Over Dependence on oil and it's effects to the Nigerian Economy

[uche6215]

Nigerian Economy is mainly fueled by crude oil sell, since the discovery of oil in Nigeria in 1956 our budget has been basically funded by the sell of oil, depending on the price of oil in the international market and so any change in the price of oil in the international market with affect our revenue base and in turn reflect on our local market.

But before the discovery of oil our economy was doing well and our naira has value in respect to the dollar in the international exchange market, infact the different regions of the country before the discovery of oil was all producing something to sustain their various regions, with the Grannut pyramid in the North, Cocoa in the west and palm oil in the Eastern regions of the country the Nigerian Economy was predominantly Agro based .

But everything changed with the discovery of oil all the regions of the country danced and praised God for this black gold deposit that he has put in the country, and so with time the Grannut pyramid in the north faded away The cocoa in the west was not seen again and the palm oil in the east went into exile and oil became main stay of our economy and because we are not a producing economy apart from oil our Time our economy started to suffer and we now depends on oil price for our budget, the naira to dollar exchange rate in the exchange market is nothing to write home about as the naira is now one of the weakest currencies in the world

[TEBTC]

Over Dependence on oil is one of the biggest problem of Nigeria as the discovery of oil had done more harm than good has it has made the different regions of the country lazy and unproductive, and until we have a mental shift from this mentality of ours we will continue to economic problem

[nelson4lov]

Our overdependence on oil is part of the reason why I was excited for Yaradua's reign. Iirc, he had a 7-point agenda that explored other avenues to fuel economy growth such as agricultural which I still think is major gold mine, one that can solve our national hunger and still contributing to the overall national reserves in terms of revenue from sales of products. Nut all other governments that got into power has since moved from that and continued dependence in oil. The reality is that the profit margin usually realized is always good but corrupt leaders make the impact to be very insignificant.

As long as they enrich themselves and their generations. 

[rimoeee]

The total dependence of the Nigerian economy on only oil has been a very big problem. First of all, most parts of Nigeria want to get involved in the oil production and do not want to focus on their specialisation and be able to create more impact with it. Nigeria is rich with different resources and also rich with good soil. We can involve in agriculture and in production of more goods which can also lead to more exports and help with the foreign exchange. Different part of the country should involve in the areas where they are rich in and utilize those areas rather than focusing on just the oil production we have in the country

[Jegileman]

But everything changed with the discovery of oil all the regions of the country danced and praised God for this black gold deposit that he has put in the country, and so with time the Grannut pyramid in the north faded away The cocoa in the west was not seen again and the palm oil in the east went into exile and oil became main stay of our economy and because we are not a producing economy apart from oil our Time our economy started to suffer and we now depends on oil price for our budget, the naira to dollar exchange rate in the exchange market is nothing to write home about as the naira is now one of the weakest currencies in the world

The discovery of oil in Nigeria was indeed something great and every part of the country were happy about this big discovery in that year. Because of the demand for oil and how it’s been used as a major source of consumption makes it attractive to everyone. What United us as one as a surviving nation till that time were all let go and that which is in abundance is what we’re all focused on and also forgot our togetherness as one family. Oil has really caused a lot to the Nigerian economy and without dependency on it, there’s nothing that can be done to reduce the effect of its dependency by Nigerians. The agricultural sector is still there with people not tapping too much into the economy of it and potentials of it. I know oil will not go in exile now in Nigeria, but depending on other things is good for the economy condition of the country

[iBaba]

Nigerian Economy is mainly fueled by crude oil sell, since the discovery of oil in Nigeria in 1956 our budget has been basically funded by the sell of oil, depending on the price of oil in the international market and so any change in the price of oil in the international market with affect our revenue base and in turn reflect on our local market.

The Nigerian economy has been heavily dependent on oil and that has gone to distort the longevity of our economy over the years and bring about the uncertainty and fluctuations seen in the economy. The fact that the oil and gas business is not a solely domestic business in the country or at least haven't been made as such in Nigeria, have made it difficult  for us to stand on our own and be boastful of the country's economy.

But before the discovery of oil our economy was doing well and our naira has value in respect to the dollar in the international exchange market, infact the different regions of the country before the discovery of oil was all producing something to sustain their various regions, with the Grannut pyramid in the North, Cocoa in the west and palm oil in the Eastern regions of the country the Nigerian Economy was predominantly Agro based .

It is interesting to know that Nigeria used to be surviving before the era of oil and gas discovery. The advent of the oil and gas system was the beginning of the over dependence and burdening economy in the country.