Nigeria Economic Growth And Recovery Plan

Exactly what is happening currently using the Nigerian financial technique is far from being affected by any means through the global credit crisis. At global level currently, the banks are under-capitalised, but Nigerian banks as outlined by naija news have ended-capitalised. And So I usually do not think this is a problem whatsoever. I think that Nigerian banks are under pressure off their economies within Africa continent that are affected by the credit challenges.

Agriculture is recognized as a catalyst for that overall development of any nation; development economists have always assigned the agriculture sector a central area in the development process, early development theorists though emphasized industrialization, they counted on agriculture to supply the essential output of food and raw materials, along with the labour force that would gradually be absorbed by industry and services sector. Much later thinking moved agriculture towards the forefront from the development process; the hopes for technical alternation in agriculture and “green revolution” suggested agriculture as the dynamo and magic wand for economic development and growth.

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Several mechanisms have been set up to sustain this growth and development, able to balancing the interests of stakeholders. Perhaps, this view should have influenced Gordon Smith submission. He described Nigeria as the most dynamic market in Africa, which can be under severe pressure from some countries in Africa to function as a cushion from the results of global turbulence. Also, he noted that some countries like Ghana, Malawi, Mauritius, and the like were depending on her currently on account of global risk exposure and therefore the country’s economy, led from the consolidated banks, was faraway from being afflicted with the global credit crisis currently rocking the world’s financial giants. He stressed further that foreign investors, who can be patient enough to weigh the Nigerian financial system on the credit risk perspective in accordance with global events, will discover the nation’s financial sector more interesting to spend and raise capital from.

Faced with numerous challenges, Nigerian government is decided to bolster, diversify and then make the economy attractive and investment-friendly to both local and foreign investors. The federal government has adopted total liberalization and globalization since the economic policy, instituted privatization and commercialization programmes of public enterprises, provided total security for business and individuals, extended invitation to domestic and foreign investors, abolished laws inhibiting competition, embraced and fine-tuned policies to guarantee quick realization of growth and development of all sectors of the economy. The time and effort is already paying down as Nigeria has become the target 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 expansion in the economy at a extremely fast rate.

This is why venture capitalism derives its significance in the context of Nigeria’s long-term ambitions. Private equity investment has become responsible for some of the most notable economic successes around the world. Entrepreneurs getting started with angel loans turned India around into the largest software exporter on earth. In South Korea, booming small high-tech businesses bypassed larger firms to steer 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 then in Latin America. The worldwide knowledge of venture capitalism throws up a number of important considerations in terms of giving the right environment for rapid growth. The subsequent are one of the most critical challenges and considerations facing Nigerian policy makers in this regard:

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

Ahead of the political crisis of 1967-1970, agriculture’s positive contributions to the economy were instrumental in sustaining economic growth and stability. The majority of food demand was satisfied from domestic output, thereby obviating the requirement to utilize scarce forex trading resources on food importation.

Stable increase in agricultural exports according to naija news constituted the backbone of the favorable balance of trade. Sustainable quantities of capital were derived from the agricultural sector with the imposition of several taxes and accumulation of marketing surpluses, that were employed 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% of your total labor force in 1960, employed only 56% in 1977, the amount stood at 68% in 1980, falling to 55% in 1986, 1987 and 1988; and 57% annually from 1989 to 1992, and possesses continued to nosedive into 2000s as the result of the neglect from the sector.

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