Diversification from oil, an urgent economic necessity — Speaker Abbas

The Speaker of the House of Representatives, Hon. Abbas Tajudeen, on Monday emphasized the urgent need for Nigeria to diversify its oil-dependent economy, warning that further delays could exacerbate the challenges facing the country.

Hon. Abbas delivered this message in Olorun, Kwara State, during the 14th Convocation Lecture of Al-Hikmah University titled “Beyond Oil: Exploring Alternative Revenue Potentials for Economic Growth and Sustainable Development in Nigeria.” He called for deliberate and collective efforts by stakeholders in both the public and private sectors to chart a strategic path forward for Nigeria’s economic future.

Expressing his delight at serving as the convocation lecturer for Nigeria’s first Islamic-based private university, Hon. Abbas described the lecture’s theme as timely. He regarded it as “a critical challenge to the consciousness of our political leaders, policymakers, technocrats, and academics on the need for strategic thinking and urgent collective action.”

Speaking on the topic, which he said addresses “one of the most pressing challenges confronting our nation,” Speaker Abbas emphasized that Nigeria’s over-reliance on oil revenue has left the country vulnerable to global market fluctuations, environmental degradation, and economic instability.

He highlighted several sectors with potential for diversification, including agriculture, mining, manufacturing, ICT/digital economy, and creative industries/tourism.

The Speaker also acknowledged the adverse effects of oil dependency, noting its contribution to economic volatility, environmental degradation—particularly in the Niger Delta—and the strategic challenges posed by the global shift towards renewable energy.

“As the world moves to reduce carbon emissions and adopt cleaner energy technologies, the demand for fossil fuels is expected to decline,” he stated. “This transition poses a long-term risk to Nigeria’s oil revenues and economic stability.”

He stressed the importance of a coordinated national strategy for economic diversification to enhance resilience, protect the environment, and position Nigeria for sustainable growth in a low-carbon future.

Hon. Abbas observed that, despite over 30 years of efforts to reduce dependence on oil revenues, Nigeria’s economy remains heavily reliant on the sector. He emphasized that diversification is essential for stability, job creation, and achieving the Sustainable Development Goals (SDGs).

Citing Nigeria’s debt-to-GDP ratio of 34.6%, he underscored the importance of prudent resource management. “Investing in non-oil sectors can stimulate economic resilience and reduce dependence on volatile oil markets,” he stated.

The Speaker commended the administration of President Bola Ahmed Tinubu for prioritizing economic diversification through bold reforms, such as removing fuel subsidies and implementing the Presidential Initiative on Compressed Natural Gas (CNG). He also highlighted the administration’s tax reforms aimed at improving Nigeria’s tax-to-GDP ratio and significant investments in infrastructure and human capital development.

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He called for strategic investments in agriculture, manufacturing, solid minerals, tourism, and renewable energy to reduce dependence on oil, create jobs, and foster sustainable development.

The Speaker praised the 10th House of Representatives, which he described as the “People’s House,” for its strong commitment to addressing economic challenges through its Legislative Agenda. He noted that the House has supported legislation to reduce dependence on oil revenues, enhance agricultural productivity, and promote industrialization.

“Constituency projects, including road construction, school renovations, and water supply schemes, have also contributed to job creation and economic empowerment at the grassroots level,” he said.

Concluding the lecture, Hon. Abbas highlighted the lessons Nigeria can learn from other resource-rich countries like Saudi Arabia, Malaysia, and the United Arab Emirates, which have achieved economic transformation through deliberate diversification strategies anchored on policy reforms, infrastructure investments, and human capital development.

He urged the government to lead with visionary policies, transparent governance, and strategic investments, while encouraging academia to strengthen collaboration with industries to drive innovation and entrepreneurship.

He called on the private sector to invest in emerging industries, support small and medium enterprises, and leverage technology to boost productivity.

Finally, he challenged Nigeria’s youth, including students in attendance, to seize opportunities in entrepreneurship, agriculture, digital technology, and creative industries to redefine the country’s economic narrative.