Numerous studies have raised immense concerns about Nigeria’s economic situation. The United Nations Conference on Trade and Development (UNCTAD), Centre for Study on the Economies of Africa (CSEA), as well as many economics and development experts at a conference that took place in Abuja have expressed their concerns over this prevailing economic situation, calling for the enactment of urgent actions. With a high standing population of about 220 million the unemployment rate, prevailing poverty ratio and widening fiscal deficits that have ravaged the country have been a major concern of stakeholders who believe that the weakened state of Nigeria’s economy poses danger for the economies of other African countries.
UNCTAD’s Africa Director, Paul Akiwumi, while discussing the impact of Nigeria’s economic crisis on the continent at large during the high-level policy dialogue, noted that Nigeria’s economic strength and demographic dividend is immensely important for the economic recovery of the Sun-Saharan Africa, and the entire African continent. Akiwumi, like the numerous stakeholders agreed that the data-driven and evident-based policy implementation was pivotal for the economic transformation and inclusive growth and development in the country. He also raised concerns on the economic dependency on oil, noting that while Nigeria’s economic challenges need immediate attention, it was imperative to improve the productivity of labour through enhanced training and technological development which will in turn also see Nigeria’s GDP per capita improve.
Nigeria’s economy, an extractive sector-driven one.
Akiwumi described Nigeria’s economy as an extractive sector-driven one with oil and natural gas, making up at least 80 percent of the economic exports. He further explained that the rigidity of Nigeria’s economic structure poses an inherent problem in the labour market, offering little or no flexibility for employment in the national economy as a result of its capital-intensive nature. Moving forward, he added that the dependency of the country’s economy on natural capital and the exportation of raw commodities subjects it to the vagaries of external economic, political and health related problems. Nigeria’s economy is now expected to hit an all-time low, with a intense recession due to the impact of the Covid-19 pandemic and while the country’s GDP decreased by nearly 4 percent in 2020, there has been no significant recovery process.
The executive director of CSEA, Dr. Chukwuka Onyekwena, speaking at this event which was tagged “Fostering Productive Capacities in Nigeria for Industrialization, Export Diversification and Inclusive Growth”, stated that Nigeria is negatively impacted by a prevailing weakness in the structure of the economy. He emphasized that the budget deficits, rising inflation, increased debt to GDP ratio, poverty and unemployment were concerning indicators. According to him, the micro challenges that the economy faced were indications of fundamental vulnerabilities in the economic structure.
Low productive capacity reflects Nigeria’s vulnerability to external shock.
Onyekwena was also critical about Nigeria’s weak productive capacity, noted that the share of the manufacturing sector to the GDP is at 9 percent, reflecting the country’s vulnerability to any form of external shock. He noted that while Nigeria boasts of a leading economy in the continent, it still lacked an efficient productive capacity performance. He however appealed to the government to urgently address this problem. Also, Dr. Oluwaseyi Vincent an Economist at the Nigerian Economic Summit Group stressed that Nigeria possessed enough room to significantly enhance its productive capacity if the government policy for pharmaceutical production was implemented to further aid the manufacturing sector.
Vincent noted that it was immensely important to overtly harness the comparative advantage opportunities. He said that while numerous countries presently invest in the exportation of unprocessed materials, Nigeria could fill the existing gap by positioning itself as a huge beneficiary of the AFCFTA by further improving its productive capacity. To Vincent, ICT and health developments would be important to human capital, as ICT enhances an enabling ambience for entrepreneurship through institutions, as the governmental policies hold potentials to also improve the productive capacity of the country.
Government must implement and domesticate AFCFTA agreement.
He however canvassed for a global competitiveness in manufactured products, so as to ensure that Nigeria transforms into a knowledge-based economy. A Professor of International Economic Relations at Covenant University and Consultant at ECOWAS Common Investment Market, Jonathan Aremu asserted that despite true high expectations of AFCFTA, the government must also implement and domesticate the agreement. He also stated that the imminent success of the AFCFTA was solely reliant on the abilities of the private firms to successfully navigate between the national, regional and continental policy frameworks in order to take advantage of the expanded market.
Related Link
UNCTAD: Website
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Fact Checking Tool – Snopes.com
The rigidity of Nigeria’s economic structure is the main our economy is so messed up right now. We need to diversify and tap in to other sectors with high potential resources.
The rigidity of Nigeria’s economic structure poses an inherent problem in the labour market, offering little or no flexibility for employment in the national economy as a result of its capital-intensive nature. Nigeria boasts of a leading economy in the continent, yet it still lacked an efficient productive capacity performance. Nigeria could fill the existing gap of exportation of unprocessed material s by positioning itself as a huge beneficiary of the AFCFTA by further improving its productive capacity.
Nigeria has one of the strongest economies on the continent, but its productive capacity performance is still inefficient. Nigeria might close the current deficit in the export of raw materials by positioning itself as a major gainer from the AFCFTA and increasing its production capability.
The way our economy is structured is the reason why we don’t have a prospering economy. We should make of use of the different recommendations we have been given and implement the AFCFTA agreement.
As a result of its capital-intensive character, Nigeria’s rigid economic structure presents an inherent difficulty in the labor market by providing little to no flexibility for employment.
While many nations now invest in the exportation of raw resources, Nigeria might close the current gap by establishing itself as a major gainer from the AFCFTA by increasing its production capacity.
many economics and development experts at a conference that took place in Abuja have expressed their concerns over this prevailing economic situation, calling for the enactment of urgent actions. Good action is needed from Nigeria government. seriously government has the major roll to play in Nigeria problems
Our economy structure is not balance a different way should be try not to just focus on one sector be to be diversity in other sector also following the AFCFTA agreement
Nigeria’s economic structure so messed up right now. We should try different recommendations we have been given and look into other sectors with high potential resources the will yield great results.
Nigeria economy will continue to deteriorate unless the government do it the right thing.Firstly the government should fight corruption to lowest level and invest in agriculture.
The government should take quick actions to ensure that the vulnerability of our structure is worked on
Unemployment is one major hindrance to the growth of our economy and that is something that the government ought to work on
Reviving economies across Sun-Saharan Africa and Africa as a whole would benefit greatly from Nigeria’s economic growth and demographic dividend.
It is vital that productivity of labour be improved through expanded training and technical advancement in order to witness an increase in Nigeria’s GDP per capita. This would also see an improvement in the productivity of labour.
The extractive industries—primarily oil and natural gas—drive Nigeria’s economy, which is why oil and gas account for at least 80 percent of the country’s total exports.
Due to the fact that the economy of the country is dependent on natural capital and the exports of raw commodities, it is vulnerable to the unpredictable effects of economic, political, and health issues originating from the outside world.
The implementation of data-driven and evidence-based policy was essential to the country’s economic transformation as well as the inclusive growth and development that took place there. He
There is a possibility that the policies of the administration will lead to an increase in the productive capacity of the country.
FG should first deal with their nepotical approach toward appointment in government offices. They should work on curbing terrorism in the country and Fulani herdsmen activities. It is not about bad structure but about the competency of those in the government affairs.