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Estimated real growth rate (2008): 6.1%.
Per capita GDP (2008 est.): $2300.
Inflation (2008 est.): 10.6%.
Budget: Income .............. $29.49 Billion
Expenditure ... $30.64 Billion
Main Crops: cocoa, peanuts, palm oil, corn, rice, sorghum, millet, cassava (tapioca), yams, rubber; cattle, sheep, goats, pigs; timber; fish Natural Resources: petroleum, tin, columbite, iron ore, coal, limestone, lead, zinc, natural gas .
Major Industries: crude oil, coal, tin, columbite, palm oil, peanuts, cotton, rubber, wood, hides and skins, textiles, cement and other construction materials, food products, footwear, chemicals, fertilizer, printing, ceramics, steel
Dominated by Oil
The oil boom of the 1970s led Nigeria to neglect its strong agricultural and light manufacturing bases in favor of an unhealthy dependence on crude oil. In 2002 oil and gas exports accounted for more than 98% of export earnings and about 83% of federal government revenue. New oil wealth, the concurrent decline of other economic sectors, and a lurch toward a statist economic model fueled massive migration to the cities and led to increasingly widespread poverty, especially in rural areas. A collapse of basic infrastructure and social services since the early 1980s accompanied this trend. By 2002 Nigeria's per capita income had plunged to about one-quarter of its mid-1970s high, below the level at independence. Along with the endemic malaise of Nigeria's non-oil sectors, the economy continues to witness massive growth of "informal sector" economic activities, estimated by some to be as high as 75% of the total economy.
Nigeria's proven oil reserves are estimated to be 25 billion barrels; natural gas reserves are well over 100 trillion cubic feet. Nigeria is a member of the Organization of Petroleum Exporting Countries (OPEC), and in 2003 its crude oil production was averaging around 2.2 million barrels per day. Poor corporate relations with indigenous communities, vandalism of oil infrastructure, severe ecological damage, and personal security problems throughout the Niger Delta oil-producing region continue to plague Nigeria's oil sector. Efforts are underway to reverse these troubles. In the absence of government programs, the major multinational oil companies have launched their own community development programs. A new entity, the Niger Delta Development Commission (NDDC), has been created to help catalyze economic and social development in the region. Although it has yet to launch its programs, hopes are high that the NDDC can reverse the impoverishment of local communities. The U.S. remains Nigeria's largest customer for crude oil, accounting for 40% of the country's total oil exports; Nigeria provides about 7%-9% of overall U.S. oil imports and ranks as the fifth-largest source for U.S. imported oil.
The United States is Nigeria's largest trading partner after the United Kingdom. Although the trade balance overwhelmingly favors Nigeria, thanks to oil exports, a large portion of U.S. exports to Nigeria is believed to enter the country outside of the Nigerian Government's official statistics, due to importers seeking to avoid Nigeria's excessive tariffs. To counter smuggling and under-invoicing by importers, in May 2001 the Nigerian Government instituted a 100% inspection regime for all imports, and enforcement has been sustained. On the whole, Nigerian high tariffs and non-tariff barriers are gradually being reduced, but much progress remains to be made. The government also has been encouraging the expansion of foreign investment, although the country's investment climate remains daunting to all but the most determined. The stock of U.S. investment is nearly $7 billion, mostly in the energy sector. Exxon-Mobil and Chevron are the two largest U.S. corporate players in offshore oil and gas production. Significant exports of liquefied natural gas started in late 1999 and are slated to expand as Nigeria seeks to eliminate gas flaring by 2008.
Agriculture has suffered from years of mismanagement, inconsistent and poorly conceived government policies, and the lack of basic infrastructure. Still, the sector accounts for over 41% of GDP and two-thirds of employment. Nigeria is no longer a major exporter of cocoa, groundnuts (peanuts), rubber, and palm oil. Cocoa production, mostly from obsolete varieties and overage trees, is stagnant at around 180,000 tons annually; 25 years ago it was 300,000 tons. An even more dramatic decline in groundnut and palm oil production also has taken place. Once the biggest poultry producer in Africa, corporate poultry output has been slashed from 40 million birds annually to about 18 million. Import constraints limit the availability of many agricultural and food processing inputs for poultry and other sectors. Fisheries are poorly managed. Most critical for the country's future, Nigeria's land tenure system does not encourage long-term investment in technology or modern production methods and does not inspire the availability of rural credit.
Oil dependency, and the allure it generated of great wealth through government contracts, spawned other economic distortions. The country's high propensity to import means roughly 80% of government expenditures is recycled into foreign exchange. Cheap consumer imports, resulting from a chronically overvalued Naira (Nigeria's currency), coupled with excessively high domestic production costs due in part to erratic electricity and fuel supply, have pushed down industrial capacity utilization to less than 30%. Many more Nigerian factories would have closed except for relatively low labor costs (10%-15%). Domestic manufacturers, especially pharmaceuticals and textiles, have lost their ability to compete in traditional regional markets; however, there are signs that some manufacturers have begun to address their competitiveness.
