Nigerian Economy News Update

Exactly what is happening currently with all the Nigerian financial system is far away from being affected by any means with the global credit crisis. At global level currently, the banks are under-capitalised, but Nigerian banks according to nigeria are over-capitalised. And That I do not think this is a problem by any means. I believe that Nigerian banks are under pressure using their company economies within Africa continent that are affected by the credit challenges.

The foregoing statements aptly connote two understandings of the state of Nigerian economy. These understandings show, the economy is among the fastest growing economies in Africa and on earth. Although Nigeria has had hash economic history, it offers undergone yet still undergoing economic reforms, which are directed at making Nigeria the Africa’s financial hub and among the twenty largest economies on earth by the year 2020. Naturally the country has experienced political instability, corruption, and poor macroeconomic management before, this became in charge of unpleasant and harsh economic situation. The us government relentless efforts to reposition the economy have translated in to a remarkable economic growth and development.

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The industrial revolution of the Nineteenth century which catapulted the agrarian economies of the majority of countries of Europe got their stimuli from agriculture; the sector in recent history has also worked a significant miracle in countries like Mexico, India, Brazil, Peru, Philippines and China in which the Green Revolution was one of many amazing success stories. Indeed, the importance of agriculture in every nation’s economy cannot be over emphasized, for example, in United states, agriculture contributes about 1. 1% from the country’s Gross Domestic Product.

Confronted with numerous challenges, Nigerian government is decided to boost, diversify and then make the economy attractive and investment-friendly to both local and foreign investors. The us government has adopted total liberalization and globalization as the economic policy, instituted privatization and commercialization programmes of public enterprises, provided total security for business and folks, extended invitation to domestic and foreign investors, abolished laws inhibiting competition, embraced and fine-tuned policies to ensure quick realization of development and growth of all the sectors of the economy. The effort is already paying back as Nigeria has become the main objective for foreign investment thereby increased exponentially Foreign Direct Investment (FDI). Lots of economic missions and delegations from developed and developing countries have visited Nigeria, thus accelerating the increase from the economy at a very fast rate.

This is where venture capitalism derives its significance in the context of Nigeria’s long term ambitions. Private equity investment has become accountable for some of the most notable economic successes throughout the world. Entrepreneurs starting out with angel loans turned India around to the largest software exporter on earth. In South Korea, booming small high-tech businesses bypassed larger firms to lead the country’s recovery from your Asian financial crisis. Equity funded enterprises have likewise recorded high growth figures in developing countries from Asia, across Europe and also in South America. The global experience with venture capitalism throws up several important considerations with regards to providing the right environment for rapid growth. The next are one of the most essential challenges and considerations facing Nigerian policy makers in this regard:

Diversification in the agriculture sector, according to nigerian newspapers is therefore suggested for Nigeria as being a developing economy to ensure food and nutritional security, income and employment generation, poverty alleviation and also to encourage industrialization, ease pressure on balance of payment, reliable source of government revenue and overall economic development of the country.

To quote former Central Bank governor Joseph Sanusi (29 May 1999-29 May 2004), accelerated economic development is not really possible until Nigerian entrepreneurs learn how to appreciate that “it is best to have 10% of your successful and profitable business instead of own 100% of your moribund business”.

Stable rise in agricultural exports based on newspapers constituted the backbone of your favorable balance of trade. Sustainable amounts of capital were produced by the agricultural sector with the imposition of countless taxes and accumulation of marketing surpluses, which were used to finance many development projects including the building and construction of Ahmadu Bello University (Zaria) and first Nigerian skyscraper-cocoa house in Ibadan. The sector, which employed 71% in the total labor force in 1960, employed only 56% in 1977, the number stood at 68% in 1980, falling to 55% in 1986, 1987 and 1988; and 57% annually from 1989 to 1992, and has continued to nosedive into 2000s due to the neglect in the sector.

To channel itself on the path to modern development, Nigeria should examine what factors hindered the development of its agricultural sector, which was the backbone in the Nigerian economy before the era of oil boom. It must rectify the mistakes it created in over 54 years by immediately putting these strategic plans into action. Individuals of Nigeria can uplift themselves from poverty and distress by eradicating corruption and devoting themselves to strive for progress.