Nigeria earned over $800 billion from oil exports between 1999 and 2018, yet unemployment remains stubbornly high and industries outside crude continue to struggle. This paradox is at the heart of my analysis of Nigeria’s trade performance over those two decades.
Having worked in African finance with United Bank for Africa and now in global consulting with Deloitte, I have seen firsthand how oil dependence has undermined growth and how deliberate diversification can transform an economy.
According to the World Development Indicators, trade accounted for an average of 37.5 percent of Nigeria’s GDP during this period, with exports consistently exceeding imports. On the surface, that looks encouraging. Yet crude oil represented more than 90 percent of exports in many of those years. Agriculture and manufacturing, once engines of regional trade, have been sidelined, leaving the economy exposed to external shocks. In my work at Deloitte, I see how countries use digital tax and trade systems to reduce such vulnerabilities, and Nigeria can do the same.
The costs of the present imbalance are clear: high unemployment, underdeveloped industries, and fragile government revenues. Other resource-rich nations once faced similar challenges but chose different strategies. Malaysia and Indonesia, for example, invested oil and gas revenues in palm oil, electronics, and services. As a result, they built more resilient economies that can withstand oil price swings which repeatedly push Nigeria into crisis.
Non-oil exports are a proven path to steadier, more broadly based development. Studies by the World Bank and African Development Bank show that countries that prioritize agricultural exports and light manufacturing not only earn foreign exchange but also create mass employment. Nigeria’s own history offers proof: cocoa, textiles, and palm oil once powered regional trade before the rise of crude weakened their competitiveness.
What, then, must change? Five urgent steps stand out:
These policies are not new ideas, but they require consistent execution. Diversification cannot remain a slogan. Every oil crash since the 1980s has delivered the same lesson: Nigeria cannot drill its way to prosperity. Actual growth lies in what the country can build, grow, and export beyond crude.
During my years at UBA, I saw how volatile oil revenues constrained businesses at home. At Deloitte, I now work on technology-driven reforms that help global firms and governments expand their trade capacity. Nigeria has the same potential. The evidence is clear, and the tools exist.
The question is no longer whether Nigeria should diversify its economy. It is whether its leaders will finally act with the urgency and discipline that history demands. The future is waiting, but it will not wait forever.
Oluwatobiloba Kazeem, a former banker with United Bank for Africa (UBA), now works with a US-based Technology Consultant with Deloitte, specializing in Tax Implementation and Automation