Nigeria's official foreign debt is about $32 billion, about 75% of which is owed to Paris Club countries. A large chunk of this debt is interest and payment arrears. In August 2000 the International Monetary Fund (IMF) and Nigeria signed a one-year Stand-by Arrangement (SBA), leading to a debt rescheduling agreement in December between Nigeria and its Paris Club creditors. Nigeria does not have a formal IMF program, but relations with the IMF and the World Bank have improved since April 2003. Any long-term debt relief will require strong and sustained economic reforms over a number of years.
In the light of highly expansionary public sector fiscal policies during 2001, the government has sought ways to head off higher inflation, leading to the implementation of stronger monetary policies by the Central Bank of Nigeria (CBN) and underspending of budgeted amounts. As a result of the CBN's efforts, the official exchange rate for the Naira has stabilized at about 112 Naira to the dollar. The combination of CBN's efforts to prop up the value of the Naira and excess liquidity resulting from government spending led the currency to be discounted by around 20% on the parallel (nonofficial) market. A key condition of the Stand-by Arrangement has been closure of the gap between the official and parallel market exchange rates. The Inter Bank Foreign Exchange Market (IFEM) is closely tied to the official rate. Under IFEM, banks, oil companies, and the CBN can buy or sell their foreign exchange at government influenced rates. Much of the informal economy, however, can only access foreign exchange through the parallel market. Companies can hold domiciliary accounts in private banks, and account holders have unfettered use of the funds.
Expanded government spending also has led to upward pressure on consumer prices. Inflation, which had fallen to 0% in April 2000, reached 14% by the end of 2003. In 2000, high world oil prices resulted in government revenue of over $16 billion, about double the 1999 level. State and local governmental bodies demand access to this "windfall" revenue, creating a tug-of-war between the federal government, which seeks to control spending, and state governments desirous of augmented budgets preventing the government from making provision for periods of lower oil prices.
Since undergoing severe distress in the mid-1990s, Nigeria's banking sector has witnessed significant growth over the last few years as new banks enter the financial market. Harsh monetary policies implemented by the Central Bank of Nigeria to absorb excess Naira liquidity in the economy has made life more difficult for banks, some of whom engage in currency arbitrage (round-tripping) activities that generally fall outside legal banking mechanisms. Private sector-led economic growth remains stymied by the high cost of doing business in Nigeria, including the need to duplicate essential infrastructure, the threat of crime and associated need for security countermeasures, the lack of effective due process, and nontransparent economic decisionmaking, especially in government contracting. While corrupt practices are endemic, they are generally less flagrant than during military rule, and there are signs of improvement. Meanwhile, since 1999 the Nigerian Stock Exchange has enjoyed strong performance, although equity as a means to foster corporate growth remains underutilized by Nigeria's private sector.
Nigeria's publicly owned transportation infrastructure is a major constraint to economic development. Principal ports are at Lagos (Apapa and Tin Can Island), Port Harcourt, and Calabar. Docking fees for freighters are among the highest in the world. Of the 80,500 kilometers (50,000 mi.) of roads, more than 15,000 kilometers (10,000 mi.) are officially paved, but many remain in poor shape. Extensive road repairs and new construction activities are gradually being implemented as state governments, in particular, spend their portions of enhanced government revenue allocations. The government implementation of 100% destination inspection of all goods entering Nigeria has resulted in long delays in clearing goods for importers and created new sources of corruption, since the ports lack adequate facilities to carry out the inspection. Four of Nigeria's airports--Lagos, Kano, Port Harcourt and Abuja--currently receive international flights. Government-owned Nigerian Airways is virtually moribund due to mismanagement, high debt, and a vastly shrunken fleet. There are several domestic private Nigerian carriers, and air service among Nigeria's cities is generally dependable. The maintenance culture of Nigeria's domestic airlines is not up to U.S. standards.
Nigeria's economic team, led by Finance Minister Ngozi Okonjo-Iweala enjoys an excellent reputation in the international community. The team produced an encouraging body of work during the last nine months, notably a FY 2004 budget described as "prudent and responsible" by the IMF and a detailed economic reform blueprint, the National Economic Empowerment and Development Strategy (NEEDS). Other positive developments during the past year included: (1) Government efforts to deregulate fuel prices; (2) Nigeria's participation in the Extractive Industry Transparency Initiative (EITI) and commitment to the G8 Anticorruption/Transparency Initiative; (3) Creation of an Economic and Financial Crimes Commission (EFCC); and (4) Development of several governmental offices to better monitor official revenues and expenditures. During 2000 the government's privatization program showed signs of life and real promise with successful turnover to the private sector of state-owned banks, fuel distribution companies, and cement plants. However, the privatization process has slowed somewhat as the government confronts key parastatals such as the state telephone company NITEL and Nigerian Airways. The successful auction of GSM telecommunications licenses in January 2001 has encouraged investment in this vital sector.
