Business
Economy: Experts Urge FG To Invest In Mining, Tourism
Two economists have called on the Federal Government to invest the country’s growing revenue in other key sectors to improve the economy.
Dr Lukman Oyelami and Dr Babatunde Adekunle of the Economics Department, University of Lagos gave the advice in an interview with The Tide source in Lagos, Thursday.
In his remarks, Oyelami said that as oil sales exceeded the projected 44 dollars per barrel benchmark in 2017 and 45 dollars per barrel in the proposed 2018 budget, there was need to urgently tackle the non-oil sectors.
“We are richly blessed and have a lot of untapped resources in the non-oil sector of our economy.
“Sectors like mining, tourism and agriculture are underutilised. They can be explored and exploited to generate foreign income, which in turn, will have multiplier effects on the economic growth.
“The country must become dependent on other sectors of the economy so that oil revenue can then be seen as excess monies which can be used for other economically beneficial initiatives,” Oyelami said.
According to him, oil price is about one of the most volatile commodity price which goes up and down.
He said that Nigeria was currently at the beginning of the boom, urging government to take advantage of this opportunity to invest in key infrastructural developmental projects.
“This will go a long way to cushion the effect which a drop in the price of oil in the international market can bring in the near future,” he said.
In his contributions, Adekunle told The Tide source that the world was gradually changing from an oil economy into technology and knowledge-based economy.
“As a nation blessed with abundant mineral and human resources, Nigeria possesses the capacity to make it economically without the revenue generated from oil.
“Personally, I will advise the government to keep a greater portion of the excess revenue in the Excess Crude Account (ECA) as this will help to cushion the effects of bad economic times.
“Other parts of the excess fund should be invested in the education, health and agricultural sectors”, he further said.
“The significant effect of this is that it gives the country a credit worthy status in the sight of lending nations and financial institutions,” he said.
Adekunle advised that the sincerity of purpose of policy makers should be engaged to ensure that all favourable economic plans and policies were adequately monitored for delivery.
“Human resource personnel with good understanding of the economy should be made to spearhead all economic agencies for optimal result and performance,” he said.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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