Nigerian economic policy dispute hinders chances of recovery. This should help you understand what is behind the policy. Monetary policy and inflation in nigeria economy project. Investigating the impact of community based health insurance scheme among the rural dwellers of. A few examples of the kinds of economic policies that exist include. Macroeconomic stabilization policy, which attempts to keep the money supply growing at a rate that does not result in excessive inflation, and attempts to smooth out the business cycle. A dispute between nigerias monetary and fiscal policy makers over how to lift the economy out of its worst slump in more than two decades may delay a recovery in africas most populous country. Many saw nigeria, with 15% of africas population, as an emerging economy. Following years of economic stagnation, nigeria embarked on a comprehensive reform program during the second term of the obasanjo administration. What policy and implementation deficits, societal challenges and governance. D school of management sciences national open university of nigeria abstract the role of fiscal policies in the development of emerging economies has been a major source of concern in economic literature. Economic growth, labour market and poverty profile in nigeria. The study involves comparative analysis of the impact of fiscal policy on economic growth in nigeria during regulation and deregulation periods. But still, lets point out what are 10 economic problems facing nigeria economy today.
However, study of this nature is known to be subject to a number of problems or constrains, which are peculiar to the nigerian society such as financial constraints. An assessment of government policies 1adamu buba, 2inuwa abdu ibrahim 1department of general studies, 2department of public administration, federal polytechnic, bauchi, bauchi state, nigeria email. However, there is always a tradeoff in the benefits of economic policies, requiring that economic realities dictate policy priorities. The colonial economic policies in nigeria, for instance, discouraged i ndigenous industrialization, but promoted export c rop and mineral production to fee d the british factories. What are 10 economic problems facing nigeria in 2019.
A series of unfortunate political and economic events have stalled nigerian growth. The economic transformation agenda, otherwise known as nigeria vision 20. Pdf diagnosis of realistic economic policies in nigeria. Policy development facility phase ii pdf ii is a flexible, rapidresponse facility set up to support champions of change in implementing economic and social policies that help reduce poverty in nigeria. Britain eventually gained control of nigerian administration. Shell has been pumping oil in nigeria for nearly five decades. Colonialism is a major feature of the economic history of nigeria. Fiscalmonetary policy and economic growth in nigeria hrmars.
Nigeria is a middleincome country, with emerging market and mixed economy. These four themes do not exhaust the range of economic policies and. The country is africas most populous, with more than 200 million people. Policies that do not work for the good of the country should not be. An empirical trend analysis onyemaechi joseph onwe, ph. The economy is now on a slow track for the first half 2015 with around 3. Policy successive administrations have described the u.
This paper assesses how fiscal and monetary policies influence economic growth and. Simply put, the nigerian indigenisation policy was a government initiative that aimed to recover control of several vital and productive sectors of. Read the event coverage, nigerian foreign minister lays out ambitious new agenda for country. Meaning that the emphasis on fiscal action of the government has led to greater distortion in the nigerian economy. Almost every aspect of government has an important economic component. Usip welcomes nigerias minister of foreign affairs, ambassador olugbenga ashiru, on september 29 to discuss president goodluck jonathans efforts to consolidate recent economic progress and improve the quality of life for all nigerians. Fiscalmonetary policy and economic growth in nigeria.
Indigenization policy is a deliberate government policy aimed at replacing foreign investors and personnel in certain industries with indigenes. Also, both monetary and fiscal policies should be complementary. Section 7 presents the summary of findings, recommendations and conclusion. The rail transport example, 18981960 by nwachukwu j. The report says that the country would benefit from policies to promote diversification and longterm inclusive growth, and focuses on leveraging regional connections and coordination to enhance nigerias competitiveness. After world war ii, nigeria was organized as a federal system and divided into northern, western, and eastern regions. The challenge for policy is to combine growthpromoting policies with policies that allow the poor to participate fully in the opportunities unleashed and so contribute to that growth. With a large population and growing middle class, there are 65 million economic active people in nigeria. Large pockets of nigerias population still live in poverty, without adequate access to basic services, and could benefit from more inclusive development policies. It was recommended that pro poor policies should be designed for. How appropriate are current policies for driving economic growth with development. The colonial economic policies in nigeria, for instance, discouraged indigenous industrialization, but promoted export crop and.
The research would examine if there are factors, inhibiting the use of macro economic policies as instruments towards redressing. The colonial economic policies in nigeria, for instance, discouraged indigenous industrialization, but promoted export crop and mineral production to feed the british factories. Macroeconomic policies and economic growth in nigeria. The paper argues that curbing the fiscal indiscipline of government will take much more than enshrining fiscal policy rules in our statute books. Gdp growth turned positive in 2017 as oil prices recovered and output stabilized. Our lives are constantly being influenced by economic policy. Many do not believe that government policies can ever help in curtailing inflation in nigeria. This includes policies to make labour markets work better, remove gender inequalities and increase financial inclusion.
