Solving the Poverty Crisis in Nigeria: An Applied General Equilibrium Approach
BACKGROUND OF THE STUDY
This study is basically undertaken to take an objective view of the impact of international trade on the economy of Nigeria. Before her political independence in October 1st 1960, Nigeria has been an active player on the field of international trade, initially with predominately agrain products, but presently dominated by petroleum products. Since the discovery of oil in commercial quantity in Oloibiri in the present day Delta State, Nigeria has been an important player in world affairs, economically and otherwise, particularly being the 6th largest producer of crude oil in the organisation of petroleum exporting countries (OPEC). Unfortunately, these blessings by nature to Nigerians didn’t reflect in the overall welfare of the citizen made worse, by the collapse of world oil market as a result of glut in 1981. For example, crude oil prices, which rose rapidly from $20.94 dollars per barrel in 1979 to $36.95 dollars in 1980 and $40.00 dollars in 1981, fell to $29.00 in 1983 and low level of $14.85 in 1986 (Anyanwu, Oyefusi, Oaikhenan, Dimowd 1997). Exchange receipt which rose from $15.7 billion dollars in 1981, fell to $5.2 billion dollars (Anyanwu etal).
The above does not mean that there have been absolutely no gain from Nigeria’s participation in the arena of international trade, the point is that the gains have been normal, not in real terms. Nigeria is suffering from the “Dutch Disease” going by the impact of petroleum on its economy. Because a nation where over 40% of the population live below poverty line, cannot be said to have prospered in real economic terms.
This study is going to take a position, whether Nigeria’s economic under-development can be attributed to international trade or whether her relative economic prosperity, in terms of growth and development can be attributed to her taking part in the field of international trade. In other words, how effectively has trade contributed to Nigeria’s economic growth and
This study is basically undertaken to take an objective view of the impact of international trade on the economy of Nigeria. Before her political independence in October 1st 1960, Nigeria has been an active player on the field of international trade, initially with predominately agrain products, but presently dominated by petroleum products. Since the discovery of oil in commercial quantity in Oloibiri in the present day Delta State, Nigeria has been an important player in world affairs, economically and otherwise, particularly being the 6th largest producer of crude oil in the organisation of petroleum exporting countries (OPEC). Unfortunately, these blessings by nature to Nigerians didn’t reflect in the overall welfare of the citizen made worse, by the collapse of world oil market as a result of glut in 1981. For example, crude oil prices, which rose rapidly from $20.94 dollars per barrel in 1979 to $36.95 dollars in 1980 and $40.00 dollars in 1981, fell to $29.00 in 1983 and low level of $14.85 in 1986 (Anyanwu, Oyefusi, Oaikhenan, Dimowd 1997). Exchange receipt which rose from $15.7 billion dollars in 1981, fell to $5.2 billion dollars (Anyanwu etal).
The above does not mean that there have been absolutely no gain from Nigeria’s participation in the arena of international trade, the point is that the gains have been normal, not in real terms. Nigeria is suffering from the “Dutch Disease” going by the impact of petroleum on its economy. Because a nation where over 40% of the population live below poverty line, cannot be said to have prospered in real economic terms.
This study is going to take a position, whether Nigeria’s economic under-development can be attributed to international trade or whether her relative economic prosperity, in terms of growth and development can be attributed to her taking part in the field of international trade. In other words, how effectively has trade contributed to Nigeria’s economic growth and
References: 16 Project Level B.Sc.