Business

‘No nation build economy on sentiments’

By Adetunji Ayobrown
The world economy does not stand alone but revolves around its politics which Nigeria must learn to be a good player if our nation must survive economically.
Issues surrounding fixing the Nigerian economy are beyond the scope of federal, states and local government authorities alone.
The Director-General, Nigerian American Chamber of Commerce, Sola Obadina said this as he explained the need to fix the nation’s infrastructure first in order to effectively compete in Africa market.
Dominated mainly by oil exports, Nigeria and other 53 African countries account for less than 2% of US total external trade, but with the introduction of the African Continental Free Trade Area (AFCFTA), a free trade area founded in 2018, commenced in 2021.
Speaking on Blinken’s visit and ways to improve the Nigeria-US relationship, while highlighting key outcomes and assertion of bilateral trade challenges, and export action plan under AFCFTA.
Monitored by the National Pilot, he stated this and many more on Channels Television’s ‘Business Morning’ Programme aired on Tuesday.
He said that politics is the foundation for growth and since it is about everything and if it is not right nothing would be right in the nation. “When the politics is right the economy too would be right”.
“To be honest, for Nigeria to achieve any meaningful development, there is a need to fix the infrastructure to be better competitive in Africa. Nobody would patronise the country based on sentiments”, he said.
“In economics, there are two primary areas, the mining and agricultural sector, with the latter having the potential of generating numerous jobs to the tune of millions. Arising from the agricultural activities are processing”
Obadina said in terms of packaging, standards and access to finance are key variables. “Nigeria has a market of over 200 million people who eat daily but import most of its food items when we are supposed to add value to our agricultural produce.
“Nigeria has significant African populations even in the US who love to eat African and Nigerian dishes but are hindered by export mistakes. It is rather better for Nigeria in terms of forex earnings to add value to our produce”.
“Nigeria has a competitive advantage in the labour force, because it is cheap but other things like security and infrastructure are not. There is a need for better commitment on the part of FG on these”.
He said, “Nigeria is blessed with huge coastal area lines from Badagry in Lagos state to Port Harcourt in Rivers and Calabar in Cross Rivers, we can have up to six functional sea ports along these coast lines”.
He stressed further that there is no need for goods meant for Port Harcourt to come to Lagos ports which would reduce if not totally erase trailer movement of goods inter-states. Same is applied to exporting, logistics have to be well planned such that the goods must arrive at their destinations in good acceptable form.
He explained that “there must be serious partnership and synergy between government and private sectors which must be on an equal plane for the benefit of the economy and its people”.
“Developed countries had already provided for their next generation; when would the Nigerian nation do the same which we are doing nothing about but eating up everything”.
“Tin Can Island Port and Apapa Ports, the accessibility to these places and efficiency at the ports are key issues. Otherwise, if it costs lesser to import through Cotonou Ports why should I then go through Apapa, it doesn’t make good economic sense for Nigeria”.
“Nigeria must compete on quality and size to produce goods if it must participate effectively on the African Continent, and that must be done, infrastructure and security must be right. All factories cannot be in Lagos but where there is fear of drivers and goods being kidnapped on the way would definitely add to the cost of production and doing business, he said.

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