from OKORO CHINEDU in Lagos, Nigeria
LAGOS, (ACJ News) – IN THE MIDDLE of the global transition of fossil energy sources, it is imperative that Africa’s largest producer of crude oil, Nigeria, accelerate the diversification of its economy from this raw material.
Oil production accounts for around two-thirds of the Nigerian state’s revenue, although it contributes 9% of gross domestic product (GDP).
Average daily oil production in the West African country was 1.57 million barrels in the third quarter of 2021.
The economy has not been spared by the upheavals in the sector globally in recent years.
However, this year, crude oil prices rebounded sharply from the 2020 decline, as the Organization of the Petroleum Exporting Countries (OPEC +) efforts to restore the supply-demand balance succeeded.
Nonetheless, production issues affected Nigeria’s ability to benefit from improved prices.
According to FBN Quest, the financial think tank, it is crucial for Nigeria to broaden its income base as efforts intensify globally to get rid of fossil fuels in order to fight climate change.
“As the world turns its attention to non-fossil energy sources, it is important that Nigeria puts in place its non-oil economic strategy,” FBN said.
The Nigerian Export Promotion Council (NEPC) in its recent opportunities in the export market, has identified more than 20 products, divided into two categories, that can help the country achieve its non-oil ambitions.
The first category includes petrochemicals and methanol, gold, nitrogen fertilizers and ammonia, hides, leather, and cash crops such as soybeans, cotton, palm oil, rubber and Cocoa.
The second category includes cement and clinker, fresh and processed tomatoes, bananas, plantains, cashews, sesame seeds, cassava, oranges, spices, ginger, shea butter and cowpea.
FBN noted that the non-oil export targets are ambitious with a target of US $ 30 billion in value and 20% of GDP by 2025, as well as 500,000 additional jobs created each year.
Currently, non-oil exports average around $ 5 billion per year and accounted for 8% of national GDP in 2020.
The NEPC has developed a number of measures to promote the so-called zero oil plan.
It provides shared processing facilities for companies exporting agricultural products, decongests some ports, cold room facilities for exporting perishable items, and develops transport lanes from field to export to match infrastructure investments.
“Ultimately, a lot depends on the country’s ability to meet these goals and successfully diversify its sources of oil revenue,” FBN said.
– CAJ News