Why Nigeria Needs to Invest More in its Non-Oil Sector

Some weeks ago President of the Chartered Institute of Banks of Nigeria (CIBN), Dr Bayo Olugbemi, linked the fall in the value of the naira to the weak exploration of the non-oil sector in Nigeria.

Olugbemi said, “What we need to do to increase the value of naira is to produce goods for export. We have been sending our oil abroad for them to refine and bring it back to us at a higher cost. So, we need to start refining it in Nigeria”. 

Today, the central bank governor, Godwin Emefiele, called for more investment in the non-oil sector in Nigeria in a communique read at the recently held Monetary Policy Committee meeting. 

Emefiele commended the government’s efforts to expand the economy but highlights the need for a better concentration of efforts on the non-oil sector as discussed in the committee meeting. 

He said, “The Committee also commended the gradual diversification of the economy with the increased contribution of the non-oil sector to Government revenues and called for more support to increase non-oil exports as a source of foreign exchange earnings into the economy.”

The Committee evaluated the changes in the global economy, international financial ecosystem, and local economy, as well as the projection for the remainder of the year and the first quarter of 2022.

To strengthen the business environment, Emefiele encouraged the government to prioritise investment in public infrastructure. Transportation networks, electricity supplies, education, and healthcare. Such efforts, he suggested, might be supported by forging equitable partnerships with international investors and Nigerians residing abroad.

Emefiele stated that the top bank’s numerous intervention programmes in manufacturing, agriculture, and healthcare, among other sectors, have contributed significantly to the country’s economic progress.

He did, however, note COVID-19’s negative influence on the global economy and the necessity for a massive vaccination campaign to limit the virus’s spread, particularly given the discovery of new strains.

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