Nigeria is considered to be the Giant of Africa because of the country’s high Gross Domestic Product (GDP). This position has suited Nigeria as one of the richest countries in Africa making her a target of many, both good and bad, to govern. Since independence, the country has had leaders, civilian and military, that have tried to rule the country in the way that seems best but the present government has failed to take the necessary actions to build the economy.
Firstly, the government has channeled the income generated from taxes and other revenues into paying horrendous allowances such as newspaper allowance, furniture allowance, car maintenance allowance, and so on. These allowances are more than their basic salaries. Even though they aren’t needed, the government has generated means to earn more money for its officials legally. This method has ruined the economy as there are fewer funds flowing into the agricultural, educational, and industrial sectors. It has depicted the value of the Nigerian currency and this affects small-scale businesses more as very few of them are involved in investing or trading in foreign currency.
Secondly, the government is too reliant on the oil sector to generate funds. They export the raw materials to countries that need the products and sell them for a good amount of money, but they import the refined products and buy them for a lot of money as they don’t have a choice because the refineries are damaged. This has made fuel prices escalate too rapidly, thus leading to inflation of goods in the country. The economy could have been saved if they had spent the money stipulated for unnecessary allowances in repairing the damaged refinery; if so, they would not have to purchase the refined oil at all, talkless of at a huge price. It would also help businesses in the country that invoice manufacturing or trading of machinery or mechanical parts to fix and rebuild the refineries, thereby increasing job opportunities for those who were in that field and serves as a great investment for such companies. A true leader would know that being too dependent on a sector for economic growth would open a chance for imbalance in the economy and it ruins other sectors as well.
Thirdly, the government barely invests or takes interest in people or businesses that involve the invention of new devices that have proven to surpass those made abroad. Research has proven that the export of goods in high demand would help the exports generate more money. When a country provides enough goods and services to be exported, and such goods are relevant to the growth of the economies of other countries as well as their businesses, there would be an increase in demand for those goods and it can generate more. But the importation of goods that the country already produces leads to a reduction in the purchase of locally-made goods as a lot of people prefer to buy imported goods as they believe that they last long, even if the locally-made ones have a longer usage span. This has led to huge losses on the part of business owners to provide the same goods and services because on most occasions, they have had to reduce the prices of their products to match the economic potential of the citizens, or else such goods wouldn’t be bought.
Furthermore, the government has borrowed a lot of money with the pretence of using the funds to aid some sectors in the economy to function properly but these funds have not shown any effect on it. They have made things worse by allocating budgets that surpass the revenue generated every year so as to keep borrowing. This has led to the rapid devaluation of the Nigerian currency, thereby causing a constant fluctuation, which in mind at cases occurs as an increase in the exchange rate. This affects all sorts of businesses in the country because no matter how much profit is made, the fluctuation in the value of Naira leads to the instability of such businesses.
In conclusion, the government, for the past five years, has damaged potential businesses from sprouting and blooming, has made profit-making in certain businesses reduced, and has drastically steeped the economic growth of the nation with their rapid and bad decision-making.
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