THE NATURE OF THE NIGERIAN ECONOMY

JSS 3 Social Studies Second Term 

WEEK 4

Date…

TOPIC: NATURE OF THE NIGERIAN ECONOMY

CONTENT:

1. The nature of the Nigerian economy

2. Benefits and downsides of varieties of economy

3. The necessity for a diversification of the economic system

SUB-TOPIC 1: THE NATURE OF THE NIGERIAN ECONOMY

The character of the Nigerian economic system refers back to the traits of the Nigerian economic system which reveal the 2 dimensions of mono-product economic system and import-oriented economic system. Nigeria has a twin economic system with a contemporary section depending on oil earnings, overlaid by a conventional agricultural and buying and selling economic system.

At independence, Nigeria was purely an agrarian economic system and thereby earned the most important share of her overseas trade earnings from exportations from agriculture. The oil sector, which emerged within the Nineteen Sixties and was firmly established through the Nineteen Seventies is now of overwhelming significance to the purpose of over-dependence.

MONO-PRODUCT

A mono-product economic system like Nigeria relies upon nearly fully on one supply of nationwide manufacturing to finance her economic system. In Nigeria case, her economic system relies upon primarily on the export of crude oil and due to this fact can be known as a mono tradition product economic system.

Consequently, a fall or rise within the worth of crude oil on this planet market impacts all her financial actions within the nation.

IMPORT ORIENTED

Because of the neglect, weak point and failure of different sectors of the Nigerian economic system i.e. depriving them to deal with the oil sector, the nation imports closely each different commodity, together with meals objects. The implication of that is that we pay extra overseas trade 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 economic system derives its earnings from its predominant product. It’s due to this fact straightforward to develop the primary product.

DISADVANTAGES OF MONO PRODUCT ECONOMY

1. A mono product economic system is unstable, a rise or lower on this planet worth of the identical product will have an effect on the finances of the nation.
2. A mono product economic system could witness a excessive share of unemployment.

ADVANTAGES OF IMPORT ORIENTED ECONOMY ECONOMY

1. An import oriented economic system weakens the overseas trade base of the nation’s forex.
2. The economic system depends i.e. it can not stand by itself.
3. It weakens native manufacturing of merchandise which are imported into the nation.
4. The nation whereas it imports completed items might also import issues that may have an effect on significantly its economic system.

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

To diversify a nation’s economic system is to increase the financial (product) base of that nation, in order that it may depend on a wide range of them as an alternative of counting on just one supply of earnings. Diversification makes it potential for a nation to have extra export commodities, from which the nation can generate extra overseas trade.

The necessity for the diversification of the Nigerian economic system could be seen within the disadvantages of a mono product economic system and the benefits of a diversified economic system. In abstract, the next are the necessity for diversification of an economic system:

1. The necessity for inter sectoral dependence and stability within the economic system.
2. The necessity for extra sources of export merchandise in an effort to scale back importation of products and providers that may be produced within the system.
3. Promotion of worldwide commerce that may result in optimistic stability of cost.
4. The necessity for a dynamic economic system able to absorbing shock within the system whereas sustaining full employment.
5. The necessity for a excessive charge of financial development and improvement

EVALUATION

1. Clarify the character of Nigerian economic system
2. Clarify briefly the next phrases:
3. Mono product economic system
4. Import oriented economic system
5. State 5 explanation why the Nigerian economic system must be diversified
6. Describe Nigeria’s economic system as mono product and import oriented economic system.
7. State the benefits and downsides of a lot of these economic system.

READING ASSIGNMENT:

WEEKEND ASSIGNMENT:

Goal Take a look at:

1. Earlier than independence, Nigerian economic system was purely an ———–
2. Oil sector economic system (b) agrarian economic system (c) Diversified economic system

(d Import oriented economic system.

1. At present, the majority of Nigeria’s overseas trade earnings come from ————
2. Oil exportation (b) agricultural exportation (c) exportation of different mineral assets apart from crude oil (d) earnings from tourism and native artifacts
3. ———– is the growth of the financial (product) base of that nation, in order that it may depend on a wide range of them for the financial survival of the nation.
4. Diversification of the economic system (b) deregulation of the economic system (c) Monetization of the economic system (d) export base economic system.
5. ————– relies upon nearly fully on one supply of nationwide manufacturing to finance her economic system.
6. Product oriented economic system (b) Mono product economic system (c) Diversified economic system (d) oil sector economic system
7. A rustic that import extra items than she export to maintain her economic system is alleged to be ————
8. Mono product economic system (b) diversified economic system (c) Import oriented (d Monetized economic system