‘Ghana Trying to Avoid Nigeria Scenario in Oil Sector’

A principal lecturer at Ghana Institute of Management and Public Administration, Gimpa, Dr. Samuel Nii-Noi Ashong has said that the Ghanaian government is working hard to ensure that the country’s oil sector does not displace other relevant sectors of its economy .

Ashong made the remark at the weekend in Abuja in a keynote address at the quarterly lecture organised by the Economic Business Strategies (EBS) RED lecture with the theme: ‘Exporting, Exchange Rate and Economic Growth.’

The university don noted that following the oil boom, Nigeria abandoned other relevant sec- tors and depended on oil as the mainstay of her economy.

He said there should be a deliberate policy by African governments to improve the export sector, which include incentives in order to make sure that natural resources catalyse the rest of the economy .

According to him, “You need to have a deliberate policy about what products are needed in the other market for you to be able to meet their specifications . Are we producing the right goods which are in high demand in outside world; for example in Ghana, we produce cocoa, Nigeria produces oil, these are in high demand. What other goods have we identified that are in high demand abroad?

Ashong added: “When Nigerian became comfortable that it didn’t need anything apart from oil to get revenue, it went to sleep. Sometimes these natural resources if you don’t manage them well can actually displace other vibrant sectors in the economy. So, you have to make conscious effort, that is what we are doing in Ghana, we want to make sure oil sector does not displace agricultural sector because if it does, it will be very difficult to claim back.”

Earlier, the Convener and Chairman, EBS, Magnus Kpakol said that the reason why Nigeria has neglected other sectors of the economy for so long was because the country’s competencies have been minimised by the inflow of oil money, noting that the country got too comfortable and failed to spend more time and energy developing other areas.

He said: “We have been talking about diversifying the economy and for a long time we have not been able to do that. Now we are faced with a situation that has to be addressed. The price of crude oil has declined and it is not very likely that is going to rise very sharply has we have seen before because there are alternatives.