Natural Resources & Contributions of Oil/Non-Oil Sectors to Nigerian Economy | Economics for JAMB PDF Download

Development of Major Natural Resources in Nigeria

Petroleum:

• Nigeria is one of the largest oil-producing countries in Africa.
• Oil was first discovered in Nigeria in 1956 at Oloibiri, in present-day Bayelsa State.
• The Nigerian oil industry is dominated by multinational corporations, with the Nigerian National Petroleum Corporation (NNPC) as the major player.
• Crude oil production and exportation form a significant part of Nigeria's economy.

Solid Minerals:

• Nigeria is rich in solid minerals such as gold, diamond, tin, limestone, coal, and iron ore.
• These minerals are found in various states across the country.
• Gold mining is predominantly carried out in states like Zamfara, Kebbi, and Osun.
• Diamond mining is mainly done in states like Bauchi, Ebonyi, and Benue.
• The solid minerals sector has the potential to contribute significantly to the Nigerian economy.

Timber:

• Nigeria possesses a diverse range of timber species, including mahogany, teak, iroko, and obeche.
• Timber resources are mainly found in the southern and middle belt regions of Nigeria.
• Timber plays a crucial role in the construction, furniture, and paper industries.

Contributions of the Oil and Non-Oil Sectors to the Nigerian Economy

Oil Sector:

• The oil sector has been the mainstay of Nigeria's economy for several decades.
• Petroleum exports account for a substantial portion of Nigeria's foreign exchange earnings.
• Oil revenues contribute significantly to the government's budgetary allocations and public infrastructure development.
• However, the Nigerian economy's heavy dependence on oil makes it vulnerable to fluctuations in global oil prices.

Non-Oil Sector:

• The non-oil sector encompasses various industries, including agriculture, manufacturing, telecommunications, banking, tourism, and services.
• Agriculture is a significant contributor to the non-oil sector, with Nigeria's fertile land supporting the cultivation of crops such as cocoa, palm oil, cassava, and rice.
• Manufacturing industries produce goods for both domestic consumption and export, contributing to job creation and economic growth.
• The telecommunications sector has experienced remarkable growth, fostering connectivity and driving economic activities.
• The development of the non-oil sector is crucial for economic diversification and reducing Nigeria's dependence on oil.

Objectives

• Candidates should be able to trace the development of the major natural resources in Nigeria, including petroleum, solid minerals, and timber.
• Candidates should assess the contribution of the oil sector, including petroleum exports and government revenue, to the Nigerian economy.
• Candidates should evaluate the significance of the non-oil sector, including agriculture, manufacturing, telecommunications, and services, in driving economic growth and diversification.