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NIGERIAN ECONOMICS an overview by,

R.Vaijayanthi 

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NIGERIA IN MAP……… 

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NIGERIAN FLAG….. 

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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.

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RESOURCES IN NIGERIA …… 

Nigeria is one of the largest producers of oil andpetroleum.

This is the main source of the economy, accounting forwell over 90% of the exports.

The low-sulfur content of much of Nigeria's petroleummakes it especially desirable in a pollution-consciousworld.

The other minerals available are: barite,coal,columbite,flourite,gold,iron,lead,limestone,mangane

se,marble,natural gas , tin, phosphate, salt,etc… 

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IMPORTS……… 

Some of the countries that Nigeria imports from areBritain (the largest), USA, Germany, France, theNetherlands, and Brazil.

Some of the main imports are machinery andtransport equipment, manufactured goods, foodand live animals, animal and vegetable oils andfats, mineral fuel lubricants, crude materials,beverages, tobacco, chemicals, and textiles.

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EXPORTS…… 

Some of the countries that Nigeria exports to arethe USA, Germany, France, Italy, Brazil, Spain, andIndia.

Most of the goods exported consist of petroleumand oil (surprise!), cocoa beans, rubber, palmkernels, cotton, yam, hides and skins.

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ECONOMIC HISTORY…. 

Before oil was discovered in the last 1950s, Nigeriabasically survived on it's agriculture for it'seconomy, and for it's food. Today, agriculture is stilla part of the domestic economy, but by the late

1960s, oil had replaced cocoa, peanuts, and palmproducts as the country's largest foreign exchangeearner.

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CONT….. 

With oil money, Nigeria started importing raw materialsfrom other countries, and as a result, manufacturingbecame established. Industry in Nigeria grew to includea full range of industries, including but not limited tofood-processing, vehicles, textiles, pharmaceuticals,

paper and cement. Before the discovery of oil, there hadbeen very few industries. Part of the effects of the oilboom was that there was a significant rural-to-urbanmigration caused in part by the lure of high wages andconsumer-oriented lifestyles of the city. This took a lot ofthe labor force away from the more rural farms, leaving

the very young, the old, and the infirm to cultivate theland. Not surprisingly, agricultural production declined,and so did the export of cash crops. Eventually, theimport of crops had to increase.

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CONT…. 

In 1971, Nigeria became a member of OPEC(Organization of the Petroleum ExportingCountries). By then, it was the world's 7th largestpetroleum producer.

In 1972, the government took some steps towardstrying to promote Nigerian enterprises. At that time,about 70 percent of the commercial firms operatingin Nigeria were foreign-owned, and the Nigeriangovernment issued a decree to prevent foreigners

from investing in specified enterprises, andreserved participation of certain trades to Nigerians.In 1975, the government bought 60 percent of theequity in the marketing operations of the major oilcompanies in Nigeria.

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CONTD …… 

Also, the government had to deal with the severedrought that affected the north between 1972 and 1974(this drought was the most serious since that of 1913-1914). This caused famines in Nigeria and some other

neighboring countries, and some Africans came intoNigeria from some of those other countries.

In 1974, oil prices rose dramatically worldwide, and thiscaused a sudden flood of wealth, and the revenue thatcame into the country was intended for investment to

diversify the economy, but instead, it led to inflation anda lot of unemployment.

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CONTD…. 

In 1975, oil production fell sharply because of thedecrease in world demand, and the prices moveddownward until later in the year when OPECintervened to raise prices. During the decline of oil

prices, exports of traditional crops collapsed as aresult of poor government policy and low prices onthe world market.

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CONTD… 

When Nigeria found itself importing a lot of food, variousagricultural plans and policies were drawn up to try toproduce cheaper food in sufficient quantities. Examplesof these were the Operation Feed the Nation (OFN) and

Green Revolution (GR), and the Structural AdjustmentProgram (SAP). Some of the techniques involved inthese different programs included large irrigationschemes, 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, otheraspects of agriculture (besides just farming crops) werestarted, including forestry and fisheries.

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CONTD….. 

In 1986, the ruler at the time introduced marketreforms, freeing exchange and interest rates, andthis 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 towhere it was, the population growth was huge, andthe agriculture in the country has been unable tokeep 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 theagricultural production.

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CONCLUSION….. 

With all the wealth that it 'should' have, Nigeria isstill 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 inoil prices.

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GENERAL INFORMATIONS…. 

Federal Republic of Nigeria

Motto: ”Unity and Faith, Peace and Progress” 

Anthem: "Arise, O Compatriots"

Capital: AbujaOfficial languages: English

Regional languages: Edo, Efik, Fulani, Hausa, Idoma,Igbo, Kanuri, Yoruba 

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GOVERNMENT…. 

Presidential Federal republic 

  President: Goodluck Jonathan 

  Vice President: Namadi Sambo 

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INDEPENDENCE…. 

from the United Kingdom 

Unification of Southern and Northern Nigeria byFrederick Lugard :1914

Declared and recognized: 1 October 1960 Republic declared: 1 October 1963

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POPULATION& GDP 

2009 estimate 158,259,000 (8th)

GDP (PPP)

2009 estimate - Total $341.572 billion 

Per capita $2,249.

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THANK YOU……