Fiscal recklessness exhibited by governments during the periods of oil boom particularly in
African countries, with Nigeria not an exception has been ascribed to the low level of underdevelopment.
A University don, Prof. Nuhu Obaje
Chair Professor in Basinal Studies and Coordinating Director, Directorate of Research & Development,
Ibrahim Badamasi Babangida University,
Lapai, Niger State, made the disclosure during a paper presentation titled: HARNESSING THE MINERAL AND MINING POTENTIALS IN KOGI STATE FOR ECONOMIC GROWTH AND SOCIAL TRANSFORMATION.
Prof. Nuhu made the presentation at the University of Jos Alumni Association Distinguished Alumni Lecture on Mining and Solid Minerals in Kogi State.
The Don said just like other resource-rich sovereignties have had series of windfalls in oil revenue lamented that it has recorded minimal impacts on the lives of ordinary citizens.
The University Don bemoned the over reliance on crude oil as a major export revenue earner by Nigeria, said the over dependant has beclouded development of some other productive sectors which contribute even more to the GDP.
He said “It is now imperative for governments at all tiers to begin a diversification programme of their economic base in order to reduce exposure to the inherent volatilities and uncertainties which has characterized the international crude oil market and to strategically establish the minerals and mining sector as the driver of the economy.
He pointed out that the Minerals and Mining sector has the potentials to sustain a high level of government revenue and in creating more jobs.
For Kogi State, he urged for a Comparative advantage Diversification Programme that will enable the harnessing of the potentials in the State for economic development and growth.
As antidote to oil dependent economy, some priority projects according to Prof. Nuhu that includes solid mineral development, commercial agriculture, strengthening of the mechanisms and institutions for tax revenue generation and reviving the Ajaokuta Iron and Steel Company are imperative for Kogi State to be self reliant.
Prof. Nuhu specifically called for the launch of a Kogi State Industrialization Trust Fund (KSITF) to solicit donations, grants, and loans to be committed to the setting up of industrial clusters around the State.
He equally outlined the need to develop an Industrialization Blueprint document, establishment of a Kogi State Minerals Development Corporation (KSMDC), and the need to engage in commercial agriculture, construct roads and to charge road taxes.
He equally said revamping the Kogi State Transport Agency and a PPP construction of Confluence Airport designed to be a continental hub that will be next only to the Nnamdi Azikiwe Airport Abuja should occupy the priority of the Kogi State Government to enable it survive the dwindling fall in oil revenue.