economic crisis in nigeria

Topics: Economic growth, Economics, Gross domestic product Pages: 5 (1705 words) Published: March 12, 2014

Economic Crisis in Nigeria.
(google)The evolution of Nigeria was from about 1849 until it attained independence in 1960. During this period a lot of events occurred, and is largely the story of the great impact of the British on the Nigerian people. The colonial authorities (British) sought to define, protect and realize their imperial interest in the portion of West Africa because of its endowment with natural resources, apparently this occurred about hundred years ago. The British was very determined to pursue their goals which were largely economic and quite strategic. The British was involved deeply with the economic life of their colonized people. In this period the British found a huge amount of crude oil in the coastal regions, and the Greyne Goldie’s National African Company (1888) which had successfully squeezed out rivals but was later changed to the Royal Niger Company, chartered and limited. The name Nigeria sprang up in 1914, which was the amalgamation of the northern and southern protectorates by the then colonial secretary Flora Shore. As time swept past, constitutions were made such as the Sir Hugh Clifford constitution of 1922, the Richards constitution of 1946, the MacPherson constitution was promulgated in 1951 and so on. From this point, the Nigerian state moved on until its independence in 1960. Now with concentration on the economy of Nigeria, it has been petroleum-based, the economy has suffered some lapses such instability, corruption, and poor macro-economic management, the economy has however strongly proven that despite all odds it is a promising one and may develop the largest economy in Africa competing with South Africa.

(history)This a brief evaluation of Nigeria’s economy the pro-oil boom (1960-1970), the period of oil boom (1971-1977), the period of structural modification and stabilization, and the period of guided deregulation. The Nigerian economy has had an abridged history. In the period 1960-70, the Gross Domestic Product (GDP) recorded 3.1 per cent growth yearly. During the oil boom era, roughly 1970-78, QDP grew positively by 6.2 per cent yearly - an impressive growth. However, in the 1980s, GDP had damaging growth rates. In the period 1988-1997 which constitutes the period of structural adjustment and economic liberalization, the QDP responded to economic amendment policies and grew at a positive rate of 4.0. In the years after independence, industry and manufacturing zones had positive growth rates except for the period 1980-1988 where industry and manufacturing grew negatively by - 3.2 per cent and - 2.9 per cent respectively. In the early 1960s, the agricultural sector suffered from low commodity prices while the oil boom contributed to the negative growth of agriculture in the 1970s. The boom in the oil sector lured labor away from the rural sector to urban centers. The impact of agriculture to GDP, which was 63 percent in 1960, deteriorated to 34 per cent in 1988, not because the industrial sector increased its share but due to neglect of the agricultural sector. It was therefore not surprising that by 1975, the economy had become a net importer of basic food items. The apparent increase in industry and manufacturing from 1978 to 1988, was due to activities in the mining sub-sector, especially petroleum. Capital formation in the economy has not been satisfactory. Gross domestic investment as a percentage of GDP, which was 16.3 per cent and 22.8 per cent in the periods 1965-73 and 1973-80 respectively, decreased to almost 14 per cent in 1980-88 and increased to 18.2 per cent in 1991 -98. Gross National Saving has been low and consists mostly of public savings especially during the period 1973-80. The current account balances before official transfers are negative for 1965-73, 1980-88 and 1991-98. Unemployment rates averaged almost 5 per cent for the period 1976-1998. However, the statistics especially on unemployment, must be...
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