Vision 2020

Posted October 10th, 2011 by Stephen Ogunyiola

Vision 2020Several economic reforms and strategic plans have been put in place in Nigeria to diversify the revenue sources of the economy towards achieving the nation’s Vision 2020. Many of these reforms and plans have lasted without substantial assurance of the country’s targets.

Nigeria is the single largest entity in West Africa and the most populous black nation in the world. It covers a land area of about 923,768 square kilometers and, according to the 2006 National headcount, has a population of about 140 million people. By the time the country got her political independence in 1960, agriculture was the mainstay of the economy, accounting for about 70 percent of GDP and about 90 percent of foreign exchange earnings. Manufacturing, which contributed 3.9 percent in 1960/61, reached a peak of about 10 percent in 1981 and, since then, it has declined progressively to lowest level of 2.57 percent in 2006. Crude petroleum became dominant in the Nigerian economy, starting from 1970s and presently accounts for about 40 percent of GDP, over 95 percent of foreign exchange earnings, and over 70 percent of Federal Government revenue source, as well as over 90 percent of all new investments.

Presently, the Nigerian economy, with about $170 billion GDP, requires yearly growth rate of 13 percent to reach $900 billion, which is the goal of Vision 2020. In addition the economy is still mono-cultural, moving from over dependence on agriculture to over dependence on crude petroleum, hence realizing the goals of the vision  requires not just increasing the size of the economy, but also diversifying its revenue sources. These constitute very serious challenges for Vision 2020 more so as there have been several such consolidation reforms in place with minimal outcomes. Better goal-oriented reforms, solid innovative behaviors, and institutional perception of the people have each been recommended by The Journal Of Sustainable Development In Africa (Journal of Sustainable Development in Africa (Volume 12, No.4, 2010).

Vision 2020 And The National Electricity
The energy sector is very strategic to the development of the Nigerian economy. In addition to its macroeconomic importance, the energy sector has major roles to play in reducing poverty, improving productivity and enhancing the general quality of lives of the people. The sector is greatly linked to the other sectors of the economy, contributes to a stable growth of the economy and the realization of social and political objectives.

Nigeria is blessed with a rich variety of conventional and renewable energy sources. The focus of the energy thematic group is the optimal utilization of the nation’s energy resources for sustainable development and the expansion of the energy supply system to meet future energy demand.

Despite the large reserves of energy resources available in the country, the levels of energy consumption have been very low relative to other countries with comparable energy resources and population figures. This low energy consumption is caused by the persistent electricity blackouts which have resulted in a high reliance on self generated electricity.

The energy sector will continue to play a critical role in the industrial, technological, economic and social development of the country. In the power sector, the challenges include inadequate power generation capacity, inadequate and obsolete transmission and distribution networks in some major cities, inefficient transmission and distribution network resulting in high losses, low access to electricity grid, industry regulation, availability of gas for power generation, billing and revenue collection and inappropriate electricity pricing.

The broad vision for the energy sector is targeted at meeting the demand for energy in all sectors of the Nigerian economy, including the energy needs of households in all parts of the country with safe, clean and convenient energy at an affordable cost.

Resources
The following are resources for more information on the Nigerian energy crisis and Vision 2020:

1. Journal Of Sustainable Development In Africa Volume 12, No. 4, 2010
2. Perpetual Minds – Energy Crisis In Nigeria
3. Wikipedia – Nigeria Vision 2020

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