examines the performance of non – oil exports over the years as well as the reason for that pattern and level of performance. He seems to remain resolute to his plans, by broadening the tax base through the Federal Inland Revenue Service (FIRS), while pursuing agriculture and mining. The latest indicators on the economic performance of Nigeria coupled with shocks in the global economy re-echo how vital diversifying the Nigerian economy is. For instance, the Lagos Chambers of Commerce and Industry had in a statement called for diversification of the Nigerian economy in the wake of the fall in the prices of crude oil, which it described as the mainstay of the country’s economy. Agriculture remains a strength for Nigeria and it has the potential to help revive the economy. We need alternative non-oil sources of revenue to boost the economy. For the oil sector, it noted that Nigeria could do little about international prices, but It must focus on increased production and local processing since the sector by itself and through its inter-linkages with many other sectors of the economy can contribute to both growth and diversification. A leadership committed to the diversification of its economy from oil should have faithfully implemented the Nigerian National Automotive Policy Act of 1993 formulated to “ensure the survival, growth and development of the automotive industry using local human and material resources.” Many reasons have been advanced for the perilous state of the nation. The diversification of the Nigerian economy is necessary for important reasons. Nigeria’s Economy and the need for diversification ... (PPP) as an anchor for diversifying the Nigerian economy Lagos Container Terminals Concession as a Case Study | 9 Lagos is the commercial hub of the nation with 90% of the containerised cargo going through the Lagos ports. CONTENT: 1. By contrast, before COVID-19 struck, the economy was growing at 2.2%. Keywords: Nigeria’s Economy, Challenges and Way forward Policy conflict: The economic policies appears conflicting. To achieve this, Error-Correction Modeling approach was adopted for a period of between 1980 and 2018. al, (2007) posit increase liberalization, particularly in the financial sector, whose development has been remarkable. Since the late 1960s it has been based primarily on the petroleum industry. Economy is the sum total of all the activities involved in the production, distribution and consumption of goods and services within a geographical entity. We have heard of ‘corruption’ as the cause, except that my ordinary level economics class taught me that recession is a factor of drop in productivity. Nigeria’s economic diversification initiative has been more about political pronouncements than real efforts to not only broaden the base of … All that needed is a serious investment in agriculture. Nigeria is West Africa’s unrivalled economic powerhouse. The study recommends an economic diversification in Nigeria's revenue sharing, tax systems, domestic economy and agriculture instead of the dependence on oil revenues. Africa’s richest man, Alhaji Aliko Dangote, yesterday gave a poignant verdict on efforts by successive governments to transform the nation’s economy, saying that Nigeria’s economy is not working. Other reasons for revenue generation in Ebonyi State include the following: (i) ... Management of the economy: there is also need to generate revenue to ensure that the economy is effectively managed. ABUJA, May 25 (Xinhua) -- Nigeria's central bank on Tuesday announced a decision to retain the monetary policy rate at 11.5 percent for the fifth consecutive time, citing recent developments in the domestic economy as a major reason. Both high interest and tax rate has lowered Nigeria aggregate demand. Overview of Agriculture Policies in Nigeria and the Reasons for their Failure In my last weblog post, we discussed the rationale behind the quest of developing countries, Nigeria inclusive, to attain sustainable economic development through economic development planning driven through industrial and agriculture policies and programmes. The answer is No. Economic diversification involves creating new options in the economy. First, the volatility of the international oil market with the attendant volatility of government revenue gives credence to any argument for diversification of exports. What is a diversified industrial economy? First, there has been considerable increase UK strategy emphasises diversification Confidence in the economy and the financial markets in particular is yet to return fully. slow policy decision and diversification President Buhari said before and after his election into office that he was going to diversify the Nigerian economy away from oil. The numbers speak for themselves. nation’s export base (Adedipe, 2004). Managing Director, Cowry Asset Management Limited, Mr. Johnson Chukwu, said economic diversification is currently constrained by many factors, including … Diversification of the economy. In a time of global economic competition, it … The high economic gains of the oil industry made the nation to abandon other sectors