Although Nigeria must grapple with its decaying infrastructure and a poor regulatory environment, the country possesses many positive attributes for carefully targeted investment and will expand as both a regional and international market player. Profitable niche markets outside the energy sector, like specialized telecommunication providers, have developed under the government's reform program. There is a growing Nigerian consensus that foreign investment is essential to realizing Nigeria's vast but squandered potential. Companies interested in long-term investment and joint ventures, especially those that use locally available raw materials, will find opportunities in the large national market. However, to improve prospects for success, potential investors must educate themselves extensively on local conditions and business practices, establish a local presence, and choose their partners carefully. The Nigerian Government is keenly aware that sustaining democratic principles, enhancing security for life and property, and rebuilding and maintaining infrastructure are necessary for the country to attract foreign investment.
The United States assisted with Nigeria's economic development from 1954 through June 1974, when concessional assistance was phased out because of a substantial increase in Nigeria's per capita income resulting from rising oil revenue. By 1974, the United States had provided Nigeria with approximately $360 million in assistance, which included grants for technical assistance, development assistance, relief and rehabilitation, and food aid. Disbursements continued into the late 1970s, bringing total bilateral economic assistance to roughly $445 million.
The sharp decline in oil prices, economic mismanagement, and continued military rule characterized Nigeria in the 1980s. In 1983, the U.S. Agency for International Development (USAID) began providing assistance to the Nigerian Federal and State Ministries of Health to develop and implement programs in family planning and child survival. In 1992, an HIV/AIDS prevention and control program was added to existing health activities. USAID committed $135 million to bilateral assistance programs for the period of 1986 to 1996 as Nigeria undertook an initially successful Structural Adjustment Program, but later abandoned it. Plans to commit $150 million in assistance from 1993 to 2000 were interrupted by strains in U.S.-Nigerian relations over human rights abuses, the failed transition to democracy, and a lack of cooperation from the Nigerian Government on anti-narcotics trafficking issues. By the mid-1990s, these problems resulted in the curtailment of USAID activities that might benefit the military government. Existing health programs were redesigned to focus on working through grassroots Nigerian non-governmental organizations and community groups. As a response to the Nigerian military government's plans for delayed transition to civilian rule, the Peace Corps closed its program in Nigeria in 1994.
In response to the increasingly repressive political situation, USAID established a Democracy and Governance (DG) program in 1996. This program integrates themes focusing on basic participatory democracy, human and civil rights, women's empowerment, accountability, and transparency with other health activities to reach Nigerians at the grassroots level in 14 of Nigeria's 36 states.
The sudden death of Gen. Sani Abacha and the assumption of power by Gen. Abdulsalami Abubakar in June 1998 marked a turning point in U.S.-Nigerian relations. USAID provided significant support to the electoral process by providing some $4 million in funding for international election observation, the training of Nigerian election observers and political party polling agents, as well as voter education activities. A Vital National Interest Certification was submitted to Congress in February 1999 by President Clinton to lift restrictions on U.S. Government interaction with and support to the Government of Nigeria.
Since that time, USAID has supported Nigeria to sustain democracy and to improve governance by providing training on the roles and responsibilities of elected officials in a representative democracy for newly elected officials at the federal, state, and local levels prior to their installation in May 1999 and assisting with conflict prevention and resolution in the Niger Delta, civil military relations, civil society, and political party development. In the economic area USAID supports programs in strengthening economic management and coordination, encouraging private sector development and economic reform, helping Nigeria reap the benefits of the African Growth and Opportunity Act (AGOA), improved agricultural technology and marketing and smallscale and microenterprise development. In addition, health assistance, focusing on HIV/AIDS, nutrition, and immunization, education, transportation and energy infrastructure, are priorities for bilateral assistance.
A key regional player in West Africa, Nigeria accounts for about half of West Africa’s population with approximately 202 million people and one of the largest populations of youth in the world. With an abundance of natural resources, it is Africa’s biggest oil exporter, and has the largest natural gas reserves on the continent.
Nigeria is a multi-ethnic and culturally diverse federation which consists of 36 autonomous states and the Federal Capital Territory. The political landscape is partly dominated by the ruling All Progressives Congress party (APC) which holds 217 out of 360 seats at the National Assembly 64 out of 109 seats in the Senate and 19 out of 36 State Governors.
Muhammadu Buhari secured a second term at the 2019 presidential elections, while the results were contested by the main opposition party the People’s Democratic Party (PDP). Since 2011, the Nigerian security landscape has been consistently shaped by the war against Boko Haram terrorist group in the northern states. This adds to a lasting crisis in the oil-rich Niger Delta, where several non-state armed groups attack oil companies and state-owned pipelines.
