Many do not believe that government policies can ever help in curtailing inflation in nigeria. We are, however, of the opinion that a wellcoordinated macroeconomic policy is needed to achieve economic growth in nigeria. Economic growth, labour market and poverty profile in nigeria. However, there is always a tradeoff in the benefits of economic policies, requiring that economic realities dictate policy priorities. Fiscalmonetary policy and economic growth in nigeria hrmars. What are 10 economic problems facing nigeria in 2019. This includes policies to make labour markets work better, remove gender inequalities and increase financial inclusion. Indigenization policy is a deliberate government policy aimed at replacing foreign investors and personnel in certain industries with indigenes. The 16page academic paper in learned offshore journal discussed government policies on the development of the nigerias modern economy. The british colonial agricultural and industrial policies in nigeria have implications for the countrys economic advancement. Section 7 presents the summary of findings, recommendations and conclusion. School of management sciences national open university of nigeria 1416 ahmadu bello way victoria island lagos nigeria. Agricultural production and economic growth in nigeria. A dispute between nigerias monetary and fiscal policy makers over how to lift the economy out of its worst slump in more than two decades may delay a recovery in africas most populous country.
The paper argues that curbing the fiscal indiscipline of government will take much more than enshrining fiscal policy rules in our statute books. After a shift from agriculture to crude oil and gas in the late 1960s, nigerias growth has continued to be driven by consumption and high oil prices. The colonial economic policies in nigeria, for instance, discouraged indigenous industrialization, but promoted export crop and. The country is africas most populous, with more than 200 million people. After world war ii, nigeria was organized as a federal system and divided into northern, western, and eastern regions. An empirical trend analysis onyemaechi joseph onwe, ph. Adesina 1977 notes that planned implementation is constrained by the following factors. Nigeria is a middleincome country, with emerging market and mixed economy. Economic development in nigeria, although has been rocked back and forth by various political, sociocultural, financial and infrastructural setbacks, the economic development of a country like nigeria cant be said to have totally been where it used to be, or to have back tracked as some people insinuate. Previous economic policies left the country illprepared for the recent collapse of crude oil prices and production. An assessment of government policies 1adamu buba, 2inuwa abdu ibrahim 1department of general studies, 2department of public administration, federal polytechnic, bauchi, bauchi state, nigeria email. Economic implications of petroleum policies in nigeria. Strengthening economic diversification in nigeria through. Policy successive administrations have described the u.
This paper for dfid nigeria has been prepared by dirk willem te velde odi. The effectiveness of macro economic policies in the nigeria economy. Nigeria entered recession in 2016 as a result of lower oil prices and production, exacerbated by militant attacks on oil and gas infrastructure in the niger delta region, coupled with detrimental economic policies, including foreign exchange restrictions. Macroeconomic policies and economic growth in nigeria. Many saw nigeria, with 15% of africas population, as an emerging economy. Almost every aspect of government has an important economic component.
It identified the role of the colonial rule in creation of the structure of nigerian economy. Premised on the dynamics of expanding labor market in nigeria and by juxtaposing the labor market and macroeconomic policies in the country, the study examines the contradictions and challenges facing the realization of the goals of gainful and productive employment in. Okoroma educational policies and problems of implementation in nigeria 249 of the society. Proceedings of academics world 46th international conference, dubai, uae, 29th30th september 2016, isbn. Our lives are constantly being influenced by economic policy. The report says that the country would benefit from policies to promote diversification and longterm inclusive growth, and focuses on leveraging regional connections and coordination to enhance nigerias competitiveness. How appropriate are current policies for driving economic growth with development. A series of unfortunate political and economic events have stalled nigerian growth. The rail transport example, 18981960 by nwachukwu j.
The northsouth divide has widened in recent years due to the boko haram insurgency and a lack of economic development in the northern part of the country. In this regard, the federal government has developed a framework in the nigeria economic recovery and. Nigerian economic policy dispute hinders chances of recovery. What policy and implementation deficits, societal challenges and governance. Usip welcomes nigerias minister of foreign affairs, ambassador olugbenga ashiru, on september 29 to discuss president goodluck jonathans efforts to consolidate recent economic progress and improve the quality of life for all nigerians. Gdp growth turned positive in 2017 as oil prices recovered and output stabilized. The impact of tax policy on economic growth in nigeria. This paper assesses how fiscal and monetary policies influence economic growth and. Meaning that the emphasis on fiscal action of the government has led to greater distortion in the nigerian economy. Large pockets of nigerias population still live in poverty, without adequate access to basic services, and could benefit from more inclusive development policies. Read the event coverage, nigerian foreign minister lays out ambitious new agenda for country.
