Developing Countries Production Oil in Nigeria Is Essay

Developing Countries Production

Oil in Nigeria

Nigeria is located in West Africa and its borders are shared in the west by Republic of Benin, in the east Chad and Cameroon and in the North Chad. There are over 500 ethnic groups in the country but the three largest are Yoruba, Igbo and Hausa. In Africa Nigeria has the highest population and in the world it is ranked seventh most populous country. Nigeria falls under the Next Eleven economies. The country is a member of African Union and Commonwealth of Nations. The economy in Nigeria is classified under mixed economy and it has already reached a middle income status from World Bank statistics. The country has abundant natural resources among this is oil.

The greatest revenues in the country are brought by oil reserves. Petroleum is a great player in the economy of Nigeria and it accounts for up to 40% of the country's GDP and 80% of earnings to the government. .In sub-Saharan Africa Nigeria is the largest trading partner to United States when it comes to oil.it supplies close to one fifth of its oil which is approximately 11% of the oil imports. Nigeria is ranked as the 12th largest petroleum producer in the world and it is the 8th largest exporter. The main oil producing region in the country is Niger Delta.

Government structure in Nigeria

Nigeria is also known as the Federal republic of Nigeria.it is a federal republic that is made up of 36 states.it has its federal capital territory at Abuja. The president of Nigeria exercises the executive powers. The powers of the president are checked by the House of Representatives and the senate which together are combined in a bicameral body that is known as National Assembly.

There are various constraints which hinder marketing of products in Nigeria. First of all there is low marketing education within the country. Within the population the educated are consumers and investors.Most of the people regardless of their education they still practice unethical marketing practices such as smuggling. Another reason that hinders marketing in Nigeria is the fact that people prefer foreign products. Since Nigeria is just like other developing African countries, it is unable to produce some goods. Therefore they end up buying these products from industrialized countries. Therefore the local industries in Nigeria become impoverished. Therefore it becomes very difficult to market products that are produced locally in Nigeria since most of the people will prefer imports.

Local infrastructure in Nigeria

The explosive population growth in Nigeria has made it extremely impossible to keep up the required and necessary infrastructure.as a result of this the road systems fail to cope with a lot of traffic. This problem is compound by the fact that the roads are in extremely poor conditions. Some of the roads become impassible especially in rainy seasons. The electricity services in Nigeria are also very poor with acute fuel shortages that leave various parts of the country with no power (Mannix, 2010).

Apart from oil there are other unique products that are found in Nigeria. These include Agricultural products like fruits, cocoa, nuts. Apart from the agricultural products there are furniture, clothing, and minerals.it is however extremely difficult to get these products to markets. This is due to the fact that there is lack of proper transport services within the country. There is also seasonality of the services of transport within the country. Due to inadequacy of transport services there are high freight charges hence most business people are not able to afford thus they can not get their products to markets. There is the lack of weather roads as well as transport vehicles .the current transport systems are unsuitable for the transportation of perishable goods like fruits and vegetables. There are also other incidences where there are no vehicles….....