The secondary history of this country should not be the primary focus of research; instead, it is important to examine its economic foundations in order to identify and resolve any economic challenges. Since nothing can be produced under duress, it is necessary for an efficient economic structure to examine and use ancient analytical, historical, and statistical materials.
The lack of dynamic nature of the economic structure is blatantly apparent in Nigerian society. The higher hills of this issue are the analog developers who use unstructured economic unbalanced equations, which have been seriously depressing the economy like the bitcoin market. Yes, the government and poverty are killing us, but that is not the major goal of this article. The managers and builders of the analogy reject the outdated economic data that was formerly the nation’s route map to improvement.
The Nigerian economy is comparable to riding in first class on a colliding aircraft. Please check into every area of this country, including the center of the economy; you’ll find that a large number of criminals graduated from there. Future events are uncertain because they involve nature, yet economies can be predicted because they are all governed by the same systems. It is possible to pinpoint the exact moment that the Nigerian economy began to collapse by looking at the introduction of the new administration.
“In order to identify the strong and collapsing systems, the historical root is the one to investigate. Here is the antecedent in history”;
Nigerian Political and Economic change between 1980s — 2020
In contrast to the 1970s, Nigeria’s economy in the 1980s was characterized by its reliance on petroleum, which in 1988 accounted for 77 percent of the Federal Government’s current revenue and 87 percent of export receipts. Another notable economic development in the 1980s was the drop in real gross national product (GNP) per capita, which remained until oil prices started to increase in 1990. This was a result of declining oil output and prices. In fact, between 1980 and 1987, GNP per capita fell by 4.8 percent, which caused Nigeria to be classified by the World Bank as a low-income country (based on 1987 statistics) for the first time since the annual World Development Report was established in 1978. Another relevant feature of the Nigerian economy was an abrupt change in the government’s share of expenditures.
As a percentage of gross domestic product, national government expenditures rose from 9 percent in 1962 to 44 percent in 1979 but fell to 17 percent in 1988. In the aftermath of the 1967–70 civil war, Nigeria’s government became more centralized. The oil boom of the 1970s” provided the tax revenue to strengthen the central government further.
Expansion of the government’s share of the economy did little to enhance its political and administrative capacity but did increase incomes and the number of jobs that the governing elites could distribute to their clients. Along with nations like Bangladesh, Ethiopia, Chad, and Mali, the World Bank also determined that Nigeria was sufficiently impoverished in 1989 for it to qualify for concessional financing from one of its affiliates, the International Development Association (IDA).
More than 2 million illegal workers (mostly from Ghana, Niger, Cameroon, and Chad) were expelled between January 1983 and May 1985 as a result of political pressure brought on by the economic collapse that occurred in the late 1970s and early 1980s.
Boko Haram’s effect on Nigeria’s economy
Since 2011, Boko Haram is thought to be responsible for about 10,000 fatalities and about 2.6 million Nigerians who have been displaced. Nigeria’s economy weakened after Boko Haram started attacking local shops, offices of the government, and community centers like churches and schools. Due to attacks or fear of Boko Haram, local companies started to move to the Southern part of Nigeria. Power outages and security issues brought on by the attacks forced the closure of almost 80% of Kano’s businesses. Boko Haram severely damaged Market Monday, a significant market in Maiduguri, the capital of Borno, forcing nearly 10,000 establishments to close.
According to reports, Boko Haram’s violent attacks on banks led them to reduce their operating hours from eight to three hours in order to reduce the likelihood that they would be attacked, leaving the public dependent on their financial resources. Citizens and the government had to pay for the retribution of damages caused by Boko Haram. This stalled the economy in the northeast region because businesses were leaving, people began to lose jobs, and there was less money going into the local economy.
Conflict impacts child health through multiple pathways. Nigeria lost 1.33 trillion dollars in foreign investments as a result of international investors withholding their money due to the country’s ongoing conflict and Boko Haram’s impact on the economy. Refugees from Boko Haram in Nigeria who were uprooted or simply looking for safety fled to nearby nations like Cameroon, Ghana, Niger, and Chad. The bulk of people moved to Nigeria’s southern region, where there are more job possibilities, a better economy, and greater security. This exacerbates the socioeconomic gap between the north and the south of Nigeria, where the south is more stable economically due to lower levels of conflict, government support, and the presence of the Niger Delta oil industry.
Economic catastrophe results from unresolved conflict, and this has been a major problem for the economy. Does that have a solution?
Why the new naira note?
The idea of printing fresh naira notes in order to fix Nigeria’s economic issues is comparable to a professional doctor coming up with a remedy for an aviation problem; such a remedy will certainly lead to the week’s worst plane disaster. Do you realize that regular output spurs economic expansion? How can the economy be in a safer mode if the people aren’t producing? Manufacturing creates wealth rather than consumption, which leaves the potential for inflation, unemployment, and criminality.’
“The political climate in Nigeria is seriously slowing down the country’s economic growth”.
In conclusion, a new naira note is not the answer to the economic collapse that has existed from the previous note to the next and now to the present note. Giving individuals money will never induce them to produce; they will always choose to consume. This historical issue is caused by a lack of manufacturing. Manufacturing draws in investors, which could lead to the creation of jobs in the country. Manufacturing, not printing fresh naira banknotes, is the only economic stimulant.
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