Sopade, in a telephone interview with the News Agency of Nigeria (NAN) in Osogbo, urged the Federal Government to adopt the comparative cost advantage principle in diversifying the economy.
The News Agency of Nigeria (NAN) reports that the principle was developed by an economist, David Ricardo, in 1817 and is used to explain why countries engage in international trade.
It is a theory about the potential gains from trade for individuals, firms, or nations that arise from differences in their factor endowments or technological progress.
It states that in an economic model, an agent has a comparative advantage over another in producing a particular good, if he can produce that good at a lower relative opportunity cost rather than monetary costs of production or resource costs.
Sopade said that if Nigeria’s economy was driven by this principle, it would not only solve the menace of unemployment, it would also strengthen the economy.
``No nation produces in line with her comparative cost advantage without enviable success, most especially in the area of curbing unemployment, it is indeed a catalyst for diversification.
``In the case of Nigeria, and many economies in sub-Saharan Africa, where agriculture remains the main-stay of their economies since the pre-colonial period, agriculture is the best panacea to unemployment.
``There is need for a country like Nigeria to quickly diversify her mono-product economy and begin to invest in the agricultural sector where she has a comparative cost advantage,’’ the don stressed.
Sopade urged Nigerian youths to develop keen interest in farming and till the soil for its gains, saying: ``There is dignified wealth in the soil, which can never be found elsewhere.’’
He lauded the Minister for Agriculture, Dr. Akinwunmi Adesina, for his resilience in transforming the sector and eradicating bottlenecks in accessing farm inputs.(NAN)
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