Nigeria is in a difficult economical and political situation right now. The activities of Niger Delta militants on Nigeria’s oil and gas installations has depleted the country’s revenue generation. According to sources we could make $2 billion USD in a month but because of the activities of these militants, we now make less than $1 billion a month. Also the CBN floated the Naira and it now sells for #375 at the parallel market and #295 at the official rate to the dollar. This has increased the inflation rate to 16%. The price of commodities has gone to the rooftops. Fuel now sells at #145 per liter.
This spells doom for Nigerians. We are in a recession and some of us claim that we are in a depression.
But I see a light at the end of the tunnel. I clearly support the diversification and privatization of the Nigerian economy. The continuous hold of the Nigerian economy by the federal government is not good for us. Government can declare an initial public offering on its main monopolies and generate hard earned foreign reserves that we badly need. They can privatize some major sectors like education, tourism, sports, transportation, mining and agriculture outright. Most importantly, the need to go back to the revenue sharing formula before 1967-1970. I support resource control by the states and not by regional governments.
Under listed are the international prices of commodities;
- gasoline USD/gal 136.15
- heating oil USD/gal 136
- gold USD/t.oz 1,323
- copper USD/lb 224
- corn USD/bu 342
- wheat USD/bu 425
- cocoa USD/mt 2,886
- cotton USD/lb 73
- live cattle USD/lb 108
- crude palm oil USD/mt 683
- tomato paste USD/mt 350
- cassava starch USD/mt 78.
If the Buhari administration is serious about diversification, they need to do it now. But first they most have a unity government with the opposition. Fight corruption by allowing EFCC to go after corrupt officials no matter the tribe, religion, position or party affiliation. Appoint equal number of people from other ethnic groups and not just from the north and renegotiate terms with the militants and other agitators. We need to secure this country by all means necessary.
With the above listed prices on commodities, Nigeria needs to diversify immediately. I rest my case!