Major economic problems facing Nigeria; Nigeria is a center pay country with a developing business sector and a blended economy.
It has extended fabricating, administration, monetary, innovation, correspondences, and amusement divisions. However, the nation is as yet confronted with certain monetary issues.
The financial issues in Nigeria have consistently been a subject of conversation in schools, social stages, and surprisingly the public gathering.
Yet, then, at that point, everybody knows what the principal issue is. It is on the grounds that the residents and pioneers have consistently neglected to make things directly in the two guidelines of administration and law. On the off chance that our nation proceeds along these lines, monetary development will keep on being a fantasy.
Top 10 Major Economic Problems Facing Nigeria
The major economic problems facing Nigeria first on the table is corruption which is a global menace, but Nigeria suffers most of all.
People are starting to see that this nation has a corrupt culture. For many years, Nigeria has earned a considerable sum of money from the rock-tar, which has gone down the cesspool that was created by corruption.
Being an oil giant, which runs on the grease of politics, Nigeria could be characterized as a wealthy nation staying afloat on oil.
However, the problem is that money from oil does not flow to the people. The top public officials are wealthy because they hide behind the falsehood that public money belongs to no one.
The national news is full of information on how public officials are buying million-dollar mansions and accumulating stolen public funds in financial establishments abroad.
The next major economic problems facing Nigeria is the macroeconomy. The lack of consistency and the politicians’ greed are among the causes of the hemorrhage in the economy.
Every administration, which comes on board, sets up a new policy initiative instead of working on the previous one. Consequently, Nigeria has a series of inefficient and poorly executed policies. In 2003,
the federal government, under the administration of President Olusegun Obasanjo, established the National Economic Empowerment and Development Strategy (NEEDS).
Economic problems facing Nigeria this program headed by the former CBN governor, Prof Charles Soludo, was aimed toward sustainable growth and poverty reduction in the country.
However, the program failed to reach its objective. The late administration of Umaru Musa Yar’adua discarded the needs of the people.
His administration created a plan to convert Nigeria into one of the top 20 biggest global economies by 2020. So, this program, which now seems to be dead,
has gulped a considerable sum of money, which could have been used to solve some of the political and social-economic challenges facing Nigeria at the time.
Lack of interaction between the government and society
The problem is standing in the first row, among other basic major economic problems facing Nigeria. The government will not be able to manage its economic, political, and social affairs without fostering interaction between it and the private sector and state civil society.
Poor human development
In general, major economic problems facing Nigeria human resources play a significant role in the success or failure of any nation or organization.
Most of the problems facing the Nigerian economy reflect the bad quality of the nation’s economic health and human development. This is a situation that has been abandoned for many years.
The problems facing educational institutions directly influence the issues in the country’s economy. The situation will continue to be terrible if the nation remains on the same undeveloped level as it is now.
Major economic problems facing Nigeria, unemployment is one of the most damaging problems in Nigeria, and many people are disappointed due to widespread joblessness.
It seems like we are going round in circles. Economic problems facing Nigeria, unemployment is high due to the economic recession, and we have a tough economic situation due to the high rate of unemployment.
We need to break out of this vicious cycle. According to reports by the National Bureau of Statistics (NBS), in 2019, the rate of unemployment in Nigeria was 23.1%, and the underemployment rate was 16.6%.
Additionally, it is stated that the rate of unemployment in Nigeria is 32.5 percent in 2021. This figure is projected to increase further in 2022, with implications that are better imagined if the country’s current economic challenges are not urgently reversed.
Nature of the Market
A lack of authentic competition in the system is among the problems facing the economy. Market forces guide actual capitalistic economics.
The self-regulating character of the market defines where one works and lives, how much one earns, and what he/she can buy. By the way, each economy needs some form of government interference.
But we are not talking about a monopoly. Major economic problems facing Nigeria’s good market governance must work hand in hand with healthy competition. Unfortunately, Nigeria is not among the countries where these two exist in one dimension.
Education and university systems
Major economic problems facing Nigeria these days, corruption has also spread to the Nigerian educational system, especially in universities.
Professors are used to taking money from students in exchange for good marks. Some students even say that they have to bribe university executives to have their exam results submitted and compiled for the National Youth Service Corps. Not too long ago at the Rivers State University,
a renowned professor was sacked for extorting money from his students to improve their grades. This is a true reflection of the state of things in most universities across the country today.
The higher institutions and universities in this country are not in shape. The facilities that are needed to adequately teach students so that they can be useful to companies after graduation are missing. Too much theory in our educational institutions and a total lack of practice is a big issue.
The major economic problems facing Nigeria is infrastructure, it may seem like a simplistic point compared to other issues like Boko Haram, but how can a country develop without a dependable power supply?
The power department is mismanaged and corrupt, and a lot of workers in the electricity department are not equipped with the proper training or skills.
Crime and terrorism
These two issues also negatively influence the economic situation of the country and is one of the major economic problems facing Nigeria.
The Nigerian crime issue gives many people in this country sleepless nights. In some places, people feel that they cannot walk around their neighborhoods freely anymore.
Public security is an essential aspect of every state, and Nigeria has failed in this respect. As for terrorist attacks, they are now on the rise in Nigeria, which is the result of Boko Haram activities over the past years.
Environment and health issues
The health and environmental standards of the country are in deplorable condition and are among the major economic problems facing Nigeria.
In 2015, Amnesty International announced that Nigeria experiences hundreds of oil spills annually in the Niger Delta, mainly because of sabotage, pipe erosion, and uncaring attitude by oil firms.
This is also responsible for the hike in oil prices. Oil spills wilt the soil nutrients and other essential elements. This weakening can damage the communities that farm and fish in the Niger Delta and the general economy.