Government policy, modern economy, political development, economic goals. British council and harvard school of public health, 2010, nigeria is undoubtedly, the largest country in africa. However, study of this nature is known to be subject to a number of problems or constrains, which are peculiar to the nigerian society such as financial constraints. It was recommended that pro poor policies should be designed for. The economic transformation agenda, otherwise known as nigeria vision 20. The industrialization strategy aims at achieving greater global competitiveness in the production of processed and manufactured goods by linking industrial activity with primary sector activity. Agajelu departmentof history and international studies nnamdiazikiwe university, awka abstract. The research would examine if there are factors, inhibiting the use of macro economic policies as instruments towards redressing.
Against this background, this study discusses the reasons that militate against effective implementation of policies in nigeria and the solutions to the problem. But still, lets point out what are 10 economic problems facing nigeria economy today. Despite the growth of the nigerian economy, poverty is still on the increase and this calls for a shift from monolithic oilbased economy to a more plural one with agriculture being the lead sector. This academic piece analysed some existing economic policies which include monetary, fiscal, labour market, trade and.
At a 2day nigeria meeting organized by the overseas development institute, london, 1617 june 2004 contact. This paper assesses how fiscal and monetary policies influence economic growth and development in nigeria. Policy makers undertake three main types of economic policy. The effects of micro economic policies on the nigeria. The economy is now on a slow track for the first half 2015 with around 3. The economy of nigeria is a middleincome, mixed economy and emerging market, with expanding manufacturing, financial, service, communications, technology and entertainment sectors. Following years of economic stagnation, nigeria embarked on a comprehensive reform program during the second term of the obasanjo administration. Ogbole, amadi, and essi 2011 wrote on fiscal policy and its impact on economic growth in nigeria 19702006. A few examples of the kinds of economic policies that exist include. The economic strategies and goals of the government can be gleaned from the economic recovery and growth plan ergp 20172020, annual budgets, the medium term economic framework, fiscal strategy papers and the stated monetary policy objectives of the central bank of nigeria cbn. Monetary policy and inflation in nigeria economy project.
Policies that do not work for the good of the country should not be. With a large population and growing middle class, there are 65 million economic active people in nigeria. It is ranked as the 27thlargest economy in the world in terms of nominal gdp, and the 24ndlargest in terms of purchasing power parity. The challenge for policy is to combine growthpromoting policies with policies that allow the poor to participate fully in the opportunities unleashed and so contribute to that growth. Macroeconomic stabilization policy, which attempts to keep the money supply growing at a rate that does not result in excessive inflation, and attempts to smooth out the business cycle. This is because the statute books are replete with dormant rules and regulation.
For example, if there is a good environment for households and firms to save and invest in the developing world, economic growth is generally observed. The colonial economic policies in nigeria, for instance, discouraged indigenous industrialization, but promoted export crop and mineral production to feed the british factories. The seeming unchanged economic situation has made many nigerians to question the reliability of the fiscal policy in solving the present and escalating economic problems the nation is facing. The international monetary fund 2000 also claims that where sound macroeconomic policies have been. Shell has been pumping oil in nigeria for nearly five decades.
Britain eventually gained control of nigerian administration. Also, both monetary and fiscal policies should be complementary. The economic problems in nigeria have always been a topic of discussion. Fiscalmonetary policy and economic growth in nigeria. Pdf diagnosis of realistic economic policies in nigeria. After independence, the nigerian economy seemed very promising.
Policy development facility phase ii pdf ii is a flexible, rapidresponse facility set up to support champions of change in implementing economic and social policies that help reduce poverty in nigeria. Simply put, the nigerian indigenisation policy was a government initiative that aimed to recover control of several vital and productive sectors of. Even after some tax policies the tax authority has put in place over the few years such as the e payment scheme, tax identification number. Investigating the impact of community based health insurance scheme among the rural dwellers of. The study involves comparative analysis of the impact of fiscal policy on economic growth in nigeria during regulation and deregulation periods. Indeed, this is the essence of evidencedbased policy formulation and advocacy. These four themes do not exhaust the range of economic policies and. Educational policies and problems of implementation in nigeria. This paper examines realistic economic policies that nigeria could implement in order to accelerate economic development. D school of management sciences national open university of nigeria abstract the role of fiscal policies in the development of emerging economies has been a major source of concern in economic literature. It has expanding manufacturing, service, financial, technology, communications, and entertainment departments. Abstract the nigerian petroleum industry has been having major transformations since the discovery of crude oil in nigeria in 1956. This should help you understand what is behind the policy. The colonial economic policies in nigeria, for instance, discouraged i ndigenous industrialization, but promoted export c rop and mineral production to fee d the british factories.