NIGERIAN ECONOMICS

an overview by, R.Vaijayanthi

NIGERIA IN MAP

NIGERIAN FLAG..

NIGERIAN CURRENCY..

The currency in Nigeria is called the "Naira Naira is denoted by the symbol:

The naira bills available in 5,20,50,100 and 500.

RESOURCES IN NIGERIA

Nigeria is one of the largest producers of oil and petroleum. This is the main source of the economy, accounting for well over 90% of the exports. The low-sulfur content of much of Nigeria's petroleum makes it especially desirable in a pollution-conscious world. The other minerals available are: barite, coal,columbite,flourite,gold,iron,lead,limestone,mangane se,marble,natural gas , tin, phosphate, salt,etc

IMPORTS
Some of the countries that Nigeria imports from are Britain (the largest), USA, Germany, France, the Netherlands, and Brazil. Some of the main imports are machinery and transport equipment, manufactured goods, food and live animals, animal and vegetable oils and fats, mineral fuel lubricants, crude materials, beverages, tobacco, chemicals, and textiles.

EXPORTS
Some of the countries that Nigeria exports to are the USA, Germany, France, Italy, Brazil, Spain, and India. Most of the goods exported consist of petroleum and oil (surprise!), cocoa beans, rubber, palm kernels, cotton, yam, hides and skins.

ECONOMIC HISTORY.

Before oil was discovered in the last 1950s, Nigeria basically survived on it's agriculture for it's economy, and for it's food. Today, agriculture is still a part of the domestic economy, but by the late 1960s, oil had replaced cocoa, peanuts, and palm products as the country's largest foreign exchange earner.

CONT..

With oil money, Nigeria started importing raw materials from other countries, and as a result, manufacturing became established. Industry in Nigeria grew to include a full range of industries, including but not limited to food-processing, vehicles, textiles, pharmaceuticals, paper and cement. Before the discovery of oil, there had been very few industries. Part of the effects of the oil boom was that there was a significant rural-to-urban migration caused in part by the lure of high wages and consumer-oriented lifestyles of the city. This took a lot of the labor force away from the more rural farms, leaving the very young, the old, and the infirm to cultivate the land. Not surprisingly, agricultural production declined, and so did the export of cash crops. Eventually, the import of crops had to increase.

CONT.
In 1971, Nigeria became a member of OPEC (Organization of the Petroleum Exporting Countries). By then, it was the world's 7th largest petroleum producer. In 1972, the government took some steps towards trying to promote Nigerian enterprises. At that time, about 70 percent of the commercial firms operating in Nigeria were foreign-owned, and the Nigerian government issued a decree to prevent foreigners from investing in specified enterprises, and reserved participation of certain trades to Nigerians. In 1975, the government bought 60 percent of the equity in the marketing operations of the major oil companies in Nigeria.

CONTD

Also, the government had to deal with the severe drought that affected the north between 1972 and 1974 (this drought was the most serious since that of 19131914). This caused famines in Nigeria and some other neighboring countries, and some Africans came into Nigeria from some of those other countries. In 1974, oil prices rose dramatically worldwide, and this caused a sudden flood of wealth, and the revenue that came into the country was intended for investment to diversify the economy, but instead, it led to inflation and a lot of unemployment.

CONTD.

In 1975, oil production fell sharply because of the decrease in world demand, and the prices moved downward until later in the year when OPEC intervened to raise prices. During the decline of oil prices, exports of traditional crops collapsed as a result of poor government policy and low prices on the world market.

CONTD

When Nigeria found itself importing a lot of food, various agricultural plans and policies were drawn up to try to produce cheaper food in sufficient quantities. Examples of these were the Operation Feed the Nation (OFN) and Green Revolution (GR), and the Structural Adjustment Program (SAP). Some of the techniques involved in these different programs included large irrigation schemes, expansion of credit, using high-yielding seeds, dismantling the Commodity Boards, liberalizing export trade, introducing incentives to boost farmer's outputs, and assisting wheat-producing states. Also, other aspects of agriculture (besides just farming crops) were started, including forestry and fisheries.

CONTD..
In 1986, the ruler at the time introduced market reforms, freeing exchange and interest rates, and this led to a sharp drop in the value of the Naira, while lending rates rose to more than 40 percent. However, even if agriculture was able to go back to where it was, the population growth was huge, and the agriculture in the country has been unable to keep up with this. So, Nigeria still now imports food. And it didn't help when in 1996, there were severe shortages of fertilizer that further limited the agricultural production.

CONCLUSION..

With all the wealth that it 'should' have, Nigeria is still considered a third-world country nationwide, where the real standard of living has fallen sharply, and these are attributed to political instability, mismanagement and corruption, and the decline in oil prices.

GENERAL INFORMATIONS.
Federal Republic of Nigeria Motto: Unity and Faith, Peace and Progress Anthem: "Arise, O Compatriots" Capital: Abuja Official languages: English Regional languages: Edo, Efik, Fulani, Hausa, Idoma, Igbo, Kanuri, Yoruba

GOVERNMENT.

Presidential Federal republic

President: Goodluck Jonathan

Vice President: Namadi Sambo

INDEPENDENCE.
from the United Kingdom Unification of Southern and Northern Nigeria by Frederick Lugard :1914 Declared and recognized: 1 October 1960 Republic declared: 1 October 1963

POPULATION& GDP

2009 estimate 158,259,000 (8th)

GDP (PPP) 2009 estimate - Total $341.572 billion Per capita $2,249.

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