Jason Hamaan Negatively impacted i would say. As in 2024, Nigeria is facing hyper-inflation to the extent that $1 is now equal to more than a thousand naira. More issues Nigeria is facing are high cost of living, higher unemployment and poverty rates…solely because Nigeria’s reliance on oil production and export.
With the revenue gotten from export of oil to foreign countries in exchange of world’s reserved currency, US dollars, with which is used in managing country’s expenses. Some of these expenses are funding of projects, payment of foreign construction workers working day-in-day out tiredlessly, payment of imported refined products such as fertilizers for agricultural productions, refined oil and gas for automobile and manufacturing industrials, and technological, gadgets, tools and equipments, health equipments…and most importantly, for the payment of foreign debts, which runs in billion US dollars.
To answer your question: how does the reliance on oil export impact the overall economic stability and diversification effort in Nigeria?
With the decline sales of oil due to foreign business switching from carbon emissions energy, which is unhealthy to nature to a more nature-friendly, green-house energy, Nigerian government who still rely on oil sales is in deficit to run the country’s expenses, talk more of effort to allocate some budget into reinvest in other economic sectors for diversification. Nigerianl government, instead should they encourage more domestic manufacturers who will attract foreign investors and money, they rather punish domestic manufacturers with high taxes. They further went, and took loans from Chinese government for cheap projects, thereby, accumulatimg huge debts for Nigerian generations yet to come.
