Senior Advocate of Nigeria (SAN), Olisa Agbakoba, has proffered a solution on a way out of the present financial crunch which the current administration of President Bola Tinubu finds itself.
Agbakoba, a former president of the Nigerian Bar Association (NBA) called on the government to take a cue from the strategy adopted by former President Olusegun Obasanjo who had the same issue while he was in power.
Agbakoba further proposed a return to maximum crude oil production as a short-term solution to Nigeria’s economic challenges.
In a statement issued on Friday, the legal practitioner argued that boosting oil output and revenue could provide the much-needed financial lifeline for President Tinubu’s administration.
Citing the Obasanjo era as a reference point, Agbakoba emphasized the importance of maximizing revenue from crude oil sales, and contended that by increasing production to at least 2.4 million barrels per day, the government could significantly bolster its foreign exchange reserves, stabilize the naira, and reduce the nation’s debt burden.
Agbakoba further suggested that the government should take control of its hydrocarbon revenue from international oil companies. He believes this move would enable the government to allocate funds more effectively towards addressing pressing national needs.
The statement reads, “President Tinubu doesn’t have enough money in the treasury to meet the huge National needs of 200m Nigerians. So there is a simple solution.
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“I urge President Tinubu to look at how President Obasanjo resolved his money headaches. First, President Obasanjo tackled Corruption and plugged waste. Nuhu Ribadu saw to that, as the fear of Nuhu was the beginning of wisdom.
“Second and most important was that president Obasanjo understood what is called public sector borrowing requirements and how much was needed to sustain the National system.
“Most important was President Obasanjo’s clear vision of how to raise revenue. This was from optimal production of crude oil. The revenue from crude oil was fully maximized. Crude oil daily production was at maximum capacity.
“Funds from sales of crude propped the Naira value to the dollar. The Government was able to get things done without borrowing but using crude oil revenue. President Tinubu must reverse the trend by maximizing crude oil outputs, removing the international oil companies from control of our hydrocarbons revenue, paying down debts and hedging the Naira against the dollar with crude oil dollars.
“So quite simply president Tinubu should maximize crude oil production to at least 2.4 million barrels a day, pay down debts, apply funds to meet national needs. If this simple fiscal process is sustained, Nigeria will be out of this desperate situation within 6 months.
In the final analysis, optimal crude oil production is our way out.”
The SAN’s proposal comes amidst a challenging economic climate characterized by soaring inflation, currency depreciation, and rising debt levels. As the government grapples with these issues, Agbakoba’s suggestion offers a potential path to economic recovery, albeit one that relies heavily on the oil sector.
Critics may argue that overreliance on oil is unsustainable and could hinder the diversification of the economy. Additionally, the global transition to renewable energy sources poses a long-term threat to oil revenue. Despite these concerns, Agbakoba’s proposal might ignite a debate on the role of the oil sector in Nigeria’s economic revival.
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