The Economy in Nigeria
As the world's sixth largest oil exporter, Nigeria has one of the leading economies in Sub-Saharan Africa but is heavily dependent on this source of earnings which accounts for over 90% of foreign exchange and nearly 80% of government revenues.
The emergence of democratic government has brought about privatisation in line with IMF and World Bank conditionalities. Although this has helped to change attitudes of employees within the public sector, there is little evidence that privatisation has made any difference to the country’s fragile economy.
The history of GNP per capita in Nigeria illustrates the sensitivity to oil prices. In 1968 it was $90; thanks to the oil boom in the 1970s it grew dramatically by more than 1000% to $1,020 in 1980. This was followed by a collapse of more than 70% to $240, the same level as in 1972. GNP per capita currently stands at $850 with over 70% of the population living below $1 a day.
The emergence of democratic government has brought about privatisation in line with IMF and World Bank conditionalities. Although this has helped to change attitudes of employees within the public sector, there is little evidence that privatisation has made any difference to the country’s fragile economy.
The history of GNP per capita in Nigeria illustrates the sensitivity to oil prices. In 1968 it was $90; thanks to the oil boom in the 1970s it grew dramatically by more than 1000% to $1,020 in 1980. This was followed by a collapse of more than 70% to $240, the same level as in 1972. GNP per capita currently stands at $850 with over 70% of the population living below $1 a day.
The leadership of the Nigeria Labor Congress (NLC) has expressed its readiness to lead Nigerians on a prolonged strike to protest the current hardships imposed on them by the recent increased in prices of petroleum products and other unpopular policies of the Obasanjo administration.
more...From: allAfrica.com Related topics/regions: [Africa] [West Africa] [Nigeria] [Development] [Labour] [Economy] Image: Nigeria's President Obasanjo © Radio Netherlands
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Claiming growth of over 10% in 2003, the Nigerian government attributes the performance to its restructuring programmes and prudent economic policies, in addition to the impact of increased oil prices. In contrast to the over-borrowing of the previous 5 years, fiscal discipline now underpins budgets.
more...Related topics/regions: [Nigeria] [Economy] |
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