Despite the growth of the nigerian economy, poverty is still on the increase and this calls for a shift from monolithic oilbased economy to a more plural one with agriculture being the lead sector. The economic strategies and goals of the government can be gleaned from the economic recovery and growth plan ergp 20172020, annual budgets, the medium term economic framework, fiscal strategy papers and the stated monetary policy objectives of the central bank of nigeria cbn. But for many, the policy is just lots of words, with no real meaning. Economic development in nigeria, although has been rocked back and forth by various political, sociocultural, financial and infrastructural setbacks, the economic development of a country like nigeria cant be said to have totally been where it used to be, or to have back tracked as some people insinuate. The industrialization strategy aims at achieving greater global competitiveness in the production of processed and manufactured goods by linking industrial activity with primary sector activity. Agajelu departmentof history and international studies nnamdiazikiwe university, awka abstract.
Policy makers undertake three main types of economic policy. This paper assesses how fiscal and monetary policies influence economic growth and development in nigeria. Proceedings of academics world 46th international conference, dubai, uae, 29th30th september 2016, isbn. This paper for dfid nigeria has been prepared by dirk willem te velde odi. This paper examines realistic economic policies that nigeria could implement in order to accelerate economic development. Adesina 1977 notes that planned implementation is constrained by the following factors. The 16page academic paper in learned offshore journal discussed government policies on the development of the nigerias modern economy. Previous economic policies left the country illprepared for the recent collapse of crude oil prices and production.
School of management sciences national open university of nigeria 1416 ahmadu bello way victoria island lagos nigeria. British council and harvard school of public health, 2010, nigeria is undoubtedly, the largest country in africa. It has expanding manufacturing, service, financial, technology, communications, and entertainment departments. The northsouth divide has widened in recent years due to the boko haram insurgency and a lack of economic development in the northern part of the country. A general overview of monetary policy and inflation in the nigerian economy is the foundation upon which the project is developed. Strengthening economic diversification in nigeria through. Econometric analysis of time series data from central bank of nigeria was conducted. The effectiveness of macro economic policies in the nigeria economy. After a shift from agriculture to crude oil and gas in the late 1960s, nigerias growth has continued to be driven by consumption and high oil prices. The effects of micro economic policies on the nigeria. The british colonial agricultural and industrial policies in nigeria have implications for the countrys economic advancement.
Okoroma educational policies and problems of implementation in nigeria 249 of the society. In this regard, the federal government has developed a framework in the nigeria economic recovery and. This academic piece analysed some existing economic policies which include monetary, fiscal, labour market, trade and. Against this background, this study discusses the reasons that militate against effective implementation of policies in nigeria and the solutions to the problem. This is because the statute books are replete with dormant rules and regulation. Agricultural production and economic growth in nigeria. Government policy, modern economy, political development, economic goals. The role of taxation in promoting economic growth in nigeria is not fully felt, and optimal tax is not been realized that can engine economic growth primarily because of its poor administration. Abstract the nigerian petroleum industry has been having major transformations since the discovery of crude oil in nigeria in 1956. The international monetary fund 2000 also claims that where sound macroeconomic policies have been. Premised on the dynamics of expanding labor market in nigeria and by juxtaposing the labor market and macroeconomic policies in the country, the study examines the contradictions and challenges facing the realization of the goals of gainful and productive employment in.
Nigeria entered recession in 2016 as a result of lower oil prices and production, exacerbated by militant attacks on oil and gas infrastructure in the niger delta region, coupled with detrimental economic policies, including foreign exchange restrictions. The impact of tax policy on economic growth in nigeria. It identified the role of the colonial rule in creation of the structure of nigerian economy. For example, if there is a good environment for households and firms to save and invest in the developing world, economic growth is generally observed. Indeed, this is the essence of evidencedbased policy formulation and advocacy. Educational policies and problems of implementation in nigeria. At a 2day nigeria meeting organized by the overseas development institute, london, 1617 june 2004 contact. The economic problems in nigeria have always been a topic of discussion. The seeming unchanged economic situation has made many nigerians to question the reliability of the fiscal policy in solving the present and escalating economic problems the nation is facing. We are, however, of the opinion that a wellcoordinated macroeconomic policy is needed to achieve economic growth in nigeria. Even after some tax policies the tax authority has put in place over the few years such as the e payment scheme, tax identification number. Economic implications of petroleum policies in nigeria. The economy of nigeria is a middleincome, mixed economy and emerging market, with expanding manufacturing, financial, service, communications, technology and entertainment sectors.
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