Diversification of Nigeria’s Economy Through Agriculture and Solid Minerals in the Face of Dwindling Economy

Abstract

This research work examined the diversification of the Nigeria’s economy through agriculture and solid minerals in the face of dwindling economy. The study is founded on simple micro-economic theory of demand and supply. Correlation, co-integration, and Ordinary Least Square Regression tests were adopted in this work. The result obtained in the study suggests that agricultural commodity export prices have positive impact on economic growth of Nigeria. This suggests that Nigeria has to encourage increase in agricultural products through developing the sector. Also, the findings of the study reveal that solid mineral production has significant short and long-run impact on the Nigerian economy. Based on the findings, to develop agricultural and solid minerals sector, which contributed over 90% of Nigeria’s economic growth before the discovery of oil, entails government making these sectors an interesting sector i.e. providing the capital required, both human and non-human, developing markets for agricultural output internationally. It is further recommended that the best policy objective of the government should carry out a comprehensive inventory of the country’s mineral resource potentials and actively promote the development of these resources for both local and foreign consumptions and hope that this will encourage the development of local sources of raw materials for the nations industries.