The Nigerian government is interested in diversifying the Nigerian economy from a mono-economy to a multi-economy. This will enable the country to stop being dependent on revenue gotten from the oil and gas industry. Unfortunately, before oil was discovered in the Niger Delta in 1958, Nigeria was an agricultural super power. We exported the largest amounts of cocoa in the south western part of the country, palm oil in the south eastern parts and groundnuts and cotton in the northern parts of Nigeria. We were the largest exporters of these listed commodities before the civil war, in Africa, but soon after the civil war ended, misguided leadership from successive military regimes and democratically elected administrations, have led us astray and depended on oil. These misguided leadership, have even assisted corrupt politicians, businessmen, civilians and the military, to steal everything we have and now they desire that we venture into other industries, especially agriculture they left to die.
These people do not know what industrial diversification means. Industrial diversification is a strategy that involves choosing to structure an industry in a manner that promotes involvement in a wide range of revenue producing activities. The goal of any type of industrial diversification is increase the chances of returns by diversifying or spreading assets over a wider range of activities, while also helping to minimize the potential for failure or loss.
As it relates to production operations, industrial diversification has to do with providing goods and services that appeal to multiple markets rather than focusing on a product line that appeals to mainly one market. For example, a company may operate plant facilities that produce clothing items at one location, while also manufacturing bedding and other types of household textiles at another. At times, the diversification may involve completely unrelated products, such as a company that produces a line of office supplies but also has a division focused on the production of televisions and other electrical entertainment devices. The degree of industrial diversification will often be influenced by what owners believe will provide the best possible protection from declines in one market by enjoying corresponding increases in demand in another market.
What this means is that in agriculture, we can diversify the industry, which would increase the returns after we must have spread assets over a wider range of activities. Take for example, palm oil is a major agricultural commodity in the south eastern part of Nigeria, cassava is also a major crop grown in this region. With diversification, agricultural practitioners can introduce new crops like tomatoes, potatoes, groundnuts, beans and the rest of them to the south east and which would improve the economic returns from different value-added crops and marketing opportunities. With the threat of marauding Fulani-herdsmen from the north, who are trying to seize lands down south for cattle grazing, if we truly support agricultural diversification, we can then introduce dairy cattle and other livestock farming in the southern parts of Nigeria. The economic benefits to these idea is huge, but I do not think we have the political will to make this happen. Look at the grazing bill tearing the nation apart, were government want to take lands from all states of the federation and hand it over to Hausa-Fulani herdsmen, the same people who have been killing innocent Nigerians. The same people who have been labeled the fourth most violent terrorist group in the world by Amnesty International.
Industrial diversification can also occur in other industries like, power, transportation, tourism, health, sports, communication, information technology etc. We need our economists, especially the CBN to look more into this.
Agricultural diversification is a success in India. I rest my case.
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