Nigeria is highly vulnerable to the global economic disruption caused by COVID-19, particularly due to the pronounced decline in oil prices and spikes in risk aversion in global capital markets. Nationally, 40 percent of Nigerians (83 million people) live below the poverty line, while another 25 percent (53 million) are vulnerable. With COVID-19, many of these 53 million vulnerable people could fall into poverty. The magnitude of the health impact depends on the duration and the domestic spread of the outbreak, while the economic impact hinges on oil prices. Oil accounts for over 80 percent of exports, a third of banking sector credit, and half of government revenues. Oil prices also affect growth in non-oil industries and services, with additional pressures arising from foreign portfolio investors’ reassessment of risks and domestic liquidity management.
The macroeconomic situation is more challenging now than in 2015-2016, when oil prices fell sharply and Nigeria experienced its first recession in 25 years. In the current situation, Nigeria has fewer buffers and policy instruments to cushion adverse effects. The Excess Crude Account is depleted, external reserves are highly reliant on short-term flows, and policy uncertainty affects investor confidence. Before the 2016 recession, Nigeria’s economy was growing fast at 6.3%. By contrast, before COVID-19 struck, the economy was growing at 2.2%. Inflation was in single digits in 2014, compared to about 12% in 2019. The general government fiscal deficit was 4.4% of GDP in 2019, compared to 1.8% in 2014.
Unemployment and underemployment are expected to increase, affecting poor households and increasing the share of the population vulnerable to falling into poverty. Only agriculture is expected to positively contribute to growth in 2020.
While Nigeria has made some progress in socio-economic terms in recent years, its human capital development remains weak due to under-investment. It ranked 152 of 157 countries in the World Bank’s 2018 Human Capital Index. The country continues to face massive developmental challenges, including the need to reduce the dependency on oil and diversify the economy, address insufficient infrastructure, build strong and effective institutions, as well as address governance issues and public financial management systems. These pre-existing structural challenges have left the Nigerian economy especially vulnerable to the COVID-19 outbreak and its consequences.
Inequality, in terms of income and opportunities, remains high and has adversely affected poverty reduction. The lack of job opportunities is at the core of the high poverty levels, regional inequality, and social and political unrest. Without the COVID-19 shock (the counterfactual scenario), about 2 million Nigerians were expected to fall into poverty in 2020 as population growth outpaces economic growth. With COVID-19, the recession is likely to push an additional 5 million Nigerians into poverty in 2020, bringing the total newly poor to 7 million this year.
WHAT IS ECONOMY?
The word “Economy” is derived and gotten from the word, “Economics”. Some emphasis has to be made on both terminologies in order to distinguish both words from their ideal concept and meaning. Economics refers to the science of how money is made, spent and utilized. Economics focused on how resources are gotten and utilized to achieve a particular goal. As a field of study, economics is a social science which studies human behavior by analyzing how people, individuals, government, and companies produce what they what to produce, consume what they produce and how they make money and build wealth on what they produced. Economics oversees the business activities, trading activities and financial activities on how people survive in the economy of a country. The relationship, connection, and interaction between money, resources, production and wealth are being determined by economics.
Structure Of The Nigerian Economy
As a science, economics makes policies, formulas, theories, and principles which they go a long way in detecting and predicting the outcome of any economic policy or economic activity. As a science, economics observes the different economic activities, identifies the problem of the economy, collects data and information on the records related to the economy, analyzes the data and information collected, formulates a hypothesis, makes series of tests, comes up with a generalization, makes a law of economic activities for the problem and comes up with theories this makes economics a science.
An Economy refers to a careful management, utility and controls the production of goods, rendering of services and the supply of money. An economy is an area in which different agents, professionals, and workers engage in production, commercial and consumption activities to see how money circulates and how scarce resources are allocated and distributed.
There are different types of economy which are been used and implemented by various countries and nations of the world. Prominent among them are three major economic systems that are used in modern communities and governments in the world. They are:
- Communism : Communism is an economic system in which every single individual or citizen of a country or society contributes to the growth of that very community and enjoys rewards and privileges as a member of such community. In such economic system, there is a common ownership of assets and the means of production. This system eliminates any form of social and political inequality because nobody is richer or wealthier than the other person. In other words, everyone is on the same social status. There is no conflict or clash or competition in the means of production because the economy is an economy of public ownership of the means of production, distribution an exchange. For instance, in a communist state, the land used for farming activities such as fishing, game hunting, planting, harvesting of crops etc are owned by the community individuals do not possess the land because the land is owned by the society and if any harvest should be recorded on the effect of their agricultural activities, then they will all share the benefits and fruits collectively. In this economic system, there is collective and public ownership of anything that concerns or has to do with the economy, industrial and trading activity in the community.
In a communist state, there is the idea and principle of a classless and egalitarian society. This is because certain properties and assets are shared in such economy. The classless feature means that there is no recognition of a leader in this system since everyone is of equal social status and political class.
