OBJ explains how Nigeria can overcome forex crisis


Former President Olusegun Obasanjo, has confirmed that Nigeria can overcome its foreign exchange crisis and the naira free-fall if only she diversifies into non-oil exports, particularly agribusiness.

Obasanjo made the assertion in Abeokuta at the closing ceremony of a week-long intensive “Agribusiness Export Readiness Accelerator Training Programme” for entrepreneurs drawn from across the country. The training, held at the Olusegun Obasanjo Presidential Library (OOPL), Abeokuta, was organized by the African Leadership Foundation (ALF), in partnership with the African Export-Import Bank (Afreximbank). Speaking at the event, also the president of Afreximbank, Dr. Benedict Oramah, said the training exposed participants to requisite entrepreneurial knowledge and export readiness skills needed to trade across borders, particularly with the opportunities in the African Continental Free Trade Area (AfCFTA), which had the capacity to unlock a market of 1.3 billion people valued at $3 trillion in Gross Domestic Product (GDP).

The former president stated that the discovery of oil in Nigeria several years ago, which was then regarded as a blessing, was now becoming a curse, as some economists had affirmed, given the distortion it caused the Nigerian economy. He urged African countries to maximize their export potential in agribusiness to boost participation in global trade, earn good forex, and increase the prosperity of the region. Obasanjo explained, “Nigeria has been known for its near total dependence on earnings from petroleum export, and her economy has suffered devastations arising from various oil shocks without any buffer to cushion against major declines.

“What was initially celebrated as a major blessing has become what economists now refer to as the ‘oil curse.’ The recent volatility in the oil market and the expansive global push towards alternative energy now leave no one in doubt about the urgency of diversifying our economic base through the promotion of non-oil exports.

“Given the enormous resource endowment of Nigeria, I have no doubt in my mind that economic diversification is achievable in the shortest possible time if robust economic policies with appropriate implementation mechanisms are put in place, running consistently over a period of time.

“Nations, like Indonesia and Malaysia, were once mono-product economies, like Nigeria, but they are now well diversified and, therefore, less vulnerable to global economic shocks.”

The former president lamented that Africa remained at the bottom of the global trade pyramid and global value chain, accounting for only 1.9 percent of global manufacturing, because it failed to add value to even its small export of primary commodities.

He said, “In Nigeria, not only do we export our oil as crude, we turn around to import virtually all our petroleum products from other nations. The story is not remarkably different for our non-oil exports.

“Since international trade is a good barometer of the world economic growth and development, it then becomes quite easy to understand the poor economic performance of Africa in general, and Nigeria, in particular,” Obasanjo explained how he ventured into tree planting out of the need to solve the problem of heat in his poultry farm, disclosing that he would soon start exporting wood, among other agricultural products. According to Obasanjo, those who would succeed in agribusiness exports must be resilient, dedicated, embrace quality standards, and be consistent, while also being favorably disposed to learning new things that could enhance their trade.

He commended ALF and Afreximbank for organizing the program to stimulate value-added agro-based exports within and outside Africa.

“This is a game-changing development for Nigeria and the continent at large, and the strategic move aligns perfectly with the goal of fostering economic self-sufficiency and reducing our dependence on oil,” he stated. The former president also lauded ALF for its commitment to supporting the prosperity of the country, saying the foundation has not only helped to increase the capacity of 36,000 Small and Medium Enterprises (SMEs) through partnership with the Central Bank of Nigeria (CBN), United Nations Industrial Development Organization (UNIDO), state governments, and international non-governmental agencies, but has also through its business development program supported SMEs to raise over N2 billion for business start-up or expansion.