Why Sport Industry Is The New Black Gold

Editor’s note: Many Nigerians say the future of our economy depends mostly on the agricultural sector. While admitting that developing agric is undeniably important, others generate and promote their original ideas which, upon closer examination, make as much sense as more mainstream propositions. Naij.com contributor Adekoya Boladale manifests his active civil position in this write-up by prompting the government to consider investing in the sport industry.

In the wake of the sharp decline and unstable price of crude oil, the arguments surrounding the alternative means of revenue and diversification of the Nigerian economy have become heightened in the past few months.

This is not to say that economists and analysts have not been advocating the need for diversification of revenue in a predominantly mono-revenue dependent country like Nigeria for a long time; in fact,there has been clamors for the revamping of other revenue-generating sectors since time immemorial.

Not by bread alone

Nigeria as we know it is on a collision course. With the price of crude oil hovering around $40-$45 per barrel as against $100-$150 per barrel it enjoyed in the previous year, worsened by the extravagant lifestyle of our public office-holders and unending corrupt practices, it is only a matter of time before it runs a chronic deficit budget and goes on a borrowing spree.

There has been huge outcry on the side of agricultural development as an alternative means of revenue generation. The argument in favor of this sector is that since it once sustained the country before the discovery of crude oil, if adequately motivated, it could act as the saving grace once more. Another argument is that food is an essential commodity in any society, and, if we can attain food sufficiency and reduce the importation of agricultural produce, we will be able to minimize foreign trade which will translate into improvement in the value of the naira as there will be lesser demand for foreign currencies.

While I have strong respect for the logic in these arguments, I am constrained to think more on its sustainability and practicability. First, agriculture was sustaining Nigeria at a time when the population was less than 50,000,000. Now, with a population of three times that figure, the overall expenditure required to run the country may be too huge for the proceeds from agriculture to cover. Secondly, for a nation that has tasted the glory of crude oil funds, adjusting to minimal revenue from agriculture will be difficult if not impossible. The cost of maintaining our federal system alone beats any projected revenue from sales of agricultural produce.

Lastly, Nigerians have a physiological problem: the unquenchable taste for foreign goods. The majority of Nigerian consumers prefer to pay more for imported food items than the locally produced ones. Therefore, there is no guarantee that the people will patronize the local farm produce. This is not to say that the process of revamping the agricultural sector should not be pursued assiduously; however, the need to focus on other sectors that have the potential of generating huge revenue is equally important.

Unexpected but obvious solution

What then can a country of over 170,000,000 people (and still growing) do to sustain its economy and secure its future? The simple answer is sport development.

Sport around the world today has snowballed from the secular game of entertainment and leisure, as the world previously knew it, into a multibillion-dollar empire.

The benefits of investing in the sport world exceed the map of projections and forensic analysis. Apart from the fact that sport development in its nature promotes recreation and gives the youth the opportunity to maximize their potential with core engagement in area(s) of interest, which automatically keeps them busy hence curbing idleness and reducing crime, sport has become a trade and career which requires less formal training or financial strength as the major requirements are talent and dedication.

A sport-oriented country with the right strategy can survive mainly on sport activities raking in huge revenue through tax, franchise, and rents. In 2010 alone England made a whopping €20.3 billion from sport and sport related activities, not to mention the over 400,000 athletes who are on full time equivalent job in various clubs and other sporting areas.

Time for a sport revolution

The time is right for Nigeria to declare a sport revolution. The entertainment side of sport is great but now is the time to focus on the business side as well. Our leagues should be privatized and regulated to be run by investors and entrepreneurs with the sole aim of making profit. The government should still hold on to the national teams and leave the businessmen to run the leagues. This will encourage sport enthusiastic investors to invest in local clubs as against looking towards England.

A privatized sport industry will see Nigeria generating revenues from television rights, value added tax on tickets, and statutory tax payment from players and staff. Unemployment rate will also be reduced as those who are not engaged as staff in the clubs will make ends meet selling sports merchandise.

But we should not stop at football alone. We can move a step further to create a basketball league, tennis league, and swimming league to mention but a few. All of which should be privatized.

All these will require minimal financial commitment — just policies.

Adekoya Boladale for Naij.com

Mr Boladale is a public affairs analyst, political commentator and consultant on intragovernmental affairs. He tweets as @Adekoyabee.

The views expressed in this article are author’s own and do not necessarily represent the editorial policy of Naij.com.

Your own opinion articles are welcome at info@naij.com — drop an email telling us what you want to write about and why. More details in Naij.com’s step-by-step guide for guest contributors.

We’re ready to trade your news for our money: submit news and photo reports from your area using our Citizen Journalism App.

Contact us if you have any feedback, suggestions, complaints or compliments. We are also available on Facebook and Twitter.

The post Why Sport Industry Is The New Black Gold appeared first on Nigeria News today & Breaking news | Read on NAIJ.COM.