NATURE OF THE NIGERIAN ECONOMY Jss3 Social Studies Second term Week Four

Subject  Social Studies

Class : Jss 3 Year 9 

Term :  Second Term

WEEK 4

Date…

TOPIC: NATURE OF THE NIGERIAN ECONOMY

Behavioual Objectives :  At the end of the lesson , pupils should be able to 

1. Explain the nature of Nigerian economy
2. Explain briefly the following terms:
3.  Define Mono product economy
4. Explain the meaning of Import oriented economy
5. State five reasons why the Nigerian economy should be diversified
6. Describe Nigeria’s economy as mono product and import oriented economy.
7. State the advantages and disadvantages of these types of economy.

CONTENT: 1. The nature of the Nigerian economy

2. Advantages and disadvantages of types of economy

3. The need for a diversification of the economy

SUB-TOPIC 1: THE NATURE OF THE NIGERIAN ECONOMY

The nature of the Nigerian economy refers to the characteristics of the Nigerian economy which reveal the two dimensions of mono-product economy and import-oriented economy. Nigeria has a dual economy with a modern segment dependent on oil earnings, overlaid by a traditional agricultural and trading economy.

At independence, Nigeria was purely an agrarian economy and thereby earned the largest percentage of her foreign exchange earnings from exportations from agriculture. The oil sector, which emerged in the 1960s and was firmly established during the 1970s is now of overwhelming importance to the point of over-dependence.

1. MONO-PRODUCT

A mono-product economy like Nigeria depends almost entirely on one source of national production to finance her economy. In Nigeria case, her economy depends mainly on the export of crude oil and therefore is also referred to as a mono culture product economy.

Consequently, a fall or rise in the price of crude oil in the world market affects all her economic activities in the country.

1. IMPORT ORIENTED

As a result of the neglect, weakness and failure of other sectors of the Nigerian economy i.e. depriving them to take care of the oil sector, the country imports heavily every other commodity, including food items. The implication of this is that we pay more foreign exchange for imports than we earn from exports.

SUB-TOPIC 2: ADVANTAGES AND DISADVANTAGES OF TYPES OF ECONOMY

ADVANTAGES OF MONO PRODUCT ECONOMY

1. A mono product economy derives its earnings from its main product. It is therefore easy to develop the main product.

DISADVANTAGES OF MONO PRODUCT ECONOMY

1. A mono product economy is unstable, an increase or decrease in the world price of the same product will affect the budget of the country.
2. A mono product economy may witness a high percentage of unemployment.

ADVANTAGES OF IMPORT ORIENTED ECONOMY ECONOMY

1. An import oriented economy weakens the foreign exchange base of the country’s currency.
2. The economy is dependent i.e. it cannot stand on its own.
3. It weakens local production of products that are imported into the country.
4. The nation while it imports finished goods may also import problems that can affect seriously its economy.

SUB-TOPIC 3:THE NEED FOR A DIVERSIFICATION OF THE ECONOMY

To diversify a nation’s economy is to expand the economic (product) base of that nation, so that it can rely on a variety of them instead of relying on only one source of income. Diversification makes it possible for a nation to have more export commodities, from which the country can generate more foreign exchange.

The need for the diversification of the Nigerian economy can be seen in the disadvantages of a mono product economy and the advantages of a diversified economy. In summary, the following are the need for diversification of an economy:

1. The need for inter sectoral dependence and balance in the economy.
2. The need for more sources of export products in order to reduce importation of goods and services that can be produced in the system.
3. Promotion of international trade that will lead to positive balance of payment.
4. The need for a dynamic economy capable of absorbing shock in the system while maintaining full employment.
5. The need for a high rate of economic growth and development

EVALUATION

1. Explain the nature of Nigerian economy
2. Explain briefly the following terms:
3. Mono product economy
4. Import oriented economy
5. State five reasons why the Nigerian economy should be diversified
6. Describe Nigeria’s economy as mono product and import oriented economy.
7. State the advantages and disadvantages of these types of economy.

READING ASSIGNMENT:

WEEKEND ASSIGNMENT:

Objective Test:

1. Before independence, Nigerian economy was purely an ———–
2. Oil sector economy (b) agrarian economy (c) Diversified economy

(d Import oriented economy.

1. Today, the bulk of Nigeria’s foreign exchange earnings come from ————
2. Oil exportation (b) agricultural exportation (c) exportation of other mineral resources other than crude oil (d) earnings from tourism and local artifacts
3. ———– is the expansion of the economic (product) base of that nation, so that it can rely on a variety of them for the economic survival of the nation.
4. Diversification of the economy (b) deregulation of the economy (c) Monetization of the economy (d) export base economy.
5. ————– depends almost entirely on one source of national production to finance her economy.
6. Product oriented economy (b) Mono product economy (c) Diversified economy (d) oil sector economy
7. A country that import more goods than she export to sustain her economy is said to be ————
8. Mono product economy (b) diversified economy (c) Import oriented (d Monetized economy