Let’s Talk about Nigeria and her Poor Economic Growth
It is no longer news that Nigeria is experiencing economic crises. The recession has been marked by high inflation rates, unemployment, currency deprivation, and an increase in the prices of goods and services plus a general reduction in the overall standards of living of her populace. We wonder what factors are responsible for this downward spiral into economic depression. We beg and almost plead daily for a solution. Today, I will speak freely.
The problem of poor economic growth can be linked to two primary factors. First is the problem of Nigeria being a mono-economic state and second is the issue of policy modification. Let’s discuss this one after the other.
Many developed nations have ensured economic viability by diversification. This means that they do not depend on a single commodity for economic sustenance. Establishing multiple revenue streams means that the country in question creates a large pool of national income which can be used to execute projects. Such diversification also means that there is all round economic stimulation which allows for a vibrant economy. Jobs are created, and the populace is actively engaged to create value for the economy. Sadly, this is not the case with Nigeria.
The Nigerian economy strives on the exportation of unrefined crude oil. This makes it susceptible to external market influences. Thus, when global oil prices or oil supply drops, it has an almost immediate negative effect on the nation’s economy, and it affects the total revenue pool. This has a spiral effect on all the sectors of the nation’s economy. Adding to this is the fact that the country has little or no industrial and manufacturing base to provide support for its economy.
The second problem is caused by the policy modification. As different political leaders assume positions of power at the country’s helm of affairs. Many of these leaders do not bother to sustain existing economic policies initiated by past predecessors. Instead, they struggle to bring forth new policies that are similar to the existing ones. This constant policies change creates an unhealthy economic space in which businesses cannot thrive. Sustainable policies are needed to ensure sustained economic growth and development.
Businesses have to constantly review laws, contract, etc because laws are constantly being passed and the old ones become obsolete. This costs businesses a lot of money. The new laws being passed have not been tested properly, this means that we are in a constant state of trial and error every four years. Rather than improve what is on the ground. The government chooses to start all over again.