Connect with us

THE NEWS

Why Nigeria is yet to achieve economic diversification – Abraham Nwankwo

Published

on

Abimbola Johnson

 

The paradox of a federal state with a unitary economic management model has been cited as a major reason why Nigeria is yet to achieve economic diversification despite effort by successive governments.

Dr. Abraham Nwankwo, an economist and former Director General of the Debt Management Office, expressed this view in a keynote speech he delivered at an international conference organized by the Faculty of Management Sciences, Nnamdi Azikiwe University, Awka in Anambra State today.

Nwankwo noted that a country that is practicing federalism should “naturally incline towards economic diversification” but posited that  the subsisting arrangement in Nigeria had worked against that expectation and renders the system a sharing one rather than a producing one.

“Oil revenue which accounts for between 75 and 80% of public revenue over the past four decades is adjudged owned by the federation and not the sub-national territories where they occur.

“ Following the unitary approach to administration entrenched by military governments for about 30 years starting in 1966, the 1999 Federal Constitution requires that such revenue be moved to the federal treasury, from where it is shared to all the governments according to the prevailing revenue allocation formula.

“The sharing formula has nothing to do with useful contribution to the revenue but is rather based on such factors as population, school enrolment and land mass. This economic model encourages allocation and sharing rather than production and saving.

“As a result, States get lazy about developing and depending on internally-generated revenue and neglect diversification of their revenues. This behavior is a variant of Resource Curse generated in a disjointed federal system like Nigeria’s.”

He stated that while Nigeria’s political arrangement is federalism, the economic arrangement is essentially unitary, which has is a major factor inhibiting economic diversification.

The economist further stated that the unitary management of the economy in a federal state had led to a few incongruencies, which are symptoms of sustained economic mismanagement, stressing that this “disorder” must be addressed to achieve economic diversification.

To achieve economic diversification, he urged the government to address some of the incongruencies which include “The non-oil sector which contributes more than 91% of GDP contributes less than 20% to export earnings while oil which contributes less than 9% to the GDP contributes more than 80% to exports earnings, the big non-oil sector contributes less than 30% to public revenue while the small oil sector contributes between 77% and 80% to public revenue.”

Also, he said the non-oil sector is not able to fund its foreign exchange needs but depends largely on foreign exchange generated from the oil sector. “This means that the non-oil sector is dangerously connected to the oil sector and therefore vulnerable to the latter’s volatility,” he said.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

THE NEWS

Sowore: Reps order immediate investigation of DSS’ court invasion

Published

on

The House of Representatives, on Tuesday, called for an investigation into the invasion of an Abuja Federal High Court by operatives of the Department of State Services (DSS).

The lower legislative chamber directed its relevant committees to probe the alleged DSS invasion of the court.

Minority Leader of the House, Ndudi Elumelu raised the matter on the floor of the House during plenary. He stated that the occurrence was an abuse of the sanctity of the court.

The lawmaker described DSS action as “one arm of government attempting to overpower another, which will spell doom for the country’s democracy.”

Recall that last Friday, DSS operatives reportedly chased out lawyers from an Abuja Federal High Courtroom, attacked journalists before re-arresting Omoyele Sowore, the convener of RevolutionNow Movement.

The DSS has since denied invading the courtroom

The spokesperson of DSS, Peter Afunanya, had insisted that the activist’s supporters had acted an “orchestrated drama” inside the court.

Afunanya had claimed that none of its officers was involved in the incidents recorded in the courtroom.

Continue Reading

THE NEWS

BREAKING: Buhari sacks Muiz Banire as AMCON chairman, appoints Adamu

Published

on

Edward-Adamu

President Muhammadu Buhari has sacked Muiz Banire as the Chairman of the Governing Board of the Assets Management Corporation of Nigeria, appointing Edward Lametek Adamu as new chairman of the Corporation.

This was contained in a letter read on the floor of the Senate by the Senate President, Senator Ahmad Lawan.

The letter, dated December 9, 2019, reads: “In accordance with Section 10(1) of the Asset Management Corporation of Nigeria (AMCON) Act, 2010, I hereby present Mr. Edward Lametek Adamu for confirmation as Chairman of the Asset Management Corporation of Nigeria by the Distinguished Senate.

“While hoping that this request will receive the usual expeditious consideration of the Senate, please accept, Distinguished Senate President, the assurances of my highest consideration.

”Banire was appointed as AMCON Chairman in 2018.

Continue Reading

THE NEWS

Buhari appoints new FIRS chairman

Published

on

President Muhammadu Buhari has appointed Muhammad Nami to replace Babatunde Fowler as chairman of the Federal Inland Revenue Service (FIRS).

Fowler, whose tenure ended on Monday, was confirmed for a four-year tenure by the senate on December 9, 2015.

He is expected to hand over to the most senior director on the board until the senate confirms Nami as FIRS chairman and the new board.

According to a statement by Garba Shehu, the senior special assistant to the president on media and publicity, Nami is a tax, accounting and management professional with three decades of practical working experience in auditing, tax management and advisory and management services.

“He is an expert in rendering advisory support services to investors in respect of new business start-ups and management of existing businesses. He has also continuously rendered outsourced services to clients in trading, service and manufacturing sectors of the nation’s economy,” the statement read.

Muhammad Nami attended Bayero University Kano and Ahmadu Bello University, Zaria, where he obtained a bachelor’s degree in sociology (1991) and a masters of business degree (2004) respectively.

He is a fellow of Chartered Institute of Taxation of Nigeria, Institute of Debt Recovery Practitioners of Nigeria and Associate Member of Nigerian Institute of Management (Chartered) and Association of National Accountants of Nigeria.

He started his career with PFK in 1993 and rose to the position of a senior consultant in charge of tax management and advisory services.

He is currently the managing consultant of Manam Professional Services (chartered tax practitioners and business advisers) based in Kaduna, Abuja, Niger state.

Muhammad was appointed as a member of the presidential committee on audit of recovered stolen assets in November 2017.

The FIRS board is composed of a member representing each of the six geographical zones and statutory representatives from a select number of ministries and government agencies.

Continue Reading
Advertisement

Facebook

Advertisement
Advertisement

Trending