The crude oil price which usually fluctuates from time to time has brought mix fortunes to Nigeria since oil discovery in early 1970. For instance, during the periods of crude oil boom in the international market, Nigerian government makes lots of money from the crude oil sales, the Country’s currency (Naira) appreciates in value, Nigerians consumption pattern changes in favor of already made imported goods, etch. However, during the era of crude oil glut, which subsequently affect crude oil price and foreign income earned, the country will slump into financial and economic predicaments. For example, Satti, et al (2014) listed the possible negative effects of natural resources abundance, such as oil to include overvaluation of the national
…show more content…
Some experts believed that Nigerian current woes are caused by resource curse or Dutch disease, while others argued that problem is caused by combination of many factors such as bad policies, political instability, mismanagement, corruption, just to name but few; therefore crude oil abundance cannot be blamed as sole responsibility for Nigeria problems. For instance, some countries like Norway, the United Kingdom and the United States have abundant oil resources but where able to manage it well without suffering from resource curse. However, since the discovery of oil in Nigeria, many of the country’s citizens had abandoned their ways of livelihoods such as farming, fishing, and craftsmanship to look for white-collar jobs in the urban cities just to partake in the sharing of the oil money which they viewed as “national cake”. When many people in the country are abandoning the agriculture and manufacturing sectors just to be employ in oil and trade sectors, there will be shortage of food for the citizenry and shortage of fibers or raw materials for the industries. For instance, Nigerian economy evolved from an agricultural based economy to oil based economy since last 50 years when oil was discovered in 1956, and with this …show more content…
It will also, verify the existence of Dutch disease in Nigerian economy. The study will examine the relationships that exist among crude oil production (booming sector), and agriculture, and manufacturing (lagging sectors); and also, verify whether there is effect of the Dutch disease syndromes on Nigerian economy. The Dutch disease theory is proving that the discovery of natural resources such as oil, suppressed the production of other sectors such as Agriculture, Manufacturing and trade. The study will review literatures on most of the factors that contributed to the problem and explore various avenues to fix the problems. For instance, diversification into other sectors like agriculture, manufacturing, and increase in internally generated revenues will be other options to explore. The study will use descriptive design to examine the relationships that exist between crude oil sectors, Agriculture sector, manufacturing sector, etc.; and the contribution of each of these sectors to the Gross Domestic Product (GDP). For instance, it will try to ascertain whether the percentage increases in crude oil production contribution to the percentage decrease in contribution of agricultural output to the GDP. Finally, the study will recommend appropriate policy options and measures which, if adhered to by the policy makers, will mitigate the problem of over dependency on
Some experts believed that Nigerian current woes are caused by resource curse or Dutch disease, while others argued that problem is caused by combination of many factors such as bad policies, political instability, mismanagement, corruption, just to name but few; therefore crude oil abundance cannot be blamed as sole responsibility for Nigeria problems. For instance, some countries like Norway, the United Kingdom and the United States have abundant oil resources but where able to manage it well without suffering from resource curse. However, since the discovery of oil in Nigeria, many of the country’s citizens had abandoned their ways of livelihoods such as farming, fishing, and craftsmanship to look for white-collar jobs in the urban cities just to partake in the sharing of the oil money which they viewed as “national cake”. When many people in the country are abandoning the agriculture and manufacturing sectors just to be employ in oil and trade sectors, there will be shortage of food for the citizenry and shortage of fibers or raw materials for the industries. For instance, Nigerian economy evolved from an agricultural based economy to oil based economy since last 50 years when oil was discovered in 1956, and with this …show more content…
It will also, verify the existence of Dutch disease in Nigerian economy. The study will examine the relationships that exist among crude oil production (booming sector), and agriculture, and manufacturing (lagging sectors); and also, verify whether there is effect of the Dutch disease syndromes on Nigerian economy. The Dutch disease theory is proving that the discovery of natural resources such as oil, suppressed the production of other sectors such as Agriculture, Manufacturing and trade. The study will review literatures on most of the factors that contributed to the problem and explore various avenues to fix the problems. For instance, diversification into other sectors like agriculture, manufacturing, and increase in internally generated revenues will be other options to explore. The study will use descriptive design to examine the relationships that exist between crude oil sectors, Agriculture sector, manufacturing sector, etc.; and the contribution of each of these sectors to the Gross Domestic Product (GDP). For instance, it will try to ascertain whether the percentage increases in crude oil production contribution to the percentage decrease in contribution of agricultural output to the GDP. Finally, the study will recommend appropriate policy options and measures which, if adhered to by the policy makers, will mitigate the problem of over dependency on