ROLE OF NON-OIL EXPORT ON ECONOMIC DEVELOPMENT OF NIGERIA
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ROLE OF NON-OIL EXPORT ON ECONOMIC DEVELOPMENT OF NIGERIA
Chapter one
1.1 Introduction
Prior to the 1970s, non-oil items in a variety of forms were Nigeria’s primary source of foreign exchange revenues. During this time, the agricultural sector produced a considerable volume of food and cash crops (cocoa, palm oil, groundnut, etc.) for both export and home consumption.
Nigeria was the world’s greatest producer of palm and groundnuts, as well as the second largest producer of cocoa. Furthermore, cotton, rubber, and timber goods were key exports.
However, from early 1970, crude oil production and commercialization have been a key feature of Nigeria’s growth agenda, following a significant structural change from agriculture.
The oil sector accounts for around 80% of government revenue, making it a significant source of growth for the Nigerian economy. Although the oil sector accounts for the majority of government revenue.
The early 1980s saw a mix of demand and supply variables, as well as Western political intrigues, that consistently eroded the Organisation of Petroleum Exporting Countries‘ (OPEC) market share and price stabilisation policies on crude oil marketing.
As a result of the downward pressures and uncertainty in petroleum prices, the government’s revenue from oil exports has declined from its peak in 1980.
Thus, diminishing and unreliable oil revenue, increased demand for foreign cash for industrial and commercial uses, and external debt have all conspired to make it necessary for the country to build a national non-oil export development programme.
This is necessary if the country is to continue meeting its foreign financial obligations. The urgent need to diversify the country’s resource base is not only economically beneficial, but also has enormous political strategic implications.
The expansion of non-oil production facilities will not only encourage prosperity and generate new job possibilities, but will also diminish the nation’s dangerous reliance on a single commodity over which it has little control.
The primary goal of this study is to provide a critical assessment of non-oil exports in terms of their contribution to Nigeria’s economic development. Nigeria’s non-oil exports include agricultural products (cocoa, cotton, palm produce, rubber, and groundnut), solid minerals (tin, ore, columbine, and coal), and manufactured goods.
It is worth noting that, while the non-oil sector has lost its relevance as a key source of revenue production in the economy, it remains dominating, particularly in terms of employment.
Thus, according to the fourth Nation Development Plan 1981–1985, the agriculture sector alone employed 60% of all individuals gainfully employed in 1980.
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