- Socialism : Socialism is an economic system in which the state or the government handles, manages and controls the means of production, distribution, and exchange in a country. In a socialist system, there is little, no or less freedom for private individuals to have the ownership of assets and means of production in the economy. In a socialist economy, the government has the ownership of everything in the economy, ownership of the means of production isn’t allowed and tolerated. Once an individual owns assets in such economy and is caught, he or she will face the wrath of the country as he may have to relinquish and forfeit his assets to the government.
In a socialist economy, the end goal of motive is not for profit maximization or profit making. The objective is not for making a profit but rather for rendering essential services to the people. The management of assets is in the hands of the government. The government controls everything in the economy and finances it.
For instance, in a socialist state, the government has the ownership of hospitals, clinics, houses, businesses, aviation, transportation, investments and trading. Individuals are not given the freedom and liberty to own businesses, properties or assets in such economic system. Economic and business activities are overseen by the government as the government handles and make provisions for public enterprises in the economy. The machinery of a socialist economic system is that the allocation of the means of production is vested in the government and its agencies.
- Capitalism: Capitalism is a market thriving economic system in which private individuals own and control the means of production in the economy. The means of production and the factors of production (Land, Labor, Capital) are being managed and controlled by the individual(s). The economy is usually filled competition as the capitalist strive for their products to be sold. Demand and Supply plays a key role in this economy because once a product is on a high demand, the price is likely to go high and those products become available and accessible to those who can afford them. In a capitalist system, there is liberty for people to own assets and properties. The freedom given to the capitalist results to an increase in production activity because the competition in the capitalist system makes every businessman or capitalist will improve in the quality of his product failure to do will see make other capitalists outrank him. Unlike the socialist system, the capitalist system is not monopolistic in nature. Since the economy is placed in the hands of the private individuals, this means that it is the individuals and not the government that finances the business enterprises, controls it and manages it.
The motive and objective of every capitalist are to maximize profit. Capitalists gear at the exploitation of people for them to make the profit upon the services and products they offer.
TYPE OF ECONOMY WHICH NIGERIA IS PRACTICING
As a country, Nigeria is practicing a mixed economy system which is a mixture and a combination of the capitalist and the socialist system. Nigeria’s economy is based on the traits and characteristics of the capitalist economic system and the capitalist system. This further illustrates that the country has a dual economy system in which private individuals and the state (government) handle and control the means of production, distribution, and exchange in the country.
In a mixed economy or in a mixed market economy, there is a private ownership of the means of production and ownership of resources, assets, and properties which is further observed with governmental ownership, control, management and participation in the economic activities in the country.
The government will fail if it decides to handle all parts and sectors of the economy because it will not be able to build a structure which will make economic activities to have an increase in productivity because of its monopolistic nature and lack of competition.
The government oversees the economy and also gives ownership of firms, companies, and businesses to private individuals. A good example is the Power Holding Company of Nigeria (PHCN) which was formerly on the hands of the government as it served as a source of the revenue to the government and since it could not satisfy people, it was privatized and given to individuals to handle and control.
Nigeria’s economic growth is also constrained by insufficient electricity generation capacity, which results in a lack of a reliable and affordable supply of power. At the same time, Nigeria flares considerable amounts of associated gas, a by-product of offshore crude oil extraction. Flaring generates significant greenhouse gas emissions and wastes a considerable amount of energy. To reduce gas flaring and increase generation of clean energy generally through greater private sector participation, we support the Government of Nigeria’s efforts to better manage the sector.
Latest News In Nigeria Today
It’s good to note that even in the face of adversity Nigeria as achieved, this is made possible as a result of combined efforts of each individual. Every Nigerian thus deserves some accolades, well done.
Here’s a quick review and highlights of Nigeria’s latest achievements, in the areas of security, economic development, and provision of amenities among others:
- The unfortunate incidence in Chibok, where some girls were kidnapped and held hostage. Achievement attributed to the leadership of the president and vice president, is the release of about 106 chibok girls. There’s prospect to have all these girls back hopefully
- The issue of insurgency, arresting about 16,000 members of the of the boko haram
- Rebuilding the lives of the IDPs affected by the boko haram attack introducing an improved mechanism for distribution aid to these victims
- Reinforcing the Nigerian Military forces equipping the Nigerian armed forces
- Curbing kidnapping issues happening across the country
- Exit from Nigeria’s first worse recession in 29 years, where agriculture sector was on spotlight
- Stability of the Naira against the dollar as Central Bank of Nigeria introduced a new forex window for Investors and Exporters
- Pumping in funds for nationwide capital and infrastructural projects, 1.2 trillion naira was released was implemented
- Payment of pensions to police officers who were granted Presidential pardon in 2,000 after serving in the former Biafra Police during the Nigerian Civil War.
- Recoveries of tens of millions of dollars via the whistle blowing programme against money looters
- Kick of the Social investment programmes to tackle poverty and hunger across the country.
