What Happened to Africa's Economy - Part 4 (Case Study of Nigeria)

What Happened to Africa's Economy - Part 4 (Case Study of Nigeria)

If you have been following the series, we have been able to establish that Africa's economy is largely in a state of underdevelopment. This is as a result of both external and internal factors. The internal factors are agents within each country of Africa responsible for this menace. As such, there is a need to evaluate the performance of major African countries in lieu of this.

Going by the report available on Wikipedia about Nigeria. Nigeria is the most populated country in Africa with a total population of over 195 million people as of 2018. The country has a nominal GDP rate of $442.976 billion with a GDP growth of 2.3% in the year 2019. The country has an inflation rate of 13.4% and only 40% of her population are below the poverty line.

Nigeria is no doubt in the frontier of Africa economy with South Africa as a close competitor. Nonetheless, Nigeria's economic performance is not impressive. This is because the resources available at her disposal have a better economic value. Nigeria is said to be an underdeveloped nation.

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Nigeria is a nation blessed with good land for agriculture and abundant mineral resources. Not only that, the nation has enough labour force to help maximize its available resources. In recent time, the GDP and the economy of Nigeria witnessed a slight increase. However, the human capital of the country is underdeveloped.

Nigeria's economy is made up of different sectors. These sectors are what contribute to the Gross Domestic Product (GDP) of the country. The following are contributing sectors in the Nigeria economy;

Agriculture

Nigeria is no doubt a country endowed with vast land good for agriculture. The country as well is one of the world foremost countries in agricultural input. However, this sector is said to be underutilized by Nigeria. The government of the country has given more preferences to the oil sector. This, therefore, has brought about a negative impact on the performance of the agricultural sector. Nigeria used to produce 41% of the total groundnut in West Africa. The ‘Kano groundnut pyramids’ is one that we seem to have forgotten in a hurry.

Oil

The oil sector is another key player in the Nigerian economy. The eastern part of the country is endowed with petroleum and crude oil. The country is one of the Organization of Petroleum Exporting Countries (OPEC).

Factors Responsible for Bad Economic Situation in Nigeria

Nigeria's economic performance is considered undeveloped compared to its abundant resources. The reason for this is a result of some factors within the country. These factors are as follows;

Corruption

One plague contributing to the weak performance of Nigeria's economy is corruption. Leadership in governmental structures of the country suffers setbacks due to corruption. Almost all the major problems of the nation can be traced directly or indirectly to corruption.

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Overdependence on Oil

The government of Nigeria is myopic about the ability of all other sectors. More attention is given to the oil sector to the detriment of others. Agricultural, mining and tourism sectors are grossly underutilized.

High rate of Unemployment

Unemployment is also a major challenge facing the country. Consequently, this has a way of negatively affecting the GDP of the country. Unemployment has resulted inhuggery due to unemployment among youths, and a decline in government internally generated revenue.

Terrorism and social unrest

Another major challenge militating against economic growth in Nigeria is social unrest. The operation of terrorists in some parts of the nation is discouraging local and foreign investors. This in turn affects the economic performance.

Conclusion

Nigeria has a vibrant youth population and could have done better economically. The country is also blessed with abundant solid and liquid minerals. Considering all this the country is supposed to be among the league of developed nations of the world. We believe this generation of youth will change the narrative of things.

References

Wikipedia: Economy of Nigeria
Info guide Nigeria: Causes of underdevelopment in Nigeria

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Comments

fagbohun 09 Apr '21
Great article.
idowu_omohu0001 09 Apr '21
Wake up Naija
osak 09 Apr '21
nice write up
simonojo 09 Apr '21
There is need to improve in our Agricultural sector
gwedeharrison 09 Apr '21
Well articulated !
oluwafemi 08 Apr '21
Nice story
mkumz01 08 Apr '21
So convincing.
noahzawah 08 Apr '21
Wisdom for the wise
gs49 08 Apr '21
Really???????
omolejerome 08 Apr '21
Insightful.
chosenboy 08 Apr '21
What an educating content
jonathanchama 08 Apr '21
Nigeria should rely on other Economy rather than Petroleum alone
parckadity 08 Apr '21
Crest way b like yam and beans
julies 08 Apr '21
Great write-up
necessity 08 Apr '21
Interesting
nwokedi 08 Apr '21
Mechanized farming,with workable policies,government intervention programmes!! Will really go a long way!!!
rosysexy19 08 Apr '21
Agriculture is one of our sources of income, but there's no encouragement from above, may God help us
adebiyi 08 Apr '21
Nigeria should focus more on agriculture, this will help us in a great way
dareakins 08 Apr '21
With Boost in the Agricultural sector, we can rise again!????????‍♂️
kenhinde 08 Apr '21
What a wonderful write up
evedyne 08 Apr '21
Africans need to find who the are and become...africa will be great again
aocornelius 08 Apr '21
Agriculture is the root of Nigeria’s wealth and it should be considered with great strategy
egbuonye 08 Apr '21
Excellent work
umoh 08 Apr '21
The country is also blessed with abundant solid and liquid minerals. It is well
ijebs 08 Apr '21
Enlightening...
smeg 08 Apr '21
It all boils down to poor governance. Elect the right persons in government. Support the right persons. If you're passionate about good governance, come out and play politics so that you can make a difference
vychthur 08 Apr '21
Crestway myway
temi 08 Apr '21
Corruption
olaknight 08 Apr '21
You do well
amodumujeeb 08 Apr '21
Agriculture is the way; Africa in general and Naija in particular need to improve our agricultural produce which should include available materials for farmers, good storage facility, transportation to urban and subsequently abroad.
bimak 08 Apr '21
Aptly stated
maceke 08 Apr '21
Yes, Africa need to return back to the former ways which is agriculture.
adeyemiba 08 Apr '21
Very expository and apt!.....good job crestwaytrade team
bolurepublic 08 Apr '21
Thanks for sharing.
saunobele 08 Apr '21
It make sense
adline 08 Apr '21
This is nice..
michael95 08 Apr '21
Awesome writeup
olad 08 Apr '21
Great article
hybeekhay 08 Apr '21
Very educative and insightful.
bless 08 Apr '21
Thanks for sharing. But having listed the reasons for bad economic situations in Nigeria, what is the way out?
bless 08 Apr '21
Thanks for sharing. But having listed the reasons for bad economic situations in Nigeria, what is the way out?
aliwa 08 Apr '21
Impressive
valentine1413 08 Apr '21
The article is really correct about Africa
oladiti 08 Apr '21
The inflation rate and poverty line figures are crazy. Wow
ogundiran 08 Apr '21
Wow.. Awesome piece
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