of the economy and depend solely on oil industry. These studies have shown that there exists a positive relationship between economic growth in Nigeria and diversification into the agricultural sector. capital development in accelerating the rate of diversification of the Nigerian economy in view of de-escalating the role of petroleum in the global economy. Economic diversification. These responses are part confused and part ignorant. Diversification Of The Nigerian Economy, Restructuring As First Principle, By Professor Akinyemi Onigbinde August 11, 2017 Admins Columns 0 (being the text of an Address delivered to the First Annual Conference of the Guild of Editors of Corporate Online Publishers(GOCOP) on Thursday, August 10, 2017 at the Renaissance Hotel, Ikeja, Lagos If the president is serious about building a viable economy, he must encourage as a matter of priority the diversification of Nigeria’s economy. The Executive Vice Chairman/CEO, Nigerian Communications Commission (NCC), Prof. Umar Danbatta has described as key the role of telecommunications to the diversification of the nation’s economy. Despite numerous reforms, international loans and restructuring programmes, 85 million Nigerians live in deteriorating conditions of poverty. The general government fiscal deficit was 4.4% of GDP in 2019, compared to 1.8% in 2014. DIVERSIFICATION OF THE NIGERIAN ECONOMY Nigeria is a resource-rich country, but the focus has been on the production and exportation of crude oil and oil products. This is just a sample using a tricycle as example in Nigerian currency. Nigerian economy. Under former President Jonathan, Nigeria rebased its gross domestic product (GDP) from 1990 to 2010. In 2014, Nigeriachanged its economic analysis to account for fast growing contributors to its GDP, such as Nigeria is a veritable case for investigating the link between finance and growth for at least two reasons. WHO WANTS TO DO – LOOKS FOR OPPORTUNITY, WHO DOES NOT WANT TO DO – LOOKS FOR THE REASONS (Soviet folk proverb) UNIG HOLDINGS is a group of investment companies set up to develop industrial sectors of the Nigerian economy, attract and integrate new technologies, create jobs, restore moribund industrial systems, plants and factories whilst creating new enterprises. Encouragement of diversification of economy. Recent macroeconomic and financial developments Nigeria’s economy entered a recession in 2020, reversing three years of recovery, due to fall in crude oil prices on account of falling global demand and containment measures to fight the spread of COVID–19. For decades, the mantra of ‘economic diversification’ characterized attempts to reverse Nigeria’s dependence on oil with little real progress. The This industry brings the most export earnings. With a population of over 190 million people and a gross domestic product of over US$380bn, The effects of the oil crisis highlighted Nigeria’s exposure and vulnerability of the broader economy to external shocks. The African Development Bank (AfDB) has stated that economic diversification is the only viable option for Nigeria to survive the current global economic downturn occasioned by the COVID-19 pandemic. State the advantages and disadvantages of these types of economy. Below are genuine reasons why Nigeria should diversify her economy; 1) Nigeria Needs to Diversify Her Economy for Improved Standard of Living of Her Citizenry: We have demonstrated that the diversification of Nigerian economy will among other things bring about job creation and economic stability. Let’s look at the top 10 economic benefits of workplace diversity. According to him, Nigeria’s economic diversification programme has been largely sluggish and elusive, warning that the risks are huge if Nigeria fails to fast-track the diversification of […] Prospects of Revenue Allocation in Nigeria. As a matter of priority, Nigeria government must encourage the diversification of Nigeria’s economy. Diversification of the Nigerian economy is what the country needs in the 21st century. More so, with the recently released Economic Recovery and Growth Plan, I think that a basic understanding of… THE ECONOMY 2008 On 27th November, 2007 president Umaru Musa Yar’Adua presented his 2008 Federal Government Budget proposal of N2.4 tr. The Nigerian economy in the last few years has been going through some turbulence. A series of world oil price increases from 1973 produced rapid economic growth in transportation, construction, manufacturing, and government services. In the agricultural context, diversification can be regarded as the re-allocation of some of a farm's productive resources, such as land, capital, farm equipment and labour to other products and, particularly in richer countries, to non-farming activities such as restaurants and shops. Further, the economy is beginning to show signs of increasing diversification in some key sectors such as agriculture and consumer goods industry, but structural problems thwart speedy growth in manufacturing, retail and banking sectors. The study evaluates the performance of Nigeria’s export promotion strategies as to whether they have