Topic: Economic Diversifixation the way forward for Nigerian Economy problem - page 2. (Read 275 times)

This is one of the root cause of the crises the nation is facing because they are obviously over relying on a single source of revenue forgetting the other sources that were useful to the countries growth even before cruide oil was discovered.

Prio to the discovery of cruide oil, Nigeria were sustainably dependent on agricultural products like coco, Rubber, palm oil and palm kernel and a lot of other agro products. Upon discovery of oil, one would have expected that a massive investment be made in those sector to ensure that it becomes more viable and that production is done on a larger scale but the reality is that it never happened.

Instead of such improvement, the lands were polluted by the cruise oil spillages, farmers and fishermen were discouraged from farming and a lot of the people now don't see agriculture as a noble profession and even in her educational setting, no investment is made in that sector and interest is now on studying engineering based courses because of the potentials they see in the oil and gas sector.

Talk about refining of the oil in the host nation which would have also helped boost the nations economy and you discover that it's another issue of it own that has led to the scarcity of PMS in a country that has one of the largest cruide oil product globally.

This is a problem a lot of countries suffer from, specially those with large amounts of natural resources. We suffer from it as well, as they say "oil is a drug that the government is addicted to". They just extract it and sell it raw!

Every time there is any fluctuations in the oil price, something that is set globally, our economy fluctuates as well. On top of that there are sanctions against Iran which makes the fluctuations even worse (sell less oil > have less income > face bigger budget deficit > print money > cause inflation).

The diversification is happening though. It will become a lot faster in the future as well, specially with BRICS. AFAIK the West is pressuring Nigeria to not-join BRICS but they are not giving in. As BRICS expands and gains more momentum, every member will benefit. The cooperation among the member countries will help all of them build their infrastructure, their economy and diversify.

Although this was a big challenge overdependence on oil for the economy of Nigeria, steps are being made toward diversification. In 2024 non-oil exports in such sectors as agriculture and solid minerals have grown and constitute one of the key contributors to the country's revenue. Agriculture export leaped 123% this year, while non-oil sectors generated $2.7 billion in the first half of 2024.

While diversification is important, it's definitely not as easy as just moving into other industries. Infrastructure in Nigeria is not very good, moreover there are some regulatory challenges, and insecurity that could slowing down the development. What needs to be done by the government is fix those areas if it wants this to have a lasting effect and decrease reliance on oil.

 While I commend you for raising a vital topic for discussion, I would however tell you that it is in the wrong board. We have a Nigerian board where this topic suits it's audience. Please move it there.
The Nigerian Economy is diversified but we don't see it because the leaders are very corrupt. They siphon the monies for the other sectors and impoverish it. And because they know that there is no consequences for that they continue.

With the Nigerian Economy centered around one source which is being oil there's need for Dievasifixation of the Nigerian Economy.

All over the world Nation's who have made progress in their Economies have been countries that produces and have different sources of Revenue.

Infact for any country in this Tweenty-fisrst century to be depending on only one source of income is a time bomb waiting to explode as there are allot of sectors in any nation where the government can tap into.

Looking at Nigeria as a country which is a mono economy that depends on oil sell to run it's Economy it is over due for the government to look inward and start tapping and investing in other area's where the country have advantage such as Agriculture, Tourism, Entrainment, Solid minerals like Gold, Copper, Silver Etc.

For until Nigerian government diversify the Nigerian Economy Nigeria as a nation will not make any meaningful progress Economically

What do you guys say's about this.