Dr. Olisa Agbakoba SAN, Senior Partner at Olisa Agbakoba Legal, has put forth a straightforward and effective solution to address Nigeria’s pressing economic challenges.
With President Tinubu facing a significant shortfall in the national treasury, Dr. Agbakoba highlights a tried-and-true strategy to generate the necessary funds to meet the needs of Nigeria’s 200 million citizens.
Dr. Agbakoba urges President Tinubu to take inspiration from former President Obasanjo’s approach to economic management, which successfully addressed similar fiscal issues in the past.
“President Tinubu’s major issue is very simple and easily resolved: he doesn’t have enough money in the treasury to meet the huge national needs of 200 million Nigerians,” said Dr. Agbakoba.
“I urge President Tinubu to look at how President Obasanjo resolved his financial challenges. First, President Obasanjo tackled corruption and plugged waste, with Nuhu Ribadu ensuring that the fear of Nuhu was the beginning of wisdom. Most importantly, President Obasanjo understood public sector borrowing requirements and how much was needed to sustain the national system. His clear vision of revenue generation through optimal crude oil production was key.”
During President Obasanjo’s tenure, crude oil production was maximized, significantly boosting national revenue. This approach not only stabilized the Naira against the dollar but also enabled the government to meet its financial obligations without resorting to borrowing.
Dr. Agbakoba outlines a clear plan for President Tinubu to follow:
● Maximize Crude Oil Production: Increase daily crude oil production to at least 2.4 million barrels. This will ensure that Nigeria fully capitalizes on its abundant natural resources.
● Nationalize Revenue Control: Remove international oil companies from controlling Nigeria’s hydrocarbon revenue. By taking control of its own resources, Nigeria can ensure that more of the profits stay within the country.
● Debt Reduction: Use the increased revenue from crude oil production to pay down national debt. This will free up more funds for essential services and infrastructure projects.
● Naira Stabilization: Hedge the Naira against the dollar using crude oil revenue. This will help to stabilize the national currency and protect it from volatile international markets.
“By following this simple fiscal process, Nigeria can overcome its current economic difficulties within six months,” Dr. Agbakoba asserts.
“Optimal crude oil production is our way out.”
Dr. Agbakoba believes that with a committed focus on these strategies, President Tinubu’s administration can rapidly stabilize Nigeria’s economy and set the stage for sustained growth and development.
