The Diminishing Relevance of Oil and the Need for Economic Diversification: The Indian Experience with Neem Tree

Abstract

Agriculture was Nigeria's economic mainstay from colonial period to the 1970s. Crude oil replaced agriculture because it brought so much money to the economy and many who depended on agriculture abandoned it in pursuance of oil money. Life in the oil boom days was better when compared to agriculture era. Staple crop farming gave way to oil wealth and by extension a far better foreign exchange earner as well as enhanced financial capacity to scale up infrastructure. The side effect was that farmers abandoned their farms and migrated to cities in search of greener pasture. In the 1980s Nigeria entered into economic doldrums thus began to borrow for her development projects and importation of food. Life among the citizens began to be tortuous. The paper uses descriptive and historical analysis as its methodology. The findings are that, over dependence on oil would not allow for positive development because of its dwindling fortunes. The prices of oil in the international market is declining steadily and is affecting Nigeria economy negatively. Government and policy makers are calling for diversification of Nigeria economy. That other mono-culture export countries especially in the developing South are doing so. There are many ways of diversifying in economies. The paper is suggesting or of the opinion that Nigeria can diversify using Neem tree. Neem tree is an agricultural product, that contributes over $2 billion yearly to Indian economy. And that is a large sum of money in naira value today. It concludes that, diversification of the economy may have many forms, Nigeria can also use Neem tree. According to studies there are more Neem trees in Nigeria than India thus Nigeria should expect much. Just as oil palm trees were taken wild from the bush before researchers made it what it is today.