Curse of resource wealth in Nigeria

Curse of Resource Wealth in Nigeria

Thesis statement

This term paper covers the study of the complete analysis of economy of Nigeria from the past view and current scenario. Furthermore, it explains the problem of Dutch Disease in Nigeria and also provides effective solutions.

Introduction

Despite the fact that Nigeria is considered as one of the most blessed countries in terms of its natural resources, it is going deeply under the curse of resource wealth. The economic development of Nigeria is continuously making its grip strong with the passage of time but the curse of resource wealth is a major threat for the economic development of Nigeria. To look at the present scenario of economic conditions of Nigeria, it is necessary to take a glance at the past view. It is necessary to take a brief analysis of economic development of Nigeria in order to assess its economic condition, progress, current and upcoming challenges. The curse of resource wealth is a major threat over the Nigerian economy as it is a major oil exporter country but unable to utilize it for improving the standards of life in Nigeria.

Table of Contents

Analysis on the economy of Nigeria3

Past view of Nigerian economy3

Current scenario of economy of Nigeria3

Economic transformation of Nigeria4

Curse of the Dutch Disease4

Solutions6

Revitalizing Non-Oil Exports6

Public Expenditure Management6

Eradicating Poverty6

Conclusion7

Works cited8

Appendices9

Analysis on the economy of Nigeria

Past view of Nigerian economy

Historically, the economy of Nigeria was very much dependent on agriculture. At present, around 75% of the labor force is still busy in agricultural activities. The major crops of Nigeria are cocoa, palm oil, peanuts, rice, corn, millet, soybeans, sorghum, yams, cassava and rubber. Petroleum is the most important and the most leading resource which is produced in Nigeria and gives around earnings of 94% foreign exchange and the greater part of revenues of the government. It is the fact that, in the delta of Niger, there is huge productivity of Petroleum. Production of Petroleum on substantial level started in the later part of 1950s, and during early 1970s this resource was the leading contributor in foreign exchange. The rising oil industry infatuated a lot urban centers, which resulted in the loss of the farming sector. In the mid of 1980s a turn down in world oil prices encouraged the government to boost the farming sector. However, both processing plant capability and agriculture never reserved pace with population expansion. They were forcing the nation to import processed petroleum goods and foodstuff. Many other minerals are also taken out including iron ore, tin, limestone, coal, lead, gold, and zinc (Ogunusi G. 1986).

Current scenario of economy of Nigeria

The current scenario depicts totally different picture of economic development of Nigeria. The African country, Nigeria is turning out to be the most aggressive economy of this region. The factors which are responsible in making Nigeria an aggressive and fast growing economy are its natural resources and effective economy policies. Despite of many challenges in diversified manner, Nigeria is engaging itself aggressively to coupe all the challenges ...