Topic: Economic Diversifixation the way forward for Nigerian Economy problem (Read 275 times)

If all these things work together, everyone will be happy but the government cannot be happy due to which the cost of everyone is increasing day by day.Otherwise, this system had to be like this from the beginning and anyway, these are all our thoughts. If you ask the government, they will bring out a hundred new things.Every country has its own calculation. If it were the same, China would be the first among them all. Because the government there has controlled the economy for a long time. If you don't spend too much time on the economy, focus on labor, then it is better, then the economy will grow as much as you want.So see he has also worked hard due to which he is providing many things.  But this is all in our country.

It is corruption and mismanagement of public funds, that is the reason why the country is in its present state. If most of the revenue from oil and other sources of revenue were pumped back into the economy and into other sectors of the country, then we would have seen major development and diversification into other sectors. Instead of doing that, most of our revenue is embezzled by those in power and spent in the cost of governance, which is extremely high, if we can end corruption in Nigeria, we have solved 99% of our problems.

The oil sector is the main primary source of revenue but after oil revenue, the next revenue gulper for the Nigerian government is customs. Have you observe tremendous increase in the revenue generated by the Nigerian customer and despite this hike to discourage importation, the people are finding it not discouraging and paying money. Look at how much people are paying to import Toyota used cars from abroad, it's because there is high demand despite the increment of the clearance fee.

My only problem with Nigerian government is that there is abundance crude oil and ever since then, they haven't look into any other source of revenue. We still have mineral resource available in abundance, but there is high rate of bandit army that are discouraging people, agencies can't make revenue from tourism due to insecurities and similar thing with agriculture because nobody want to farm and be attack by fulani heard men's and bandit. These are the problems that need to be addressed.

It doesn't matter if it's oil or precious metals. A country that builds it's economy over mining precious metals or drilling for oil/gas is considered underdeveloped. Countries with an economy focused towards agriculture are also considered underdeveloped. Tourism in Nigeria? Really?
The only solution is building a modern industry with production facilities. I'm pretty skeptical about the process of industrialization in Africa.
Not enough engineers, no infrastructure, no corporate culture and strong work ethics. I don't think that any industrialization in Nigeria is going to happen anytime soon.
Diversifixation? Is this a new word or something? You mean diversification, right? Or maybe you mean something between diversification and fixation?

No strong economy of any country can be based on a single-sided economy. A country whose economy is entirely based on oil will suffer major economic problems, especially with the decline in oil prices during crises, as is currently happening due to tensions in the Middle East.

I do not know what prevents the Nigerian government from diversifying its economy, despite the fact that it has large natural resources. I was very surprised when I read that Nigeria, which was once a major food exporter, is now importing some of its food products. The reason may be the large population increase, but primarily the failure of government policy.

Many African countries are blessed with rich and fertile soils good enough to grow food and raw materials for themselves and the world at large. But this wonderful resource they have been so blessed with seems to be neglected by them. Rather they seem comfortable chasing resources that are not improving their economy.

What will happen to Nigeria if the oil they so rely on dries up?

The solution to the economic problems of these underdeveloped and developing countries is not constant borrowing and printing of currencies. The solution to their problems is diversification. It is time they look inwards  for those sectors of the economy that are capable of generating revenue to the government. Invest massively on those sectors and in few years, they will be seeing the benefits.

It’s crazy how much Nigeria relies on oil when there are so many other opportunities out there. I mean, agriculture alone could really turn things around, not to mention tourism and solid minerals like gold and copper. I’ve seen how diversifying can help economies thrive—just look at countries that invest in multiple sectors. If Nigeria could tap into those areas, it would not only create jobs but also make the economy a lot more resilient to those wild swings in oil prices.

Even a common person like us understands that having multiple sources of income or diversifying income is a good thing and everyone's dream. But as you can see, not everyone can do that because it requires and depends on many other factors. Likewise, governments understand that better than anyone, but to do that, they need a lot of human resources, technology, capital, and support from other countries...and no government can easily achieve those things. It's easier said than done.

