00:00 Good day students, my name is Mr. Balogun Abdullah, your economics teacher.

00:20 The topic for today is, the nature of the Nigerian economy.

00:25 At the end of this lesson, it should be able to do the following.

00:32 1. Explain the nature and structure of the Nigerian economy.

00:37 2. Explain the minions of primary, secondary and tertiary sectors.

00:46 3. Mention the economic activities of various geopolitical zones in Nigeria.

00:56 Now, let us take a general overview of the Nigerian economy.

01:03 Before the discovery of crude oil by Shell BP in 1956, at Oloybury in Rivas State, agriculture

01:13 had been the mainstay of the Nigerian economy.

01:17 That is, before oil was discovered in Oloybury in Rivas State, Nigeria's major state is

01:27 mainstay agriculture, that is agriculture contributed more to the GDP of Nigeria than any other

01:36 sector.

01:37 Now, agriculture still remained the major source of government earnings even after the discovery

01:43 of crude oil until 1976 when petroleum became the major source of government revenue

01:51 to date.

01:53 That is, before 1976, agriculture continued to remain the major contribution of revenue

02:03 to the government.

02:05 In other words, the major contributor to the GDP of our country.

02:13 The economy of Nigeria is a middle-income mixed economy.

02:19 As mixed economy, it means that it's combined the fixture of both capitalism and socialism.

02:27 That is, some parts of the businesses are owned and controlled by private individuals,

02:34 which is capitalism, while other parts of the businesses and economic activities are

02:42 owned and controlled by the government, which is a segment that is leaning towards socialism.

02:50 So, that is what is meant by mixed economy.

02:55 It is an emerging market with expanded manufacturing, financial, service, communications, technology

03:03 and entertainment sectors.

03:05 Now, let us take a look at the components of the Nigerian economy by looking at the primary

03:15 secondary and the tertiary sectors and their contribution to the Nigerian economy.

03:26 The primary sector consists of both the agricultural and extractive industries.

03:32 That is, all those companies and businesses which go into farm production and marine and

03:42 other agricultural activities and those who are into mining of minerals are the awful within

03:51 the primary sector.

03:54 Primary activities in this sector include crop farming, livestock production, fish farming,

04:01 crude oil exploration and mining of other mineral resources such as coal, iron ore, granite,

04:11 tin, limestone, et cetera.

04:15 Now, the secondary sector, the secondary sector, consists of all the manufacturing industries.

04:23 That is, those industries that transform the raw materials from the primary sector into

04:30 finished goods.

04:32 What it means is that all those industries, companies and businesses that make use of

04:42 the products of the primary sector by transforming them into finished goods in the process of

04:49 manufacturing, all of them for within the secondary sector.

04:55 Examples are plastic producing industries, electronics industries, producers of kitchen

05:03 utensils and furniture items.

05:07 The tertiary sector, what is the tertiary sector?

05:12 The tertiary sector includes all those companies and industries who render services to their

05:21 customers, including those who take part in the marketing and distribution of manufactured

05:27 goods and others also like transportation, communications, banking industries.

05:37 So it means that the tertiary sector are majorly involved in rendering of services.

05:46 They do not produce manufactured goods.

05:48 What they do is that they render services, either rendered services in the process of distribution

05:57 of manufactured goods or advertisement of such goods or telecommunications, banking

06:05 industries and others like that.

06:08 So the tertiary sector is distinguished by rendering of services.

06:17 The economy of Nigeria is changing and it is shifting from mainly primary days economy

06:25 reliant on farming and extractive industries such as oil and gas to one which is making

06:31 more money or GDP from manufacturing or secondary industries and more services in the tertiary sector.

06:41 What this means is that both the secondary and the tertiary sectors are taking over the

06:48 dominance of the economy from the primary sector.

06:53 That is now Nigerian economy has more of the manufacturing or secondary sectors and

07:01 tertiary sectors than in the olden days where it is majorly dominated by the primary

07:09 sectors through agriculture and the extractive industries.

07:16 Despite all these changes, many people still work in the farming sub sector and wealth

07:22 is not well distributed between the very wealthy and the very poor.

07:30 Let us briefly observe this transformation that has taken place in these three sectors

07:36 between the year 1975 and 2014.

07:44 In the year 1975, the primary sector contributed 68.9% of the GDP.

07:53 The secondary sector contributed 10.4% of the GDP while the tertiary sector contributed

08:03 20.7% of the GDP.

08:07 As can be seen from the figures, you can see that the primary sector has taken dominance.

08:15 That means the primary sector contributed the greatest part of the GDP.

08:24 Now about 24 years after, in 1999, there was a very little shift in the structure of the

08:31 Nigerian economy as indicated by the contribution of each of the three sectors to the GDP.

08:40 This time around, the primary sector contributed 70% to the GDP, the secondary sector contributed

08:51 10% to the GDP while the tertiary sector contributed 20% to the GDP.

09:01 And this is almost like what we had before.

09:07 In the year 1975, there was only a little change in the contribution of each sector.

09:17 But let us look at this.

09:19 15 years after that in 2014, there has been a remarkable change in the structure of the

09:27 economy till date.

09:30 In the primary sector contributing 20.6%, the secondary sector contributing 25.6% and

09:39 the tertiary sector contributing 53.8%.

09:45 As can be seen, unlike in 2019, where it was only 20% that we got from the tertiary sector,

09:56 now we have 53.8% from the tertiary sector, which is a massive leap in the transformation

10:04 of the Nigerian structure of the Nigerian economy.

10:08 Now let us look at the economic potentials of Nigeria.

