THE CHANGING STRUCTURE OF THE NIGERIAN ECONOMY AND IMPLICATIONS FOR DEVELOPMENT 1970-2011
DEPARTMENT OF ECONOMICS
AHMADU BELLO ZARIA
The structure of Nigerian economy can be broadly classified into four:The production,Commerce,Services and others. PRODUCTION: processes and methods employed to transform tangible inputs (raw materials, semifinished goods, or subassemblies) and intangible inputs (ideas, information, knowledge) into goods or services(Business Dictionary,2011).Production includes agriculture, manufacturing, mining and quarrying, etc AGRICULTURE: Agriculture (also called farming or husbandry) is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agricultural plays a crucial role in the economy of Nigeria. Nigeria, one of Africa's most populous countries, has a highly diversified agro-ecological condition, which makes the production of a wide range of agricultural products possible. Agriculture is one of the most potentially viable sectors of the Nigerian economy, particularly in terms of its employment generation potentials as well as its contribution to Nation's Gross Domestic Product (GDP) and export revenue earnings. In spite of Nigeria's rich agricultural resource endowment, there has been a gradual decline in agriculture's contributions to the nation's economy: In the 1960s, agriculture accounted for 65-70% of total exports; it fell to about 40% in the 1970s, and crashed to less than 2% in the late 1990s. The decline in the agricultural sector was largely due to rise in crude oil revenue in the early 1970s. Usually several factors can be said to be responsible for the dismal performance of the Nigerian agricultural sector. Pre-eminent among these factors is the macroeconomic environment. The macroeconomic environment comprises fiscal, monetary, exchange rate,income and other policies that are used to regulate production activities not only in the agricultural sector but in the other sectors of the economy. Unfortunately, macroeconomic policy outcomes vary greatly depending in part on the policy targets and instruments used However, several authors [4-6] agree that agricultural production marketing and financing decisions are influenced by the macroeconomic environment. Since after independence, the role of agriculture in the economy has been declining.From the table below of the contribution of agriculture to GDP,the contribution of agricultural sector to GDP has been declining up from 1970 in which it contributed 39.9% to 30% in 1988.From table 2 which consists of agricultural sectors contribution to GDP,which is from 1989 to 2009 at current prices showed that the contribution of Agriculture with respect to the total GDP has been fluctuating.It was subject to rise and decline as shown on table 2 below.
TABLE 1:SHARE OF AGRICULTURE TO GDP AT1977/1978 FACTOR COST,1970 T0 1988
YearTOTAL GDP AGRICULTURE ‘S CONTRIBUTION AGRIC SHARE AS A % OF GDP 1970 19,422.0 7,749.1 39.9 1971 21,453.3 8,212.9 38.3 1972 22,811.1 7,548.7 33.1 1973 24,850.3 7,615.9 30.6 1974 27,843.3 8,474.9 30.4 1975 27,172.0 7,639.2 28.1 1976 30,108.4 7,602.3 25.2 1977 31,520.3 7,401.6 23.5 1978...