Diversification in Nigeria: The Way Forward

Abstract

Nigeria is currently a mono-economic nation because of her neglect of other sectors and sole dependent on oil sector for revenue generation and economic sustainability. The global determination of oil price, oil depletion, international oil shocks, dwindling and volatility of world oil price have created untold hardships that have hampered economic growth and development of oil dependent countries like Nigeria. To avert more economic dangers ahead and avoid negative implications of mono-economy, there have been current calls from various angles to urgently diversify to other sectors. This paper will have insight on the most viable sectors for diversification purpose and critically identify the challenges that may affect diversification of the economy to those sectors using secondary reports and explanatory research design for analysis. The finding revealed among others that the key diversification challenges are: poor and unstable power supply, access to finance, lack of coordinating local products and discovering foreign buyers, policy somersaults etc. From the implications of the findings, the study drew conclusions and made recommendations that can boost revenue generation, national productivity and exportation, sustainable diversification and economic growth.