EKO HOT BLOG reports that Dr Ngozi Okonjo-Iweala, the Director-General of the World Trade Organisation (WTO), has called on incoming governors in Nigeria to prioritize diversifying their states’ revenue sources instead of relying solely on crude oil.
She delivered this advice during an induction session organized for the newly elected governors in the nation’s capital, Abuja, on Monday.
Okonjo-Iweala highlighted the potential risks faced by states heavily reliant on the monthly allocation from the Federation Account Allocation Committee (FAAC) as the country moves towards a future where petroleum products may no longer sustain the economy.
She emphasized the importance of proactive measures to counterbalance the potential negative impact on revenue.
“We need to start preparing now for a time when our oil and gas will no longer serve us as the main sources of revenue. States with a heavy dependence on FAAC allocation will be particularly hit,” cautioned Okonjo-Iweala.
The WTO Director-General stressed the urgency for governors to diversify their revenue streams, encouraging them to aim for a doubling of the growth rate and to sustain that higher growth until Nigeria achieves upper middle-income status.
Addressing the issue of trust, Okonjo-Iweala called on the governors-elect to rebuild confidence among the Nigerian populace through their policies and programs. She acknowledged that trust in Nigeria has historically been fragile but emphasized that the outcome of the 2023 general elections had further strained it.
Okonjo-Iweala
“Honourable governors, let us be candid: trust in Nigeria has always been fragile, but following the elections, a lot of trust has been broken,” Okonjo-Iweala acknowledged.
She urged the incoming governors to demonstrate, through their words, actions, and policies, that all Nigerians are equally valued and that they can conduct business in any part of the country without fear.
Expressing her deep love for Nigeria, she emphasized the importance of feeling welcome in all corners of the nation.
As Nigeria seeks to achieve sustainable economic growth and reduce its reliance on oil revenue, Okonjo-Iweala’s advice serves as a timely reminder for the incoming governors to prioritize diversification efforts and regain the trust and support of the Nigerian people.
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