Table of Contents
The categorization of Nigeria economy
Chapter 1: The discovery of oil and the Nigerian economy
Type chapter title (level 2)
Type chapter title (level 3)
Nigeria has remained a point of reference in Africa and on global level. This is stem from the fact that, it is one of the largest exporters of crude oil to developed nations of the world. For more than three decades therefore, crude oil has been the major hub of the energy, revenue and foreign exchange earner for the Nigerian economy. In spite of vast quantity of crude oil for exportation, the country is still suffering from the insensitivity of the government to put in place sound policy that will help to address the problem of oil exploration on the Nigerian economy. Against this background, this study intends to show the economic impacts of crude oil exploration on the economy of Nigeria. Methodologically, growth model and cointegration analysis will be used to explain why countries with many natural resources tend to grow slowly than resource- poor countries. [Perkins, et. al., p. 70].
Nigeria politically is sovereign entity bond in the western region of Africa, a sovereign nation with a population of 150 million people according the 1999 population census, endowed with so many natural resources, however after 1960 Crude Oil became the backbone of Nigerian economy. It also plays a pivotal role in the economic bi-lateral relationship of Nigeria the other parts of the world in general. It has also shaped the political and economic destiny of Nigeria as a country. Although, Nigeria’s oil industry has been in existence since the beginning of the century, however it did not assume its place of prominence in the economic life of the country not until the end of the civil War in Nigeria known as Biafra War (1967-1970). Before 1960 agriculture use to be the main stay of Nigerian economy, contributing over 60% of the total GDP and employing more than 60% of the total labour force. After the discovery of oil agricultural productivity began to decline, there was a massive migration of people from the rural areas to cities where oil facilities are cited and a total deflection of the labour force from agricultural oriented activities to industrial activities (oil related), because of high wages paid by the oil firms. The government too could not pay adequate attention to agriculture because of the high rent it is getting from oil production instead pay much of its attention to the establishment and investment in the oil sector, the issues of rent seeking creep in and the resource abundance as well influence the uprising of Dutch disease. The total 90% of foreign direct investment the government directed it to the oil sector and abandon the agricultural sector to linger to decline, budget appropriation and forecast were focus on oil thereby increasing the total capital investment in the oil sector.
Chapter 1: The categorisation of Nigeria economy:
The categorisation of Nigeria as a country in terms of agricultural production falls into subsistence system. Nigeria primarily depends on the exportation of primary product especially oil products, since the attainment of the independence in 1960, Nigeria has been enmeshed in ethnic, regional, and religious crisis or conflicts heighten by significant differences in economic, educational, and environmental development in the south and the northern parts of the country. These could be partly attributed to the discovery of crude oil in the country which affects and is affected by economic and social elements. Economic scholars such as Ajieh (2010), Oyejide(2011), Steyn (2009), and Oloruntegbe (2009) over the years have done critical evaluation of the reasons why the abundance of crude oil in Nigeria has brought with it both negative and positive impacts on the economy of Nigeria. Their discovery will be well articulated in the later...
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