Single Product Economy

Question 1

Nigeria

Answer 1

. Oil reserves of around 36 billion barrels and natural gas reserves of over 2800 billion cubic metres

Question 2

Single product economy

Answer 2

Oil and gas accounts for more than 80% of its national income ( without this their global trade and economy would be limited)

Question 3

Economy dominated by oil

Answer 3

. Demand has fuelled Nigeria’s economy
. The focus on oil alone has resulted in dramatic decline in traditional industries of agriculture and manufacturing

Question 4

Rural urban migration

Answer 4

. Migration has increased resulting in increased levels of rural poverty and overcrowding

Question 5

Income

Answer 5

Dutch disease
. The high income generated from oil resulted in the Nigerian currency being overvalued, making imported consumer goods cheap

. This resulted in domestically manufactured goods being too expensive and unable to be exported