Article - Nigeria's Economy Diversification
Author - Com. Ademola Mayowa Joseph
Date posted - Monday, 15th May, 2017

Related detailed explanation was made on
• Recent economic hardship in Nigeria.
• Diversifying Nigeria's economy.
• Nigeria's sector that needs regeneration
• Ways of diversifying Nigeria's economy through regeneration of diminishing sectors.

It’s obvious that the Nigeria economy is currently hitting maximum level of hardship of which has been trending with the economy trying to have an headway, the Nigeria economy in 2016 exceeded its maximum level of hardship to collide with economic recession which has already taken off in Nigeria today causing so many industrial sector to collapse, this as made the country vulnerable to shocks and danger of unsustainable growth. The economic hardship is due to the Federal Government ignorance on running a mono - economy policy (mainly crude oil) to generate revenue for the country and this has been causing inflation on products of the country, though the crude oil revenue has contributed substantially to Nigerian economy since its discovery in 1956. But the supply and demand of major importers from the country, has brought about the fall in the price of oil by more than 40% since June 2014 when it was $115 per barrel, which in 2015 was below $70, after five years of stability. Nigeria’s Federal Government still has the leisure time to make the economy attain its maximum level of sustainable growth and positive economic volatility only if the Federal Government can focus and implement on other sectors of the country through the process of diversification.

A diversified economy is an economy that has a number of different revenue streams and provides nations with the ability for sustainable growth because there is not a reliance on one particular type of revenue, the diversification of Nigeria economy will provide the nations with the security and reliability that they need so that if one economic revenue stream fails they have several other options to sustain the revenue income. The Federal Government needs to centralize and stabilize so many sectors before the economic growth of Nigeria can get to its maximum level of diversification, the Federal Government should focus on implementing new sectors as well as going about the discovery of new tactics in restoring the diminished sectors.

The agricultural sector is one of the major collapsed sectors in Nigeria and has contributed immensely to the economy of the nation positively in years back, the Federal Government as a very great role to play in the agricultural sector in the sense that it needs to re - allocate some farm resources, such as land, capital, fertilizers, insecticides, farm equipment and so on to farmers and youth in the community which will bring immense income to the revenue of the country as no man can do without food, the Federal Government also need to empower farmers and youth on the benefit of agriculture and its risk with ways of preventing them in order to inculcate in them tenacious ability and alacrity for study agriculture because of the nonchalant attitude of the Federal & State Government toward the sector and this has contributed immensely to the economy growth of the nation negatively. We now see Nigerian youth studying irrelevant courses at the Higher Institution.

The economy of Nigeria can also be reconstructed if the Federal Government can awake from its slumber to see that so many Nigerians had fled from the country to seek greener pasture abroad implementing their skills in the host countries thereby boosting their economic growth and also to the scientific and technological advancement of humanity while our country Nigeria is dying of economy starvation, Federal Government needs to encourage youths and adults' Nigerians abroad by reviving every production sectors with the aims of creating employment opportunities for the citizens of Nigeria which will attract them back to the country. Recent news recorded that the movement of Nigerian citizens out of the country abroad has tripled it’s original number which means the economy is gradually moving out of the country to boost foreign economy. Federal Government needs to take vivid actions on regenerating all non - functioning sectors in Nigeria. "When a highly qualified professional chooses to leave his own country for another, he does so for one or several legitimate political or economic reasons: peace and security for himself and his family, job satisfaction, education, better pay and conditions, higher standard of living etc." I think the Federal Government should look into the text in quote and aim at becoming a developed country and not an under - developed or developing country.
Diversifying the economy of Nigeria to be more favorable is also by reducing the cost of importing finished consumer products from foreign countries that could be source locally if efforts are made by the government to patronize made in Nigeria products. The Federal Government should immediately commence the production of a non - oil products in order to export goods which will generate more revenue to the nations economy. The debt Nigeria has in reserve as recorded, exceeded its level of revenue income that is why it is suffering from economic recession presently, though Americans also have high debt in reserve but the utilization of their resources has the capability of generating revenue that supersedes the debt they owe. We must not sit at the detriment of our economy watching foreigners migrating to Nigeria with only a briefcase and going back to his/her state with Nigeria resources to make money, Nigeria Government should say NO to this, our resources are not in constraint so we need to utilize them.

The power sector must be regenerated totally because it is pivotal to the economic development of the nation. Nigeria is the most populated country in Africa but only about 40% of the people are connected to the energy grid. The blackout that is occasioned by poor power generation has crippled the industrial sector, for instance when power fails, many workers may be trapped in the mines, so as soon as there is a risk of failure the operations are shut down, which leads to economic difficulties (kaseke & Hosking 2013). Poor power generation also causes problems on agriculture. Most irrigation lines are run by electricity, so when the power is cut out then the crop yield decreases, the power sectors most be regenerated before the economy of Nigeria can be diversified, so many investors has fled Nigeria for other countries to invest has there are blackouts in the country which is causing a set back to their products and this as affected the economy of Nigeria greatly.

Currently Nigeria uses four different types of energy sources for power generation and they include natural gas, oil, hydro and coal (Aliyu, Ramli & Saleh, 2013). The power generation sector is heavily dependent on petroleum as a method for electricity production which has slowed down the development of alternative forms of energy. The Nigerian federal government should also aim at fighting corruption in the country because it has been the utmost reason for economic hardship in the country, at least the gross domestic product of the country had been favorably positive and increasing years back, so the question is, were are the income that had been generated and reserved years back; and also were are the revenue generated from the exportation of goods year backs, this is a probing question that is needed to be acted upon. In conclusion the Nigerian Government should encourage reservation of wildlife and tourist centers, most of all the wild animals that ought to have been reserved for generating revenue to the economy of the country had been butchered and eaten by human who are naive and unwit. I think so many natural resources that have been gifted to Nigeria by God has been wasted years back that is why the country is going through economic recession presently. Hope the Federal Government act fast to make a diversifying economy.
“It’s not necessary for Nigeria to be great before it start diversifying, but Nigeria can start diversifying now to be great.” John C. Maxwell

REFERENCES:
ALIYU, A., RAMLI, A., SALEH, M. (2013) NIGERIA ELECTRICITY CRISIS: POWER GENERATION CAPACITY EXPANSION AND ENVIRRONMENTAL RAMIFICATIONS. ENERGY, 61(, 354 - 367. DOI:10.1016/J.ENERGY.2013.09.011 KASEKE, N., HOSKING, S. (2013). SUB - SAHARAN AFRICA ELECTRICITY SUPPLY INADEQUACY: IMPLICATIONS. EASTERN AFRICA SOCIAL RESEARCH REVIEW 29(2), 113 - 132 JOHN C. MAXWELL (2016) ATLANTA, GEORGIA. U.S.A

Pretty nice essay.

Recent news recorded that the movement of Nigerian citizens out of the country abroad has tripled it’s original number which means the economy is gradually moving out of the country to boost foreign economy.

The brain drain is increasing.

https://www.youtube.com/watch?v=i1cxanc90EY

Why it’s important to diversify the Nigerian economy