Nigeria's Economic Development

This report analyzes Nigeria's recent economic developments, highlighting challenges and opportunities. It examines issues such as poverty, unemployment, balance of payments, inflation, and poor implementation of plans. The report emphasizes the importance of infrastructure development, healthcare improvements, and agricultural growth for boosting the Nigerian economy. It also discusses the impact of Nigeria's economic growth on the African economy as a whole, noting both positive and negative consequences. The report concludes by suggesting that addressing these key areas is crucial for sustainable economic growth and development in Nigeria, promoting diversification beyond its reliance on oil and improving the overall standard of living.

Issue in Global Business and Strategic
Concept

EXECUTIVE SUMMARY
The economic development is the critical task specially when the economy highly depend
on single commodity. The current report is based on Nigeria which is fastest developing
economy of Africa. However, country is facing issue related to basic amenities like
infrastructure, transportation and health care. This is the major reason behind unemployment and
poverty in country. The study has been done by discovering issues as well as recent changes
which have taken place in Nigeria. Furthermore, contribution of recent changes on African
economy has also been explained in both positive and negative manner.
Furthermore, three key points such as infrastructure, health care and agriculture have
been taken into consideration by which Nigeria can give upward direction to industries as well as
economy. It facilitates to improve living standard of people and generate employment
opportunities for people. It has also been explained that these key points should be prioritize by
Nigeria in order to promote globalization.
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TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
Analyzing Nigeria's recent developments .......................................................................................4
Issues in growth and development of Nigeria..............................................................................5
contribution of recent changes to African economy ......................................................................6
CRITICAL ANALYSIS OF 3 KEY POINTS.................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
The strategic concept plays vital role in development of business at global level. The
global businesses are affected by number of factors which create barriers in the success of
corporation to a great extent. The current study is based on scenario of Nigeria where recent
development has taken place. Here, strategic planning, development and analysis has been done
by referring the scenario of country. Furthermore, impact of recent development has been
analyzed in the light of economic growth and development of the nation. In addition to this,
domestic and international issues are addressed which facilitate to continue the growth of Nigeria
in future time period also.
ANALYZING NIGERIA'S RECENT DEVELOPMENTS
There are several recent changes have taken place in Nigeria due to changing external
factors like political, technological and economical. The country has overtaken South Africa as
the continent's largest economy. Recent changes have been made with regard to infrastructure
development, finance and other related factors (Todaro, Michael and Smith, 2006). This is
because of privatization initiatives of the country. Here, long term planning related to
infrastructure development facilitates to minimize transport bottlenecks, improving
transportation facilities in population centers and new industrial zones as well as making
improvements in general economic development. It includes plan such establishing free trade
zones and master plan for the development of Lekki penisula east of Lagos. Apart from this
creation of additional transport models such as Lagos Metro Blue Line and red line.
According to the above mentioned changes urbanization is taking place with rapid speed
which facilitates to ensure long term growth of country. This helps to emerge middle class
people and contribution of international as well as domestic companies are contributing in
innovation of nation. Other developments like Ikeja City Mall and Palms Shopping Malls in
Lagos State and Polo Part in Enugu state are the key evidence of expanding market (Omotoso,
2008). There are many projects which have been completed without taking any kind of support
from government. Furthermore, Lagos initiatives consisting reducing carbon footprints and
promote green consumer concept. Apart from this, state is also working with private investors in
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order to save electricity. In addition to this, there are several factors which ascertain rapid
economic development of Nigeria. These are explained as follows- Sub-national autonomy-Nigeria has decentralized autonomy thereby private sector seek
their path for growth at their own. It enables them to contribute in the direction of growth
and success of nation (Aremu, I., 2003).
 Budget constraints-The country like Nigeria face adopt decentralized system whereby
they have soft budget constraint. It assists country to make budget ion different
development activities without having much pressure of government.
With the combination of these two factors it becomes easy for the management to seek long term
growth with increased rate of return. Increased rate can be in term of development of general
community. However, there are several factors which affect growth and development of Nigeria- Lack of connectivity to market- There are several negative features which ha,per
performance of country (Gboyega, 2003). It consists of transportation facilities as well as
infrastructure. Owing to this, problem has been faced when investors try to operate
business in Nigeria.
