GENERAL OVERVIEW OF THE NIGERIAN ECONOMY. Before advent of oil (petroleum), agriculture was the main stay of Nigeria’s economy.
Oil-RICH Nigeria has been hobbled by political instability, corruption, inadequate infrastructure, macro-economic management and more recently is the issue of leadership failure.
worthy of note is the problem of insurgency and terrorism in Nigeria especially in the North East of the country where the government of the day has refused to do the needful by romancing bandits and insurgents.
THE NATURE OF THE NIGERIAN ECONOMY
At the end of this post, students should be
- Explain the nature and structure of the Nigerian Economy.
- Identify and explain the relative contributions of various sectors of the economy
Nigeria’s former military rulers failed to diversity ay away from its over dependence on the capital intensive oil sector, which provides 95 % of foreign exchange earnings and of budgetary revenues.
Following the debt-relief from the Paris club, Nigeria have started reforms aimed at economic at system, removal of subsidies, and resolving regional disputes over the distribution of earnings from the oil industry.
President Goodluck Jonathan has established an economic eludes experienced and reputable members has announced plans to increase transparency, diversity, economic growth and fiscal management.
Lack of will and slow implementation of reforms key impediments to growth. The is working towards developing stronger public-private partnerships for roads, agriculture and power.
All these plans will help to transform the Nigeria economy to greater heights.
ECONOMIC POTENTIALS OF THE NIGERIAN ECONOMY
Nigeria has the potential to be fastest growing economy and rank 1311 among the world’s top 20 economies from now to 2050, according to the world in 2050 report published by price Waterhouse Coopers, PWC’s macroeconomics team.
The report stated that with a projected GDP of nearly USS4 trillion by 2050 and around 6% growth rate as well as a youthful and growing working population, Nigeria is projected to rank 13th among the world’s largest economies by 2050 if it can realize its full potential.
According to the report; a growing, prime working age population, together with rising average rates of schooling and technological progress; drives Nigeria’s strong growth prospect.
However, the report’s projections rely on the country using its oil wealth to develop a broader-based economy with better infrastructure and institutions which will support long term productivity growth.
Nigeria has an estimated population of 140 million people and is regarded as Africa’s most populous nation. Nigeria is the seventh largest oil exporter in the world and yet remains the poverty capital of the world
Nigeria’s ICT sector is the largest (and still growing) in Africa with over $12bn of investments and 62% of the African market.
In terms of labour force, the young adult based, with 70° o of the working population serving the agricultural sector, 10% serving the industrial sector and 20% serving the services sector.
summary of the Nigerian work force:
- Nigeria has very good economic potential.
- Its considerable resource endowment,
- Large labour force,
- Highly motivated entrepreneurs,
- Vast and fertile agricultural land,
- A large domestic market,
- As well as strategic coastal location should allow it to become an economic power house for Africa.
ECONOMIC ACTIVITIES OF THE SEX GEO-POLITICAL ZONES OF NIGERIA
Nigeria has six geopolitical zones namely the North-West, North-East, North-Central, South-West, South-East and south-South. Nigeria again has four main regional groupings.
- The North: The companies of three northern geographical zones.
- The South West: This include the six Yoruba-speaking states.
- The South-East: Comprising the five Igbo- speaking states.
- The South-South: Comprising the six oil- producing states of the Niger Delta.
States that are in the six-geopolitical zones,
- The North-West Geo-political Zones: The states that found in this zone include Sokoto, Zamfara, Kebbi, Katsina, Jigawa, Kano and Kaduna States. The economic activities of this zone are mainly farming, fishing, livestock rearing especially in cattle, sheep and goat. They are also involved in industrial activities like mining e.g limestone in Sokoto.
- The North-East Geo-political Zones: This is also located in the Northern part of the country. It consists of the following states. These are Yobe, Bomo, Bauchi, Gombe, and Taraba States.
- The major economic activities of this zone include farming livestock production especially in cattle, sheep and goat. They are equally involved in minor mining activities. The zone is the least endowed with mineral resources.
- The North-Central Geo-Zones: The zone represent the middle belt of Nigeria comprising
of Benue, Kogi, Niger, Nasarawa, Niger and Plateau states. The Federal Capital Territory (FCT) Abuja is also located in the zone.
economic power of Northern Nigeria
The main activities, in this zone are farming, fishing, hunting, trading, weaving, blacksmithing, typing and dying and mat making. The main economic activities are farming as a result of their fertile nature of the presence of River Niger are Benue.
