Lagos State Governor, Babajide Sanwo-Olu, has urged on the need for Nigeria to focus on non-oil alternatives as part of its economic recovery plan.
He was speaking on Tuesday during the 36th Convocation Lecture at Yaba College of Technology (YABATECH), Lagos.
He stressed that the nation’s heavy reliance on oil exports and foreign exchange had contributed to the current economic challenges.
The event was attended by eminent Nigerians, academics, and students, and was graced by Vice President Kashim Shettima, represented by Mr. Tope Fasua, Special Adviser to President Bola Ahmed Tinubu on Economic Affairs.
Nigeria’s Dependence on Oil Exports
Sanwo-Olu traced Nigeria’s economic troubles to decades of dependency on oil as the main source of foreign exchange. This, he said, had stunted Nigeria’s potential for growth and economic diversification.
He said: “As we gradually but steadily make our way into the phase of economic recovery, one of the most important things we can do as a people and a nation is to increase the focus on our export capacity and potential. The fundamental issue at the root of our lingering economic situation is the crisis of foreign exchange.
“This crisis takes two main forms. First is the monopoly of crude oil and gas on our foreign exchange earnings. Our over-dependence in this way has done far more harm than good to the economy, and to our mindsets as a people.
“The volatility of our foreign exchange earnings has had a negative impact on currency stability, while also complicating other problems, like inflation.
“It is clear that diversifying our export base from oil and gas is an urgent imperative for a country that is serious about growing its economy and lifting tens of millions of its people out of poverty. It has been urgent for decades. Yet somehow, we have carried on as if all has been well and as if we might somehow be able to magically achieve economic growth and prosperity without laying the right foundations.”
The Governor argued that the country’s over-reliance on crude oil had harmed the economy, causing instability in foreign exchange and contributing to inflation.
He called for a diversification of exports, urging a focus on sectors like agriculture, technology, and creative industries to achieve economic stability.
Key Areas for Economic Diversification
Sanwo-Olu pointed out that three non-oil sectors—agriculture, technology, and creative arts—held significant potential for Nigeria’s economic growth.
Also, he called on the country to harness its export potential in these areas to help reduce the shortfall in foreign exchange earnings.
He added that the transition away from oil dependence was long overdue.
“This crisis takes two main forms. First is the monopoly of crude oil and gas on our foreign exchange earnings. Our over-dependence in this way has done far more harm than good to the economy,” he said.
The Need for Export Growth
Meanwhile, commending the administration of President Bola Tinubu for progress in non-oil exports, Sanwo-Olu, the Governor noted that Nigeria was not maximizing the full value of its exports.
He used cocoa beans as an example, which accounted for 23.18% of the $2.7 billion earned from exports in the first half of 2024.
However, he lamented that the country exported raw cocoa beans instead of processed products, losing out on additional value.
He stressed that exporting raw materials was detrimental to the nation’s economy. “There is no value or pride in exporting raw materials to the world.
If we keep exporting them raw for other countries to process, they will reap the bulk of the value,” he said.
The Rise of Nigeria’s Creative Industries
Meanwhile, Sanwo-Olu also emphasized the growing influence of Nigeria’s creative industries, particularly Afrobeats and Nollywood, on the global stage.
He highlighted the international recognition of Nigerian artists, such as Grammy wins, as proof of the immense potential within the creative sector.
“We must highlight one of our fastest-growing and most promising export segments—our arts and creative industries,” he said.
Encouraging the Next Generation of Innovators
Addressing the graduating students of YABATECH, Sanwo-Olu urged them to apply their skills and knowledge in building a new export economy for Nigeria.
He encouraged them to embrace innovation and become changemakers who would help propel Nigeria toward economic prosperity.
“The State Government will continue to create platforms to train a workforce that will be a valuable source of foreign exchange,” he said.
Rector Applauds Governor’s Lecture
Dr. Ibraheem Abdul, Rector of YABATECH, praised Governor Sanwo-Olu’s lecture, describing it as thought-provoking.
He agreed that the lecture’s theme resonated with the ongoing efforts by the Federal Government to fully tap into non-oil export alternatives.
The rector also emphasized the importance of bridging academic knowledge with real-world application.
