Nigeria turns 59: Key takeaways from Buhari’s speech on economy, security

Nigeria celebrated its 59th Independence Day with President Muhammadu Buhari delivering a speech that aimed to reflect on the nation's journey, express gratitude, and call for a rededication to the country's progress. The President's address focused on key issues such as economic diversification, security, and human capital development. However, experts analyzing the speech and the country's performance over the years shared critical insights on the challenges facing Nigeria. Kyari Bukar, Former Chairman of the Nigerian Economic Summit Group (NESG), and Professor Remi Sonaiya, a former presidential aspirant, joined CNBC Africa to provide in-depth perspectives on the President's speech and the pressing issues affecting Nigeria. One of the central themes discussed was the need for economic diversification and the over-reliance on the oil and gas sector as the primary revenue source for the government. Despite the sector accounting for only 8% of the GDP, it contributes over 70% of government revenue and foreign exchange earnings. This skewed dependency poses a significant challenge to Nigeria's economy, hindering efforts to diversify revenue sources. Experts highlighted the urgent need for the government to focus on expanding revenue streams through taxation and levies to reduce reliance on oil revenue. Additionally, the discussion emphasized the importance of investing in key sectors such as human capital development, infrastructure, agriculture, and construction to unlock the country's vast wealth and create job opportunities. The conversation also touched on the stagnation in Nigeria's non-oil sector, which contracted in the second quarter of 2019, despite the President's emphasis on diversification. The lack of progress in diversifying the economy underscores the need for strategic interventions to stimulate growth and productivity in non-oil industries. Furthermore, the experts highlighted the critical role of inclusive growth and human capital development in driving Nigeria's economic transformation. They underscored the significance of equipping the workforce with the necessary skills and knowledge to enhance productivity and contribute to economic growth. The conversation also delved into the government's efforts to boost security through initiatives like the Police Trust Fund Establishment Act, which imposes a new tax on companies to fund security operations. While investing in security is essential, experts cautioned against overburdening businesses with excessive taxes, emphasizing the need for a balanced tax regime to stimulate economic growth. Overall, the discussion shed light on the complex challenges facing Nigeria's economy and the imperative for the government to adopt strategic policies to drive diversification, enhance human capital development, and promote sustainable economic growth. As Nigeria navigates its economic landscape and works towards building a more resilient and inclusive economy, concerted efforts from policymakers, stakeholders, and the private sector will be vital to charting a path towards prosperity and development.