“Dutch disease is a situation where revenues from natural resources exports ultimately results in the neglect and damage of the productive sectors in the economy. For example, the manufacturing and the agricultural sectors had virtually stagnated in the Nigerian economy.”
This statement was made by Mr. Babatunde Ruwase, President of Lagos Chamber of Commerce and Industry, LCCI, at a Public Lecture organized by Industry journalists recently in Lagos.
“Studies have shown that countries that are blessed with abundance of natural resources have recorded less development and growth and are characterized by high incidence of poverty. Nigeria is a good example of this hypothesis,” he said.
He explained further that the heavy reliance on crude oil, which is a nonrenewable resource , has turned out to be our undoing as a nation.
He said that countries that rely excessively on natural resources are often faced with a number of tribulations which include the following:
” * Regular conflicts within the society as different groups and factions fight for their share of the revenue from these resources. In Nigeria parlance this is called ‘National Cake’
* Dutch Disease and revenue volatility
* Corruption: natural resources economies are generally more corrupt because the political actors are often preoccupied with revenue sharing than wealth creation.”