The Lagos Chamber of Commerce and Industry has said the country’s heavy dependence on oil has made its economy vulnerable.
Director General of the Lagos Chamber of Commerce and Industry Muda Yusuf who said this, noted, however, that the country has recorded some gains in certain aspects of the economy.
According to Yusuf, there is still a huge deficit in infrastructure in the country which is hurting business operations.
“The last 58 years have witnessed upsides and downsides in the Nigerian economy. Some transformation has taken place in the economy, from a largely agrarian economy to a more diversified one,” he told Punch.
“We have seen remarkable developments in the service sector, especially in the Information and Communications Technology, entertainment, retail trade, construction, e-commerce and financial services.
“However, the economy is still largely driven by resources from the oil and gas sector. Today, the biggest shortcoming of the economy is its heavy dependence on oil. It makes the economy very vulnerable to global shocks, and weak in inclusiveness.
The economy still suffers profound productivity issues because of the huge infrastructure deficit. The growth of population and economic activities has considerably outpaced the growth of infrastructure provision.
“This is a major failure of several governments, especially in the last two decades. That is why the Nigerian private sector has serious competitiveness problems resulting from high operating costs.”