Nigeria’s Dependence on Oil Revenue Hinders Economic Devt – NESG

The Nigerian Economic Summit Group (NESG) says Nigeria’s failure to develop other viable economic sectors while depending on crude oil revenue has contributed to the worsening economic indicators such as rising inflation, unemployment, and a weaker currency.

In a statement that was issued by its spokesman, Laoye Jaiyeola, NESG said “the neglect of other viable sectors has hampered holistic economic development and contributed to worsening economic indices such as rising inflation, unemployment, and currency devaluation”.

Also noted that, International Monetary Fund (IMF) data shows that historically, economic growth in Nigeria has been mostly volatile.

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Nigeria’s dependence on crude oil for majority of government’s revenue has been touted as a significant root cause of many economic challenges. Non-inclusive growth has stagnated the country’s growth and development over the years.

Volatility in the commodity’s price has continually exposed the economy to external shocks leading to dwindling government revenue, slowdown in foreign exchange inflows, unpredictability in planning and economic recession.