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Nigeria’s over-dependence on oil threatens economic stability- Expert

Elizabeth Vincent, Yenagoa

 

Dr. Patterson Ogon, a prominent Niger Delta activist and Director of Planning, Research, and Statistics at the Niger Delta development commission (NDDC), has criticized Nigeria’s heavy dependence on crude oil, which he argues has hindered the country from diversifying its economy and tapping into other growth opportunities.

 

Ogon made these remarks during the 13th annual lecture of the Federated Correspondents’ Chapel of the Nigeria Union of Journalists (NUJ), held on Thursday in Yenagoa, where he served as the guest lecturer. The theme of the lecture was: “Niger Delta Region and Nigeria’s Economic Diversification: Challenges and Prospects.”

 

During his address, Ogon emphasized that Nigeria’s economy was historically driven by agriculture before the discovery of oil. He pointed out that crude oil had led to the neglect of agriculture and other sectors. “In 1950, agriculture accounted for 72% of Nigeria’s national output,” he said. “But today, the country’s economy is primarily dependent on oil, leaving agriculture in the background.”

 

Ogon called for a shift away from the country’s over-reliance on crude oil, urging the Nigerian government to focus on sectors like agriculture and manufacturing to build a more sustainable economy. He also stressed the importance of fostering a safer and more resilient ecosystem. “Nigeria’s economic diversification faces numerous challenges, such as a long history of fiscal dependence on oil, the mismanagement of oil revenues, and volatile global oil prices. However, the Niger Delta region, rich in natural resources and home to a large population, has the potential to play a significant role in diversifying the nation’s economy,” he said.

 

He went on to explain that while the discovery of oil brought wealth to certain regions, it also came with socio-economic and political struggles.

“The discovery of oil, while beneficial, has created its own set of challenges. The Niger Delta region, where most of the country’s oil is found, has suffered from environmental degradation, economic instability, and social unrest. These issues have only deepened Nigeria’s complex socio-economic crises,” Ogon noted.

 

Reflecting on Nigeria’s economic history, he highlighted that agriculture was once the backbone of the country’s economy before oil overshadowed it. “In the pre-oil era, agriculture was the foundation of our economy. The rise of oil disrupted that, undermining industries like palm oil, groundnuts, cocoa, and the overall agricultural sector,” he said. “The mono-economy of oil has created more problems than solutions for the survival of the nation.”

 

Ogon lamented that neither agriculture nor manufacturing has received the necessary attention or investment to boost productivity. “Both sectors have been neglected, and without the proper environmental conditions, neither can thrive,” he explained.

 

Also speaking at the event, Morris Alagoa, an environmentalist and Deputy Director at the Environmental Defenders Network, expressed concern about the worsening state of the country. He commended the media for its role in holding the government accountable but criticized the rise of non-governmental organizations (NGOs) and human rights groups, stating that despite their presence, the situation in the country remains dire.

“There was a time when civil society groups didn’t exist, and the government and media played a crucial role in improving society. Today, however, despite the proliferation of NGOs and human rights organizations, life has become brutish and short for many Nigerians,” Alagoa remarked.”

 

He also pointed out the escalating environmental damage in the Niger Delta region, particularly the indiscriminate logging and mining activities. “At the rate things are going, a time will come when we won’t even have timber left. Our forests are depleting at an alarming rate,” Alagoa warned.

 

Earlier in the event, the Chairman of the Federated Correspondents’ Chapel, Tife Owolabi, emphasized the importance of addressing the unique challenges facing the Niger Delta in Nigeria’s pursuit of economic diversification. “The Niger Delta, rich in natural resources, faces numerous challenges that hinder its potential,” he said. “From environmental degradation to inadequate infrastructure, and from socio-economic disparities to security concerns, the region’s complexities require thoughtful analysis.”

 

Owolabi also underscored the critical role journalists play in shaping public discourse and bridging the gap between policymakers and the public. “As journalists, we are not just observers; we are active participants in shaping the narrative. Our role is essential in ensuring responsible journalism that connects policymakers, stakeholders, and the broader public,” he concluded.

 

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