They are equally involved in mining activities in Jos (Tin and columbite), gold and iron ore in Kogi and limestone in Benue State. Hydro-electric power also found in this region e.g. kainji Dam.
economic power of South West Nigeria
The South-West Geo-political Zones: The zone is made up of the six Yoruba speaking states of the country. The states are Lagos, Ogun, Oyo, Ondo, Ekiti and Osun States.
The zones is endowed with both agricultural and commercial activities. The region engaged in farming especially tree crops like cocoa, kola, oil palm, livestock activities like poultry and piggery.
The zone also engaged in commercial activities like limestone in Ogun are part of the economic activities.
economic power of South East Nigeria (former Biafra state)
- The South-East Geo-political Zones: This zone is made up of the five Igbo speaking states of the country. The states are Anambra, Imo, Enugu, Enugu, Abia and Ebonyi states.
The main economic activities of this zone are farming, in crops like palm oil, rubber, kola other food crops like yam, cassava, rice, etc, they are equally involved in mining activities in coal, petroleum limestone etc. The zone is noted for heavy trading and local manufacturing in Abia and Anambra states.
The South-South Geo-political Zones: The South geo-political zone comprising oil-producing states of the Niger delta, states are Edo, Delta. These States are Edo, Delta, Rivers, Bayelsa, River and Akwa-Ibom States. The major economic of this zone include the production of crude-oil (petroleum) limestone in Edo and Iron-ore in Delta. They are equally involved in crop farming like Cocoa, kola, rubber, etc, fishing due to their in Niger Delta. Other economic activities are in trading, banking, sea port activities, etc.
VARIOUS PRODUCTS PRODUCED IN DIFFERENT ZONES OF THE COUNTRY
As discussed above, the various geo-political zones produce certain products (both agricultural and mineral resources).
These zones and the products they produced are as follows especially with respect to agricultural and mineral resources.
- North-West Zone: Agricultural products include cotton, groundnut, millet, sorghum, cattle, sheep and goat, fishes, mineral resources are limestone and salt.
- North-East Zone: Agricultural products include groundnut, cotton, guinea com, groundnut, millet, maize, cattle, sheep, goat, fishes, hide and skin, coffee and tea. mineral sources are gold, salt and lignite.
- North-Central Zone: Agricultural products are yam, cassava, fishes, sugar cane, citrus, cashew, mango, rice, cotton, groundnut, wheat, etc. Mineral resources are tin and columbite, lignite, iron-ore, limestone, H.E.P, etc.
- South-West Zone: Agricultural products are cocoa, kola, rubber timber, robusta, coffee, plantains, pineapple and cassava. Mineral resources are limestone, bitumen, gold, etc.
- South-East Zone: Agricultural products are oil palm, kola, rubber, cassava, maize, plantain, citrus, rice, yam, timber. Mineral resources are limestone, coal, lead and zinc.
- South-South Zone: Agricultural products are oil palm, rubber, cocoa, kola, plantains, cassava, fishes, timber, etc.
NATURE AND STRUCTURE OF INDUSTRIES IN NIGERIA
Industries in Nigeria are classified into primary, secondary and tertiary industries or sectors. These are:
Primary Industries: (i)These industries are concerned with the extraction of raw materials provided by nature. (ii)They are also called extractive industries.
(iii)Examples are mining, fishing, lumbering, farming and livestock production
Secondary Industries: (i) These industries turn raw materials into consumable or finished goods, (ii)Examples are construction, building, textile, ship building, iron and steel and chemical industries.
- Tertiary Industries: (i) These are concerned with the rendering of services. (ii) It could be direct services like trading, banking, teaching, medical and transportation, (iii) It could also be indirect services like the job of police, custom, soldiers, navy, etc.
CONTRIBUTION OF THE VARIOUS SECTORS TO THE ECONOMIC DEVELOPMENT OF NIGERIA
(a) Contributions of Agriculture: Read this in chapter 14.5 of this book
(b) Contribution of Minerals: Read this in chapter 15.4 of this book.
(c) Contribution of Industries: Read this in chapter 30.9 of this book