Farouk Gumel - A case for why oil should not be Nigeria’s No.1 Focus
                     A case for why oil 
should not be 
Nigeria’s No.1 
Focus
Farouk Gumel, Nigeria
Farouk Gumel- Oil was discovered in 
Nigeria in the 1950’s and today, Nigeria 
is the eleventh-largest oil-producer in the 
world and Africa’s main oil producer. In 
1977, the Nigerian National Petroleum 
Company (NNPC) was founded to 
participate and regulate the country’s oil 
sector. Since then, significant progress 
has been made in terms of increasing 
production, revenues, and consumption. 
We must thank NNPC for Nigeria’s 
dominance in Africa when it comes to oil 
production. This dominance however 
came with its downsides. As a nation, 
Nigeria became over reliant, or one 
could even say addicted, to oil revenues.
From the 1970’s, we convinced ourselves that Nigeria is 
rich. And maybe we are. But the reality is poverty has 
always been around growing side by side with our oil 
production and the apparent wealth. This is because as 
oil brings revenues to a nation, it does not create jobs 
in a nation. According to the International Labour 
Organisation (ILO), the petroleum industry directly 
employs 6 million people.This is less than 1% of the 
global labour force.
In the last decade or so, global oil prices have 
been extremely volatile. Many oil producing 
nations have seen their incomes drop 
significantly as average oil prices continue to 
drop. The apparent wealth of many oil 
producing nations suddenly disappeared. 
Countries who were smart enough to save 
started dipping into their savings. Those who 
invested started selling assets to make ends 
meet. We also saw a few who simply ran out 
of money and were unable to pay salaries or 
service their debt. The concept of “oil rich 
nations” quickly changed to “struggling oil 
dependent economies”.
Today, the 13 countries that make up the 
Organisation of the Petroleum Exporting Countries 
(OPEC) have a combined population of 
approximately 500 million people. Nigeria accounts 
for 208 million or 40% of this population.So clearly, 
we are an outlier and we must consider this as we 
plan for our future.
Although Nigeria, as a country, has been adversely 
impacted by the decline in oil prices, it remains a 
going concern and has been able to meet most of its 
international and domestic obligations. The country 
has, in recent years, aggressively pushed to move 
away from reliance on oil. We simply have no choice 
especially as the oil sector only brings revenues, it 
does not create massive jobs! According to the ILO in 
2005, the Nigerian oil industry employs less than 
315,000 people (direct and indirect).
Farouk Gumel, the Group Executive Director said 
“Nigeria looks to the agriculture sector to decrease 
oil dependency”. He adds that “agriculture 
recorded a steady growth even during the 
country’s recent recession. It is becoming the 
largest Economic sector in Nigeria and this is 
helping to improve Nigeria’s GDP.Furthermore, 
agriculture is the only sector that has the potential 
to create massive jobs”. In a recent interview 
Farouk gumel added,”Nigeria hopes strong fiscal 
and monetary policies will further encourage 
additional investments in the agricultural sector”.
Farouk Gumel said TGI Group is already investing 
millions of dollars in out grower farming programs for 
rice paddy, soya beans and maize in Nigeria. “These 
programs supply raw materials to TGI’s rice mill, 
multi seed oil crushing facilities and poultry farms.” 
He added. TGI also gives guaranteed offtake 
agreement to the farmers. These offtake agreements 
enable the farmers to borrow funds for the 
enhancement and expansion of their operations. He 
concludes that “Agriculture is the key to inclusive and 
sustainable economic growth thereby leading to long 
term peace and prosperity”.
Farouk Gumel
Group Executive Director and Head of Agri-
Businesses for Tropical General Investment 
(TGI) Group.
THANK YOU!!