Overview of Nigerian Economy Up to 2017 Paper Example

Paper Type:  Essay
Pages:  7
Wordcount:  1772 Words
Date:  2022-06-27

Introduction

Well, the economy of Nigeria performed the worst in 2017. All this was attributed to the decline in prices of oil, decrease in oil production and reduction of non-oil exports all which led to a severe scarcity of foreign exchange. The Nigerian economy was adversely affected by foreign exchange control knock-on factors that were introduced in 2015 by the CBN, particularly the restriction on foreign exchange for all 41 imported items - most of which are direct inputs needed by the agro-allied and manufacturing industries. The West African super economy recorded three recurring quarters of economic reduction in 2016. In the third quarter of 2016, the GDP continued the downward trend, and it retrenched by 2.25% relative to the third quarter of 2015. As the oil sector continued to decline, the non-oil division shifted in the reverse direction, and it slightly increased by 0.03%. Nearly all main players of the economy were in a recession except Agriculture and Information & Communications. There is a growing need for the government to lay down steps to propagate growth in the following sectors of the economy which led to almost 80% of GDP by the third quarter of 2016. These main sectors include; Trade, Real Estate, Agriculture, Mining and Quarrying, Manufacturing, and Information & Communications.

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In 2016, Nigeria's Consumer Price Index realized a substantial increase in the price levels of goods and services across the country which rose to a 20 year in elevation of 18.6 (year-on-year) in December 2016. It, therefore, means that this increase was great because of the devaluation of Naira, the upsurge in energy tariffs and variation of prices of petroleum goods. The most affected sectors of this increase relate to basics such as gas, housing, electricity, and water. This uptick in price increases combined with increasing unemployment and underemployment rates has propagated Nigeria's Misery Index to one of the poorest in the world.

African Development High Fives

Akinwumi Adesina, the eighth elected president of the African development bank group during the inaugural address, he set some agendas for the bank group that was to be built on the strategy that was to exist from 2013-2022. Five development priorities strategies were highlighted which were named as 'high five' which were to be used to develop institution. These high fives were to integrate Africa light up and power Africa, industrialize Africa, feed Africa, and to improve the living standards for the African people. This focus was to transform the lives of African people and also to work toward the goal of the united nation on sustainable development goal (SDGs).

African development banks board later approved a ten years strategy in 2013; this strategy was to cover a duration period starting in 2013 to 2022 which was entitled to transforming Africa. Ten years of the strategy was to be achieved through overall growth and changeover to green growth mainly through the five operational priorities. These priorities were the development of the infrastructure, private sector development, regional economic integrations, skills and technology, and the governance and accountability. Despite this there was some three aspect which was to be taken into consideration, this was agriculture and food security, gender and fragile state.

World leaders agreed on setting a sustainable development goal, with the primary aim of entirely eradicating poverty in the planet come 2030. This was also affirmed after this meeting which was held in September 2015 in the session for twenty-first united nation conference on climate change which was held in Paris. Equally determined treaty on climate change was made, to achieve this the global community had to task the multilateral development banks (MDBs) to help boost the activities by financing the projects. This was also to be done by leveraging and thronging in financials resources moving from billions to trillions. This goal will only be effective if they are all achieved in Africa. The multilateral development bank has to respond to all challenges and to support the growth and transition to green growth and the implementation of ten years strategies by focusing on the priority that is referred to as the high fives.

Nigeria Development Policies

National economic empowerment and development strategies (NEEDs) has great attention toward development and the poverty reduction while sustaining growth in Nigeria. It is supported by three pillars; the first one is enhancing that the government is effective and is effective in its working. It improves the lives of its citizens while improving their service delivery. The last pillar is through promoting economic growth mostly in non-oil private sectors. Currently, the Nigeria government is trying to strengthen its framework and addressing the country enormous development necessity. The government is also trying to hasten the preparation of the progressive report on the first annual progress. This has greatly helped them to determine their first enactment experience.

Nigeria development policy has been able to achieve poverty reduction strategy which is the major first step in defining a reliable agenda and framework for the economic growth. It also helps in fighting with poverty level in the country. In developing the policies, there is the need for maintaining a sound macroeconomic, mend the transparency and focus on the responsibility of the public sectors while strengthening the basis for the private sector growth. Also, the government has to secure the appropriate and adequate resources for allocating in health and education sectors.

