What Is The Role Of Money In Nigeria Economy?


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Luke Wilcox answered
As is the purpose of money in all other economies, it is a physical record that is accepted as payment for goods and/or services. It is considered to be a medium of exchange, a unit of account, a store of value and occasionally a standard of deferred payment. Money kept in banks is usually a record of how much money the bank owes the person. This is because banks tend to use deposited money in order to invest and gain more money back.

The economy of Nigeria is ranked 31st in terms of GDP (PPP) throughout the entire world. It is a mixed economy market, with the following sectors of the economy now becoming well developed:

  • Entertainment
  • Transport
  • Financial
  • Communications
  • Legal

The sector of the economy related to the manufacturing done is now considered to be the second best on the continent and provides a large number of produce to the west African region.

Within the past decade, Nigeria have undertaken economic reforms in attempt to get the economy back to a good standard after years of the economy being hindered by mismanagement. The economy is now on its way to reaching its full potential, due to the undertaken reforms which have greatly helped. Nigerian GDP purchasing power doubled between 2005 and 2010, however informal sectors of the economy that aren't apparent on the official figures further increase this dramatic change.

Nigeria now has the most efficient economy in west Africa, the 3rd largest in the whole of Africa after South Africa and Egypt. Judging by the previous improvements to the economy, it is considered to be on its way to becoming one of the 30 best economies in the world by 2011.

Much of the economies recent progress has been through exporting oil, approximately 2.2 million barrels a day. This gives Nigeria an approximate revenue of $52.2 billion which is equal approximately 14% of the economies official GDP figures. With the informal sectors of the economy included, this figure drops to approximately 10%.

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