Need for economic diversification in 2017

With the increasing parlous state of Nigeria’ economy brought about by dwindling price of crude oil, it is time the country and citizens look inwards for solution. The present dire financial strait now facing the country was predicted long ago. However, successive administrations failed to heed the warnings or read the tea leaves for signs of hard times to come. For long, the country lived a profligate existence, while squandering the commonwealth that should have been saved for the rainy day.
Now, the chickens have come home to roost and with them the consequences of a charmed existence. The economic downturn is cause for concern giving that Nigeria depends on massive importations for almost every product consumed in the country. Moreover, with the continuing depreciation of the Naira against all major currencies, the situation ahead is predicted to gloomier. We believe the country can ride out of the looming recession if it starts local manufacturing of those goods that are presently imported.
In fact, it is time to encourage “Made in Nigeria” goods. If enacted, such policy would save the country the much-needed foreign currencies now being expended on importation of goods and services. Analysts had for long decried the unregulated importation of goods that could be easily produced in the country. For example available figures reveal that more than 2 million metric tonnes of rice are imported into country annually.
This is against the fact that Nigeria has vast arable land that could be used for planting and processing rice. What goes for rice is symptomatic of the importation mania that has become the bane of the economy.  There is no gainsaying that most of the imported products such as textiles, margarine, palm kernel, vegetable oil, poultry products, chicken, eggs and turkey, Indian incense, cold rolled steel sheets, galvanized steel, roofing sheets, wheelbarrows, head pans, metal boxes and containers, and enamelware can be produced locally.
Others are steel drum, steel pipes, wire mesh, steel nails, wire rods, security wire, wood particle and board, plywood board and panel, wooden doors, toothpicks, glass and glassware, kitchen utensils, tableware, tiles and wooden fabrics, plastic and rubber products, soap and cosmetics.  That is where the government should step in and support artisans and other small-scale enterprises with funds to undertake massive production of goods, especially those requiring low cost technologies.
Not only will the country save scarce foreign exchange, such manufacturing outfits would employ hundreds of thousands workers, thereby reducing the high level of unemployment.  Nigeria should learn from other developing countries such as Taiwan, China, Malaysia and Indonesia that have succeeded in pulling millions out of poverty through local production of goods. That is why we are hailing the amendment of the Public Procurement Act of 2007.
When signed into law, it will  make it obligatory for Ministries, Departments and Agencies(MDAs) of the Federal Government to first consider and patronise Nigerian products before their foreign alternatives. There is no denying the fact that the law will have ripple effects on the manufacturing industry, as it will assure local manufacturers of a ready and sure market for their products.