Economic Performance

The economics of Nigeria continued showing the good sign of recovery from 2016 recession. The gross domestic product growth was estimated at 0.8% rise in 2017 this figure had grown from the previous 1.5% in the previous year. This was a positive move this led to the projection of the year for the following years that is 2018 and 2019 which were projected to be 2.1 and 2.5 respectively. This performance was accelerated by the major performance of the higher oil prices and also the more top achievements of the agricultural produce. Total spending in the percentage of the gross domestic product dropped from 13% which was recorded in 2014 to 10.3% in 2017 where revenue declined more abruptly. This was from the previous 11.4% to 5.6%. There was a budget deficit of 4.8% this was in the year 2017 up from 4.7 in the year 2016. This has also projected to advance to 4.3 in the year 2018 and also improve to 4.1 in the year 2019 as the revenue performance was seen improving.

Unemployment continued to be high in the year 2017 which was the same case witnessed in the previous year. The good thing is that it is expected to decrease even though it's a slight decrease to 13.5% due to recovery effortlessness production forces in mainly manufacturing and agriculture. Monetary policy had continued to be contractionary in the year 2017 and is expected to remain constant in the year 2018. The policy rate stands at 14% this was since July 2016 this was mainly to control the inflation and control naira. This is because the inflation has persisted inflexibly high. Foreign currency has highly improved the introduction of managerial measures by the central bank since early 2017. The measure included trading widows for portfolio savers at market-determined charges. This also led to upcoming of Nigerian autonomous foreign exchange charges fixing. This made the banks estimate forex rates that were very near to the introduced market rates. This made the naira to remain stable almost in the year 2017. It is also expected to strengthen slowly as the economy tries to recover.

How Multilateral Development Bank has boosted the Economy of Nigeria

Multilateral development bank has widely boosted the economy of Nigeria. This is mainly through financing projects and investing in the improvement of the infrastructures. Nigeria has also experienced a partial and some full privatization of utilities mostly for water provision and electricity generation. Other infrastructures are also taken care of such as telecommunications and the transportation sector. This helps the citizen find it simple to find out local and external markets for their products. The multilateral development bank (MDB) has continued playing their role helping the establishment of the coming generation of the emerging market. Through the conjunction with the African development bank, they have played a very vital role in supporting the economic growth and boosting the activities that lead to human development product in the country. Due to the continued support from the World Bank Nigeria has naturally evolved over the years increasing their economic markets and venture flows, this has helped the play a frontline role in trying to foster the upcoming generations of evolving markets as well as expanding the economic opportunities together with the increasing ones.

Nigeria's Economic Recovery and Growth Plan (ERGP) 2016-2017

Nigeria's ERGP intends to cultivate on the current sectoral plans such as the National Industrial Revolution Plan together with the Nigeria Integrated Infrastructure Master Plan. It will, therefore, reinforce the successful elements of these plans and strategies at the same time addressing difficulties recorded in their implementation. ERGP is also in line the United Nation's Sustainable Development Goals so that it can successfully address the three SDG dimensions, namely environmental sustainability issues, social and economic dimensions. The main element of the ERGP includes sustained wholesome growth to combine national cohesion, enhancing efficiency in the private and public sector, structural economic changes, increased national productivity, achieve sustainable diversification of production, to substantially develop the economy as well as achieve maximum welfare for the Nigerian citizens with the enhancement of energy and food security.

The impact of AfDB on the environment and climate change in Nigeria

The AfDB has been committed to helping Nigeria, and the whole African continent adjusts with the climate change. According to the Energy, Environment and Climate Change Department (ONEC) of AfDB, many of African still use kerosene to light their houses, prepare their food with gathered wood and most of them spend much of their time growing small foodstuff. A very substantial work stays to be done to increase African's access to energy at the same time addressing the social and environmental dangers of climate change to ensure prolonged sustainable development. To address these difficulties, the AfDB came up with ONEC in 2010. This department intends to progress investments of AfDB, knowledge creation, the building of capacities in sectors of climate change, environment, and energy. It is this department which is charged with managing and developing AfDB's public-area energy assortment. ONEC has provided analytical services on the environment sector and climate change activities. Also, it directs the mobilization of creative environmental and climate finance to create a way for Africa's climate-strong and green development.

The ONEC also contributes to AfDB's work to lead the way for a greener and more inclusive development according to its 2013-2022 strategy. It vision for the next five years is to ensure there is access to modern energy not only in Nigeria but also in other member African countries, developing climate-strong and lower-carbon development strategy. T...

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Overview of Nigerian Economy Up to 2017 Paper Example. (2022, Jun 27). Retrieved from https://proessays.net/essays/overview-of-nigerian-economy-up-to-2017-paper-example

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