10:13 That is, those positive areas which Nigerians can build upon to make this economy one of

10:24 the most important and largest economy in the world.

10:28 1.

10:29 The economy of Nigeria is an emerging market with expanding manufacturing and service sectors.

10:38 What this means is that the Nigerian market is currently growing.

10:44 It is growing in leaps and bounds, especially in the areas of manufacturing and service

10:52 sectors.

10:53 And what the government needs is to put in place those development projects that could

11:00 boost production, more of production, the manufacturing industry and the services sectors

11:06 also.

11:07 Why not living out the agricultural sector?

11:11 Because agricultural sector still remains a very important sector in the Nigerian economy.

11:18 2.

11:20 Nigeria has the largest economy in Africa.

11:23 So Nigeria is the biggest economy in Africa and that position should be maintained.

11:30 You can't just maintain that position by just claiming to be the giant of Africa.

11:35 The government has to put in place a lot of policies, economic policies, developmental

11:41 projects that will do what that will help the country to maintain this position.

11:49 3.

11:50 It has local markets for its products, or into its large population size.

11:55 That is, because of the population side of Nigeria, Nigeria can easily market its products

12:01 within Nigeria, even before exporting out of the country.

12:06 So it is an advantage to Nigeria.

12:09 The population side of Nigeria is an advantage for its when it comes to marketing of its products.

12:14 That is what it's meant by, it has local markets for its products, or into its large population

12:21 size.

12:22 4.

12:24 It has large size of labor.

12:27 As you all know, the size of the labor is determined by the population size.

12:34 Because the bigger the population size, the bigger the size of labor force and the smaller

12:39 the population size, the smaller the population, the size of the labor force.

12:46 So all these are the potentials of the Nigerian economy, which if it is improved upon, it

12:54 can take Nigeria to the next level, positively.

12:58 5.

12:59 Now, economic activities of the six geopolitical zones in Nigeria.

13:06 The six geopolitical zones in Nigeria are north-west, north-east, north-central, south-west,

13:16 south-south, and south-east.

13:20 The north-west, the north-west is made up of seven states, which include Kanu State,

13:29 Kaduna State, Katasina State, Kaby State, Jigawa State, Soko State, and Zamfara State.

13:37 The economic activities in this zone include the production of rice, maize, sorghum, tomato,

13:47 the rearing of livestock, and fishing.

13:51 The most notable mineral resources in this zone is limestone, which is located at Soko

13:57 to the north-east.

14:00 The north-east comprises of six states, which include Adamaa State, Bauchi State, Buranu

14:09 State, Gombe State, Taraba State, and Yubei State.

14:16 The economic activities in this zone include livestock production such as rearing of goats,

14:24 sheep, and cattle.

14:29 There are also farmers in this region, but one thing I wanted to take note of is that we

14:37 have more of animal production, that is livestock production in the north-east than in the

14:45 north-west.

14:46 Whereas, we have more of crop production in the north-west than in the north-east.

14:54 There are not so much mining activities in this region, that is, the mining activities

15:00 here is very minimum.

15:03 The north-central.

15:05 There are six states and the federal capital territory, FCT.

15:12 The six states are Benway State, Kogi State, Kwara State, Nasara State, Ninja State, and

15:21 Klatu State.

15:23 The main economic activities in this zone are fishing and farming, that is, majority

15:31 of the inhabitants of this zone are into fishing and farming activities.

15:40 Some inhabitants also engage in mat-making, hunting, weaving, trading, etc.

15:50 The mineral resources in this region include columbite and thin, found in joss, iron ore,

15:58 found in Kogi State, and limestone found in Benway State.

16:06 The south-west, this zone comprises of six states, which include equity states, legal

16:15 state, urban state, undue state, ocean state, and or your state.

16:23 The economic activities here are mostly commercial activities.

16:28 There are also farming practices, including poultry farming.

16:36 What this means is that commercial activities takes dominance over other economic activities

16:43 in this region.

16:49 The south-south.

16:51 There are six states in this zone, and those six states include acquire-boom states, biester

16:58 states, cross-reverse states, agro-state, delta-state, and reverse states.

17:07 They engage in oil palm farming, rubber farming, cassava farming, cocoa farming, etc.

17:17 The major economic contribution to the Nigerian economy from this zone is the production

17:23 of crude oil from this zone.

17:26 So, as you can see, this zone currently is the most important geopolitical zone to Nigeria

17:33 economically.

17:34 I said, "economically," why?

17:36 Because it is the major contributor to the Nigerian GDP now as a result of the location

17:42 of crude oil, which is the main state of the Nigerian economy currently.

17:49 The south is, this is made up of five states, which include Abia State, Anambra State,

17:59 Agro-state, and Ebony State.

18:05 This zone is known for the business mindset of its inhabitants.

18:10 That is, majority of the people in this zone have business orientation, the black trading,

18:16 the affront of business, the deal in trading of food items and other items.

18:23 They also produce cul-anote, cassava, yam, rubber, and oil.

18:33 The mineral resources that can be found here are limestone and coal.

18:40 Abia and Ebony State also possess crude oil, that is, two states from this zone also join

18:49 the south-south in the production of crude oil, as a result of the location of crude oil

18:56 in these two states from the zones.

19:00 Now, we are going to take these questions for your self-assessment.

19:09 One, explain the nature and structure of the Nigerian economy.

19:15 Two, state the meanings of primary, secondary, and tertiary sectors.

19:23 Three, mention three geopolitical zones and their economic activities.

19:31 Thank you for watching.

19:34 My name is Mr. Balogum Abdullah, till the next class.

19:45 [MUSIC]