidence and boost economic growth.
“We manage the reserves of other African countries. Nigerian banks should be trusted with at least 10 to 20 percent of our own reserves,” he said.
However, Alawuba raised concerns about the feasibility of reaching the $1 trillion goal, citing Nigeria’s current annual growth rate of 3.8 percent—far below the 10 percent minimum required to meet the target by 2030.
He called for synergy between fiscal and monetary authorities to support the financial sector in driving sustainable economic transformation.
The price of Bonny Light, Nigeria’s premium crude oil grade, dropped by 5.09 percent to $59.62 per barrel on Wednesday, amid rising tensions from the ongoing global tariff war sparked by recent tariff hikes announced by the United States.
The downward trend in oil prices was further compounded by the Organisation of Petroleum Exporting Countries (OPEC) and its allies’ decision to raise oil production by 411,000 barrels per day starting in May 2025.
The price plunge comes as a major concern for Nigeria, whose N54.99 trillion 2025 national budget is predicated on a benchmark oil price of $75 per barrel and a production target of 2.06 million barrels per day (bpd). Current output, including condensates, stood at 1,671,953 bpd as of February 2025, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Speaking to Vanguard, Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), described the situation as a “serious problem.” He warned that the decline could severely impact government revenue and weaken the exchange rate.
“This poses a risk to our revenue and foreign exchange earnings. We all know the implications of a weak exchange rate on the economy,” Yusuf said.
Despite the broader economic risks, lower crude prices may offer relief at the pump for Nigerian consumers. Findings by Vanguard indicate that domestic petrol prices may fall as downstream operators prepare for a likely reduction in Premium Motor Spirit (PMS) prices.
Ehimen Joseph, Chairman of the Lagos State Chapter of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), told Energy Vanguard, “This should be expected in a deregulated market. If the fall in crude oil prices persists, it would affect pricing along the entire value chain.”
Another industry source, who requested anonymity, said: “Everything is pointing towards a pump price reduction this week. One of the refineries has stopped issuing petrol tickets, anticipating a price review before Tuesday.”
Depot prices have already begun to reflect the trend. Data from petroleumprice.ng shows declines across major players: Mainland dropped from N920 to N918 per litre, A.Y.M from N920 to N919, and Ever from N920 to N918. Prudent, Eterna, and Soroman also saw slight reductions, with Eterna dropping from N900 to N897 per litre.
Meanwhile, OPEC has reaffirmed its commitment to monitoring the global oil market. A recent virtual meeting of eight OPEC+ countries—Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman—held on April 3, 2025, reviewed market conditions and reaffirmed output increases to stabilize global supply.
The situation continues to evolve, with both global market forces and domestic economic managers under pressure to adapt quickly to the unfolding realities.
The Central Bank of Nigeria (CBN) has reported a Balance of Payments (BOP) surplus of $6.83 billion for the 2024 financial year, a remarkable shift from deficits of $3.34 billion in 2023 and $3.32 billion in 2022.
This development, disclosed in a statement by the Acting Director of Corporate Communications, Sidi-Ali Hakama, highlights Nigeria’s improving economic fundamentals and the outcome of key macroeconomic reforms.
According to the CBN, the positive BOP performance was driven by stronger trade figures, resilient remittance inflows, and renewed investor confidence. “This improvement reflects the impact of wide-ranging macroeconomic reforms, stronger trade performance, and renewed investor confidence in Nigeria’s economy,” the bank stated.
The current and capital account recorded a surplus of $17.22 billion in 2024. This was largely supported by a goods trade surplus of $13.17 billion. On the import side, petroleum imports declined by 23.2% to $14.06 billion, while non-oil imports dropped by 12.6% to $25.74 billion.
Exports also recorded significant gains, with gas exports rising by 48.3% to $8.66 billion, and non-oil exports increasing by 24.6% to $7.46 billion.
Personal remittances grew by 8.9% to $20.93 billion, and inflows through International Money Transfer Operators (IMTOs) surged by 43.5% to $4.73 billion, reflecting stronger engagement from the Nigerian diaspora. Official development assistance rose by 6.2% to $3.37 billion.
The CBN also reported a net acquisition of financial assets amounting to $12.12 billion in 2024. Portfolio investment inflows more than doubled, rising by 106.5% to $13.35 billion. Resident foreign currency holdings increased by $5.41 billion, indicating greater confidence in Nigeria’s domestic economy.
Although foreign direct investment (FDI) dropped by 42.3% to $1.08 billion, the overall financial account posted significant improvements.
In addition, the country’s external reserves grew by $6 billion, reaching $40.19 billion by the end of 2024, enhancing Nigeria’s external buffer and stability.
The CBN’s announcement underscores a broad-based recovery in the country’s external account and a positive outlook for sustained economic momentum in 2025.
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