The Chairman, Nigeria Economic Summit Group, NESG, Board Committee, Adedoyin Salami, NESG, on Monday warns that it is dangerous for the country to continue to depend on crude oil as a source of its revenue.

File photo: refinery

Salami made the disclosure while delivering the keynote remark at the opening of at the opening of the 22nd edition of the Nigeria Economic Summit (NES 22).

He furthers “The dynamics of oil has changed, with the production of shale oil. The cost of producing shale oil imposes a cap on oil prices, with 72 countries in the world potentially capable of producing shale oil, with Nigeria’s key customers, United States and China already producing shale oil or looking for alternatives to our oil,” he said.

He advised Nigeria to begin to move away from oil dependence, saying the country could overcome the domestic economic challenge if solutions were found to the absence of a policy framework to articulate national development attainment goals.

The strategic implementation plan by the Budget and National Planning Ministry, he noted, fell short of a national development plan, as it hardly helped investors and guide the economy towards what the country’s national preferences were and what the development path should be.

He warned that failure to make the private sector the engine of growth and development would not make the country attractive to investors, saying government must encourage and support the private sector to contribute to the economy.

“Presently, we have uncertain policy attitudes towards private capital and markets. Government should not allow that to continue by intervening when necessary.

Despite the existence of a National Competitiveness Council, he said Nigeria has remained uncompetitive, with productivity low, with Nigeria ranking about 126 out of 144 countries in global competitiveness.

Mr. Salami said it was dangerous to continue to depend on oil revenues, underscoring the need for diversification, pointing out that in the absence agriculture, oil and gas, ICT, real estate and trade, the country cannot say it has an economy, despite having over 46 economic sectors that could be tapped.

Commending government for resolving the energy crisis, helping the states handle their insolvent statuses, floating exchange rate policy and ensuring fiscal discipline, Mr. Salami reminded government that it would be remembered more by what they have left undone.

“For our leaders, your success is not going to be measured by what you have done. You will always be judged by what remains to be done. While Nigerians will praise you for those things you have done, it is those things you have left undone, or remains to be done, impinging on us as a nation, and it is against those gaps that your service will be measured,” he said.

He highlighted areas of poor performance by the government to include its inability to communicate well with the people on what it has done, saying although there were several road maps in various sectors of the economy, there was need to bring them together into a development plan understood by the private sector.

“That is an imperative that must be achieved before the end of this year. This speaks to the need to review the policy direction on local content for Nigeria. We cannot continue to depend on imports. If we continue to export so much of our values through imports, we are leaving so little for ourselves”.

On rising unemployment, particularly among the 15 to 25 age group, he said this would not only destroy hope, it would create a fundamental systemic challenge for social coherence to economic progress and inclusiveness.

To create a globally competitive economy, he said Nigeria must not only produce her goods and services, but must have a strong, consistent and stable currency that gives Nigerian producers advantage against global competition.