- Daily feeding of about 5.2 million primary school children in about 28,249 schools in 19 states across the federation
- Empowerment programme such as N-power Job scheme for unemployed graduate
- Granting of loans to farmers, artisans and traders via the Boi loan for graduates
- Launching of tax amnesty scheme and more.
Impressed? Well I am though, as it indicates tremendous efforts.
Conclusively, from the history of Nigeria discussed in this article, one can say that Nigeria is indeed the giant of Africa.
Nigeria is a West Africa nation endowed with natural resources, the biggest black African nation, has a surge of spiritual dynamism which makes it awesome despite the numerous problems facing her.
Now you have the history of Nigeria in you! Nigeria has so many beautiful places which has attracted tourists from around the world.
Quoting the present vice president of Nigeria prof. Osibajo, “Nigeria’s unity is one for which enough blood has been spilled and many thousands of lives have been lost.
Many have paid for the unity of this country with their lives, and it will be wrong for us as good men and women of goodwill in this generation, to toy with those sacrifices that have been made”.
This implies we be good patriotic citizens of this great nation called Nigeria, reminisce on the complicated colonial eras in the history of Nigeria, say no to violence live in peace and unity.
I would draw the curtain on this note that “there’s no country in world with diversity, confidence and talent and black pride like Nigeria”. I am proud to be a Nigerian, are you?
So, that’s Nigeria history summary. Tell us what interests you and why from the history of Nigeria. Thank you for taking out time to read through this post.
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Nigeria is also blessed with an abundance of resources. The country is most widely known for its vast hydrocarbons wealth. It was home to 37.1bn barrels of proven oil reserves (see Energy chapter) in 2015. At current production rates, this will give the country another 43 years worth of oil revenues. The country also contained 5.1trn cu metres of natural gas in 2015, accounting for 2.7% of total global reserves.
However, Nigeria possesses much more than simply oil and gas. It is home to significant deposits of coal, iron ore, lead, limestone, tin and zinc. Just as importantly, it has rich land and water resources that are ripe for further agricultural exploitation. Indeed, the agricultural industry remains a mainstay of the economy, accounting for 23.9% of GDP and upwards of 70% of the country’s workforce (see Agriculture chapter). Approximately 83.7% of Nigeria’s land area is agricultural, although only 40% is arable. Substantial water resources also assist the agricultural sector. The country has 230bn cu metres of total renewable water resources. This should help expand productivity through irrigation. As of 2012, only 0.3% (or 2930 sq km) of Nigeria’s total land area was irrigated.
Nigeria Economic Growth
|GDP per capita (USD)||2,744||2,214||1,957||2,183||2,363|
|GDP (USD bn)||497||412||374||428||475|
|Economic Growth (GDP, annual variation in %)||2.8||-1.6||0.8||1.9||2.3|
|Consumption (annual variation in %)||-||-||-||-||-|
|Investment (annual variation in %)||-1.3||-4.8||-3.0||9.7||8.3|
|Industrial Production (annual variation in %)||-3.4||-9.4||0.9||-4.8||7.5|
|Fiscal Balance (% of GDP)||-3.2||-4.0||-5.4||-4.3||-|
|Public Debt (% of GDP)||20.3||23.4||25.3||27.2||-|
|Money (annual variation in %)||5.9||17.8||2.3||12.1||6.3|
|Inflation Rate (CPI, annual variation in %, eop)||9.6||18.6||15.4||11.4||12.0|
|Inflation Rate (CPI, annual variation in %)||9.0||15.7||16.5||12.1||11.4|
|Policy Interest Rate (%)||11.00||14.00||14.00||14.00||13.50|
|Exchange Rate (vs USD)||196.5||304.5||305.5||306.5||307.0|
|Exchange Rate (vs USD, aop)||192.6||253.2||305.3||305.6||306.6|
|Current Account (% of GDP)||-3.1||0.7||2.8||0.9||-3.6|
|Current Account Balance (USD bn)||-15.4||2.7||10.4||3.9||-17.0|
|Trade Balance (USD billion)||-6.4||-0.5||13.1||20.5||2.9|
|Exports (USD billion)||45.9||34.7||45.8||61.2||65.0|
|Imports (USD billion)||52.3||35.2||32.7||40.8||62.1|
|Exports (annual variation in %)||-44.4||-24.4||32.0||33.6||6.1|
|Imports (annual variation in %)||-15.0||-32.7||-7.3||24.7||52.4|
|International Reserves (USD)||29.1||25.8||38.8||43.1||38.6|
|External Debt (% of GDP)||2.2||2.8||5.1||5.9||5.8|
Nigeria - Country history and economic development
1861. King Dosumu of Lagos cedes the territory to Britain which becomes a British Crown colony.
1865. The British establish a consulate at Lokoja.
1887-1900. Various parts of what later became Nigeria are brought under British colonial rule as protectorates of Southern Nigeria and Northern Nigeria.
