From Oloibiri to Nowhere: The Missed Opportunity in Diversifying Nigeria’s Economy

Abstract

Oil discovery brought about unprecedented changes to the Nigerian economy, taking over from Agriculture as the economic livewire by accounting for more than 90% of the government’s revenue and contributing significantly to the GDP. The Oil industry facilitated the development of various infrastructures, attracting foreign investment, stimulating economic activity, and providing employment opportunities for Nigerians. The impact of the oil discovery on the economy has, however, not necessarily translated to successful economic growth. Interest is drawn on the effect of oil on the GDP, thus this paper studies the GDP of Nigeria before the advent of oil, the current GDP, and the contribution of oil to the GDP as the mainstay of the economy.

While oil discovery has had a huge impact on the economy and the GDP, the over-reliance on the oil and gas industry has hindered the diversification of the economy. The volatility of the oil and gas industry and the several challenges arising from the impact of the industry are threatening Nigeria’s income source and the stability of the economy. The diversification of the economy or better still, the return to agriculturally based economy is advocated for, as this would help balance the economy, to experience sustained growth