As we reflect on the state of our nation today, it is crucial to look back and examine how we got to this point. At the time of our independence in 1960, Nigeria’s growth rate was about 2.8%, the highest in Africa. We were often compared to emerging Asian economies like Indonesia and other Asian Tigers. Our economy was on a steady path of growth, driven by agriculture and solid mineral resources.
Fast forward to 2024, and Nigeria now has one of the highest numbers of poor people in the world. Our debt profile is skyrocketing, and nearly everyone is struggling to survive. The question is: where did we get it wrong?
One of the questions I answered in an economics exam back in 1976 at Government College was, How has the exploration of mineral resources affected the economy of your people? That question remains just as relevant today.
In economics, there is something known as the Dutch Disease. This term originates from the Netherlands, where the discovery of oil led to a massive shift of labour and investment away from agriculture and manufacturing into the oil sector. The result was economic decline, increased crime, and social instability. A similar situation has played out in Nigeria.
Before oil was discovered in Oloibiri in 1956, Nigeria’s economy was built on agriculture. The North had groundnut pyramids, the East had coal, and the West had cocoa. We had the Cocoa House in the West and the Palm House in the East. These were solid economic foundations. However, with the advent of oil exploration, the focus shifted from creating wealth to sharing wealth.
This shift led to a culture of conspicuous consumption and grandiosity—what I call the “I pass my neighbour” mentality. People became more interested in outdoing each other with luxury rather than investing in productivity. When a nation indulges in excessive consumption without corresponding productivity, economic disaster becomes inevitable.
We lost our way when we abandoned agriculture and manufacturing, replacing them with an overdependence on crude oil revenues. Instead of building industries, we prioritized importing foreign goods. Instead of investing in human capital, we focused on wealth distribution among a privileged few. The result is what we see today—widespread poverty, economic hardship, and a nation struggling under the weight of debt.
This discussion is just the beginning. I will continue this series to help us understand how we can rebuild and get back on track as a nation. I remain Dr. Charles Apoki.