been effective in diversifying the productive base of the Nigerian Economy from Crude oil as the major source of foreign exchange. AfDB: Nigeria needs urgent economic diversification for COVID-19 recovery. Economy of Nigeria. All values, unless otherwise stated, are in US dollars. The economy of Nigeria is a middle-income, mixed economy and emerging market, with expanding manufacturing, financial, service, communications, technology and entertainment sectors. It must be ... diversification. A country that recorded an average GDP growth of 6.5 per cent, one of the highest in the world less than a decade ago, is now projected to grow at about 2.3 per cent in 2016. Diversification of Nigeria Economy : We Need Techs more than Agric !e - Politics - Nairaland ... then the diversification our Economy deserve is heavy investment in Mathematics, Engineering, Research and Science, and of course Information technology. For Nigeria, it seems diversification of the economy is the only option left for development and growth. These studies have shown that there exists a positive relationship between economic growth in Nigeria and diversification of other sectors because, when there were proper management of human resources, huge investment and concentration on agriculture, Nigerian economy was recorded to be healthy and vibrant. Nigeria has … The economy grows on an average of 2.0 percent with a disproportionate population growth of about 3.0 percent resulting in a low standard of living as measured by real GDP per capita of $2,200 compared to South Africa with a real GDP per capita of $6,100. This resulted in an 89% increase in the estimated size of the economy. As noted by Price Waterhouse Coopers, there are probably three essential reasons why Nigeria needs to genuinely pursue diversification. This industry is what brings the most revenue to the government. Economic Diversification. to the joint session of the National Assembly for approbation with the theme “Budget for the ordinary Nigerian” The Budget Highlights are as follows: #1 Nigeria Needs to Diversify Her Economy in Order to Achieve Economic Stability: The concept of … High Taxation: It is only in Nigeria that I see government charging high tax rate during economic recession. 3. Nigeria has enough natural and human potential. Prior to the discovery of crude in Nigeria… This is because; Nigeria is a mono economy, dependent on oil This is because the economy continues to be over-reliant on oil, which accounts for 80 per cent of government's revenue and 90 per cent of foreign exchange earnings. A typical broad base economic diversification can be that of Malaysia, a middle-income and oil producing country like Nigeria, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy through a diversified export economy. “First, to insulate the economy from the risk of being vulnerable to a single commodity as the different oil price crashes have shown. Against this backdrop, Erdal et. The situation has Nigeria is a resource-rich country, but the focus has been on the production and exportation of crude oil and oil products. Nigeria economy is in recession. We cannot understand why outside the poor agricultural policies in Nigeria. It encourages economic diversification. How To Ensure Effective Diversity In The Nigerian Economy. leum industry, Nigerian economy was dependent on agriculture. Economy watch 2 Are there enough reasons to panic? The talk of focusing on non-oil revenue Nigeria’s quest to diversify its economy is not new as it began with independence in 1960. To effectively manage the various sectors in the Nigerian economy and attain maximum efficiency in the diversification efforts, six things must be considered and taken adequately well of. by Josiah ... by itself and through its inter-linkages with many other sectors of the economy can contribute to both growth and diversification… A report that Nigerian food products are being rejected in the international market is not cheery against the backdrop of the quest for the diversification of the economy and strong currency. Unfortunately the Nigerian geographic terrain is also littered with abandoned infrastructure projects. 1. Diversification in the present Nigerian economic context simply means creating new avenues for economic growth. Diversification of the economy. As a result of the decline in oil prices, the current economic situation can be considered the most suitable time for diversification. Nigeria has enough natural and human potential. All that needed is a serious investment in agriculture. Food security. What is inexcusable is the fact that no real understanding of the crisis has managed to show through This study revealed that because a successfully diversi ed economy is expected to reduce the economy ex-posure to adverse external shocks and macroeconomic instability (Mobarak, 2005). ... Nigeria economy is in recession. With a large population and growing middle class, there are 65 million economic active people in Nigeria. It is the only viable way to survive the current environment of global economic uncertainty with the volatility of oil price. According