1903. The Sokoto-based Fulani Empire becomes part of the British Protectorate of Northern Nigeria.
1906. The colony of Lagos merges with the Protectorate of Southern Nigeria.
1914. For budgetary and administrative convenience, the Colony of Lagos and Protectorate of Southern Nigeria are merged with the Protectorate of Northern Nigeria as the Colony and Protectorate of Nigeria.
1922. The Clifford Constitution allows for Africans to be elected into the Legislative Council in Lagos.
1936. Nigerian Youth Movement emerges as precursor of political parties.
1937. Shell Oil Company begins oil exploration in Nigeria.
1939. Governor Bourdillion divides Southern Nigeria into Eastern and Western provinces, later to become Eastern and Western regions.
1944. The National Council of Nigeria and Cameroon emerges (becomes National Council of Nigerian Citizens in 1961).
1946. Sir Arthur Richards' Constitution goes into effect.
1949. The Northern People's Congress is formed.
1950. The Action Group (Party) is formed.
1951. Macpherson Constitution goes into effect.
1954. The Lyttleton Constitution, establishing Nigeria as a federation of 3 regionsstern, Western, and Northern—goes into effect.
1959. Elections, in preparation for independence, are held an NPC-NCNC coalition government is formed with Sir Abubakar as prime minister.
1960. Nigeria becomes independent (1 October).
1963. Nigeria becomes a republic (1 October).
1966. Military overthrows Abubakar government. Major-General Ironsi is installed and is later assassinated and succeeded by Lt. Colonel Yakubu Gowon.
1966-79. Military rule Gowon (overthrown 29 July 1975), Murtala Muhammed (assassinated 1976), succeeded by Olusegun Obasanjo.
1967-70. Eastern Region declares independence as Republic of Biafra, precipitating Nigeria-Biafra War which ends January 1970 with the defeat of Biafra.
1979-83. Second Republic with civilian rule under Shehu Shagari.
1983-93. Prolonged military rule Muhammed Buhari overthrows the Shagari administration is ousted (1985) by Ibrahim Babangida.
1993. Presidential election (won by M.K.O. Abiola) is annulled by Babangida (23 June) who retires and appoints businessman Shonekan as interim ruler. Abacha ousts Shonekan (17 November) and inaugurates a brutal regime.
1998. Abacha dies of natural causes. His successor, General Abubakar, inaugurates transition to civilian rule. Local government elections are held.
1999. Gubernatorial elections are held 9 January, National Assembly elections are held 20 January, and presidential elections follow 27 February. Obasanjo is inaugurated 29 May as president of the Third Republic.
Brief History of Economics in Nigeria
Before the advent of colonialism, In the fifteenth century, then the foremost, major and most economic means of exchange were carried out using the system of trade by barter. This is a system of commerce which involves the exchange of goods for goods and services for services. The economic was an average economy because not everyone obtained utility. It was neither a capitalist, mixed nor socialist economy but was communal in nature ( Communism – Communism is an economic system in which every single individual or citizen of a country or society contributes to the economic growth of that very community through their various institutions and enjoys rewards and privileges as a member of such community.
A communist state is usually classless and egalitarian society with a little or low significance of privatization. A common feature ownership of assets and the means of production. There is no conflict or clash or competition in the means of production because the economy is an economy of public ownership of the means of production, distribution an exchange.
History Of Economics In Nigeria
For instance, in a communist state, the land used for farming are owned by the community individuals do not possess the land because the land is owned by the society and if any harvest should be recorded on the effect of their agricultural activities, then collectively issued to the various participators. In this economic system, there is collective and public ownership of anything that concerns or has to do with the economy, industrial and trading activity in the community.
A communist state is usually classless and egalitarian society with little or low significance of privatization.it has never been practiced and was not sure of how effective it is. It is the highest form of socialism), that is the whole community worked for the common good of everyone and effective communication to meet various requirements. If Mr. A has yam but needs milk, he had to look for someone willing to give milk in exchange for yam. It benefited everyone but looking for a partner to trade goods and services was a strain because a lot of distance would have to be covered in order to see someone willing to trade.
Then came the era of slave trade, which spanned form the late sixteenth century to the eighteenth century (1680-1803). This case the major economic activity was based on the acquisition and trade of slaves. Slave trade was a boom due to the presence of the Atlantic plantation system, which had a significant increase during that time. This brought about the end of trade by barter since acceptable means of exchange were created. The white men needed workers to work on their land and can to Africa to round up mostly men for their plantation and enable
Industrialization in their societies. The rulers of the land rounded by able-bodied men and women and sold them to the white men in exchange for certain item i.e matchstick, mirrors, gin etc. The system of economics her was privatized in the hand of the rulers since only them have the power to sell slaves, thus making it a capitalist system ( Capitalist economy- a Capitalist market is a market thriving which private individuals own and control the means of production and distribution of goods and services in the economy.
The economy is usually filled with a lot of competition as the private individuals strive for their products to be sold. The freedom given to the private firm results to an increase in production activity because the competition in the capitalist system makes every businessman or capitalist will improve in the quality of his product failure to do will see make other capitalists to outrank him. Unlike the socialist system, the capitalist system cannot create monopolistic in nature.
