Mekus
Nigeria Suffering From Severe Dutch Disease
Published on September 17, 2012 by pmnews · 1 Comment
JETHRO IBILEKE/Benin
Prior to 1959, the Dutch country of Netherlands, then known as Holland, was well known for its industrialization, with its products exported to many countries. The country raised its foreign reserve with money earned from exportation.
The discovery of oil in 1957 however brought a twist in the fortunes of the country. Its rulers turned all their attention to crude oil, crippling all its major industries in the process. Its foreign reserve that rose before then dropped sharply. The country learned the hard way that there was no alternative to economic diversification. That action gave birth to the expression: The Dutch Disease.
Regrettably, though, many nations have not learned from the sad consequence of Dutch Disease, in fact, some, especially Nigeria, have deliberately ignored the lesson of the Dutch Disease by its over dependent on money made from oil exportation.
Before oil was discovered in Oloibiri in modern day Bayelsa State, Nigeria was renowned for its cocoa from the west, cotton and groundnut from the north, coal from the east, palm oil and rubber from the Midwestern states. Proceeds from cocoa was used to develop the western states of Nigeria. Till date, the Cocoa House in Ibadan, Oyo state and the then Western broadcasting corporation television, the very first television station in Africa, are all reminders of those good old days. The groundnut pyramids of old Kano also reminds one of groundnut exportation.
The oil windfall of the 70s also brought an end to Nigeria’s revenue diversification effort. Nigeria focused on oil, crippled agriculture, textile industries and other sources of revenue generation, with grave consequences, and ended up turning crude oil from natural blessing to curse.
This set the stage for a two-day zonal advocacy workshop on economic diversification and enhanced revenue generation with a view to
Published on September 17, 2012 by pmnews · 1 Comment
JETHRO IBILEKE/Benin
Prior to 1959, the Dutch country of Netherlands, then known as Holland, was well known for its industrialization, with its products exported to many countries. The country raised its foreign reserve with money earned from exportation.
The discovery of oil in 1957 however brought a twist in the fortunes of the country. Its rulers turned all their attention to crude oil, crippling all its major industries in the process. Its foreign reserve that rose before then dropped sharply. The country learned the hard way that there was no alternative to economic diversification. That action gave birth to the expression: The Dutch Disease.
Regrettably, though, many nations have not learned from the sad consequence of Dutch Disease, in fact, some, especially Nigeria, have deliberately ignored the lesson of the Dutch Disease by its over dependent on money made from oil exportation.
Before oil was discovered in Oloibiri in modern day Bayelsa State, Nigeria was renowned for its cocoa from the west, cotton and groundnut from the north, coal from the east, palm oil and rubber from the Midwestern states. Proceeds from cocoa was used to develop the western states of Nigeria. Till date, the Cocoa House in Ibadan, Oyo state and the then Western broadcasting corporation television, the very first television station in Africa, are all reminders of those good old days. The groundnut pyramids of old Kano also reminds one of groundnut exportation.
The oil windfall of the 70s also brought an end to Nigeria’s revenue diversification effort. Nigeria focused on oil, crippled agriculture, textile industries and other sources of revenue generation, with grave consequences, and ended up turning crude oil from natural blessing to curse.
This set the stage for a two-day zonal advocacy workshop on economic diversification and enhanced revenue generation with a view to