Natural resources endowment is a key to numerous underlying factors that can critically influence a homegrown monetary policy as being radically advocated in this commentary, for economies that need to successfully transit from the challenges of energy poverty, energy crisis, climate change and social emerging realities across board, especially as it pertains to the Nigerian economy. For Nigeria (a globally acclaimed oil rich economy), the oil and gas industry is a sector that has substantially been laying the “golden eggs” for the nation, economically. Crude oil and natural gas are fossil fuel energy sources that should be placed at the fore or in the front burner as this discourse is exhaustively deliberated upon; for the purpose of charting the right way for the nation’s economic recovery, sustainable growth and development. An independent monetary and fiscal policy is therefore, suggested hereto, for the purposes of redesigning a unique financial regulatory framework, which could aid in strengthening the value and worth of our local currency (the naira), once there is, internally, ongoing sustainable productivity from the real/manufacturing sector. This is doable because it is already and primordially backed up by the nation’s natural endowment.
The pursuit of foreign investors at this critical stage ought not to be the focal point in the strategic proposal for the roadmap to total economic emancipation, if import substitution and backward integration economic tools are effectively applied in the economy, and the elements of greed, corruption and inefficiency are removed from the system. The innovative action should avoid cutting corners and focus critically on indigenous players and local investors for effective return on investment in both the micro and macro spheres, as well as any aspired industrial revolution that would launch the nation’s economy to a globally commendable and enviable position. The triple helix model (comprising Industry, Academia and the Government, simultaneously working together in synergy) is a concept that ought to play a vital role in Nigeria at this critical time of the nation’s socio-economic challenges, turbulence and turmoil. As it stands presently, the country cannot meet her domestic energy needs; as energy consumption within the economy still depends on imported refined products (Petrol/PMS, diesel/AGO and kerosene/DPK, cooking gas/LPG, etcetera), which further exerts painful foreign exchange pressures on the country’s foreign reserves, resulting in a huge drain on the nation’s treasury and unfavourable balance of payment in her international trade operations; worse still is that the country is on edge of national power outage (in total darkness) with the current incessant power grid collapse, affecting the entire country. We know too well that access to energy services positively affects and improves human welfare, provided through daily economic and commercial activities, for home leisure and smart home comforts, and for a healthy livable lifestyle.
All these being discussed and deliberated upon, do not exclude the rest of the economic sectors (vis-a-viz agricultural, solid minerals, renewable energy sources from solar, wind, water, geothermal; and their respective contributions) in the entire macro economy. Energy sustainability at this point, directs the nation’s gas master plan needs to be instantly invoked (within the extant laws in the petroleum industry act, PIA) to specifically and positively impact the economy; and at the same time, comply with the ongoing global fight against climate change, global warming’s environmental devastations, by mitigating and reducing greenhouse gas emissions. This, the “renewed hope” agenda of the present administration, should seriously pursue through the promotional programme of the current administration on compressed natural gas (CNG) for energy production and consumption (especially in the transport and manufacturing sectors of the economy). The gas value chain needs to be seriously engaged in addressing the energy crisis and the energy poverty that is tormenting this economy (considering the state of the economy).
Nigeria’s energy economy, therefore, should presently be the focal point of making sure that the local currency be substantially strengthened at this critical stage; and this could be aggressively pursued and significantly achieved through more emphasis being placed on internal/local provision of crude oil and natural gas supplies in naira denomination within the economy. This shall go a long way in cushioning the effect of unreasonable pressure the economy is suffering from constant daily demands of foreign exchange for such refined products’ imports. The 29th Conference of the Parties at Azerbaijan (COP29 dubbed the “Climate Finance COP”) that is ongoing in Baku focuses on agreeing on how much money should go each year to helping developing countries cope with climate-related costs. This conference should be leveraged as a window to strengthen the strategic plans of actualizing the set goals of facilitating a massive utilisation of CNG (although fossil-fuel sourced but, a cleaner energy), especially in the manufacturing and transport sectors of the economy.
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