THE RATIONALE BEHIND THE DIVERSIFICATION OF THE CONTEMPORARY NIGERIAN ECONOMY

Abstract

This paper examined how the diversification of the Nigerian economy has the capacity of turning Nigeria to its rightful place as a major global economic power thus building a viable global economic empire. It is the only way for Nigeria to survive the turmoil of global economic uncertainty. The Nigeria crude oil will not provide endless revenue. It is very important for Nigerians not to believe that oil is the beginning and the end of its economic sustainability. The global debate on finding alternative to oil is yielding results. Thus, it is necessary for Nigeria to diversify her source of revenue because president Trump of United States has opened nearly all US water to drilling. This action is geared towards reducing America’s foreign oil dependency to countries like Nigeria. The need to diversify Nigeria’s economy begins with the United States’ threat. Over the years, the United States has remained the largest single buyer of Nigeria’s crude oil. Therefore, if US stops buying Nigeria’s crude oil without Nigeria taking the right step towards diversification of the economy, the Nigeria’s mono-cultural economy will experience economic crisis; to pay workers salary and implement budget will become difficult. Diversification is the only sensible way to make Nigeria competitive in the current global economic climate. It will create middle-class entrepreneurs and it is about the only realistic path to better Nigeria’s economy. The study adopted the descriptive design. It drew upon primary and secondary sources. Primary sources include oral information and testimonies. Reports of newspapers and magazines were also used in conjunction with official records in government publications. Secondary sources include relevant books. The researcher made use of direct observation method. All the pieces of information so gathered were subjected to critical historical evaluation.