 Poor coordination- The poor coordination can be seen in context of fiscal policy wherein
government face issues regarding. Due to fiscal policy in term of oil prices. At this
juncture, long term commitments are required with government by which Nigeria can
ensure industrial growth in both domestic and international market.
Issues in growth and development of Nigeria
The aforementioned detail depicts that Nigeria has several plus as well as negative points
which need to be considered while ensuring overall growth and development of sector in the
marketplace. These are as follows- Poverty and unemployment-The poverty in Nigeria is keep on increasing due to
unemployment and high population. However, the rate of poverty declined between 2004
and 2010. The reason behind high poverty rate is lack of resources like poor
infrastructure and transportation (Makube and Tebogo, 2011). This creates barriers for
international corporation to come into domestic market. For example if any organization
come in Nigeria then they cannot find the place for the development and growth of the
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companies. It is the major problem by which ratio of poverty and unemployment increase
to a great extent. The balance of payment-The country Nigeria depend on the price of oil prices and this is
the major reason behind risk of balance of payment. Moreover, reduction in oil prices
affect the balance of payment to a great extent. In addition to this, 95% of exports come
from oil and its 75% account for consolidated budgetary revenues in Nigeria. The
differences lies due to difference in currency value. Similarly, fiscal policy also affect the
balance of payment and economic growth of country (Akindele, Olaopa and Obiyan,
2002). Inflation-The problem of inflation create negative impact on industries as well as
economy of country. However, the scenario of inflation during 2009-2010 increased
prices of food products. Similarly, there was strong fiscal expansion during that period. Poor implementation of plans- It is the crucial issue which impede performance of
nation. This is because wrong estimation of project team to implement plan and also the
resources constraint lead to increase cost. It also consume time which in turn prove to be
ineffective for the growth and development of county as whole.
 Unequal distribution of power-This is another of issue behind the poor growth because
of unequal distribution of power. As many of young population is living in poverty and
do not get the opportunity to get the best placement in developing sector.
All of the above issues are very critical which need to be give concentration by the
government of nation. However, improvement are taking place by focusing on these issues so
that employment opportunities can be created for large number of young people.
CONTRIBUTION OF RECENT CHANGES TO AFRICAN ECONOMY
The African economy get benefits from the Nigeria because it is the fastest going
economy. However, it has volatile nature due to dependency on oil price. After taking over South
Africa Nigeria has moved to be the largest economy by GDP size and also 26 the largest
economy in the world (Nigeria to become Africa’s biggest economy, 2015). In this regard,
service sector has been developed by focusing on developing different sectors like transportation
and infrastructure facilities. It create path for international corporation to come across the
country and set their business. It provides employment opportunity and also aid to reduce the
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poverty. Furthermore, South African will remain the most important economy in the world due
to growth and developing sector.
With the takeover process, South Africa will also get the good manpower and developing
phase by which different sector of nation can be developed to a great extent. Also, South Africa
will get the opportunity to work well and develop different sectors in an effectual manner.
Furthermore, investors will seek the growth opportunity in Nigeria and globalization in different
sector will take place (Step change, 2015). Apart from this, after taking over South Africa
government of Nigeria can work well and formulate policies accordingly in order to address
specified issues.
The re-basing was planned for 2015 so as to formulate rules and regulation for the
coming year 2016. Owing to this, Nigerians will going the get benefits. It aids to reshape overall
policies and financial condition of Nigeria. Despite of so many opportunities, Nigeria face issues
in the growth and development. Due to issues like Slow ports, poor conditions of roads and lack
of electricity. However, in 2012 the World Bank forecasted that economic output of Nigeria as
$263bn and for South Africa it was $384bn. At this juncture there are several factors which
create stress with regards to dependency on single commodity and 100 million people living in
Nigeria who consider less than $1 a day for their survival.
