What Are The Problems Facing Nigeria Economy?


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Hannah Barton Profile
Hannah Barton answered
The Nigerian economy depends greatly on oil, natural gas, coal and tin. It produces 3.3% of the world's oil supply, which is not as high as other countries that make their money from the oil industry.

The problems that surround the Nigerian economy are as follows;

  • International relations
Nigeria has not always had the best international relations and with changes in the government structure and the changing face of industry in the country, other countries have been reluctant to trade with them on the resources that they can readily get elsewhere.

For this reason, the economy has not grown at the same rate as it could have. With the natural gas and oil it has to offer it could have grown much faster and at a better rate if the international relations of the country had not suffered so many issues in the past.

  • Competitive pricing
The pricing of the natural resources that Nigeria has available have not been as competitive as some other countries. For this reason, there has been much less interest in buying from Nigeria than there has been from buying and trading with other oil rich countries. As their pricing has not been competitive, this has caused problems for the economy and has made it harder for the country to boost its trade in these areas.

  • Becoming a market leader
To become a leader in their markets, Nigeria must change the way that it trades and make sure that the trade relations are strengthened, while also ensuring their pricing is competitive enough to withstand any competition. The next few years could see the country grow and become a market leader in natural resources but it will have to make sure that it has the right international relations as it starts to emerge economically.

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