NIGERIAN ECONOMY AND CHALLENGES

1. NIGERIAN ECONOMY AND CHALLENGES

2. EROL AKSUNLAR 057107 • GULTEN ISABESE 072322 • CHUKWUMA UWAGA 109023 • IJEOMA EZIYI 088444 • IKE FRANKLIN OSUDIKE 115555

3. Introduction Economic development is a multidimensional process that involves an increase in the general standard of living, major positive changes in social structures and national institutions as well as accelerated economic growth with reduction in inequality.

4. introduction • Nigeria as a developing country has a number of development challenges but for the purpose of this presentation we will focus on four : • Low Savings and investment • Poverty • Overdependence on the oil industry • Infrastructure

5. LOW SAVINGS & INVESTMENT According to Rostow savings and investment is necessary for a country to move to the next stage of development. Nigeria has an investment rate of 14.1% placing at 169 out 0f 186 countries as of 2011.It also has a GDP per capita of $2600 as of 2011 which places it at 177 out of 226 countries which is quite low and as such it makes it quite difficult to save and as such generate resources for investment.

6. NIGERIA GDP PER CAPITA

7. With an inflation rate of 10.8% (2011) Nigeria ranks 195 out of 222 which makes it difficult for foreign investors to invest, they much rather invest in countries with a lower inflation rate.

8. OVER DEPENDENCE ON THE OIL INDUSTRY • Another issue is the over dependence of the economy on the oil industry. The Nigerian economy is made of 3 sectors agriculture(70 of labor) industrial(10%) service(20%). • Furthermore 95% of its export is made up of petroleum and petroleum products. This sole reliance on oil as its main source of government revenue is not feasible.

9. Third, the oil industry is not labor intensive and employs few unskilled workers. • Fourth, oil revenues have fostered inequality and a rent-seeking political economy, undermining transparency and accountability and leading to conflict, often violent.

10. POVERTY Poverty is an acute problem in Nigeria. An estimated 70% of the population live on less than one dollar a day in purchasing power parity terms.

11. INFRASTRUCTURE A country needs good physical infrastructure—for transportation, communications, power, and information technology—to strengthen competitiveness and expand productive capacity.

12. Science and technology are central elements of a dynamic growth process, because technical knowledge is a driving force for rising productivity and competitiveness. The inability to access and use technology prevents an economy from gaining the benefits of globalization.

13. HEALTH The provision of basic health service is a major form of human capital investment and a significant determinant of growth and poverty reduction.

14. Nigeria’s indicators show very poor performance across the board. Life expectancy is the most common indicator of health conditions in a country. Contributing to Nigeria’s low life expectancy are high rates of HIV/AIDS infection.

15. EDUCATION Nigeria’s education system needs great improvement one basic indicator is the net primary enrollment rate, which shows the percentage of primary school age children who are enrolled in school.

16. For Nigeria, the country’s gender inequities are reflected in its education system, with net female enrollment lower than male.

17. CONCLUSION Based on what we have seen we can conclude that Nigeria is a developing country but it can improve its self by : Increasing savings by removing income tax and increasing consumption tax Diversification of the economy (ex: enriching the agricultural sector) Productive investment in the health and education sector.