President Muhammadu Buhari on Monday warned both South Sudan and Sudan not to make Nigeria’s big mistake by over relying on oil money, but should rather diversify their economies away from black gold.
A mono-cultural economy is a trap that should be avoided early enough, Mr. Buhari said while receiving, separately, special envoys from President Salva Kiir Mayardit of the Republic of South Sudan, and President Al-Bashir of the Republic of Sudan.
But many have argued that Nigeria is impoverished not because it relied solely on oil wealth, but because of corruption and mismanagement of oil resources. It is not because Nigeria was busy building infrastructure such as schools with oil money that it is broke and poor, but because oil money was just being shared and stolen, many have said.
“Nigeria has eaten its past, present and future,” Dr. Dauda Garuba, an oil and gas expert with the Natural Resource Governance Institute, NRGI, told jourbalists at an oil and gas reporting training in Lagos last week.
“And there’s no money to diversify the economy,” he added.
With low oil prices and bombings in the Niger Delta region by the Avengers, Nigeria is going through its worst financial crisis in decades and calls to diversify the economy are getting louder. But the money is what is not there, Dr. Garuba said.
President Buhari advised the two Sudans to be more vigilant on security by stemming recruitment of young people by terrorist groups. Boko Haram has been wreaking havoc in northern Nigeria for seven years and Mr. Buhari has warned that terrorism is a global threat that should be tackled by all.
According to a statement by spokesman Garba Shehu, the President said Nigeria would continue to support the transitional government that had been put in place in South Sudan.
Mr. Buhari also disclosed that his administration will continue to welcome support and investments from the international community in the agricultural and solid minerals sectors as Nigeria moves to reduce dependence on crude oil.
In a farewell audience with the outgoing Ambassador of the Republic of Sweden to Nigeria, Mr. Svante Kilander, in the State House, President Buhari said the Federal Government would create the enabling environment for local and foreign investments in farming, animal husbandry, fishery and the exploration of solid minerals.
The President said a planned visit by some Swedish trade and investment delegations to the country later in the year would further encourage the ongoing process of diversifying the Nigerian economy.
He commended the Swedish government for the support extended to Nigeria in catering for the needs of Internally Displaced Persons (IDPs) in the North East and the ongoing reconstruction of the areas affected by terrorist attacks.
In his remarks, the Swedish Ambassador was quoted by the presidency as saying that his country was pleased with the sweeping changes taking place across the country with clear results in the fight against terrorism and corruption.
Mr. Kilander said his country would continue to strengthen bilateral relations with Nigeria by encouraging more trade and investments between both countries.