CRITICAL ANALYSIS OF 3 KEY POINTS
There are following key points by which Nigeria can emerge itself in the market. Nigeria
has a deserved reputation for corruption, hence the intellectuals might think that the economy
will be doubled due to the fiddling numbers. Nigeria's economy has a real growth rate which is
typically measured with reference to its pricing aspects. Nigeria left it far too long and as a
result, its old GDP figures were proved to be inaccurate. Owing to this these key factors should
be prioritize which are explained asd follows. Thus, the economy of Nigeria can improve by
emphasizing on these three major aspects: Health care sector: A healthy workforce is the engine of any economy and so it is for
Nigeria as well. The economy has to take several provisions into account so as to cater
health care needs to country's population; however failure of such thing leads to decrease
in the production of goods and services. There should be prominent facilities under health
care aspect so that health standards can be increased. In such respect, the economy can be
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improved by focusing on education and training standards. This should be taken into
consideration because educated economy presents multiple opportunities for the economy
to diversify beyond the traditional pillars (Nigeria Economic Report, 2015). Agriculture and Natural Resources: Nigeria falls under the category of largest importer
of food products and the country will be better served if improvement will take place in
agriculture sector. The availability of cheaper food products will also improve the quality
of life for Nigerians as more people will be able to afford quality food. This would be the
best way to improve standard of living which has a direct impact on overall development
of Nigerian economy. Direct flow of resources in agriculture sector would improve
earnings of people and this simultaneously will increase employment opportunities.
There should be strong financial sector that can stimulate growth of the economy and for
that credit artifacts should be encourages for overall development of Nigerian economy.
 Infrastructure-It is the most important area which contribute towards development of the
economy. The infrastructure facilitates are the basic point on which success of country
depend. This is because Nigeria has issues related to poor ports, bad roads and poor
transportation facilities. This issue does not allow country to expand itself and promote
trade in the marketplace (Infrastructure development in Nigeria, 2015). At this juncture,
focus need to be laid on development of roads and vehicles which ease industries as well
as residents of country. With this, corporation will attract towards the country and its
dependency on single commodity will be removed. It aids to improve trade and other
facilities by which government of Nigeria can invite foreign direct investment. This in
turn economy can be boosted with high per capita income or GDP.
CONCLUSION
The aforementioned report concludes that growth and development of economy is highly
based on several factors like employment, education and basic amenities. In absence of these
amenities a country cannot ensure its growth. It can also be said that, diversification of economy
in different sector is also the effective means to explore the growth and develop employment
opportunity for the youngsters.
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REFERENCES
Journals and books
Akindele, S. T., Olaopa, O. R. and Obiyan, A., 2002. Fiscal Federalism in Nigeria: A
Contemporary Review. Journal of Social Science. 6(3).
Aremu, I., 2003. Development and Political Stability in Kwanashie (ed) Politics and Political
Power Relations in Nigeria. Lagos. Dat and Partners Logistic Ltd. 12. 248-262.
Gboyega, A., 2003. Democracy and Development: The Imperative of Local Governance. An
Inaugural Lecture. University of Ibadan. pp. 6- 7.
Makube and Tebogo., 2011. The Performance of Fiscal Transfers in the South African
Intergovernmental Fiscal Relations System. FFC, ADDRESS.
Omotoso, F., 2008. The South-West Position on the Review of the 1999 Constitution. Paper
presented at the South-West Legislative Conference on Constitutional Review. pp. 5- 10.
Todaro, Michael P. and Smith, S. C., 2006. Economic Development. Harlow: Pearson Education
Limited.
Online
Nigeria to become Africa’s biggest economy. 2015. [Online]. Available through:
<http://www.bdlive.co.za/opinion/2014/01/31/nigeria-to-become-africas-biggest-
economy>. [Accessed on 2nd November 2015].
Step change. 2015. [Online]. Available through: <http://www.economist.com/news/finance-
and-economics/21600734-revised-figures-show-nigeria-africas-largest-economy-step-
change>. [Accessed on 2nd November 2015].
Nigeria Economic Report. 2015. [Online]. Available through:
<openknowledge.worldbank.org/bitstream/handle/10986/16568/776840WP0Niger0Box034
2041B00PUBLIC0.pdf?sequence=1>. [Accessed on 2nd November 2015].
Infrastructure development in Nigeria. 2015. [Online]. Available through:
<http://www.nortonrosefulbright.com/knowledge/publications/108835/infrastructure-
development-in-nigeria>. [Accessed on 2nd November 2015].
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