Nweke Jr: Nigeria’s Dependence On Oil Exports Weakens Its Economy

A former Minister of Information, Frank Nweke Jnr, has said that the Nigerian economy became vulnerable to two global economic adversities because it depended only on oil exports.

Nweke disclosed that the global economic recession and the outbreak of COVID-19 pandemic in 2012 and 2020 have negated the country’s growth.

He stated these on the sidelines of announcing a dialogue in Abuja where the Director, Growth Lab at Harvard Kennedy School, Prof Ricardo Hausman and the Chief Executive Director, Financial Derivatives Company Limited, Bismarck Rewane, among other prominent figures would address Nigeria’s economic problems.

These economic experts are expected to speak at the Africa Policy Dialogue hosted by Harvard Kennedy School Alumni Association of Nigeria.

A Chief Economist, Stears Business, Michael Famoroti, is expected to moderate the event which holds in the nation’s capital, Abuja on Monday.

Nweke, who is the President, HKSAAN revealed this on Thursday in a statement titled, “Reviving Nigeria’s Economy.”

The former Minister noted that over the past five years, Nigeria’s economy had experienced two major external shocks that culminated in two economic recessions due to the drop in crude oil prices from approximately $107.95 in 2014 to about $43 by 2016 and the onset of the COVID-19 pandemic in 2020.

The statement further read, “Given Nigeria’s dependence on crude oil exports for the majority of its foreign exchange earnings and government revenues, these two shocks have had a severe negative impact on economic growth, government revenues, foreign exchange earnings, inflation and Nigeria’s balance of payment position.

“As a result of these factors, the Nigerian economy has grown at 0.25 per cent over the past five years, much below its estimated annual population growth of 2.7 per cent.

“The conversation with Ricardo Hausmann,  Professor of the Practice of Economics at Harvard Kennedy School and Head of the Growth Lab at the Harvard Centre for International Development, and Mr. Bismark Rewane, CEO of the Financial Derivatives Company, will evaluate the growth dynamics of Nigeria’s economy and shed light on the policy options with which policymakers could possibly address the challenges to growth currently being experienced while enabling growth in sectors that can lead to improved productivity of the Nigerian economy.”