Speaker of the House of Representatives, Mr. Tajudeen Abbas, has warned against over-reliance on crude oil by Nigeria, saying it will worsen inequality, poverty, and unemployment.
Abbas, while delivering the 14th convocation lecture of the Al-Hikmah University in Ilorin on Monday, argued that Nigeria needs to diversify its economy by fully harnessing its abundant mineral resources and human capital.
The Speaker stressed the importance of deliberate efforts in unlocking the potential of other sectors, such as agriculture, solid minerals, technology, and creative industries.
He noted that Nigeria must move beyond oil to secure its economic future and develop sustainable pathways for inclusive growth.
“With dwindling oil revenues, global shifts toward renewable energy, and the increasing need for job creation, it is imperative that we chart a new course for economic transformation.
“This requires deliberate efforts to unlock the potential of other sectors, such as agriculture, solid minerals, technology, and the creative industries.
“Achieving this transformation will secure Nigeria’s economic future and address poverty, inequality, and unemployment —- critical barriers to sustainable development,” he said.
In his lecture titled “Beyond Oil: exploring alternative revenue potentials for economic growth and sustainable development in Nigeria”, Abbas cited Saudi Arabia, Malaysia, and the United Arab Emirates as examples of countries that have achieved economic transformation through diversification.
“They have demonstrated that economic transformation is achievable through deliberate diversification strategies anchored on policy reforms, infrastructure investments, and human capital development.”
The Speaker noted that targeted policies, institutional reforms, and partnerships can unlock the potential in various sectors, including agriculture, manufacturing, and renewable energy.
He stressed that Nigeria’s economic transformation demands collective responsibility, with the government leading through visionary policies and strategic investments.
The legislature, academia, and private sector also have vital roles to play in driving innovation, entrepreneurship, and economic growth.
Abbas encouraged youths to seize opportunities in entrepreneurship, agriculture, digital technology, and creative industries to redefine Nigeria’s economic narrative.
“As the backbone of Nigeria’s workforce, youths, including all of you in this hall, must seize opportunities in entrepreneurship, agriculture, digital technology, and creative industries to redefine Nigeria’s economic narrative.
“Malaysia’s focus on manufacturing and industrialisation, coupled with sustained investments in education and technology, propelled it into a diversified economy. Singapore leveraged its strategic policies and talent pool to become a global hub for finance and innovation,” he added.
President Tinubu’s government pledges to boost oil production
President Bola Tinubu, since his inauguration in 2023, has consistently expressed his desire to increase Nigeria’s crude oil output.
- In October 2024, the President launched the ‘1MMBOPD‘ Initiative, with the goal of boosting Nigeria’s oil output by 1 million barrels per day by the end of 2025. Nigeria currently produces 1.4 million bpd, which is short of its OPEC quota of 1.5 million bpd.
- This ambitious project focuses on harnessing dormant oil assets and optimizing existing ones to achieve significant growth.
In its 2025–2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF-FSP), the Tinubu administration set a target of boosting Nigeria’s oil production to 2 million bpd in 2035, and 2.35 million barrels per day by 2027.
What you should know
Nigeria is Africa’s largest oil producer and the 12th largest in the world but it is not producing enough to meet the country’s energy demands together with exports.
Crude oil production is affected majorly by chronic crude oil theft, to which the country loses billions of naira daily.
Nigeria also lags in the exploration of renewable energy, which according to experts, can complement oil and gas to help the most populous black nation meet its energy demand.
