Overdependence on Oil Frustrating Efforts at Development – Cosmas Maduka

• Overdependence on Oil Frustrating Efforts at Development – Cosmas Maduka

The Founder of Coscharis Group, Dr Cosmas Maduka, has stressed that the nation’s overdependence on oil is the reason its efforts at sustainable development is failing.

He made this known on Tuesday while delivering a keynote address at the 13th Unilag Annual Research Conference and Fair themed, Resource Utilization and Sustainable Development, at Jelili Omotola Halls, Akoka, Lagos.

Maduka said that until the nation rids itself of ‘Nigeria’s oil structural disease’, the economy would continue to suffer.

He reaffirmed that the impact of oil wealth, which he termed, ‘no-effort wealth’ on the national psyche had brought along the illusion of infinitely abundant resources and official extravagance.

Describing what the country was going through as a ‘Lottery Effect’, he said, “This is a syndrome whereby a hitherto hard working person wins a lottery, quits his job and restructures his family’s lifestyle around the consumption of the lottery money. We seem to have forgotten that a key feature of any resource is that it has the potential for depletion.”

Maduka added that despite efforts at diversification, oil was still the mainstay of the economy. “When oil price goes up, we celebrate and the economy booms, and when it falls, the economy slumps and everything goes burst. Oil still accounts for more than 90 per cent of Nigeria’s export and foreign exchange earnings and more than 65 per cent of government revenue, something has to give. The nation needs to focus on re-forming the defective institutions to lessen the stronghold of Abuja and unleash the creative and competitive drive of the people.”

Using China as an example of how to transform an economy, he said, “Their economy has enjoyed 30 years of explosive growth. Its research on economic development has suggested a significant role for capital investment in economic growth, which is attributed to capital investment that has made the country more productive.”

On his part, the Vice-Chancellor, University of Lagos, Prof. Oluwatoyin Ogundipe, said the aim of the event was to enlighten the public on how to utilise the resources at its disposal and how it could be sustained for the benefit of the nation.

He said, “The research and conference fair is achievable because some of the research work is already on ground and funding would be needed for the sustainability of the research as well as to make it relevant.”

The Group Managing Director, Vitafoam, Mr Taiwo Adeniyi, also lauded the conference saying concerned stakeholders needed to invest in research and development to move the country forward.