Diversification of the Nigerian Economy towards a Sustainable Growth and Economic Development

Abstract

As a matter of priority, Nigeria government must encourage the diversification of Nigeria’s economy. It is the only viable way to survive the current environment of global economic uncertainty with the volatility of oil price. It is crucial that government do not believe that oil provides an endless source of revenue. Nigerian economy is mono-economy, depending on oil. Good percentage of Nigerians live in abject poverty, unemployment is on the high and productivity is at its lowest level. Given this, the study seeks possible ways of diversifying the productive base of the Nigerian economy. Using descriptive method of analysis, it is revealed that considering Nigeria’s peculiar circumstances and the successes recorded before the advent of oil, for Nigeria to break loose from the problems inherent in a mono-economy, especially one largely dominated by oil, which is subject to depletion, international price shocks and unfavorable quota arrangement, there is need for diversification. Agricultural sector is suggested as possible options for diversifying the Nigerian economy. Drawing from the implications of the study, certain recommendations, which include among others, that the one sector must not be sustained by foreign innovation and technology. The only sensible and durable way to sustain the economy is Nigerian innovation. The first section examines a general background of study and set out the significance objectives of the study. It also highlights the methodology to be employed to address the key issues. The second section, gives the outlook of the Nigerian economy with a view to examining the need for diversification of the economy towards agriculture and solid mineral development. Section three will be a brief review of the Nigerian agriculture development policies. Section four examines the impact of the contribution of the agriculture sector to the economic development of the Nigeria. Section five will focus on the opportunities and potentials for agriculture development in Nigeria as well as the value addition chain.