Nigeria is considered a fast-growing country which has almost every type of resources necessary for its success; but for some reasons, we still have face some huge economic problems in the country. Some of them seem like they can be solved easily while others appear to be tough challenges. But there are no problems that cannot be fixed at all. In this article, we will try to focus our attention on solutions for some economic problems in Nigeria.
5 economic problems in Nigeria
There are some major issues in the Nigerian economy that really have to be addressed; these problems are way more than the 5 that will be discussed in this article, however, this list focuses on those problems that affect every single person living in the country.
For some reason, when most authors describe the economic problems of Nigeria, they focus on the socio-political ones like terrorism, deficiency of patriotism among the people, poor leadership etc. We do not think this approach is correct.
So let us take a look at the 5 main issues in the Nigerian economy:
- Devaluation of the national currency
- Poor infrastructure management
- Unproportional taxes and benefits
1. Unemployment in Nigeria
According to public researches, the number of unemployed people in Nigeria is approximately equal to 24% of the total population. However, we are sure the number is even higher in the real life. This problem especially affect the youngest citizens of Nigeria. Official statistics say that there are more than 38% of people under 24 who are unemployed, and the real state of things could be even more deplorable.
There are a lots of reasons for unemployment in Nigeria, but still, we have to admit that the most significant reasons are poor education and unhealthy competition in the labor market.
Some people believe corruption is a political issue that does not have to be listed among the economic problems in Nigeria; but, this statement is only half true. First of all, we have to admit that government and civil servants are not the only players on the field of corruption. They are the most popular players, but still not the only ones. For example, there are a lot of corruption cases in private enterprises. Some of them are connected with the process of recruitment, others may arise through the working process.
Secondly, we cannot say we have not noticed the bad influence of corruption on the labor market. A situation where some sort of people have the opportunity to achieve bribes, ends up making other positions stay vacant. Nobody wants to be a farmer and get their hands dirty when they can sit in an office and make dirty money.
3. Devaluation of national currency
It is not a secret that there has been a lot of cases in Nigerian history when Naira faced devaluation. In fact, this problem is a permanent factor just like inflation. Moreover, the current Nigerian government is doing everything to make the situation even worse. Despite the huge amount of exported oil, Naira continues to weaken against other international currencies.
4. Poor infrastructure management
This is another old-fashioned problem in Nigeria. The power sector in the country is also full of corruption and irrational management. Domestic and foreign companies are suffering every year and we do not have to mention regular citizens. Frequent power failures lead to unstable situations in every economic and social sector.
Another issue with infrastructure management is the poor development of road and rail networks. It seems that government doesn’t consider the importance of stable investments in these areas. Even up to half of the budget money for road and rail development does not get put into its intended use.
5. Disproportional taxes and benefits
This is another state regulation problem that has a serious influence on Nigeria economy. You cannot build a wealthy business area without appropriate stimulation programs and in Nigeria we do not see such mechanisms. On one side, the problem shows up in comparatively big taxes, and on the other side, we see the lack of benefits for business newcomers and other categories of people.
There is also a problem of inappropriate use of tax money. In theory, these summaries should be spent on social and economic needs, but in reality, only crumbs are left for these purposes.
READ ALSO: What are the major causes of corruption in Nigeria?
Solutions for economic problems in Nigeria
Most people believe that all the problems mentioned so far can never be resolved; but this type of thinking is wrong, and our first tip for solving them is - change your mindset because negative-minded people will never live in a good environment.
Apparently, changing our thinking pattern is not the only option available; we can all act differently while going about our daily activities to achieve the change we need. So, we have three groups of solutions:
Reforms in social sphere
The main problem in this category is the imperfection of the educational system. What is wrong with it? Mostly everything. The deficit of skills between teachers, bad conditions in educational institutions, outdated training programs and teaching aids, and, finally, a huge gap between achieved knowledge and real-life demands are all contributing factors to the problems we face.
Another problem with education lies in its spreading. There are still a lot of places without schools or any sorts of educational institutions in Nigeria. Also, we have religion and national controversies, which in turn lead to terrorism and chaos in the society.
But we do not have to fear these tendencies. Thoughtful reforms, hard work with fresh educational material and the peaceful spread of education can go a long way. We also have to gain public control of the budget money that should be spent on such social demands.
Modern Nigeria politicians are totally incompetent in their different areas. Also, most of them are mired in corruption and illegal machinations. They have multi-million companies and other business interests. This kind of people cannot properly lead the country because they will always use existing positions for their own benefit.
How to fix this problem? We do not have to forget that the only reason for the existence of a state is to meet the needs of its citizens. And if someone forgets about this fact, we have to be first to remind them. Not through revolution, but by using our election rights and mechanisms like plebiscite, impeachment and vote of non-confidence.
There would be no significant change in the Nigerian economy until we find answers to our social and political issues. Undoubtedly, there can be no development in a country which is terrorized by marginals and dishonorable officials. But let us imagine that we have found the keys to the above-mentioned problems. What do we have to reform in the economy?
First of all, we have to give all our available resources for infrastructural development. We also have to deal with our oil dependency problem and expand other areas of the economy. Eventually, we must also strengthen the role of farming and households.
Another useful clue for economical wealth can be gotten from the examples of the UAE (United Arab Emirates). This country whose economy was completely dependent on the oil sector just 10 years ago now faces a total diversification of vacancies and business. A huge part of this process depends on private sectors, so we have to find ways to stimulate entrepreneurs. As an option, we can use free economic zones as a factor of business development.
The path to greatness is always uneasy. It can take decades before we see real changes in our society. But we also have the power in our own hands to solve some main economic problems in Nigeria.
READ ALSO: Nature and importance of economics in our life