Answer to Question #102611 in Macroeconomics for Tola

Question

Contribution of business to the economic development of Nigeria

Answer 1

Favorable geographical and natural conditions make it possible to consider Nigeria as the main market on the continent of Africa to attract foreign American and European partners. This is determined by the numerous minerals that are mined from the bowels of the country: oil, tin, zinc, gold, limestone and lignite. Allows the development of mining and manufacturing industries. In addition, Nigeria, traditionally an exporter of high-quality agricultural products: cocoa, peanuts, coffee, palm oil, beans, ginger, etc. The oil industry is the backbone of the Nigerian economy. Oil provides 90 percent of the country's export earnings. Oil is being developed by the Nigerian National Oil Company (75% of oil revenues), as well as by Royal Dutch Shell. In 2014, Nigeria, Africa's leading oil producer, became the largest African economy, ahead of South Africa in terms of GDP. Nigeria's natural gas reserves are estimated at 5.22 trillion cubic meters, half of which are in oil and gas fields. By 2010, the country became one of the leaders in the export of liquefied natural gas (LNG) - the annual export volume amounted to 21.9 million tons.

Most Nigerians work in peasant family households, providing themselves with food and growing one or more cash crops for sale. Favorable climatic conditions in the Lagos region allow you to collect two crops. Coffee, tobacco and cola nuts are grown for sale in the domestic market; cotton, palm oil, peanuts and rubber noses - for the domestic market and for export, and cocoa beans - only for export.

Minerals provide a significant portion of Nigeria's national income. Nigeria's first mining exports were tin ore and coal. Mining of the Jos plateau since 1904 cassiterite, tin ore, has always been in the hands of private companies, and coal mining in the Enugu region has been controlled by the central government. The extraction of cassiterite and the accompanying mineral columbite (niobium ore) is carried out in an open way. After the commissioning of the tin smelter in 1962, most of the tin was exported in the form of ingots.

After 1960, in connection with the transfer of railways to diesel fuel and the advent of cheaper and environmentally friendly petroleum products, coal production began to curtail. The main manufacturing industries are food and oil refining. The main industrial center is Lagos. Ajaokut Iron and Steel Works If Nigeria persists as a single state, local conflicts and crime will not prevent this country from overtaking South Africa in terms of GDP and, according to predictions regarding the Next 11 group of countries, be among the twenty leading economies in the world by 2050.