Nigeria is Africa’s second largest economy with an economic strength in trade growth, agriculture (42%) and, continuous reforms in the economy.[1]Nigeria is well known for its oil and gas and is the 10th worlds’ largest industry for oil.[2] Nigeria also has precious metals, stones and marbles that have yet to be exploited to its full potential.[3]Nigeria exported $94.8B and imported $53.3B in 2013, resulting in a positive trade balance of $41.6B. Nigeria’s top exports are crude petroleum, petroleum gas, refined petroleum, cocoa beans and, special purpose ships. Their top three exporters are India, U.S and, Brazil.[4]
Nigeria’s government implemented a reform plan in 2000 to cut down on economic corruption of oil resources. The Petroleum Industry Bill, would restructure the management of the country's oil industry in an effort to improve management, reduce corruption, and promote long-term development. Nigeria’s oil has had a negative effect impact. The revenues from the oil has either been wasted or lost through corruption. The government was considering of that year to no longer handle oil revenues rather, allow the citizens to manage it.[5]The UK is one of the largest investors in Nigeria. The top 10 UK exports are petroleum, petroleum products and related materials, power generation equipment, transport equipment, road vehicles, general industrial and office machinery/equipment, essential oils and perfume materials, medicinal and pharmaceutical products, textile yarn and fabrics, fruit and vegetables beverages.[6]
However, there are some challenges trading with Nigeria.[7]
- poor power supply nationwide
- weak infrastructures across many sectors
- some security challenges
- government bureaucracy when awarding and paying for contracts
- high level of corruption
- high unemployment and poverty
However, in 2016 the Nigerian President announced a plan to decrease dependency on the nation’s oil and gas reserve. A 2015 report announced that Nigeria losses about 50 trillion from untapped natural resources. In 2010 the government identified deposits of 37 minerals that had not been explored.[8] Nigeria is filled with valuable natural resources that have yet to be explored or exploited. Even though Nigeria is ranked #10 in oil and gas reserves corruption and mismanagement of funds has kept the country from economic growth. Pictured below: Nigeria's plan to economic growth.
 |
| Nigeria signs agreement with U.S.to boost mining & other sectors |
 |
| Nigeria Mining Forum is set to relaunch the country as a key mining |
 | |||||
| Canada takes interest in Nigeria's mining Resources
[1] Government, UK. "Doing Business in Nigeria:
Nigeria Trade and Export Guide." UK Trade & Investment. March
2014.
https://www.gov.uk/government/publications/exporting-to-nigeria/exporting-to-nigeria
(accessed February 10, 2016).
[2] Natural Resource Governance.
"Nigeria." Natural Resource Governance Institute. n.d.
http://www.resourcegovernance.org/countries/africa/nigeria/overview (accessed
February 10, 2016).
[3] Germany, Nigerian Community. "Nigerian Natural
Resources." Nigerian Community Germany. n.d.
http://nigeriancommunitygermany.com/index.php/14-resource/10-resources
(accessed February 10, 2016).
[4] OEC. "Visualizationa." OEC. n.d.
http://atlas.media.mit.edu/en/profile/country/nga/ (accessed February 10,
2016).
[5] Charter, Natural Resource. "Nigeria." Natural
Resource Charter. n.d.
http://naturalresourcecharter.org/category/country/africa/nigeria (accessed
February 10, 2016).
[6] Government, UK. "Doing Business in Nigeria:
Nigeria Trade and Export Guide." UK Trade & Investment. March
2014.
https://www.gov.uk/government/publications/exporting-to-nigeria/exporting-to-nigeria
(accessed February 10, 2016).
[7]lbid.
[8] Eremionkhale, Omono. Venture Africa:Four Natural
Resources The Nigerian Government Can Exploit. October 6, 2015.
http://venturesafrica.com/here-are-4-natural-resources-the-nigerian-government-can-explore-to-diversify-the-economy/
(accessed February 10, 2016).
*Image " Nigeria a Trade Hub to,"http://www.nigeriatradehub.gov.ng/portals/0/Images/a_trade_hub_to_assist_you_with_exporting_country_information.jpg
*Image "Economic Activity,"
Eremionkhale, Omono. Venture Africa:Four Natural Resources The Nigerian Government Can Exploit. October 6, 2015. http://venturesafrica.com/here-are-4-natural-resources-the-nigerian-government-can-explore-to-diversify-the-economy/ (accessed February 10, 2016).
* Image "Nigeria signs agreement with U.S.to boost mining & other sectors," http://sweetcrudereports.com/wp-content/uploads/2012/01/bentonite-mining.jpg
*Image Nigeria Mining Forum is set to relaunch the country as a key mining,
http://cajnewsafrica.com/wp-content/uploads/2015/09/GOLD-mining-Nigeria.jpg
*Image "Canada takes interest in Nigeria's mining Resources,"
http://sweetcrudereports.com/wp-content/uploads/2013/03/Mining.jpg
|
No comments:
Post a Comment