World Bank finds oil is a major developmental constraint for Nigeria

The Nigerian economy has not been very competitive in the global scene despite its huge natural resources, an economist from the World Bank has said. Mr Volker Treichei said in Abuja that the poor level of infrastructures and the regulatory environment, makes it difficult for the private sector to invest in the country.
"As we have studied, one of the major constraints to growth and development is the oil, and the economy has not been competitive on the global scene even though it is the major mainstay of the economy", he said.

Volker said absence of physical infrastructures in areas of energy, transport, the quality of business environment and lack of long term finances are major constraints hindering development. He noted that trade liberalization is key to exposing the economy to be competitive in the international market and also tilt the productive structures where Nigeria has an advantage.
He noted the import banks do not have positive effect as they create tremendous difficulties for customs to enforce the set target. He said the government must adopt commercial agriculture, improve the manufacturing sector and also develop the Information and Communication Technology (ICT) sector.

Other areas that need attention, he said, are the petrochemical and domestic market which will boost and promote the pace of development in the country. Volker also commended the government's efforts on the creation of clusters to boost cluster base growth.
"I must commend the government for its efforts on creation of developmental clusters to facilitate cluster base growth. If it has worked in many parts of the world like India and China, Nigeria is no exception."