It is a well-known axiom among the citizens of Nigeria, even down to the illiterates that the current economic situation in Nigeria is not in a good state. In recent years, Nigeria has seen a persistent upsurge in inflation rates, reaching the highest levels in 4years amid skyrocketing food prices and poor purchasing power. In March 2021, inflation rose to 18.17% from 17.33% recorded in February 2021. Alongside inflation, other factors like unemployment, limited exportation capacity, over-reliance on crude oil as a source of income, and many others also contribute to the poor economy of the country.
Knowing fully well that a strong economy is the source of national strength, many solutions to the factors contributing to the nation's bad economy has been identified. One very notable solution that will be emphasized in this article, is the high production of locally made products. These products are anything but imported goods. They are products produced and manufactured within a country with the resources of the country. These products facilitate the eradication of factors encouraging the nation's bad economy hence, eradicating the bad state of the economy.
Inflation, a key factor causing the bad state of the economy of this country, can be exterminated by more production of our very own made products. A very good example is Demand-pull inflation. Demand-pull inflation happens when the demand for certain goods and services is greater than the economy's ability to meet those demands. For instance, in a situation where there is a high demand for palm oil in Nigeria and there happens to be very low production of palm oil in the country. Then the country is left with no choice but to import palm oil from Malaysia; one of the largest oil-producing countries in the world at a very high rate. This will lead to an increase in the price rate of palm oil in the country which is a good example of Demand-pull inflation. But if there was a very high rate of palm oil production within the country, there will be little or no need for the importation of palm oil, therefore, eradicating the inflation rate of palm oil and even strengthening the exportation capacity of palm oil.
High production of locally made products encourages a step up in the employment rate of the nation. Entrepreneurship in the area of locally made products will increase thereby reducing the rate of unemployment and poverty in the nation, hence boosting the nation's economy. A workforce needs to be created where Nigerians compete in a global marketplace because they have the necessary skills in the production of locally made products.
We need to have a strong economy that can create employment opportunities and that can also produce the revenue that we need to defend our country at home and abroad. We need a sustainable economy that's durable for the future.
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