Not to mention, politics is more complicated than we think, internal and external forces will make it more difficult to implement plans if our government cannot reach an agreement with them. That is why you can see not only Nigeria but many other countries with abundant mineral resources but the economy is still in crisis, inflation up to 2 or 3 digits.

In third world countries like ours, sometimes the future of the country is not in our hands but decided by the superpowers. They are the ones who hinder and hold back our development.

Nigeria as a country had other flourishing industries in other sectors asides oil  before the discovery of oil majorly and the dependence on it began. Because we had a lot of supply of oil in our country, it became a problem as our political leaders saw a way to tap into this natural resource that we've been blessed with and make money out of it for their own personal benefits. Our political leaders and advisors must know that our overdependence on oil will not help the economy but because it is not in their intention to help the economy get better, there's a reluctance on their parts to take necessary actions and make changes to improve things.

Many industries in our country have suffered and even been shutdown due to negligence. We had a steel factory, we had one of the biggest sawmills in Africa etc, aside mismanagement some of these industries died because of negligence by our government.

In a country where there are enough unemployed youth, I don't expect diversification into another sector that would yield a lot of money be a problem. The Nigeria you are talking about today, consists of millions of youths who are looking for what to do, they have the manpower but the government is focused on the sector that generates the most money but has fewer workers to profit from it. Agriculture is a huge sector. If the government had made agriculture more interesting for the youth I guess they won't be ashamed of working in the sector. Now most of the youths are looking for the quickest and easiest to make money, especially in the internet world.

There has not been a time when something has been easy for the Nigerians. So saying it's not gonna be easy for the government to diversify is not enough reason. The people are suffering already then what could be worse than that?

For a country like Nigeria, we have a lot of natural resources that can bring enough revenue for the country. Using Google alone, you can see many of them being listed, but the major problem that the country is facing is corruption, which needs to be tackled before we can even think about other things. 
 
Because even if there is a diversify source of revenue in the country, the question is, will there be a change in how they utilise it? As we can see, there's more to a political play that's going on in the country; they know what they are doing, and those resources, which we think are not being extracted and funds generated from, are secretly private investments for some of the politicians. 
 
There are foreign investors who are in the country and are mining gold and other mineral resources, which could have been a major source of revenue for the country compared to what those companies will remit as tax to the country.

Overdependence on an expendable natural resource like oil is definitely a problem for Nigeria, but it is not just that, there are so many key areas of the country and its economy that is not working. Some of the issues are insecurity, poor infrastructure, poor educational system, corruption, mismanagement of public funds, misappropriation of borrowed funds, etc.

There are a lot of things that needs to be fixed in the country, which will foster diversification into other fields and allure foreign investors into the country. The government of Nigeria are also unfriendly to innovation and modern technology, that is why they remain averse to an industry like cryptocurrency.

Nigeria's economy is strictly oil-based, which results in losses sometimes. The only way to a sustainable economy is diversification. Mainly in this age of quick changes in the global market. Generally, countries that manage to diversify their sources of income tend to be stable and less vulnerable to the effects of single factors.

More opportunities can be opened for Nigeria in sectors like agriculture, tourism, and infrastructure. For example, apart from producing food, agriculture develops employment and can develop the economy at rural levels. Tourism can unfold the culture and wealth of Nigeria. Attract foreigners; tourists and investors. This also has the aspect of hard commodity extraction, such as gold and copper. It further helps contribute significantly to economic growth. When properly managed and operated within the framework of sustainability and ethics. It is imperative for the government to foster policies that promote investments in such areas. At the same time, it ensures that benefits trickle down to local communities.



The United Arab Emirates represents diversity in importance, especially for countries with over-reliance on natural resources. Long-term economic stability is what strategic investments in tourism real estate and innovation are doing for the UAE.

Their ability to catalyze a thriving tourism industry and their embracing of innovative technologies like Bitcoin in conducting transactions. This proof illustrates that however different countries can be, they can still find a way to engage with globalization without needing too many scarce resources. This is a highly significant aspect of development as the global energy transformation takes off on all cylinders.

