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Summary: For the past fifty-eight years, Nigeria has been heavily dependent on crude oil revenues for running the economy. According to estimates, the crude oil economy phase will end in twenty years. What then happens to the Nigerian economy during the post-oil era? Adopting a new national business model as a key driver to achieving economic restructuring at this point can not be overemphasized. Despite the fact that various governments have promoted economic policies/blueprints and diversification strategies over the last two decades, none has been able to effectively solve the problem at its source. This is because policies introduced have only focused on economic structures rather than fundamental institutions. Thus, strategically planning for a post-crude-oil economy that is both sustainable and inclusive is necessary.
As Nigeria celebrated its 59th independence , a former Governor of the Central Bank of Nigeria (CBN), Prof. Charles Soludo has urged the Buhari-led Federal Government to employ new national business models in a bid to get the country to its desired progressive destination.
Prof. Soludo made the call while delivering his keynote speech at the Platform Conference organised by the Covenant Christian Centre to commemorate Nigeria’s 59th independence yesterday at the Covenant Place, Iganmu, Lagos.
Speaking on the theme entitled ‘the economic restructuring of Nigeria’, Soludo said: ‘‘if our focus is wealth creation for the future instead of sharing and consumption of oil rents, then we need a new national business model. We are designing good ideas and plans but without the right underlying infrastructure to guide the plans, we won’t move forward’, he added.
He noted that since in twenty years time, crude oil which is at present Nigeria’s major income source will be history, the Federal Government should strategise for the post oil economy.
Dwelling on a roadmap of institutional arrangement that will help to sustain the future of Nigerian economy, the former CBN governor said it is regrettable that since 1962, the Nigerian government has implemented four development plans all designed to diversify and restructure the economy away from dependence on oil, but nothing remarkable has changed.
He said every government in Nigeria over the last two decades has implemented his own version of restructuring and diversification but none has been able to achieve the desired results because they have been changing only the economic structure but not the underlying institutions.
About The Author: Dr. Charles Chukwuma Soludo, CFR is an Economics Professor and a former Governor and chairman of the board of directors of the Central Bank of Nigeria (CBN). Dr. Soludo had cumulative four years of post-doctoral training in some of the world’s most prestigious institutions, including: The Brookings Institution, Washington, DC; University of Cambridge, UK, as Smuts Research Fellow and Fellow of the Wolfson College; the UN Economic Commission for Africa as a Post-Doctoral Fellow; University of Warwick as a Visiting scholar and Visiting Research Scholar at Center for African Economies, University of Oxford.
Key Recommendations: Focus should be redirected towards addressing the fundamental systemic problems rather than implementing projects based on economic structures.
About the Author: Dr. Charles Chukwuma Soludo, CFR is an Economics Professor and a former Governor and chairman of the board of directors of the Central Bank of Nigeria (CBN). Dr. Soludo had cumulative four years of post-doctoral training in some of the world’s most prestigious institutions, including The Brookings Institution, Washington, DC; University of Cambridge, UK, as Smuts Research Fellow and Fellow of the Wolfson College; the UN Economic Commission for Africa as a Post-Doctoral Fellow; the University of Warwick as a Visiting Scholar and Visiting Research Scholar at Center for African Economies, University of Oxford.
Source: Brand Crunch
Keywords: Business Models, Central Bank of Nigeria, Underlying Institutions
