Nigeria is known as the giant of Africa, as Africa’s largest and growing economy also at the same time one of the most poorest country in the world. According to statistics Nigeria is the 36 most poorest country in the world.
First of all, an economic land scale is not all about the government policy alone but also concern the private individuals and also industry. Also, the economic land scale in Nigeria is facing challenges in all sectors in development Nigeria is in stage 3 in development.
The economic status of Nigeria GDP growth fell to 3.3% in 2022 from 3.6% in 2021, precipitated by a decline in oil production, this led to 5% shrinkage in overall industry which was offset by expansion in services (7%) and agriculture (26%). Economic challenges in Nigeria is mainly due to inadequate infrastructure, tariff and non tariff barriers to trade, obstacles to investment, lack of confidence in currency valuation and limited exchange capacity.
In the first part of 2023, Nigeria’s economic growth weakened, and real gross domestic product (GDP) growth fell from 3.3% in 2022 to 2.4% year-on-year. Sokoto state has the largest population of poor people in Nigeria with an astounding poverty rate of 87.73% with at least 4.38 million individuals living below the poverty line. There are a lot of economic challenges facing Nigeria such as inflation and debts, inadequate power supply, problem in the communication sector, corruption, inconsistent economic policy, state-society gap, poor human capital development and the nature of Nigeria market.
There’s a lot of economic opportunity for growth development in Nigeria cause Nigeria is still in the process of underdevelopment and there room for economic growth. Lagos State generates two-fifth of the country’s domestic income, Lagos State,a South Western metropolis, is the undisputed richest state in nigeria.
There are different factor’s which can influence economic growth in Nigeria such as land, labour, capital and entrepreneurship. These can be considered as building blocks for any economy.
In order to improve economic growth in Nigeria economy fiscal space needs to be created through domestic revenue mobilisation, investment in health, education and infrastructure, which Nigeria expressly needs.
In Nigeria today the service sector consisting of telecommunication, financial and other services is the largest sector in Nigeria and accounted for 52% of GDP in the third quarter of 2022. The information and communication sector (ICT) contributed 16.2% to GDP in Q1 2022. Too much dependence on crude oil is also an issue facing Nigeria economic development. It represents over three quarters (78.7%) of its total re report goods by volume.
– Sule Friday
Prince Abubakar Audu University Anyigba, Kogi State.