to Lukman Otunuga, research analyst at FXTM, the crash in oil prices on the international market is the prime reason Nigeria, an oil-dependent nation, lost its place to South Africa. He seems to remain resolute to his plans, by broadening the tax base through the Federal Inland Revenue Service (FIRS), while pursuing agriculture and mining. Why Nigeria’s economic growth is slow – Report. However, at the turn of oil boom in the 70s, the constitution had stipulated what percentage should go for each state of the federation. To ensure future economic stability in Nigeria, government should engage the services of the proper economic team that can rescue the nation out of the present economic situation and put the national interest first before political interest. Godwin Emefiele, governor of … It would appear that we are entering into a period of uncertainty in the context of changing economic and financial market paradigms. For these reasons, the number of Nigerian students attending Canadian institutions increased from 2,825 in 2009 to 11,985 in 2019.” Along with Canada, the US, Ireland, and Australia are all seeing Nigerian student numbers increase in recent years. 1. Over 85% (percent) of the Nigerian farmers have no access to agricultural extension services and lack of necessary agricultural infrastructures that increase productivity. SLOW POLICY DECISION AND DIVERSIFICATION President Buhari said before and after his election into office that he was going to diversify the Nigerian economy away from oil. Generally, in the economic literature, economic measures of diversi cation can be 1Corresponding Author (Economics Unit) Distance Learning Institute, University of Lagos; loyelami@yahoo.com. Nigeria’s economy of the post-2016 recession should thrive on export diversification. Economic diversification is the process of shifting an economy away from a single income source toward multiple sources from a growing range of sectors and markets. We have heard of ‘corruption’ as the cause, except that my ordinary level economics class taught me that recession is a factor of drop in productivity. Diversification of the economy. The report says that the country would benefit from policies to promote diversification and long-term inclusive growth, and focuses on leveraging regional connections and coordination to enhance Nigeria’s competitiveness. The Nigeria economic growth has been hampered because of restricted export diversification arising from its export mono-product stance, a complete shift from hitherto exportable goods before the discovery of crude oil in late 1950’s despite the great potentials and abundance of human material and natural resources in the country. Nigerian economy is mono-economy, depending on oil. The over dependence on oil has stunted economic development and is no longer sustainable. Nigeria - Nigeria - Economy: The Nigerian economy is one of the largest in Africa. The implication of this has been poor impact of the agriculture on Nigerian economy. Nigeria has a large expanse of land which is good for agricultural and arable farming. Many reasons have been advanced for the perilous state of … The need for Nigeria to start welcoming open trade especially now that the African Continental Free Trade Area has begun operation and a new competition policy that can help in the diversification of the economy and growth of the nation is of utmost importance, according to the statement by the International Monetary Fund (IMF). A former Minister of Finance, Mr Olusegun Aganga, has said despite the talk of economic diversification over the decades, Nigeria has not been able to diversify its economy … DIVERSIFICATION OF THE NIGERIAN ECONOMY: AGRICULTURE AND SOLID MINERALS AS PANACEA Diversification of the Nigerian economy with specific emphasis on the agricultural and solid mineral sectors is feasible in view of Nigeria’s resource endowment. Economic growth rates have slowed from a position where Nigeria was one of the fastest growing economies in the world. THE NIGERIAN ECONOMY By Eskor TOYO* The crisis in the Nigerian economy has evoked a lot of responses. While the next 1-2 years are likely to be challenging, PwC believes that the Nigerian economy as well as Nigerian companies are resilient enough to weather the challenge of lower oil prices. Nigeria’s economy is in recession. Diversification of Nigerian economy, restructuring as first principle. The overarching lesson we should take from this experience is that diversification of foreign exchange earnings, through non-oil export growth, is the way to build resilience against the next episode of oil price shock. professional economists call it Gross Domestic Product (GDP). By. As a matter of priority, Nigeria government must encourage the diversification of Nigeria’s economy. So over the next couple of weeks, I shall be doing a series on economic diversification. Prof. Danbatta made this assertion in his presentation to Course 29 Participants at the National Defence College, Nigeria, on Monday. It involves using the right strategy to … There are a number of plans in place, such as the Kano Agro Pastoral