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The Modern Nigerian Economy

Submitted by volcomkiss182 on November 5, 2006

Category: History Other
Words: 1218 | Pages: 5
Views: 167
Popularity Rank: 63,677
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The Modern Nigerian Economy
Nigeria is located on the west coast of Africa and is the most populous black country in the world, bordering the North Atlantic Ocean, between Benin and Cameroon. Nigeria covers 356,668 sq miles and is about the same size as California, Nevada and Utah combined. Nigeria is diverse in people and culture. Oil-rich Nigeria, long stunted by political instability, corruption, inadequate infrastructure, and poor management, is undertaking some reforms under a new reform-minded administration. Nigeria's former military rulers failed to diversify the economy away from its overdependence on the capital-intensive oil sector, which provides 20% of Gross Domestic Product, 95% of foreign exchange earnings, and about 65% of budgetary revenues. The largely subsistence agricultural sector has failed to keep up with rapid population growth. Nigeria is Africa's most populous country; and the country, once a large exporter of food, must now import food. The modern Nigerian economy is greatly dependent upon trade and it’s changing from an agricultural export industry to a more competitive and prosperous oil exportation industry, thus affecting Nigeria’s economic, financial and banking structures.
Most countries’ economies are immensely dependent upon trade. Nigeria’s economy is no different. Nigeria is based off of imports such as; 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. Nigeria’s income is supported by the exportation of goods such as; petroleum and oil, cocoa beans, rubber, palm kernels, cotton, yam, hides and skins. Nigeria is dependent on the exportation of petroleum, without this export Nigeria wouldn’t have much of an economy. Petroleum is the leading mineral produced in Nigeria. The growing oil industry attracted many to urban centers, to the detriment of the agricultural...

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