Since the economy is placed in the hands of the private individuals, this means that it is the individuals and not the state that finances the business enterprises, controls it and manages it. Demand and Supply plays a key role in this economy because once a product is on a high demand, the price is likely to go high and those products become available and accessible to those who can afford them. In a capitalist system, there is liberty for people to own assets and properties). This trade did not add much to the improvement of the economic activities as much as farming.
Then came the advert of socialism in Nigeria (Socialism is an economic system in which the state or the state handles, manages and controls the means of production, distribution and exchange in a country. In a socialist system, there is little, no or less freedom for private individuals to have the ownership of assets and means of production in the economy. In a socialist economy, the state has the ownership of everything in the economy, ownership of the means of production isn’t allowed and tolerated. Once an individual owns assets in such economy and is caught, he or she will face the wrath of the country as he may have to relinquish and forfeit his assets to the state.
In a socialist economy, the end goal of motive is not for profit maximization or profit making. The objective is not for making profit but rather for rendering essential services to the people. The management of assets are in the hands of the state. The state controls everything in the economy and finances it. For instance, in a socialist state, the state has the ownership of hospitals, clinics, houses, businesses, aviation, transportation, investments and trading. Individuals are not given the freedom and liberty to own businesses, properties or assets in such economic system.
Economic and business activities are overseen by the state as the state handles and make provisions for public enterprises in the economy. The machinery of a socialist economic system is that the allocation of the means of production are vested in the state and its agencies).
The state here refers to the colonial masters they control all means of production and exchange using the warrant chief or traditional rulers as an intercessor in a system of indirect rule. The whole economy was controlled by the colonial masters, they decided what to build, taxes, administration and other policies. The economy was stable since the means of exchange were pound and sterling as prescribe and maintained by the colonial masters. The economy of colonial the colonial era did not quite favor Nigerians as it did the colonial masters.
Finally came the last system of economics, the mixed system. The government will fail if it decides to handle all parts and sectors of the economy because it will not be able to build a structure which will make economic activities to have an increase in productivity because of its monopolistic nature and lack of competition. It is a system of economics in which the capitalist and the communist system is practiced.
Nigeria’s economy is based on the traits and characteristics of the capitalist economic system and the capitalist system. This further illustrates that the country has a dual economy system in which private individuals and the state (government) handle and control the means of production, distribution and exchange in the country. It has not been the best of choice for Nigeria since there have been rise and fall in prices and exchange rate as well as all other defaults which makes the economy a limping economy.
THE FUTURE OF NIGERIA ECONOMY
With the high rate of corruption, The expensive system of government (federal and bicameral legislation, Method of allocation of monetary funds, Misuse of funds and resources, Malpractices of various societies, Ethnicity/tribalism, Greed and selfishness among ministers, executives and judiciary but if these systems can be corrected, adjusted with a little hints of changes, Nigeria can leave the status of a third world country, developing country and move to a modern status of world power, of big 5 and have exchange rate equal with those of the U .S. , U. K. And the likes. This is the future Nigeria economy if these changes are made.
CONCLUSION ON THE HISTORY OF ECONOMICS IN NIGERIA
Nigeria economy has been critically discussed, history, major players, and necessity that warrant the development of history. Also, the future of economy of Nigeria is analyzed, and what will probably surface as time pass by, it will be an interesting time reading thoroughly this piece of information.
- OFFICIAL NAME: Federal Republic of Nigeria
- FORM OF GOVERNMENT: Federal republic
- CAPITAL: Abuja
- POPULATION: 203,452,505
- OFFICIAL LANGUAGE: English
- MONEY: Naira
- AREA: 356,667 square miles (923,768 square kilometers)
- MAJOR MOUNTAIN RANGE: Cameroonian Highlands
- MAJOR RIVERS: Niger, Benue
Nigeria is often called the "Giant of Africa." This name comes from the vastness of its land, the diversity of its peoples and languages, its huge population (the largest in Africa), and its oil and other natural resources.
Nigeria is a patchwork of distinctive regions, including deserts, plains, swamps, mountains, and steamy jungles. It has one of the largest river systems in the world, including the Niger Delta, the third largest delta on Earth.
Much of Nigeria is covered with plains and savannas. These tropical grasslands spread out as far as the eye can see and are interrupted here and there by trees and shrubs. The southwestern plains are home to the Yoruba people, who have lived there for thousands of years.
Map created by National Geographic Maps
PEOPLE & CULTURE
There are at least 250 languages spoken in Nigeria and possibly more than 400. Music and art spring from strong tribal roots and are prevalent throughout society.
At least 60 percent of Nigerians live below the poverty line, existing on less than a dollar a day. Unfair distribution of the country's oil wealth, as well as political, ethnic, and religious conflicts have put a strain on Nigerian society.