Top Five Major Economic Problems in Nigeria Today and Solutions
Nigeria is a country endowed with abundance of human and natural resources. However these resources are not put to good use. As a result, majority continue to wallow in poverty. Basic amenities such as water, food and shelter are in short supply. Economic recession is the order of the day as prices continue to go up and standard of living is on the rise. All these can be attributed to various factors. Here we have selected top five Major Economic problems in Nigeria Today and Solutions.
Five Major Economic Problems in Nigeria Today and Solutions
1. POOR PLANNING
Poor planning on the part of the government such as delay in the making and implementation of the annual budget, setting high exchange rates and the likes gives rise to some of the major economic problem facing Nigeria.
2. HIGH RATE OF INFLATION
The current rate of inflation in the country is over 18% and is continually on the increase. One of the major sources of inflation is the rise in oil prices which affects most areas of the Nigerian economy.
3. Poor Management
Yeah, poor management of government projects and sectors, Its already a headache for the delay in carrying out a due project by the Nigerian government, but the neglect and our attitude to proper management of properties and projects handled by the government are so poor.
The government has been unreasonable with taxes. The taxation system only favours the elite and not the vast majority trying to manage their small and medium scale businesses.]
4. HIGH-INTEREST RATE
The current interest rate stands at about 26.77% – 27% which is a turn-off for many potential investors as well as existing investors. High-interest rate decreases company gross profit. Poor investments, in turn, causes an increase in unemployment rate.
5. BAD POLICIES
Policies made by the government do not effectively support economic growth in the country.
In Continuation Of The Five Major Economic Problem Facing Nigeria and Solutions
There are measures that can be put in place to mitigate problems development in Nigeria. Some of them are:
1. MODERATE INTEREST RATE
The interest rate should be lowered with a view to attracting investors both locally and internationally. The presence of many investors to set up companies and the likes create jobs.
2. FAVORABLE POLICIES
More policies should be made to boost the country’s economy
3. PROPER PLANNING
The government should ensure that the budget should be made and implemented early enough. They should also plan to put measures in place to cushion the effect of any economic decision such as an increase in exchange rate.
4. TAXATION SYSTEM REVIEW
The system of paying taxes should be reviewed with a view to giving business starters a chance to thrive.
5. DECREASE IN INFLATION RATE
The rate of inflation should be reduced. Oil prices which easily affects the economy should be subsidized.
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