Project, that can help to galvanise this important part of the Nigerian economy. With the prolonged downturn in oil prices, more than ever, it is imperative for Nigeria to move from being a mono-product economy to one with a … Advantages and disadvantages of types of economy. The diversification of the economy has become a priority of the government at a time that the price of crude has continued to drop. A diverse workforce drives economic growth. The growth of petroleum industry in Nigeria brought about dramatic change in the nature of Nigerian economy. The containment measures mainly affected aviation, tourism, hospitality, restaurants, manufacturing, and trade. This denotes that if Nigeria is to double her GDP by the golden rule of 70, it will take Nigeria about 35 years while her population will double in less than 24 years explaining a widening disparity and the reason … Traditionally, it has been applied as a strategy to encourage positive economic growth and development. But how then do you help these sectors thrive and bring about positive change in the Nigerian economy? Lastly, the book defines the role of the military in the future of Nigeria's democracy. Before the 2016 recession, Nigeria’s economy was growing fast at 6.3%. Secondly, the fact 2. Let us put it like this: the issue of diversification is a recognition of a fact and a presumption that a mono-culture economic practice is bad, as it is susceptible to vicissitudes of market forces, to the extent that, if a product is no longer viable, or no more valuable to consolidated consumers, the single-product economy suffers. Agricultural produce was the major foreign exchange earner i.e. I feel this is imperative as this has dominated the discourse on the Nigerian economy since it plunged into a recession. At present, there is no effective diversification; and so, the health of the Nigerian economy still precariously hangs on oil price movement. Descriptive statistical method and … With the prolonged downturn in oil prices, more than ever, it is imperative for Nigeria to move from being a mono-product economy to one with a more diverse revenue base. Sadly, the development focus of government has not significantly impacted on the economy, and agriculture is not an exception. In the 70s then, there was derivation … For the current administration diversification has remained a rocket science, a fancy word it talked up on its agenda for the economy upon resuming office. diversification of the Nigeria economy was also a reason while the aftermath of the financial crisis touched the Nigeria banking sector. Stakeholders and manufacturers seem not to be at ease with recent happenings in the economy calling for urgent need to diversify the economy. This was in recognition of the need to diversify the sources of foreign exchange from oil and gas and other primary commodities and the importance of industrialization in overall economic development. It is no longer news that Nigeria's economy is experiencing total collapse and if 1.1 The Decline of Agriculture as the Mainstay of the Economy. State five reasons why the Nigerian economy should be diversified; Describe Nigeria’s economy as mono product and import oriented economy. looking into diversification of the economy into the agricultural sector so as to attain solid economic growth. Diversification is … Diversification of the economy. – Finally, the realization that development often comes through the diversification of the productive capacity of the economy. It is crucial that government do not believe that oil provides an endless source of revenue. "Economic diversification is no longer an ideal aspirational state for the Nigeria economy, but rather an imperative for sustainable economic growth. Many reasons have been advanced for the perilous state of the nation. groundnut in the North, cocoa in the West and palm oil/kernel in the East. Inflation was in single digits in 2014, compared to about 12% in 2019. Agriculture between 1960 and 1965 was the mainstay of Nigeria’s economy, contributing up to 60% of GDP. The non-economist can be excused for being ignorant and surprised. As a result of the decline in oil prices, the current economic situation can be considered the most suitable time for diversification. Oil makes over 80 percent of all the country’s revenue and the exportation of crude oil brings nearly 98 percent of all the export earnings. Small businesses are slaughtered with high interest rate. In this recent time of falling oil prices, the impact is felt on the Nigerian economy through inflation, job loss and Naira depreciation. Or is diversification being pursued for the right reasons, namely, to develop the Nigerian economy to address unemployment, income disparities and poverty on an inclusive, sustainable basis? The nature of the Nigerian economy. The theme of the Webinar was “Nigerian Sovereign Wealth Fund and the urgency for economic diversification.” Aganga said that the country needs to start shifting it’s focus from oil to non-oil sector in order to effectively achieve economic development.

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