The Nigeria economy in its present state can be said to be declining and not progressing at all. Following the recent back log in our currency and a series of other activities, the economy has not experienced growth and has fallen short of investment. A series of factor which can be said to be the cause are but a few
- Over dependence on agriculture:
The concentration on agriculture without investing in other sectors has caused us to not experience growth. This is because development is a relative act which cannot survive on its own and this must be backed up by another. Thus, developing the agricultural sector without developing the production sector is no development.
Over the past few years, Nigeria has been a victim of terrorist attack affecting all part of the country but its influence is more felt in the north. Thus, this has hindered economic growth in such areas which has also affected the GDP of the country.
- Crash in currency:
The Nigeria currency can be said to have experienced devaluation here leaving it with little or no value and makes it almost useless when used in transactions. Thus, most people do not want to invest in a country where profit making is at its barest minimum.
- Debt crisis:
The issue of debt owed to other companies makes development almost impossible. This is because in a bid to pay up this debt, more gotten from activities done in the country are not invested back into the country rather they are used to settle up debts which are even more than the more money gotten from the GDP.
Other causes also include migration, population etcetera. The Nigeria economy can however be revived if certain measures are taken. It might not be an easy thing to achieve but can be achieved virtually at the end. Thus, the country could explore more options to make its economy experience growth as it had experienced in the past. This can be achieved if the following steps are taken: development of other structures of the economy, exportation of more locally produced goods to other countries and less importation, deviating from taking more loans from World Bank and IMF, restructuring of the economy and making its market more friendly and open to all.
The Nigeria economy: Increase in minimum wage and tax
Of recent, the civil sector experienced an increase in the minimum wage from the previous amount to 30000. This was affected by a bill passed by the Nigeria senate into law. However, it was also disclosed that this would come with an increase in the value added tax. Thus, it was explained that the reason for such is so as to have enough money to fund the new minimum wage. However, with this, the take home of a civil servant is definitely not the 30000.
In my view, the increase in minimum wage which has been fought for a very long couldn’t have come at a better period than now, however the prices of commodities in the market would experience a slight hike in prices. Thus, still making the Nigeria currency to have little or no value.
The new minimum wage cannot even provide squarely for an average Nigeria family for a month and again, if tax is increased, the money is no better than the previous amount.
Although this increase is a bit profitable on the side of the civil servant, the tax rate should not be increased cause it would make such money useless… also the law stating that it would be reviewed every 5 years should be followed because what 30000 can provide for an individual now, cannot provide such in the next 5years.