Nigeria, the macro and microeconomic and development environment

In the last two and a half decades, Nigeria has shifted emphasis from being a major agricultural producer to a single product economy. The oil boom transformed Nigeria from an agricultural economy to an oil producer and a mono-export culture. By 1980, oil accounted for 22% of GDP, 81% of government revenu and 96% of export earning (NASENI, 1992). Nigeria has risen to the 3rd position in the world supplying oil but declined in agricultural productivity giving way to massive importation of food items. The concentration of industries in the urban centers exacerbated the problems of inadequate and uneven development of the rural areas and a depletion of the rural agricultural labour force.

As of 1999, the country experienced negative per capita income growth, limited froeign reserves, and external debt of over 30 billion US dollar. As a result, deficits and inflation have been high and variable, social spending on health and education has been inadequate, state owned enterprises render poor service. Agricultural support systems have deteriorated and agro industries are under utilized. Farmers have little access to credit, agricultural inputs and extension services. Over 40% of the crops produced are lost to post harvest pests, spoilage and poor infrastructures.