There’s Hope For Nigeria’s Dwindling Economy…Prince Momoh .O
The truth is that Nigeria’s economy can’t be sustained with Crude Oil at $40 per barrel.
Nigeria can also not develop where 80% of revenues accruing to the Federal Govt is used for salaries and overheads of Civil Servants and Government Officials.
Guess what? They make up only 20% of the population.
The truth is that we all made lots of money during the PDP era, those days are gone. It was economic growth without development.
Unfortunately now that we are ready to deploy policies that are geared towards sustainable development, we have no cash.
Nigeria by the year 2050 will be the third most populated country in the world behind China and India, so we have to borrow today to build the infrastructure that will provide for that population.
I agree the government has to do more to alleviate the suffering of the poorest of the poor. But the truth is we are broke.
Let us take electricity.
No one was willing to invest because before this increase, the tarrifs were not cost reflective. So cost of sale of electricity is less than cost of generating and distributing it.
But it is not all gloom.
Dangote Refinery is almost ready.
The fertilizer plant is ready.
Within the next 18 months, Nigeria will be a net exporter of Fertilizer and Refined Petroleum Products.
Dangote Refinery has a capacity to produce 100m Litres/Day.
We only consume 50m Litres/Day, including smuggled products to neighbouring countries.
The other good news is that the 35% of our foreign exchange used for importation of petroleum products will be saved.
Edo Refinery is ready.
BUA Refinery will be ready by 2024.
Prince Momoh O
Writes from Kaduna