A working economy: Back to basics (1)

So, it is finally official that Nigeria is in recession as the economy took a negative dive twice consecutively in the first and second quarters of 2016. No thanks to the fall in global oil prices. We have been in recession for decades; it only became obviously obvious when global oil prices took a plunge and our economy could not hide behind the all is well makeup.

As a people and nation, a continuous oil price drop would force us to become more serious about diversifying our economy.

However, before we start this work of economic diversification there is a huge need for basic socio-economic infrastructural facilities to be in place which should includes electricity power supply, transportation- both road & railway as well as security.

They are basic because they catalyse development when any form of investment is made. The logic is simple, planting and reaping a great harvest all starts with the level of preparation made by a farmer in expectation of a bumper harvest.  Fixing electricity challenges would mean regular power supply; so that businesses could save cost of generating electricity using power generators. When a transportation network (either road or rail) exists, rural communities are linked to urban centres, thereby easing the movement of people, goods and services from one point to another.

High level of security in our society guarantees that businesses, lives and properties are secured, while investors feel safe investing.

In order to drive this home, the British agricultural revolution  and industrial revolution of the 1800’s would serve as a case study.

The British Agricultural Revolution is considered one of the causes of the industrial revolution because improved agricultural productivity freed up workers to work in other sectors of the economy.

Great Britain led the revolution in Europe, and tremendous progress was made. The Industrial Revolution brought about a transmutation to new manufacturing processes in the period from about 1760 to 1840; call it the rise of machines, as a lot of manual processes were replaced. Industrialization gave rise to a strong European economy that brought the West to global lime light and dominance.

As a people and as a nation we must focus on the things that work for us, we must understand that the onus lies with us to develop the resource at our disposable in order to create a sustainable economy. That being said Agriculture and Manufacturing will play a vital role in our pursuit to create a vibrant economy.

It’s inexcusable to be non- progressive in the 21^st century.