By Richard Odusanya
Nigeria could have been a rich country where no one lives in poverty and millions are living in hunger. Economic inequality in Nigeria has reached extreme levels, despite being the largest economy in Africa. The country has an expanding economy with abundant human capital and the economic potential to lift millions out of poverty. But this is not happening. In fact, despite Nigeria’s richness in solid minerals, oil and arable land, it is still poor. What a Paradox!
Interestingly, in 1956, Nigeria discovered its oil resources. In the subsequent years, Nigeria started to exploit its oil by opening it up to the international business community. Today, the country is the world’s 11th largest oil producer, with an average daily production of 1.8 million barrels in 2020. The petroleum sector represents over 90% of exports in the country.
Paradoxically, while oil booms have brought unprecedented wealth and development to some countries, in others this has been the reverse. Sadly the latter is the case with Nigeria. Evidence shows that in Nigeria, oil has been more of a curse because institutions are not strong enough to efficiently manage the vast oil revenue to have a positive impact on the economy and for the benefit of its people. The uncontrolled population explosion has also militated against any success that could have come from a crude oil-based economy.
Additionally, current statistics show Nigeria was the leading oil producer in Africa as of 2022, although overtaken by Angola’s 1.16 million barrels per day (bpd) as of the third quarter of 2022. Oil production amounted to roughly 69 million metric tons in the country. Notwithstanding the challenges, which include oil theft and other leakages; Nigeria regained its position as Africa’s largest oil producer in May 2023.
Furthermore, Nigeria recorded 1.184 million bpd of crude production in May, up from 999,000 bpd recorded in April, while Angola’s output rose to 1.111 million barrels per day from 1.06 million recorded in April, according to the oil cartel’s direct communication data. While the crude oil output of these two countries are similar. Assuming that oil was selling at $91 a barrel, and that the populations of Angola and Nigeria are 39.4 million, and 220 million respectively, the average Angolan’s life would be resourced by approximately 6 times that of an average Nigerian, with significant consequences for the Nigerian’s quality of life.
Before going any further, let me share with us an abstract from one of my articles published on 7th July 2022, the 24th memorial anniversary of Bashorun Moshood Kashimawo Olawale Abiola (MKO): “HOPE ’93-’23: The Road to Prosperity: How to Grow Our Economy and Revive the Nigerian Dream” HOPE ’93, was the harbinger of series of good tidings that was on the way coming before the reactionary forces scuttled the JOY of NIGERIANS. The message was very clear; eradication of POVERTY. He said in his campaign for HOPE: “No citizen of our dear nation Nigeria is permitted to go to bed on an empty stomach.”
For the record, following the truncation of the entire Hope 93 dream by General Ibrahim B. Babangida RTD. It’s really been a tortuous journey with several hopes dashed. And regrettably, today as Nigeria clocks the milestone of sixty-three years of independence, more than one hundred and fifty million Nigerians can no longer afford daily meals with families going to bed on empty stomachs – even as we presently sloganeer the hope mantra “Renewed Hope” which now has to face the inevitable reality of debt payment and demography, leading to the current seeming hopelessness.
In addition to the above, Nigeria is richly endowed with a variety of Natural Resources ranging from precious metals and various stones to industrial ones such as Barites, Gypsum, bitumen, Kaolin, Lithium and Marble. Apart from petroleum, Nigeria’s other natural resources, are natural gas, tin, iron ore, coal, limestone, niobium, lead, zinc, and arable land. Despite the humongous resources with so many blessings, citizens of our beloved country Nigeria are going through excruciating pains as a result of the rudderless state of our nation coupled with inept leadership leading to squandering of riches and plundering of resources. The challenge is that Nigeria is at the cross-road – wobbling and fumbling, to borrow the phrase of a former national team football coach Fanny Amun when his team was being knocked from pillar to post. There lies the compendium and catalogue of Nigeria’s litany of woes.
Consequently, as we forward march in equanimity, the entire system needs to be overhauled and must address the many dysfunctional and crazy elements that put the lives of our citizens in jeopardy. The solution to extreme poverty and inequality lies in the ability to block leakages while the government must work with the international community to get food and aid to hungry people now. But it can’t stop there. It must free millions of Nigerians from poverty by building a new political and economic system that works for everyone, not just a fortunate few.
On the good side, there’s light at the end of the tunnel. Admittedly, some tunnels are very long. When we drive through them, we must turn on our headlights. If not, we cannot see! If you are afraid of long dark tunnels, having lights is important. This means to have hope that a bad situation will soon come to an end, and ultimately despondency to vibrancy for our citizens. Therefore, it is not all gloomy situations. Hence the good tiding.
Above all, I like to conclude this contribution that focuses on “Nigeria’ @63” by unveiling one of the lights that generate hope and bring succour to the good people of Nigeria on this independence day. I hereby, to the glory of the Almighty God introduce Gasoline Associates International Limited licensed by the Federal Government of Nigeria to build and operate a 100,000 (BPD) barrels per day refinery. The Refinery and Petrochemicals Plant is located in Ipokia, a local government area bordering the Republic of Benin, in Ogun State.
The Sino-Nigeria co-operation is situated on a land mass of over 1,000 hectares, lying along the coastal plain of river Yewa in the North of the Badagry Lagoon and Bight of Benin. The Refinery and Petrochemicals facility is positioned to reduce the nation’s dependence on imported gasoline and petrochemical products arising from the low capacity utilization of state-owned refineries in Nigeria and is anticipated to contribute immensely in meeting local demand for fuel and other petrochemical products while contributing to the nation’s overall socio-economic development.
In addition to creating new investment opportunities, it is also expected to create new jobs and training opportunities in Nigeria, enhancing human capital development across the country. For the records, this is the first phase of many layers of mutually beneficial endeavors – a project that has attracted billions of dollars into our economy without any encumbrance and has got all the necessary approval and licensed to construct via due process. Gladly, there are many more of similar figures that signposts the new era of RENEWED HOPE. Therefore, it is with joy in my heart, privileged and honored to join millions of our compatriots across the globe to congratulate ourselves and salute the brains behind the initiatives: Engr Daniel Lee (President), Dr. Lukman Akande Bolaji (Chairman/Chief Executive Officer), Board of Directors, Management Staffs of Sino-Nigeria co-operation. Congratulations!
HAPPY INDEPENDENCE NIGERIANS
Richard Odusanya
