The year 2020 has become the year that opened the eyes of everyone in the world including the world government. This is as a result of the deadly blow coronavirus dealt on the world economy through lockdowns which saw the shutting down of economic activities ranging from air and seaport closure, land and river border closure and strict restriction of human movement either for business or leisure. In all of these, the world must make a concise decision to take a holistic approach to the world economy as regards to diversification and this diversification must be approached with greater carefulness.
In the wake of coronavirus, we saw how the number one commodity of the world crashed losing its value in the world market. Oil price collapses to the lowest level for 18 years; this was a caption that was given by BBC on the 30th of March just as coronavirus lockdown started (source). It was reported that the price fell so low to levels not seen since the year 2002 and this leaves me to wonder. What if the lockdown continues to date, what would have been the economic situation of the world since oil seems to be the top commodity in the world? This truly calls for a serious approach towards the diversification of the world economy.
Africa as a continent was not sped in all of these because whatever the outcome of the world economy is goes along away in affecting Africa either negative or positive and the deadly blow of corona was felt even harder by Africa as a continent. Nigeria as one of the African countries was greatly hit because of its sole dependency on oil.
In a country like Nigeria where agriculture was striving before the discovery of oil in 1956 in a village called Oloibiri present-day Bayelsa State (source), there was the cocoa, groundnut, palm oil, rubber and so many other agricultural produce that was being exported from the shores of Nigeria to the Western world and other places. Nigeria was not only known for her agricultural produce, there were other means of economic trade. There was also coal, limestone mining etc, but the oil boom saw the country losing focus on the other forms of economic growth because at that time oil was seen as the highest commodity in the world market and this affected every other sector which is why the country has been plunged into poverty and more debt without any feasible way out.
As coronavirus struck the world and the demand of oil started declining due to the lockdown and countries’ trying so hard to combat the deadly virus, Nigeria was greatly hit and this calls for urgent action towards the revitalization of all other forms of the economy. In a world where oil is gradually going off the grid of world trade due to heavy increase in technological advancement, a country like Nigeria being a case study for all other countries especially all the African countries must take a decisive step at diversifying their economy.
Nigeria can go back to its early days of groundnut pyramid, palm oil and kernel exportation and also rubber, cassava and other cash crop production which drove away hunger because families were able to farm and feed themselves with little or no help coming from the government. One of the greatest problems Nigeria is facing right now is the problem of constant oil spillage which has greatly damaged the rivers and made fishing an almost forgotten source of income. It is high time the government of Nigeria understands that the era of oil is gradually coming to an end and there must be a quick and conscious decision made towards diversifying the economy before it becomes too late.
If coronavirus can shake the world and put a hold on everything both business and government activities, then Nigeria as a country and Africa as a continent must rise to the task of diversifying their economy otherwise we may find ourselves in a situation that will lead to a second colonial rule on a full scale.
Lead image source