Most importantly, the experience in the UAE can contribute much to the learning process. Providing investment opportunities in some sectors, such as agriculture, tourism, and technology reduces the risks created by dependence on oil. In return, the government must embrace long-term visions that encourage investments across industries and cultures to encourage both local and international cooperation.

Does Nigeria can do to replicate this kind of diversified success?

The situation of countries with limited natural resources requires them to be a little more aggressive by investing in other sectors. For example, the United Emirates is a country with abundant oil and gas resources, but no matter how abundant it is, the reserves of these resources will run out. So the United Emirates has expanded its sources of income by building magnificent hotels, even building its own sea in order to find income options from tourists who come there. not only that, the countries of the United Emirates, especially Dubai, are open to the Bitcoin payment method, opening diplomacy with the West in order to cooperate in creating a wider real estate business. All of this is done so that they have more than 1 or 2 sources of income outside of Oil and Gas.

Iran's case is better than Nigeria's. The West African country is one of the biggest producers of crude but own just a single refiner that became functional this year. The country depends heavily on imported fuel and gas to sustain its economy.


BRICS will help to reduce the influence of some groups that use sanctions as a political and economic weapon. The next BRICS summit will hold in Kazan Russia from 22–24 October. We hope to see more proactive cooperation and more nations joining. Nigeria showed interest in joining the union. Hopefully, they might achieve that next year.
Nigeria Wants to Be Part of BRICS Bloc in Two Years, Join G-20

Real change will only happen once corruption is eradicated. There are many ways to boost a country’s economy, but if leaders serve only their own interests, then there will be no proper implementation of those solutions. Another factor that could make life harder for people in this country is the spread of gambling. It seems like the government intentionally limits opportunities for its citizens, possibly to maintain control. Even if they know the solution, they won't take the initiative to address it.

Last year, Nigeria was ranked "145 out of 180 countries." in terms of corruption.

Sooner or later, a country that completely depend with limited natural resource like Nigeria will end up like Venezuela.

I expect nothing will change because the ordinary problem in developing countries are nepotism and corruption. Nepotism, the top positions only choose their family to work in high paying positions even though they don't understand anything and corruption kills new generations to work hard in their countries.

Corruption has blind folded Nigeria government which has made the to give little attention to diversification into other sectors of the economy for growth. After the discovery of crude oil in 1956 and Nigeria gained independent 1960. Nigeria oil boomed in 1970-1980 and since then Nigeria have deviated from other sectors of the economy that can boost the country's economy and focused more only on Oil because it is very expensive and gives quick money.

The government goes as far as using the advantage of the crude oil they have in abundance to keep on borrowing more money from China and other countries from one administration to another. Only if the government can understand how they can use several resources in the country for the betterment of the economy it will be good.

Those diversification thing will only happen if the elected official is not corrupt. But guess this things is hard to happen since currently corruption is the biggest problem in Nigeria. But those potential ways on how a country could able to generate an income forgotten to take care of, especially if the leader is busy to stole money from their countrymen.

A good kickstart by creating huge infrastructure projects will be the key for this since all developments mentioned will follow. its just the government just need to take advantage on the resources they can get from their country. If this will be handled well provably that has potential to became a rich country.

Corruption is really a growth stopper so hopefully patriotic minds will come up to leaders and they go on right path which their main priority is the development of their country.

This particular discussion was supposed to be on the Nigerian local board, as the members of the local board are more likely to relate to this story.

Let me dive into the crux of the matter. For the fact that Nigeria operates a mono economy, is not a wrong economic strategy, especially for a commodity like crude oil 🛢️ whose byproduct can generate lots of income to an economy. The challenge the Nigerian state faces is not really about income generating alone, the major issue affecting the Nigerian state is corruption from those in the position of leadership, the money generated from crude oil sails, which runs into billions of Dollars every month, what have they been doing with it, if they cannot account for monies generated from a single product (oil), they might not as well account for a diversify economy, where monies will be coming from different sources.  They should make do more with what they at hand, so we can see significant results, especially in terms of infrastructural development and human capital development.