Diversification of Nigeria’s Economy Necessary for Sustainable Development – Dr Babayo

By Najib Sani

Chairman of the Federal Roads Maintenance Agency (FERMA), Dr Musa Babayo, has asserted that diversification of the Nigeria’s economy is necessary for achieving sustainable development.

Speaking as a guest speaker at the international conference on sustainable development, hosted by Abubakar Tatari Ali Polytechnic (ATAP), Bauchi, Bauchi State yesterday, Babayo highlighted the need for Nigeria to diversify its economy, improve infrastructure, and invest in human capital.

He said Nigeria’s macroeconomic structure has long over-relied on oil revenues, with volatility cascading into fiscal stress, currency pressure, and under-investment in enabling infrastructure.

According to him, Nigeria’s manufacturing sector is facing significant challenges, including a weak production base, high logistics costs, institutional bottlenecks, and a shortage of skilled workers.

Dr Babayo noted that these challenges have led to suppressed output, low investment, and limited job creation, affecting the country’s youth and hindering access to essential services like housing, healthcare, and education.

However, he expressed optimism that Nigeria can turn its fortunes around through diversification, institutional strengthening, human capital development, and innovation-led growth, citing examples of nations that have successfully transformed their economies through these strategies.

“Sustainable development in the Nigerian context means three outcomes’ citizens can feel: productivity (time and cost to move people, goods, and data), inclusion (breadth and affordability of physical and digital access for households, MSMEs, women and youth), and resilience (the ability of roads, housing, clinics, schools, water and power to remain serviceable through wear, weather, and shocks)”, he said.

The chairman of the Federal Roads Maintenance Agency emphasised the need for value-added production, digital innovation, and infrastructure development.

“Agriculture must move from yields to value chains: mechanisation, storage, agro-processing, and regional exports,” he said.

He also highlighted the need for industrial clusters, local content, and quality standards in manufacturing, as well as responsible mining practices that create mineral-based industries.

Aside that, Babayo also stressed the importance of infrastructure revitalisation, including power reliability, transport corridors, and logistics platforms as things that will aid industrialisation and productivity in the country.

The FERMA boss called for institutional strengthening and governance reforms, including transparent procurement, efficient tax administration, and judicial efficiency, to amplify investment and promote economic growth.

He also advocated for human capital development, aligning curricula with industry demand, and incentivising micro-credentials in key areas.

On macroeconomic reforms, Dr Babayo advocated for exchange-rate coherence, prudent fiscal management, revenue mobilisation, and pro-growth monetary policy to restore credibility and attract long-term capital.