Alternative Energy Sources – Implication for the Nigerian Economy
Journal Title: Scholars Journal of Economics, Business and Management - Year 2014, Vol 1, Issue 8
Abstract
Since the discovery of oil in commercial quantity in Nigeria in 1956 and the oil boom of 1970s, oil has dominated the economy of the country. In Nigeria, oil accounts for more than 90 percent of the country’s exports, 25 percent of the Gross Domestic Product (GDP), and 80 percent of government total revenues. Therefore, any volatility in the price or quantity of oil usually has grave and devastating consequences on the economy and government fiscal operations. For instance a US$1 increase in the oil price in the early 1990s increased Nigeria's foreign exchange earnings by about US$650 million (2 percent of GDP) and its public revenues by US$320 million a year. It is obvious that Nigeria’s near-total reliance on oil production for income generation clearly has serious implications for the economy. Indeed of greater concern today is the concerted efforts of the western developed nations, the United States and China to sway their economies away from oil to other alternative energy sources. The United States and China – the two largest consumers of oil, have been particularly very aggressive in the quest to minimize their dependence on fossil fuel in the near term and to do away with fossil fuel generally in the long term. This aggressive search for alternative energy sources could have catastrophic consequences for the Nigeria economy unless the country prepares itself in advance. In this paper, we reviewed the possible implications of alternative energy sources on the Nigerian economy and the tactical options open to the country to insulate its economy from the backlash that will result in a world without fossil fuel. Among other things, the authors recommended that the country should begin now to explore other natural endowments with great export potentials. The country should also re-invest heavily in agriculture; in manpower and infrastructural development. In addition, the country should begin now to save more aggressively a large chunk of today’s huge earnings from oil exports for future generations and the rainy days that obviously lie ahead. Keywords: Alternative Energy, Oil, Fossil fuel, Economic Development
Authors and Affiliations
Dr. Nwadiubu A, Dr. I. O. Onwuka
Keywords
Related Articles
- EP ID EP384464
- DOI -
- Views 73
- Downloads 0
Designing a Customer-Centric Knowledge Management Strategy for Health Services in Bahrain
The world’s economy is shifting from a traditional one towards a knowledge-based economy. A tra¬ditional economy is known for resource scarcity, tangibility, limitability, an increasing marginal cost, and decreasing marg...
Process to Determine Innovation Types Within Organizations
Abstract:Innovation is a highly-used term today which can be found in almost all branches of economy. Therefore, most organizations are developing innovation strategies to increase performance and boost profits. Especial...
Research on the Risk Communication Problem of the NIMBY Public Project
In China's urbanization and industrialization process, the state needs to build a large number of public programs to meet the needs of social and economic development, but some of the projects have negative externalities...
Foreign Trade and Carbon Emission: Empirical Evidence from China
Foreign trade is considered a major driving force behind China’s rapid economic growth. However, it is argued that China’s development is relying excessively on environmental services. In this study, we aim to examine th...
Replacement of Conventional Energy Source with Solar Powered Electrification Systems: An Empirical Study in Educational Institutions
Abstract:This study in conducted in selected educational institutions in the state of Assam, considering the large amount of energy consumption in public establishments exceeding 20KW. With an addition of few high capaci...