Why all eyes are on Nigeria to unlock Africa renaissance

Nigeria, the most populous black nation in the world and the biggest economy in Africa, is in the reckoning in the eyes of all nations, of late, because of its huge economic potential. Majority of the people believe Nigeria is the next big thing to happen to the world! This feeling is not unconnected with the “feel good factor” that accompanied the new president, Bola Ahmed Tinubu, who seems to be taking ‘appropriate steps’ so far. Oil subsidy, which has been described as a “bull in a China’s shop” and has been eating deep into the purse of the nation, preventing it from embarking on sustainable capital projects has been removed. No wonder, ahead of the February 2023 election, all the three major presidential candidates promised to remove the subsidy and introduce oil sector reforms in their manifestos, signifying a consensus among the political class to do away with the fraudulent practice.

Almost all experts concur that in light of Nigeria’s economic reality, fuel subsidy has become a huge financial burden. Ayodele Oni, an energy partner at Lagos-based Bloomfield Law Practice, told Al Jazeera that, “There is no doubt that fuel subsidy has adversely impacted Nigeria’s finances and keeping the same would have been fiscally irresponsible”. Only the rich, and the people of some neighbouring countries were enjoying the benefits of oil subsidy which has practically brought Nigeria to her knees. Following President Tinubu’s announcement, NNPC Limited and a host of others, said they welcome the removal of the subsidy. NNPC boss, Mele Kyari, added that the government owes the company N2.8 trillion ($6 billion) for the petrol subsidy.

With the removal of the oil subsidy, more money will be saved by Nigeria and she will be able to pay a “living wage” to her workers. This means an improved purchasing power to workers. There is hope that the four refineries in Nigeria will be reactivated and put back to work. This development will eventually reduce the pump price of petroleum products. The Student Loan Board, which has been activated by President Tinubu, is a great development towards improving the quality of education in Nigeria. The Commodities Board, which Mr. President promised to set up, will surely help our farmers to achieve more and will strengthen food security in the country. People outside Nigeria are now seeing signs that the country means business and is poised to regain its lost glory, especially its slogan of “Giant of Africa”.

Recently, Bill Gates, one of the richest business men in the world, visited Nigeria.  He said he has “been fortunate to spend a good amount of time in Nigeria over the past two-plus decades as part of my work with the Gates Foundation. Each time I return, the country feels both familiar and entirely new. That’s exactly how it felt earlier this week when I visited for the first time in five years. It was great to catch up with old friends and reconnect in person with longtime partners. At the same time, I was blown away by how much this vibrant, dynamic place has changed. But it makes sense: Nigeria isn’t just the most populous country in Africa — it also has one of the youngest populations in the world. And where there are young people, there’s always innovation. From agriculture and solar power to maternal health and neonatal care, Nigerians are at the forefront of next-generation advancements that will improve the country, the continent, and even the world.”

All these came from Bill Gates himself and if a whole Bill Gates could say he believes in Nigeria and sees it transforming into an advanced nation, then we should all believe. President Bola Ahmed Tinubu, on Friday, May 23, 2023, in Paris-France said Nigeria will sustain its spotlight on African countries as the fulcrum of its policies on economy and foreign policy, assuring that trade issues, security and border controls will be mutually implemented. During his meeting with the President of Benin Republic, Patrice Talon, after the Summit on New Global Financing Pact, President Tinubu stated that bilateral relations with African countries, particularly at the sub-regional level will be enhanced for shared benefits in areas of security, health, energy, education and diplomacy. Already, African nationals can come to Nigeria on ‘visa-on-arrival basis”.

Nigeria, with a population of about 220 million people, has a total land area of 923,768 kilometres square. Sixty percent of this land is arable land. Nigeria is located between latitude 40N and 140N of the equator and between longitude 30E and 150E of the Greenwich meridian. This makes a greater part of Nigeria to be in the tropical region. The country has over sixty different types of minerals. These minerals include: petroleum products, natural gas, gold, lead, zinc, limestone, salt, cassiterite, clay, dolomite, marble, tantalite, bentonite, gypsum, kaolin, magnesite, lignite, uranium, glass-sand, iron ore, phosphate, columbite, manganese, barite, coal, gemstone, diatomite, hydro-carbon, kaolin, bitumen, feldspar, granite, syenite, tatium, marcasite, amethyst, aqua marine, asbestos, flosper, graphite, hyanite, mica, rock crystal, ruby, sapphire, sinite, superntinite, tentalime, topaz, tourmaline, cassiterite, copper, pyrochlore, talc, etc. Nigeria also has timber and cotton.

According to President Bola Ahmed Tinubu, Nigeria has “the necessity to grow the African continent”. It is a land full of natural resources. The average age of youths in Nigeria is about the best in the world. This means that Nigeria has more independent population than dependent. The market, which is determined by the quantity of people (population) and their quality (purchasing power), is in Nigeria. As an emerging economy, Nigeria has potential to consume real estate having about 20 million housing units’ deficit, electronics, food and clothes. With the world’s economy wobbling, international businessmen are beginning to see Nigeria as the place to invest. There are indications that more foreign investors will come into the country this year, but the government should also prepare for them.

In 2022, most foreign businessmen interviewed in Rwanda stated that the ease of getting land documents attracted them to the country. State governments in Nigeria must be ready to ease the burden of doing business in Nigeria especially issuance of certificate of occupancy. States must have industrial parks where the foreign investors can easily locate their industry. To improve market dynamics, workers in Nigeria must be given “living wages”. Corruption must be reduced to the barest minimum. Electricity and road infrastructure are important in the processes of industries. Government must improve our infrastructure from its 123rd position, according to the World Economic Forum (WEF) Global Infrastructure Table of 2022, to below 100. The period of industrial renaissance and economic development of Nigeria is now!