In 2012, Nigeria became the second African country to be listed on JP Morgan’s emerging market bond index and quickly became the biggest economy in Africa after surpassing South Africa with a GDP of $509.9 billion in 2013. Establishing itself as the second fastest-growing key emerging economy after China in 2014, with crude oil at an all-time high of $107.64 a barrel, words get out, economists and investors across the world renewed their interests in the Nigerian economy, a nation of over 170 million people and growth rate of 7.4 percent.
However, all these were short-lived as global oil prices plunges, with Nigeria generating 53 percent of her revenue from crude oil and 93 percent of her foreign revenue. The economic dip, Naira, Nigerian currency had to be devalued three times as Nigerian foreign reserve can no longer sustain fix rate of 155 naira to a US dollar, exhibiting characteristics of the first phase of economic recession, it became conspicuous that the nation that was once a global destination for investments needs a more sustainable economic policy with a long-term strategy.
The ongoing discussion between the US and Iran has further proven that Nigeria can no longer exist as a mono-crude oil economy but as a multi-diversified economy. The research conducted by Bloomberg shows that global oil supply would increase in 2016, when Iran’s oil is expected to hit the global market and forces oil prices below the current level, in fact, analysts forecasted $20 a barrel for crude oil in 2016. If the Nigerian economy is struggling this much at $45 a barrel the state of the economy is better imagined when the crude oil price hit $20 a barrel.
The data released by the National Bureau of Statistics (NBS) shows that the Agricultural sector employed 70 percent of the Nigerian labour market, which comprises mainly the youth. The service industry is currently the fastest-growing sector with manufacturing as the frontier, if Nigeria as a nation would overcome its current economic route there is a need for urgent economic diversification across all sectors.
The research conducted by Maria Uzonwanne of the Department of Economics, Nnamdi Azikiwe University shows that “there exists a positive relationship between economic growth in Nigeria and diversification of other sectors because, when there was proper management of human resources, huge investment and concentration on agriculture, the Nigerian economy was recorded to be healthy and vibrant”, which means effective diversification strategy with proper management of manpower and government investment will not merely resuscitate Nigerian economy but also enables Nigeria to feed her growing population and subsequently eradicate poverty and create jobs.
Nigeria’s unemployed graduates are expected to increase by 24.33 percent in 2020, which means there would be more unemployed graduates by 2020 if nothing is done now, British Council.
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Nigeria’s Presidential CNG Initiative Allocates N100bn for CNG Buses and EV Adoption
The Presidential Compressed Natural Gas (CNG) Initiative has allocated N100 billion to expedite the deployment of CNG buses nationwide, according to a statement released on Wednesday.
The initiative, designed to catalyze an Auto-gas and Electric Vehicle (EV) revolution in mass transit and transportation, aims to enhance sustainability and cost-effectiveness.
The statement revealed that the fund would be instrumental in supporting the adoption of auto-gas and electric vehicles, signaling a commitment to a more sustainable and economical future in the transportation sector.
The Presidential CNG Initiative plans to leverage over 11,500 CNG and electric-fueled vehicles, along with the deployment of 55,000 conversion kits.
This strategic approach is intended to reduce transportation costs for Nigerians and mitigate the challenges posed by the rising cost of living.
Under the Renewed Hope Agenda, the Presidential CNG Initiative is dedicated to realizing the President’s vision, guided by its steering committee led by FIRS Chairman Zacch Adedeji.
The statement highlighted recent achievements, including strategic technical partnerships and the ongoing commissioning of CNG Conversion centers in key states such as Lagos, Abuja, Kaduna, Ogun, and Rivers.
Several more centers are slated for commissioning in the coming weeks, reflecting the initiative’s momentum and commitment to achieving its objectives.
Nigeria’s Power Transformation: 53 Projects Worth N122bn on Track for May 2024 Completion
The Central Bank of Nigeria (CBN), in collaboration with the Transmission Company of Nigeria (TCN) and power distribution companies, is set to complete 53 power projects by May next year.
Valued at N122 billion, these projects aim to add over 1,000 megawatts to TCN’s wheeling capacity.
During a recent tour of three ongoing projects in Lagos, TCN’s Programme Coordinator, Mathew Ajibade, assured that the projects were not abandoned, refuting speculations.
He confirmed that work is progressing smoothly and is expected to be completed by May 2024, as initially planned.
Assistant Director/Head of Infrastructure Finance Office at the CBN, Tumba Tijani, highlighted the CBN’s support for the power sector, revealing that the bank released a loan at a 9% interest rate in August last year for the projects.
The funding, part of the Nigeria Electricity Market Stabilisation Facility-3, amounts to N122,289,344 and aims to address transmission/distribution bottlenecks, enhance supply to end-users, and unlock unutilized generation capacity.
Tijani disclosed that N85.43 billion has been disbursed into the Advance Payment Guarantee account of the 53 contractors responsible for executing the projects.
The comprehensive project list includes the delivery of power transformers, re-conductoring existing transmission lines, upgrading existing substations, and constructing 33KV line bays.
The initiative reflects a concerted effort to enhance Nigeria’s power infrastructure and meet growing energy demands.
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